Fortis saved by Benelux nations
(2 October 2008 – Europe) The Governments of the three Benelux nations have each bought 49 percent stakes in each of Fortis’ respective national arms.
The €11.2 billion (A$19.8 billion) invested by the Governments of Belgium, the Netherlands and Luxembourg in Fortis was described by the bank as concerted action of the three governments and the respective supervisory authorities to support Fortis.
As a result of the part-nationalisation, chairman Maurice Lippens has resigned from the Fortis Board of Directors.
Fortis has also agreed to sell its interest in ABN AMRO. A spokeswoman for Fortis said investment by the Dutch, Belgian and Luxembourg governments in the group and the decision to sell the ABN assets were separate matters.
However, the Dutch central bank is withholding approval of the sale of €709 million (A$1.25 billion) worth of Dutch ABN AMRO assets to Deutsche Bank pending further review, Fortis said.
In addition, Fortis has scrapped its €2.15 billion (A$3.8 billion) deal to sell half of its asset management arm to China’s Ping An Insurance due to severe market disruption and the ongoing uncertainty in the global capital markets.
Filip Dierckx, whose first task as the newly appointed chief executive of the bank was to organise the rescue deal, also announced a further €5 billion (A$8.8 billion) in writedowns on investments in the third quarter to ensure market speculation over company value ends.
As a result of the part-nationalisation, chairman Maurice Lippens has resigned from the Fortis Board of Directors.
Fortis has also agreed to sell its interest in ABN AMRO. A spokeswoman for Fortis said investment by the Dutch, Belgian and Luxembourg governments in the group and the decision to sell the ABN assets were separate matters.
However, the Dutch central bank is withholding approval of the sale of €709 million (A$1.25 billion) worth of Dutch ABN AMRO assets to Deutsche Bank pending further review, Fortis said.
In addition, Fortis has scrapped its €2.15 billion (A$3.8 billion) deal to sell half of its asset management arm to China’s Ping An Insurance due to severe market disruption and the ongoing uncertainty in the global capital markets.
Filip Dierckx, whose first task as the newly appointed chief executive of the bank was to organise the rescue deal, also announced a further €5 billion (A$8.8 billion) in writedowns on investments in the third quarter to ensure market speculation over company value ends.
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