Nothing is wrong with Fortis Bank

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New chief executive officer defends his company and attributes dip in shares to rumours in the share market.

17 July 2008

BELGIUM – Fortis’ new chief executive officer (CEO) Herman Verwilst defends his company in the light of a devastating performance on the share markets.

The CEO said that the Dutch stock exchange watchdog has questions about the recent capital enhancement of Fortis.

This news was misinterpreted by the media and newspapers reported the watchdog has started an investigation into the bank.

The reports have given the public a false impression that something was wrong with the company and have placed tremendous pressure on Fortis’ performance in the market.

“Requesting information is daily practice” the Fortis CEO insists.

Verwilst concedes that Fortis too did not communicate well with the markets.

The share plummeted three weeks ago after the capital enhancement was announced.

Fortis required extra cash from shareholders to strengthen its position.

Verwilst said: “It's clear that this message was not well understood and if the message was not well understood, this is partly due to the way we communicated.”

[ / Expatica]

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