Rio de Janeiro, Jan. 10 <A HREF="aol://4344:30.bloombrg.389091.602536905">
(Bloomberg)</A> -- Brazil's Rio de Janeiro state government plans to sell its
32 percent stake in PSA Peugeot Citroen's new factory at Porto Real, 145
kilometers (90 miles) from the city of Rio de Janeiro, a government official
said.
The state invested 125 million reais at 1998 values to attract the French
carmaker to the state but Rio Governor Anthony Garotinho has decided it's not
within the state's role to keep the stake. The government plans to sell the
stake at auction, although no date has been set.
``The governor has decided to the sale should go ahead, as the money could be
better applied in social projects,'' said Vera Ferreira, a spokeswoman at the
government's economic development department.
Peugeot Citroen, which also received $300 million in financing from Brazil's
state development bank, known as BNDES, to set up the factory, declined to
comment on the state government's decision.
Peugeot Citroen will get ``preferential rights'' to buy back the shares, the
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