BNP clinches Fortis' Belgian bank arm

Font Size

Print

Feedback

Email

Discuss

Related Articles

Daiichi Sankyo loses $3.9 bn on RanbaxyDaiichi Sankyo loses $3.9 bn on Ranbaxy'Nokia CEO to favour profit over sales targets'Dutch govt clears Corus work time cuts

Brussels, October 6:: BNP.

Leterme was less reassuring to Fortis shareholders, saying they took a risk by investing in any company and the state could not guarantee their investment.

Franco-Belgian financial group Dexia meanwhile sought to dispel concern that uncertainty over a German salvage plan for troubled Hypo Real Estate would create new problems for the bank rescued with public money last week.

The German government and banks agreed late on Sunday on a revised rescue package for HRE. Dexia said in a statement that credit risks related to HRE would have a very limited impact on the group's solvency anyway and the Sept. 30 capital increase had taken account of possible negative impacts that could arise.

CASH CRUNCH

Dutch Finance Minister Wouter Bos said Fortis hit an acute cash crunch even after last Sunday's initial 11.2 billion euro rescue by the three governments as depositors withdrew money and banks refused to lend.

Dutch central bank Governor Nout Wellink confirmed that the Netherlands had never paid its 4 billion share of the plan.

Sources close to the situation said BNP Paribas pulled out of the original rescue negotiations after offering just 1.60 euros a share, compared to Fortis' market price of 5.40 euros, and demanding state guarantees against future losses.