|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    23rd of February 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Banking News feed Banking News

All Financial News feed All Financial News

Fortis plans to raise £1.2bn

Bookmark and Share

by Kay Mitchell

Fortis, the Belgian-Dutch bank, has announced fundraising plans of €1.5 billion (£1.2 billion). It said current circumstances necessitate these measures.

Following the announcement, its shares dropped by 6.9% in Brussels trading this morning.

The bank, like many others, needs extra capital to ride out the credit squeeze. It also requires the cash to fund its €24 billion acquisition and integration of parts of its former Dutch rival ABN Amro.

Fortis was part of the consortium with Royal Bank of Scotland and Santander that bought ABN Amro in 2007 for €70 billion.

It also plans to improve its solvency by over €8 billion over the next couple of years, this includes issuing new shares and selling off assets.

Fortis chief executive, Jean-Paul Votron, believes that this year will be challenging for the industry and an improvement in the economic climate is not expected anytime soon.

The cash call will help Fortis through the current challenging market environment, concluded Mr Votron.

Fortis took a charge of €380 million from sub-prime losses in the first quarter of the year. The bank, which is one of Europe’s largest financial institutions, is valued at around €28 billion.

Discuss this in the Finance Markets forums

Story link: Fortis plans to raise £1.2bn

News posted: June 26, 2008

Financial Services:

Related financial stories to: Fortis plans to raise £1.2bn:
Previous: «
Next: »

Visited 4816 times, 34 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , ,