The Luxembourg should do the same for EUR 2

Mobilization Summit to save Fortis: the Belgium, the Netherlands and the Luxembourg have decided yesterday to come to the aid of the bancassureur belgo-néerlandais caught by the financial turmoil. The three Benelux countries were to announce Sunday, late in the evening, they were each ready to take a stake in the capital of Fortis. A strong act like temporary nationalization intended to avoid the scenario of a takeover by a foreign bank, in this case the French BNP Paribas which was openly on the ranks. Belgian Prime Minister Yves Leterme was thus to announce that the Belgium would take a stake in Fortis to height of 4.5 billion euros. The Luxembourg should do the same for EUR 2.5 billion. The participation of the Netherlands was not yet known. At the crisis meeting held last night in Brussels, the Government of the Benelux countries, the principle of the transfer of the activities of ABN AMRO bought by Fortis year have also recorded last for 24 billion euros: they would be adopted by the Dutch Bank ING for 10 billion only.

The head of the Government of Belgium, Yves Leterme, Minister of finance Netherlands, Wouter Bos, and the President of the Dutch Central Bank, Nout Wellink, President of the Central Bank, Jean-Claude Trichet, who attended the meeting without precedent, should therefore be able to announce a solution "House" for Fortis before reopening this morning, with markets in Asia.

First private employer in the country

In early evening, the authorities of the three countries concerned still swung between two solutions. Nationalization or resumption of all of the BNP Paribas Group which seemed initially hold the rope. The Belgian Government would indeed contacted the French Bank Friday, and it very interested would have spent the weekend "due diligences". In a scenario of redemption, BNP Paribas with which geographical and industrial complementarity is important seemed even preferred to ING, the another banking giant in the running... As for reasons of competition both in Belgium and Netherlands, the implementation of a global reconciliation ING-Fortis would be easy.

But the solution to a takeover by French bank that offered 1.60 euro per title Fortis according to Reuters, has apparently been excluded. First because that Fortis is the first private employer in the country (85,000 people). Then because of the guarantees which the authorities would have to agree to the buyer.

How Fortis has happened Concern has reached its peak after the new panic Friday investors losing 20 Fortis. Since the June 26 announcement of a plan of unexpected solvency on EUR 8.3 billion, group is the subject of recurring rumors that undermine stock market. Title late last week hit its lowest historical level, at 5.25 euros.

Hit hard by the ambient banking crisis that has cost EUR 2.9 billion since the beginning of the year, Fortis has the more difficult to find ways to finance its acquisition for 24 billion euros of its share of ABN AMRO. The issue of preferential shares announced in June to EUR 2 billion would not find licensee in institutional investors.

The action has lost 72 in one year

Or new assignments of 5 to 10 billion euros announced last Friday by Fortis or reassuring statements by management on the solvency of the group have allayed the market. Only 3 of the customers of the Bank have closed their accounts or withdraw their savings, thus held to Fortis.

Drawing the conclusions of this Black Friday, Fortis landed the evening even its CEO in place for less than three months, Herman Verwijst, replacing it with Filip Dierckx, responsible for the banking division of group. Last July, Jean-Paul Votron, Director-General who was the author of the redemption of a part of ABN AMRO, had been forced to leave his position under pressure from disgruntled shareholders. In a year, the action of the Group lost 72 of its value and its market capitalization reached more than 12 billion euros. Bancassureur belgo-néerlandais had become easy prey for its competitors. Hence the decision to the Governments concerned to come to his rescue.