Arsenal chairman says Wenger has funds to buy players

LONDON, Apr 28 (Reuters) Arsenal chairman Peter Hill-Wood reassured manager Arsene Wenger today he would have money to spend on new players in the close season.

In a letter to shareholders, Hill-Wood also said he was planning to meet Stan Kroenke over the US billionaire's recent increased stake in the Premier League club.

Kroenke raised his holding to 12.2 per cent on April 20, two days after vice-chairman David Dein, who has a 14.5 per cent stake, quit because of a boardroom split. That fuelled media speculation Kroenke and Dein were planning to mount a takeover.

''Our philosophy at the club is the same as it always was: to ensure Arsenal remains one of the elite football clubs and consistently competes at the highest level,'' Hill-Wood told shareholders.

''Should Arsenel wish to strengthen the squad in the summer, funds are available for him to do so. In fact we plan to continuously increase the investment in the squad year on year.'' Whether the Frenchman spends it remains to be seen since he has won much admiration for developing young talent rather than going on Chelsea-style shopping sprees.

Wenger, a good friend of Dein, has pledged to see out his contract to the end of next season.

REUTERS DKS BST0550