Latest News

Save E-mail Print Most Popular RSS Reprints

Dutch govt now in control of ABN Amro diamond division

October 07, 2008

Similar Stories | Topics

Amsterdam—The Dutch government said Friday it will buy the operations of Fortis NV in the Netherlands for 16.8 billion euros ($23.2 billion), a change to the previous bailout plan announced last week, The Associated Press reports.

This includes the Fortis share in ABN Amro Holding NV—which includes the ABN Amro International Diamond and Jewelry Group—as well as Netherlands activities of the Fortis Bank and the Fortis insurance business, according to a release from ABN Amro.

According to the AP, Dutch Finance Minister Wouter Bos said clients had been withdrawing money from the bank, and that other banks were refusing to lend to Fortis because of troubles "hidden" in its Belgian operations that were coming to light.

The deal, which essentially splits Fortis in two along national lines, would give the Belgian-controlled part of the company the cash it needs to survive while, at the same time, safeguarding the Dutch operations "from the danger of infection from the part that's less healthy," Bos said, according to the AP.

The new deal replaces the Dutch part of the bailout plan announced on Sept. 28, in which the Dutch government agreed to buy a 49 percent stake in Fortis' banking operations in the Netherlands.

The rest of the bailout agreement remains the same for now, with the governments of Belgium and Luxembourg each taking 49 percent stakes in Fortis' banking operations in their countries, according to the AP.

Fortis, once one of Europe's largest financial companies, has been experiencing problems since it purchased the Dutch banking operations of ABN Amro last year for 24 billion euros (about $35 billion).

The purchase was part of a broader deal that was the largest takeover in banking history, according to the AP.
Save E-mail Print Most Popular RSS Reprints
Post a Comment
* Required field
* Author:
* Comment:
 

More Brand Profiles

Movado Lincoln Center Watch
Movado watch fetes 50 years of pirouettes, solos

A night out at the New York City Ballet or Jazz at Lincoln Center is bound to be memorable, but Movado hopes to help make it more so with a new version of its iconic "Museum" watch.  Read More

Raymond Weil forms U.S. distribution company
More News

More Like This

Fortis to sell stake in ABN Amro
September 29, 2008 | National Jeweler Network
Industry forecast 2009: Diamonds
February 18, 2009 | National Jeweler Network
Diamond industry lender ABN Amro staying put
February 12, 2008 | National Jeweler Network
Barclays drops bid for ABN Amro
October 05, 2007 | National Jeweler Network
TOPICS
Public Finance

Design Portfolio

advertisement

Video

Small multi video player located on right rail of NJN site

advertisement

Sponsored by:

Retailer Toolbar

America's Best Jewelers
Join the ONLY Social Network for Jewelry Retailers. Get access to expert content, peer best practices, and more.
Start networking today.
Newsletters
Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.
Reader Connect
ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.
Jewelry Yellow Pages
Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.
Classifieds
Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.
NJN Customer Connect
CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.

advertisement