By Giulio Piovaccari
TURIN/AMSTERDAM (Reuters) – The CEO of Exor NV, the largest shareholder in Dutch healthcare equipment maker Philips NV, on Thursday said he continues to believe the company’s problems are solvable.
John Elkann was speaking at Exor’s investor day in Turin, shortly after the U.S. Food and Drug Administration said there is a new safety issue with Philips sleep apnoea devices, which sparked a selloff in its shares on Wednesday.
Exor owns a 15% stake in Philips.
“What’s important is to understand these difficulties and above all to understand how many of these difficulties are solvable,” Elkann said. “We are (still) convinced of that, also in light of what emerged yesterday.”
Exor announced on Aug. 14 it had taken a 15% stake in Philips for $2.8 billion in a surprise move, saying it viewed shares as undervalued after a global recall of respiratory devices the company was forced to undertake beginning in 2021.
The recall wiped nearly two-thirds off Philips’ stock market valuation and new CEO Roy Jakobs has said that resolving the issue is his top priority.
Elkann joked that Philips’ share price “perhaps has not fallen enough to buy more, all kidding aside”.
“What is important for us today is to ensure the relationship with Philips starts well.”
Philips stock is currently trading at 18.77 euros, about 25 cents higher than before Exor announced its investment in August.
As part of an Exor agreement with Philips, the company is to receive a seat on the company’s board and has agreed not to increase its stake beyond a maximum of 20%.
Exor is the investment arm of Italy’s Agnelli family, with investments in manufacturing, sport, media, fashion, healthcare and technology companies.
(Reporting by Guilio Piovaccari. Writing by Toby Sterling; Editing by Kirsten Donovan)
