The French government will guarantee as much as 7 billion euros ($9 billion) of new bonds for PSA Peugeot Citroën, Europe's second-largest carmaker, in exchange for greater influence over company strategy.
The government and employee unions each will receive a seat on Peugeot's board of directors. An outside committee will be set up with veto power over significant changes in Peugeot's operations, the French Finance Ministry said.
Peugeot also will not pay any dividends, repurchase shares or provide management board members with stock options as long as the government guarantee is in place, the automaker said. The shares dropped 4.6%.
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