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Description: Renault SA (RNO), which is losing sales faster than any other European carmaker, sold its remaining Volvo AB (VOLVB) stake for 12.8 billion kronor ($1.92 billion) to boost funding, ending an 11-year run as the Swedish truckmaker’s largest owner.

Source: Businessweek.com

Date: Dec 13, 2012

Link:  http://www.businessweek.com/news/2012-12-12/renault-to-sell-volvo-shares-worth-2-billion-to-cut-debt#r=bloomberg

Questions for Discussions:

  • What is the reasoning behind this decision?
  • Do you think it is a good one?
  • What other alternatives are available to management?

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