Fortis to Sell Stake in Spanish Unit

Financial services company Fortis NV said this week it will sell its 50 percent stake in its Spanish insurance business to joint venture partner la Caixa for euro980 million (US$1.35 billion) in cash.

That comes after Fortis’ announcement a day earlier that it planned to sell up to euro2 billion (US$2.7 billion) in exchangeable notes to help fund its part of a proposed acquisition of ABN Amro Holding NV.

“Fortis and la Caixa have jointly decided to put an end to the joint venture,” said Jacob Westerlaken, chief executive of Fortis Insurance International Europe.

The sale of the stake in CaiFor is expected to be completed within the next few months.

Fortis shares dipped 1.1 percent to euro30.56 (US$41.73) on Euronext.

The bank is part of a consortium led by Royal Bank of Scotland Group PLC that has been fighting for control of ABN Amro in the largest takeover fight in the financial industry’s history.

Barclays PLC made an offer to buy ABN Amro in April through an all-stock transaction that values the business at about euro33.86 (US$46.05) per share, or euro62.7 billion (US$85.3 billion). Its bid is dependent on the US$21 billion sale of ABN’s Chicago-based LaSalle Bank to Bank of America going through.

The RBS group made a mostly cash offer worth about euro38.31 (US$52.10) per share, or euro71.0 billion (US$96.6 billion). RBS wants LaSalle and its offer is dependent on that sale being blocked — though it could rebid at a lower level if it loses LaSalle.

Amsterdam’s Superior Court has blocked the LaSalle sale, bringing the takeover fight to a standstill until the Netherlands Supreme Court finishes reviewing that ruling, which is expected today, Friday.