Fortis gets $630 mln capital from Russia

In Hungary

Belgian-Dutch financial services group Fortis received $630 million in capital from Russian billionaire Suleiman Kerimov as part of its recent share issue.

Fortis, which last week raised €1.5 billion ($2.4 billion) from the heavily discounted share issue, secured the money from Kerimov's Swiss-based investment vehicle, Millennium Group, as part of the share issue, the Wall Street Journal said, citing people familiar with the matter.

Millennium Group already owns about 2% of Fortis along with stakes in US investment bank Morgan Stanley, Swiss bank Credit Suisse Group and Germany's Deutsche Bank AG, according to a person close to Millennium, the paper said.

On Thursday, shares of Fortis, which has been hit by the fallout from the US subprime crisis and credit crunch, plunged to their lowest point in more than five years after the company announced a package of measures, including the share issue, to shore up its finances.

Fortis said it was forced to take what it called “exceptional measures” by tough market conditions as well as its purchase of parts of its former Dutch rival ABN AMRO, sealed just as the credit crisis hit last year.

In addition to the share issue, it said it would skip this year's interim dividend, dispose of €2 billion of non-core assets, sell and lease back real estate and pay its full-year dividend in shares to boost its solvency by €8.3 billion. (Reuters)


Chemark Inaugurates EUR 13 mln Pesticides Plant Crops

Chemark Inaugurates EUR 13 mln Pesticides Plant

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

Higher Sugar Prices Raising Holiday Candy Costs Retail

Higher Sugar Prices Raising Holiday Candy Costs

Hungarian Tourism in Croatia Returning to Pre-pandemic Level... Tourism

Hungarian Tourism in Croatia Returning to Pre-pandemic Level...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.