Lamborghini to cover losses

Lamborghini to cover losses

ROME (Reuters): Italian sports car maker Lamborghini SpA,
controlled by former Indonesian president Soeharto's son Hutomo
Mandala Putra, is to hold a shareholders meeting soon to decide
on a reduction of its capital to cover 1997 losses, Italy's
Official Gazzette said yesterday.

The meeting, scheduled for June 30 or July 7, was called in
accordance with an Italian law which says a company must reduce
its capital if losses amount to more than one third of the
capital, the newsletter said.

Lamborghini's capital totals 19.6 trillion lira.

Italian companies are obliged to give the dates of their
shareholders meetings and reasons for holding them in the
Official Gazzette.

Managing director Vittorio Di Capua said last week in London
that he expected Lamborghini to return to profit in 1997 after
several years in the red. He saw operating profit at seven
billion lira (US$3.9 million) on sales of about 70 billion lira.

Volkswagen AG's Audi AG unit last month made an offer for 100
percent of Lamborghini.