PARIS (Reuters) -- PSA/Peugeot-Citroen Chairman Thierry Peugeot has written to his cousin Robert Peugeot, head of the Peugeot's FFP family holding, to criticize a planned tie-up with China's Dongfeng Motor that would dilute the family's influence, a French newspaper reported.
PSA's board earlier this month approved a 3 billion euro ($4.1 billion) capital increase that would result in Dongfeng, the French government and the Peugeot family each with a 14 percent stake in the automaker.
The Peugeot clan currently controls PSA through a 25 percent stake commanding 38 percent of voting rights.
Robert Peugeot favors pulling back from the family's reliance on the automaker, while Thierry wants to maintain as much control as possible of the company the family founded, according to sources.
"I am worried about the strategy of withdrawal from Peugeot that you seem to want to carry out," Thierry Peugeot said in the letter dated Jan. 27, business daily Les Echos reported on Wednesday, publishing a copy of the letter.
The plan will create a three-headed governance structure that will make running PSA difficult, Thierry said in his letter.
Thierry is pushing an option in which PSA would raise the entire 3 billion euros by selling shares on the market without investments from Dongfeng or France, the report said. JPMorgan Chase & Co. has offered to fully underwrite a capital increase of that size.