BRUSSELS, Dec 19 (Reuters) - Shareholders of Fortis overwhelmingly voted in favour of continuing the business of the stricken financial company on Friday after a court last week blocked its break-up.
Almost 97 percent of capital represented backed the motion at an extraordinary shareholders meeting. Had they voted against, Fortis would have been liquidated.
Fortis was carved up by the Dutch, Belgian and Luxembourg governments in October with France's BNP Paribas buying Belgian assets after an 11.2 billion euro ($16.1 billion) cash injection failed to calm investor concerns.
However, the transactions, notably the Belgian state's sale to BNP, were suspended by the Brussels appeal court, which ordered that shareholders be allowed a say by Feb. 12.
At a meeting provisionally set for then, the aggrieved shareholders will be allowed to vote on the board's decisions to approve the sell-off of assets and will also select a new board.
A large number of shareholders cheered when acting chairman Jan-Michels Hessels summarised the court decision. There was notably less acrimony than at shareholder meetings at the start of December that failed to back a new board.
The deals left Fortis Group with only its international insurance business and a two-thirds share of a 10.4 billion euro portfolio of toxic assets.
Now that the deals are frozen, Fortis also has the Belgian insurance businesses but not the toxic assets.
The Fortis saga has brought the Belgian government to the verge of collapse amid accusations it tried to influence the court's ruling.
($1=.6955 euro)
(Reporting by Philip Blenkinsop, editing by Dale Hudson) Keywords: FORTIS/ (philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters messaging: philip.blenkinsop.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Almost 97 percent of capital represented backed the motion at an extraordinary shareholders meeting. Had they voted against, Fortis would have been liquidated.
Fortis was carved up by the Dutch, Belgian and Luxembourg governments in October with France's BNP Paribas buying Belgian assets after an 11.2 billion euro ($16.1 billion) cash injection failed to calm investor concerns.
However, the transactions, notably the Belgian state's sale to BNP, were suspended by the Brussels appeal court, which ordered that shareholders be allowed a say by Feb. 12.
At a meeting provisionally set for then, the aggrieved shareholders will be allowed to vote on the board's decisions to approve the sell-off of assets and will also select a new board.
A large number of shareholders cheered when acting chairman Jan-Michels Hessels summarised the court decision. There was notably less acrimony than at shareholder meetings at the start of December that failed to back a new board.
The deals left Fortis Group with only its international insurance business and a two-thirds share of a 10.4 billion euro portfolio of toxic assets.
Now that the deals are frozen, Fortis also has the Belgian insurance businesses but not the toxic assets.
The Fortis saga has brought the Belgian government to the verge of collapse amid accusations it tried to influence the court's ruling.
($1=.6955 euro)
(Reporting by Philip Blenkinsop, editing by Dale Hudson) Keywords: FORTIS/ (philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters messaging: philip.blenkinsop.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.