Fortis' largest shareholder to vote against BNP bid

9th February 2009, Comments 1 comment

Fortis' largest shareholder, China's Ping An Insurance, said it would vote against a revised bid by France's BNP Paribas to take over the collapsed Belgian bank.

BRUSSELS - Ping An "intends to vote against the sale of Fortis at the bank's General Assembly in Brussels" on Wednesday, said the company which holds a five percent stake in Fortis.

"Since September 2008, the decisions to sell assets were driven by the Belgian government and have not only destroyed Fortis' value, but have also severely impaired Fortis shareholders' interests as a whole," the company said in a statement.

"Such transactions breached the governance principles of Fortis and, as such, Ping An of China disagrees with the original transactions."

Lawyers for small shareholders, who together retain a 10 percent stake in Fortis, have also threatened to vote against the sale of the bank's Belgian assets to BNP and the nationalisation of Fortis' insurance business in the Netherlands.

BNP signalled Saturday that it could abandon its bid for Fortis if shareholders failed to agree to a recently revised takeover deal next week and the Ping An vote may prove decisive.

Shareholders will vote Wednesday on three operations: The Dutch government's nationalisation of Fortis' activities in the Netherlands; Belgium's nationalisation of the country's Fortis Bank; and an agreement in which BNP would buy 75 percent of Fortis Bank.

But Ping An said other possibilities should be examined.

"Ping An believes that other options should have been, and still can be, explored in order to sustain the operation of the business and optimise value for shareholders."

The collapse of Fortis - amid widespread fallout from the larger global economic crisis - caused considerable drama in Belgium and handed it the unenviable title of being the first country where a government fell due to a turmoil.


1 Comment To This Article

  • lejaskalns posted:

    on 9th February 2009, 11:02:06 - Reply

    Are the Fortis shareholders collectively mad? If the Belgian and Dutch governments had not stepped in, pumped in cash and agreed the sale to BNP, the bank would have collapsed and their shares would now be worth zilch. As for Ping An, they may well have ulterior motives.