UPDATE 3-Talks on future of Fortis to run into Sunday

(Adds Belgian prime minister's comment, more from CBFA)

By Reed Stevenson and Philip Blenkinsop

AMSTERDAM/BRUSSELS, Sept 27 (Reuters) - Financial authorities were examining ways to restore confidence in Fortis (FOR.BR) this weekend, while the troubled Belgian-Dutch financial group sought to close key divestment deals.

Financial authorities were contacting other institutions, a source familiar with the situation told Reuters on Saturday, although no particular solution was preferred and nothing concrete was likely to emerge before Sunday.

Asked about the talks, Belgian Prime Minister Yves Leterme told reporters after a party meeting: "We are being informed."

"It is crucial for people of this country who entrust their savings to a bank that we safeguard the credibility of these banks and, in particular, ensure that every person who has entrusted a bank with a euro can be sure of getting it back."

The stakes are high in Belgium, where Fortis is the biggest private sector employer and where over 1.5 million households, roughly half the country, bank with the group.

Veerle De Schryver, a spokeswoman for the Banking, Financial and Insurance Commission (CBFA), said: "The CBFA and the national bank are assessing initiatives to reestablish confidence in Fortis."

She added Belgian and Dutch financial authorities were in touch. "There will be communication by the end of the weekend."

The Dutch central bank (DNB) declined to comment, although DNB governor Nout Wellink, who is also a European Central Bank governing council member, cancelled a Chicago trip to return to the Netherlands.

The banking and insurance group sought on Friday to reassure investors it was solvent and in no danger of collapse after market talk that it could become another credit crisis casualty.

Fortis is hoping to announce deals to sell off parts of its business by Monday in an attempt to show investors it can raise cash and restore confidence in the business, while buyers for the business may emerge over the weekend, local media reported.

As its shares plummeted more than 20 percent to 15 year-lows on Friday, Fortis called an emergency news conference to say its position was strong and that it would expand asset sales to as much as 10 billion euros ($14.6 billion) to raise cash.

After a fifth straight day of share declines, Fortis also named a new chief executive, nominating banking chief Filip Dierckx, 52, to replace interim CEO Herman Verwilst. [ID:nLQ38627]

ASSET SALE SCRAMBLE