Fortis partially nationalised
Fortis (Euronext: FORA, Euronext: FORB, LuxSE: FOR) is a banking, insurance, and investment management company, and is the 20th largest business in the world by revenue. The Benelux countries are Fortis’ home base and its strength. Fortis’ banking operations include network (retail), commercial, and merchant banking; its insurance products include life, health, and property/casualty lines.
On September 27, 2008 Filip Dierckx was named as the new CEO of Fortis, to be approved by a shareholder meeting, after the shares of Fortis dropped 35% in one week time. Fortis also was subject of discussion on an emergency meeting of the Dutch and Belgian minister of finance and financial regulators, and rumours about partial or total takeovers are spread.
Since the begin of 2008, about 3% of the deposits stalled at the bank were withdrawn The involved parties stated that there was no reason at all to believe a bankruptcy is at hand.
Fortis was partially nationalised on September 28, 2008, with Belgium, the Netherlands and Luxembourg investing a total of €11.2 billion (US$16.3 billion) in the bank. Belgium will purchase 49% of Fortis’s Belgian banking division, with the Netherlands doing the same for the Dutch banking division. Luxembourg has agreed to a loan convertible into a 49% share of Fortis’s Luxembourg banking division.