(MENAFN- AFP) Shares in struggling French automaker PSA Peugeot Citroen soared on Monday on the possibility for eased sanctions in Iran and strong signs that the group is about to hire a top executive from Renault.
A source close to the matter told AFP Peugeot Citroen is about to name former Renault number two Carlos Tavares as a co-head beside current chief Philippe Varin, who has approved the hire.
A union source said company representatives have been called by management to a briefing later Monday, though the topic of the meeting was not disclosed.
In August, Tavares gave an interview in which he said he had little prospect of being able to succeed Renault chief executive Carlos Ghosn as head of the group and left the company abruptly two weeks later.
Talk of Tavares landing at Peugeot comes amid other reports that the company was still in negotiations with Chinese carmaker Dongfeng about a potential capital injection.
The hiring of Tavares was widely being interpreted as a gambit by cash-strapped Peugeot to satisfy Dongfeng, with Varin viewed as being too closely associated with the Peugeot family.
Shares in Peugeot rose 4.45 percent to 10.68 euros in afternoon trade on Monday, while the Paris CAC 40 was up 0.57 percent.
Peugeot, which reported falling sales for the third quarter, is in the throes of a radical restructuring involving deep job cuts and the closure of a factory.
It was also rescued last year by means of big state guarantees for its financing and credit arm.
The news of a possible easing of sanctions on Iran also affected the share price.
Peugeot cars are a ubiquitous presence on roads in Tehran and the prospective reopening of the market could mean a boost for a company that is at pains to expand sales.
Renault shares meanwhile rose by 1.15 percent, with analysts believing both French auto companies are well-placed to benefit from the easing of sanctions in Iran, a result of a historic deal on nuclear power agreed in Geneva early Sunday.
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