BRUSSELS, Feb 27 (Reuters) - Stricken financial group Fortis has agreed with Belgium and French bank BNP Paribas to extend talks over its break-up by another week, until Mar. 6.
The parties initially faced a deadline of this Saturday to revise the terms of an initial break-up deal agreed in October.
Fortis said in a statement on Friday the parties agreed the October protocol would now end on Mar. 6, rather than Feb. 28.
Fortis was broken up by the Dutch, Belgian and Luxembourg governments in October with BNP Paribas buying most of the Belgian operations within a week of an 11.2 billion euro ($14.1 billion) cash injection that failed to calm investor concerns.
A shareholder revolt and a legal ruling freezing the deal prompted a revision of the terms, but shareholders then rejected these by a wafer-thin majority at a meeting two weeks ago.
A third round of talks between representatives of Fortis, Belgium and BNP Paribas has continued all week.
Certain Belgian media have reported that the talks have made progress and that parties involved are cautiously optimistic about the chances of a new deal emerging that shareholders would accept.
'The technical details still have to be worked out,' Belgian business daily De Tijd quoted one source as saying.
The extension of the negotiations into next week shows the parties believe a deal can be done.
Fortis said in its brief statement that it would refrain from any further comment during these negotiations.
(Reporting by Philip Blenkinsop; Editing by Greg Mahlich and Andrew Macdonald) Keywords: FORTIS/BNP (philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters messaging: philip.blenkinsop.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. 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.
The parties initially faced a deadline of this Saturday to revise the terms of an initial break-up deal agreed in October.
Fortis said in a statement on Friday the parties agreed the October protocol would now end on Mar. 6, rather than Feb. 28.
Fortis was broken up by the Dutch, Belgian and Luxembourg governments in October with BNP Paribas buying most of the Belgian operations within a week of an 11.2 billion euro ($14.1 billion) cash injection that failed to calm investor concerns.
A shareholder revolt and a legal ruling freezing the deal prompted a revision of the terms, but shareholders then rejected these by a wafer-thin majority at a meeting two weeks ago.
A third round of talks between representatives of Fortis, Belgium and BNP Paribas has continued all week.
Certain Belgian media have reported that the talks have made progress and that parties involved are cautiously optimistic about the chances of a new deal emerging that shareholders would accept.
'The technical details still have to be worked out,' Belgian business daily De Tijd quoted one source as saying.
The extension of the negotiations into next week shows the parties believe a deal can be done.
Fortis said in its brief statement that it would refrain from any further comment during these negotiations.
(Reporting by Philip Blenkinsop; Editing by Greg Mahlich and Andrew Macdonald) Keywords: FORTIS/BNP (philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters messaging: philip.blenkinsop.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. 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.