Advertisement

Italy's Exor says may provide more capital to firms in which it invests

MILAN (Reuters) - Italian holding group Exor , which controls carmaker Fiat Chrysler Automobiles (FCA) , said on Wednesday it would be willing to provide additional capital necessary to boost the prospects of the companies in which it invests. The offer could signal further support for FCA, which is due to unveil the car models and investments it will use in a bid to return its loss-making European operations to profit and to grow in markets like Asia, where it has traditionally been weak. "We are positive about the prospects for our investments," Exor said in an extract of a letter the company sent to its shareholders. "If they were to require additional capital for further, profitable development, we would be more than happy to provide it." The letter, which followed EXOR's announcement that consolidated group profit last year rose to 2.08 billion euros (1.71 billion pounds) from 298.3 million euros, did not give further details. Fiat took full control of its U.S. unit Chrysler in January in a $4.35 billion (2.59 billion pounds) deal to create the world's seventh-largest auto group. The automaker expects a new strategy focusing on exports of its premium brands such as Maserati and Alfa Romeo to help override some of the weak demand in its traditional markets that is only gradually recovering from a six-year slump in car sales in Europe. A multi-year business plan outlining all new models and investments will be presented in early May. But analysts and industry players have already raised doubt about Chief Executive Sergio Marchionne's ability to raise all the funds needed to finance his ambitious turnaround plan. Marchionne said in March that FCA may not need to sell assets to finance the expansion plan, but could do so by issuing debt. A convertible bond is another option the company has been considering so far, while Marchionne has repeatedly ruled out a share issue by either Fiat or Chrysler. Exor also has stakes in tractor and truck maker CNH Industrial , real estate group Cushman & Wakefield and soccer club Juventus , among others. (Reporting by Agnieszka Flak; Editing by Mark Heinrich)