Fortis sale frozen by court order

by David Masters

Story link: Fortis sale frozen by court order

The Belgian government has announced that it will be appealing against a court ruling which prevents the sale of Fortis Bank’s Belgian assets to BNP Paribas.

Belgium’s leaders still believe that selling Fortis’s assets to the French bank is the best way to ensure the long term future of Fortisbanque Belgium.

However, on Friday a court of appeal suspended the sale for 65 days after legal complaints from shareholders.

Shareholders are concerned that the sale is being rushed through, and that they were not offered the best possible price for their shares.

The court ruled that Fortis must seek shareholder approval for the sale of assets to the Dutch and Belgian governments.

When the credit crunch left Fortis on the verge of collapse, Belgium’s government stepped in with a rescue package.

Under the rescue deal, the government purchased the 51% of Fortis that it didn’t already own for €4.7 billion, then planned to sell off 75% of the company to BNP Paribas.

However, the court’s order freezes that decision, and gives shareholders the right to vote on whether Fortis should be sold to BNP Paribas.