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Fortis shareholders reject sale Fortis shareholders reject sale
(40 minutes later)
Fortis shareholders have voted to reject the sale of parts of the bank to French bank BNP Paribas and to the Netherlands government. Fortis shareholders have voted to reject the sale of parts of the bank to French bank BNP Paribas and to the government of the Netherlands.
By a small majority, shareholders voted against the sale of Fortis' Dutch arm which was announced last October.By a small majority, shareholders voted against the sale of Fortis' Dutch arm which was announced last October.
They also opposed the sale of the Belgian arm of the bank to BNP Paribas.They also opposed the sale of the Belgian arm of the bank to BNP Paribas.
Fortis was broken up after the governments of Belgium, the Netherlands and Luxembourg stepped in to rescue the crisis-hit bank.Fortis was broken up after the governments of Belgium, the Netherlands and Luxembourg stepped in to rescue the crisis-hit bank.
Fortis was among the banks worst hit by the credit crunch, which left it desperately short of cash and needing help from the three governments.Fortis was among the banks worst hit by the credit crunch, which left it desperately short of cash and needing help from the three governments.
The governments took stakes in Fortis of just under 50% in exchange for the cash injections they provided at the end of September.The governments took stakes in Fortis of just under 50% in exchange for the cash injections they provided at the end of September.
As a result, Fortis shareholders were left with practically worthless stakes.As a result, Fortis shareholders were left with practically worthless stakes.
Unclear futureUnclear future
Looking at the result of this vote, the transaction can no longer take place, it is impossible for the Belgian government to sell the bank to BNP Jan-Michiel Hessels, Fortis Looking at the result of this vote, the transaction can no longer take place, it is impossible for the Belgian government to sell the bank to BNP Jan-Michiel Hessels, Fortis vice-chairman
The bank's shareholders were given the right to vote on the proposed deal after a Brussels appeal court decided in December that the Belgian government should not have agreed the deal without asking shareholders.The bank's shareholders were given the right to vote on the proposed deal after a Brussels appeal court decided in December that the Belgian government should not have agreed the deal without asking shareholders.
Before the vote, the Netherlands government and BNP had both said they were not prepared to make any more changes to the agreement. Before the vote, the Dutch government and BNP had both said they were not prepared to make any more changes to the agreement.
"Looking at the result of this vote, the transaction can no longer take place, it is impossible for the Belgian government to sell the bank to BNP," Fortis vice-chairman Jan-Michiel Hessels told shareholders."Looking at the result of this vote, the transaction can no longer take place, it is impossible for the Belgian government to sell the bank to BNP," Fortis vice-chairman Jan-Michiel Hessels told shareholders.
Belgian finance minister Didier Reynders had said that if shareholders rejected the proposed rescue deals, the entire business would collapse. Belgian finance minister Didier Reynders had said that if shareholders rejected the proposed rescue deal, the entire business would collapse.
Pierre Flabbee, at Kepler Capital Markets, said: "On the one hand, BNP will be able to get out of having to finance Fortis and take on its illiquid assets. But the deal had a lot of sense. If it doesn't go ahead, I think it would be a shame."