PARIS (March 10) — Michelin has sold its 1.2-percent equity interest in French car maker Peugeot S.A. for $167.4 million.
Michelin did not disclose how it disposed of its 2.83 million shares, which had been held by a subsidiary company, Pardevi.
The French tire maker said it expects to report a capital gain of $131 million on the transaction in its 2006 financials.
The company shareholding in Peugeot dates back to 1974, when Peugeot took over fellow French car maker Citroen S.A., in which Michelin had held a substantial stake, according to a Peugeot Web site. That stake translated at the time into a 10-percent share of Peugeot; this sale represents the last remaining stake.
Francois Michelin held a seat on Peugeot´s strategy board as recently as last year.