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Renault Sells $4.2B Volvo Stake

French carmaker said Thursday it raised $4.16 billion by selling part of its stake in Swedish truck maker Volvo AB.

PARIS (AP) -- Shares in Renault soared Thursday after the French carmaker said it raised euro3 billion ($4.16 billion) selling part of its stake in Swedish truck maker Volvo AB.

France's second largest carmaker said in a statement it sold Volvo stock representing 14.9 percent of the share capital and 3.8 percent of the voting rights at a price of 93 SEK ($13.85) per share.

Renault said it will "remain a major shareholder" with 17.5 percent of Volvo's voting rights.

Renault has been a shareholder in Volvo since 2001, when it sold its truck-making division to the Swedish company in exchange for stock.

Renault said the funds raised through the sale "will strengthen Renault's balance sheet, in preparation for the launch of our new strategic plan next year." Under chairman Carlos Ghosn, Renault has made bringing down its debt a priority. In the first half of this year Renault cut its debt by euro1.3 billion to euro4.7 billion.

Renault shares jumped 6.3 percent at midday in Paris trading to euro38.83. Volvo stock was down 3.8 percent at 89.30.

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