DONGFENG MOTOR GROUP COMPANY LIMITED 
PARIS (Reuters) - The French government is weighing a possible sale of part or all of its 14 percent stake in PSA (>> PEUGEOT), the maker of Peugeot, Citroen and DS cars, Les Echos reported on Tuesday.
The state shareholdings agency is reviewing all investments as it seeks to fund cash injections for troubled nuclear group Areva (>> Areva) and state-owned power giant EDF (>> EDF), the business daily said on its website.
The PSA holding is a candidate for sale or part sale because it was acquired recently and is showing a strong gain, the paper reported, quoting an unnamed government official. No decision has been taken, it added.
The French carmaker and finance ministry both declined to comment on the report.
The value of the government's PSA stake has nearly doubled in just over two years since it was bought for 800 million euros (£609 million), as the company teetered close to bankruptcy.
A factor complicating any sale, as Les Echos' report notes, could be the matching 14 percent held by China's Dongfeng Motor Group (>> Dongfeng Motor Group Co. Ltd), which the French stake was designed to balance.
(Reporting by Laurence Frost; editing by Susan Thomas)
