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Exor chairman says capital increase not planned
May 30, 2013 / 9:58 AM / 4 years ago

Exor chairman says capital increase not planned

TURIN, May 30 (Reuters) - Italian car company Fiat’s controlling shareholder Exor said on Thursday it does not intend to ask shareholders for more capital, its chairman said.

Exor has 925 million euros ($1.2 billion) in cash, according to slides shown to shareholders on Thursday.

“To ask for more capital would not be opportune, and it is improbable because Exor shares are trading at a discount to our portfolio’s net asset value,” said Exor Chairman John Elkann at a shareholder meeting.

Exor has enough cash to invest in any future Fiat capital increase should the carmaker decide to ask shareholders for more funds after its upcoming merger with Chrysler.

Fiat Chief Executive Sergio Marchionne said on April 9 that Fiat may need to raise more capital after it completes the buyout of the 58.5 percent in Chrysler it does not already own.

“It will be necessary to strengthen our capital in the medium to long term,” Marchionne said on April 9.

Exor has 30 percent in Fiat. ($1 = 0.7712 euros) (Reporting by Jennifer Clark; Editing by David Holmes)

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