Tortuous bailout

9 February 2009 By Una Galani Follow @ugalani

Ping An, the Chinese insurer and largest shareholder of the collapsed Benelux financial group, is to oppose the carveup and partial sale to BNP Paribas. A lastminute resolution looks unlikely. With other shareholders backing Ping An, a messy court battle is in prospect.

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Ping An said on February 7 that it intended to vote against the sale of Fortis assets at a shareholder vote next week. The Chinese insurer holds a 5% stake in the collapsed BelgianDutch financial group, making it the group's largest shareholder.

"Since September 2008, the decisions to sell assets were driven by the Belgian government and have not only destroyed Fortis' value but have also severely impaired Fortis shareholders' interests as a whole," Ping An said in a statement.

Following a successful legal challenge, Fortis shareholders are due to meet on February 11 to vote over the Dutch, Belgium and Luxembourg governmentled breakup of the group agreed last October, including BNP Paribas' acquisition of 75% of Fortis Bank Belgium and part of Belgian insurance.

Ping An's group president Louis Cheung resigned from the Fortis board at the start of February. Ping An spent roughly E1.8bn buying Fortis shares between October and November 2007, ahead of the Dutch group's bid for ABN Amro. Fortis shares have since fallen from around E30 to less than E2.

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