Renault board to meet on Nissan alliance

PARIS: French carmaker Renault plans to hold a board meeting to discuss its alliance with Japanese partner Nissan later on Tuesday, a source close to the matter said, confirming a report in Le Figaro newspaper.

The meeting comes after the French government increased its stake in Renault to 19.7 percent from 15 percent in April, a move it said was intended to boost its voting rights and protect its position as a key shareholder but which angered both Renault and Nissan.

Since then, the head of the APE state holding agency, Regis Turrini, has been replaced by Martin Vial.

A Renault spokesman confirmed there would be a board meeting on Tuesday but would not comment on the agenda. A meeting on the French carmaker's strategy is also planned for Wednesday.

Carlos Ghosn, who is chief executive of both carmakers, may review various scenarios for the alliance, which dates back to 1999 and which he wants to deepen, Le Figaro wrote without naming its sources.

Ghosn said at the Frankfurt car show last month that discussions were continuing among all parties without being urgent.

Shares in Renault were trading up 3.4 percent by 0905 GMT at 67.97 euros, down from a late-May high of about 100 euros.

"The market is speculating on the potential developments of the alliance with Nissan that could be made," a Paris-based trader said.