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“UK business unaffected” as Fortis “multi-nationalised” for £8.9bn

Belgium bank Fortis has been “multi-nationalised by three European governments for £8.9bn.

Sources indictaed to Money Marketing this morning that the ownership structure of Fortis UK should see it unaffected by the multi-national bailout.

Fortis UK recently launched into the UK offering Real Life Cover and Your Life Plan with Lifesearch.

Belgium, the Netherlands and Luxembourg have bailed out the bank for £8.9bn, just one month after the Group recorded a 41 per cent slide in profits for the first half of 2008.

Belgium has injected £3.7bn for a 49 per cent stake in Fortis’s Belgium banking units, the Netherlands pumped £3.1bn for the same-sized stake in Fortis’s Dutch banking operations and Luxembourg extended a loan of £2bn which, upon conversion, will guarantee it 49 per cent of Fortis’s banking business in Luxembourg.

The bank is also selling its stake in ABN Amro, the Dutch lender it agreed to buy as part of a break-up bid last year, for less than the acquisition price.

Fortis chief executive officer elect Filip Dierckx says: “The actions taken by the Belgian, Luxembourg and Dutch governments are a sign of confidence in Fortis and of comfort to customers and all other stakeholders alike, These actions ensure the financial strength and stability of our company going forward.”

Maurice Lippens has now decided to step down from Fortis’s board of directors and a new chairman will be recruited externally in consultation with the Belgian Government.


‘Reel in the minnow funds’

Advisers want investment firms to focus on rationalising their fund ranges rather than look for new niche products to offer the market. encourages PPI head of protection Emma Walker is urging consumers to protect themselves against redundancy by considering payment protection insurance.

Sheriar Bradbury

Sheriar Bradbury was never destined to remain an employee of someone else’s company. As a child, he moved around the UK with his family as they pursued different business ideas and he grew up with no notion of employment.


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