Fortis to be taken over by BNP Paribas

We last wrote about the travails and troubles at Fortis Bank Tuesday, July 01, 2008 Fortis Bank makes €8 billion provisions and Chairman talks of US "meltdown" ..Citigroup, GM ... Their shares had dramatically slumped to just about €10.

At the time Moody's reduced Fortis's financial strength rating to C+ from B-. Moody's said asset sales and a planned acquisition would erode capital. It also lowered its long-term debt and deposits ratings on Fortis to Aa3 from Aa2.

At the time the CEO was Jean-Paul Votron who is now looking for another job and Chairman Maurice Lippens, 62 is said to be looking for a new CEO and they have installed interim CEO Herman Verwilst since 1th July 2008. Filip Dierckx, is a 53 year old lawyer and with the bank since 1999 and is seen favourite for the top job. In his capacity as Chairman of the Fortis Bank Executive Board, he oversees and leads the overall integration of ABN Amro acquired activities

Today there has been a rally in bank stocks Fortis shares are up 2 % at €9.78 and BNP is up 3.4 % @ €66.64 .

This deal will create a bank with a dominant market position in France and the Benelux, he adds. In a completed series of deals which Morgan Stanley is hoping to help sell off Fortis Intertrust, a specialist trust management business, and Prime Fund Solutions, a division of Fortis Merchant and Private Banking which might raise US$2.6 Bn (€1.8bn. or less) .

Belgian newspaper De Standaard reports the sale is now a done deal but not who is the buyer..

UPDATE Friday - Financial Times reports Fortis have closed 3 hedge funds since the ABN Amro take over - better ustilise staff blah blah