Fortis shares fell in heavy trading volumes on Thursday to a 14-year low.
At a press conference Friday CEP Herman Verwilst stressed, "The current share price does not reflect the value of our company." Since January Fortis shares have lost more than two-thirds of their value. The CEO said he was "flabbergasted".
At a press conference Friday CEP Herman Verwilst stressed, "The current share price does not reflect the value of our company." Since January Fortis shares have lost more than two-thirds of their value. The CEO said he was "flabbergasted".
The press conference apparently did not soothe the market. The stock did not recover- to the contrary actually, it fell even further, closing 13% down on Friday. The share is now worth €5.70.
"No bank clients will be left in the cold"
Belgian Prime Minister Yves Leterme and Finance Minister Didier Reynders also tried to soothe the markets.
PM Leterme also gave a press conference. He called on investors to remain calm and promised that customers would not lose their money in any case.
The Finance Minister stressed that the bank had, "Absolutely no solvency problems." He said no bank clients would be "left in the cold".
PM Leterme said that the government would follow the evolution of Fortis. The Belgian Commission of Bank and Financial Institutions is investigating whether false rumours were spread about Fortis, leading to the drastic drop in share price. The commission will report directly to Finance Minister Reynders.
Fortis to sell more assets than planned
At the press conference CEO Herman Verwilst confirmed that Fortis would sell more assets than originally planned. He said the group could divest a wider range of activities to raise 5 to 10 billion Euro. No further details were given on the activities Fortis will sell.
PM Leterme also gave a press conference. He called on investors to remain calm and promised that customers would not lose their money in any case.
The Finance Minister stressed that the bank had, "Absolutely no solvency problems." He said no bank clients would be "left in the cold".
PM Leterme said that the government would follow the evolution of Fortis. The Belgian Commission of Bank and Financial Institutions is investigating whether false rumours were spread about Fortis, leading to the drastic drop in share price. The commission will report directly to Finance Minister Reynders.
Fortis to sell more assets than planned
At the press conference CEO Herman Verwilst confirmed that Fortis would sell more assets than originally planned. He said the group could divest a wider range of activities to raise 5 to 10 billion Euro. No further details were given on the activities Fortis will sell.
According to the Flemish dailies De Morgen and the financial De Tijd the activities Fortis might divest are outside the Benelux. (Fortis has banking/insurance activities in Turkey and Asia).
