Fortis shareholders back rights issue

7 August 2007

Fortis shareholders have approved a share issue to raise funding for the purchase of ABN Amro.

The Belgian-Dutch bank secured backing of 93 per cent of shareholders for a rights issue worth $17.6 billion at meetings held in Brussels and Utrecht yesterday.

Maurice Lippens, Fortis chairman, said: "Today's EGMs mark a key milestone in the success of our bid. We thank our shareholders for their trust in our growth strategy and for their vote in favour of the bid."

News that the fundraising is to go ahead represents a significant blow to Barclays Bank which is vying with the consortium of which Fortis is a part for ABN Amro.

The Royal Bank of Scotland-led consortium's bid stands at $98 billion, with 93 per cent in cash.

Meanwhile, Barclays' bid stands at around $93.3 billion, with a cash component equating to 37 per cent of the offer.

ABN Amro recently announced that it has withdrawn its support for Barclays bid, saying that it could not recommend either offer owing to "significant unresolved questions".

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development