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Peugeot discussing new capital hike, family would see stake fall

PARIS, May 29 (Reuters) - French automaker PSA Peugeot Citroen is considering a new capital increase after burning through 2.5 billion euros ($3.21 billion) in cash in the past year, news website La Tribune reported on Wednesday.

While such a move looks increasingly necessary, it would likely dilute the Peugeot family's stake in the troubled French carmaker, the website said.

The talks on a potential capital hike are underway actively at Peugeot and within the family, which owns 25 percent of the company and 38 percent of its voting rights, the site reported, citing an unnamed source close to the matter.

A Peugeot spokesman declined to comment on what he called "the latest in a series of rumours."

Along with the family's ability to participate in such a capital hike, it remains an open question whether U.S. partner General Motors, which owns 7 percent of Peugeot after participating in the group's most recent capital hike last year, would take part in another one.

Peugeot, which is opening talks with unions on making its French factories more competitive, is expected to consume another 1.5 billion in cash in 2014, La Tribune said. ($1 = 0.7779 euros) (Reporting By Christian Plumb and Pascale Denis; Editing by David Cowell)