Belgium, BNP Paribas reach Fortis Bank sale deal

The Belgian government reached a fire sale deal Saturday to sell Fortis - the largest bank in Belgium and the Netherlands until the global financial crisis - to France's BNP Paribas.

The deal must be approved by Fortis (other-otc: FORSY.PK - news - people ) Holding shareholders, possibly on April 8 and 9.

The sale of Fortis Bank to Paris-based BNP Paribas (other-otc: BNPQY.PK - news - people ) was first concluded last October at a value of euro14.5 billion ($18.3 billion). But disgruntled shareholders of Fortis Holding won a court ruling saying the government had no right to sell the bank without consulting them.

Under the new deal, BNP Paribas will take a 75 percent stake in Fortis Bank and 25 percent of Fortis' insurance activities in Belgium. The government retains a 25 percent stake in Fortis Bank and Fortis Holding will continue to hold 75 percent of the insurance business.

Fortis shares traded at euro1.04 Friday, valuing the company at only euro2.4 billion ($3 billion).

The deal adds Belgium to BNP Paribas' market. It currently has no presence in the country.

Premier Herman van Rompuy and Finance Minister Didier Reynders concluded negotiations with BNP Paribas chief executive Baudouin Prot early Saturday, several hours after a midnight deadline had passed.