* Plans to spend at least 1 bln euros each on 2 investments
* Says likely to be in services sector, but in no rush
* Seeking global firms, has 2.8 bln euros in cash
* Says FCA five-year investment plan "not unrealistic"
(Adds value of potential investment, closing shares)
By Agnieszka Flak
TURIN, Italy, May 22 Italian investment company
Exor, the listed holding company for Fiat's founding
family the Agnellis, plans to spend a total of at least 2
billion euros ($2.7 billion) on two new investments, most likely
in the services sector, Chairman and CEO John Elkann said on
Elkann said Exor, whose three existing major investments
include controlling stakes in Fiat Chrysler Automobiles (FCA)
, tractor and truck maker CNH Industrial and
real estate group Cushman & Wakefield, would look at companies
that are similar to those in that they have roots in Europe or
America but operate globally.
"It's more likely that we will make the investments in
sectors that absorb less capital than CNH Industrial or FCA and
which are more in the services sector, and not industrials,"
Elkann told reporters on the sidelines of a shareholder meeting
"We are looking at many things, but we are not in a hurry,"
he added. "We will wait until the right opportunity comes."
Elkann later said that each of the two investments would be
worth at least 1 billion euros, but stressed that supporting the
firms in which Exor already holds stakes would remain a
"We have in mind 1 billion euros (for each new investment)
but we could do more", Elkann said in a call with analysts.
Exor could increase its debt to help make the acquisitions,
but does not want to jeopardise its investment grade credit
In March media reports suggested that Exor was in talks to
buy a stake in reinsurer Swiss Re, but both firms
Exor has around 2.8 billion euros in cash, and additional
investments have long been anticipated by the market.
Its holdings in FCA, CNH Industrial and Cushman & Wakefield
make up more than half of Exor's net asset value, which stood at
9.26 billion euros at May 16.
Exor's future profits largely depend on the performance of
those investments, and ambitious targets announced earlier this
month by FCA and CNH Industrial have been met with scepticism.
FCA, where Elkann is also chairman, plans to invest 48
billion euros over five years to boost sales by 60 percent to 7
million cars and increase net profit five-fold - targets
analysts said were highly ambitious, but which Elkann again
defended as doable.
"It's not an unrealistic plan," he said, adding that the
carmaker had no need for another partner in Asia to reach its
targets nor needed a share issue to finance the five-year plan.
However, Elkann reiterated that Exor would provide
additional capital if necessary to boost the prospects of the
companies in which it invests, including FCA.
Exor has focused over the past five years on streamlining
its structure, selling smaller assets and diversifying its
More than two thirds of Exor's consolidated revenues are now
made outside of Europe, up from 40 percent five years ago.
Shares in Exor, which have risen over 400 percent in that
time, closed down 2.2 percent at 30.69 euros on Thursday.
Elkann said Exor had no plans to reduce its stake in CNH
Industrial, and said the company was content with the indirect
stake it holds in RCS Mediagroup via Fiat. With a
stake of 20.6 percent, Fiat is the top shareholder in RCS,
publisher of leading Italian daily Corriere della Sera.
RCS does not need another capital increase, Elkann added.
(Additional reporting by Gianni Montani and Stefano Rebaudo;
Editing by Greg Mahlich and Mark Potter)