Fortis shares fall as breakup sees rejection

Agence France-Presse

The new slide followed a decision on Wednesday by Fortis shareholders to turn down Dutch and Belgian moves to nationalize some assets and sell others off to French bank BNP Paribas. In an effort to reassure clients, Fortis' banking arm published a full page advertisement in major Belgian newspapers showing a sign hung on a nail that read "open".

"Fortis Bank remains entirely in the hands of the Belgian state," it said. "And with the help of the Belgian state we can concentrate on what really counts: the well-being of our clients." The "no" votes came despite a warning from group chief executive Jan-Michiel Hessels that "we're threatened by a bankruptcy, which will leave the shareholders empty-handed."

In two votes, the shareholders turned down a decision by the Netherlands to nationalize the group's Dutch assets and narrowly knocked back Belgium's decision to nationalize the Belgian affiliate Fortis Bank.

This meant a rejection of Belgium's decision to sell on 75 percent of its Fortis assets to BNP Paribas.

In newspaper articles, particularly in the Flemish press, Finance Minister Didier Reynders came under heavy fire for the way the shareholders voted.

"The government, primarily minister Reynders, must bear crushing responsibility for this debacle," said an editorial in De Standaard, the daily of reference in the northern region of Flanders. "The man tasked with the good management of the Fortis dossier has once again caused chaos," the paper said.Flemish business daily De Tijd said that a "heavy-handed intervention" by the government at the shareholders' meeting had "without doubt helped 'no' supporters."