© Reuters.
By Scott Kanowsky
Investing.com — Shares in Renault SA (EPA:) jumped in mid-morning trading on Monday after Reuters reported that alliance partner Nissan Motor Co., Ltd. (TYO:) is urging the French carmaker to cut its stake in the Japanese company.
Nissan would ideally like to see Renault’s stake in the firm reduced to 15% from the current level of about 43%, according to a source familiar with the matter quoted by Reuters, and is mulling over possibly raising the cash needed to repurchase shares.
The source added that, in exchange, Nissan would reportedly agree to plug investment into Renault’s planned division for electric vehicle assets. The alliance partnership would also reportedly not be impacted by the move.
Separately, Bloomberg News reported that Renault would be open to reducing the stake.
Nissan declined to comment to Reuters, while Renault did not immediately respond to a Reuters request for comment.
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