Fortis talks to continue over weekend

By Reed Stevenson and Philip Blenkinsop

AMSTERDAM/BRUSSELS (Reuters) - Financial authorities are holding discussions over the future of Fortis this weekend, while the troubled Belgian-Dutch financial group is seeking to close key divestments deals.

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

Fortis investors face a weekend of uncertainty after the banking and insurance group went out of its way on Friday to reassure them that it was solvent and in no danger of collapse following market talk the company could become another casualty of the credit crisis.

Veerle De Schryver, a spokewoman for the Banking, Financial and Insurance Commission (CBFA), said: "The parties will discuss scenarios for Fortis in a cooperative way."

She declined to say exactly which parties would be involved in the talks. Another CBFA official told Flemish radio talks would include the government, market regulators and the Belgian central bank.

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

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 assets 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.

ASSET SALE SCRAMBLE

Dierckx and Fortis managers are scrambling to complete some deals this weekend, reported Dutch daily Financieele Dagblad, citing unnamed sources from Dutch bank ABN AMRO, which Fortis bought parts of last year.

"Fortis is working with all its power to sell business units during the crisis," the newspaper said.

Belgian newspaper De Tijd said the heads of Belgium's big banks and financial supervisors would hold talks over Fortis in a bid to restore confidence among savers and investors.

Several Belgian and Dutch media outlets cited France's BNP Paribas as a potential buyer.

"A sustainable solution has to come in the coming days," a source told the Belgian paper.