PARIS, Feb 28 (Reuters) -Peugeot Citroen must respond as soon as possible to reports of an imminent capital increase, France's AMF market watchdog said.
"Peugeot must issue a statement on this subject as soon as possible, in compliance with stock market law," an AMF spokeswoman said.
Peugeot shares surged 9.6 percent on Tuesday then tumbled to close 0.4 percent higher after the Wall Street Journal reported that the company planned to raise 1 billion euros ($1.34 billion) by issuing stock as part of a tie-up with.
GM declined to comment on the report on the newspaper's website, and a Peugeot spokesman did not immediately return calls.
($1 = 0.7450 euros) (Reporting by Laurence Frost; Editing by Christian Plumb)