GM in talks to buy small Peugeot stake: sources PARIS/NEW YORK (Reuters) - General Motors Co (GM.N) is in advanced discussions to buy a small stake in French automaker PSA Peugeot Citroen (PEUP.PA) as part of their proposed strategic alliance in Europe, sources familiar with the situation said on Monday. Under the terms being discussed, GM would likely buy a stake of less than 5 percent in Peugeot, the sources said. A deal could be announced in the next few days, although sources warned that no deal has been reached and talks could still fall apart. GM declined to comment. A Peugeot spokesman did not immediately return calls and messages seeking comment. GM and Peugeot are discussing a broad strategic alliance designed to stem losses in Europe and cut production costs elsewhere, people familiar with the matter told Reuters last week. For GM, an alliance would provide a means to lower operating costs at its loss-making European unit, Opel, while Peugeot would gain much-needed access to international markets at a time when auto sales in Europe are sagging, the people said. Reporting by Christian Plumb in Paris, Philipp Halstrick in Frankfurt and Soyoung Kim in New York; Editing by Phil Berlowitz