Belgian, Luxembourg seek Fortis buyer, BNP eyed
Belgium and Luxembourg raced to find a buyer for troubled financial group Fortis (FOR.BR: Quote, Profile, Research, Stock Buzz) before markets opened on Monday and an industry source said BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) was negotiating for control.
In a second weekend of crisis talks, Belgian Prime Minister Yves Leterme told broadcasters on Sunday he hoped to keep the Belgian and Luxembourg operations of the group together after the Dutch nationalized most of Fortis’s Dutch units on Friday.
“There are contacts with private groups, several private groups. We are not going to decide in this situation with our backs to the wall,” he said. “The only thing certain is that we are going to send a clear and strong signal to the markets before they open tomorrow.
An industry source close to the situation confirmed reports in several Belgian media that BNP Paribas was negotiating to take up to 80 percent of Fortis banks in both countries, but said nothing had been agreed yet (fast cash).
Belgium and Luxembourg, which took 49 percent stakes in the Fortis banks in their countries last Sunday, would keep a 20 percent stake in each. BNP declined comment.
Luxembourg Budget Minister Luc Frieden told RTL television the governments were close to a solution for Fortis involving one of the Europe’s most solid banks.
“We are very close to an agreement for a clever combination of a strong state, taking responsibility in the bank, and one of the biggest international banking groups,” Frieden said.
He declined to name the group but said it would involve a public-private partnership in which the state would keep a veto right over strategic decisions.