Date: 9/25/2008 12:21 PM
AMSTERDAM, Netherlands (AP) _ Shares in Fortis NV fell sharply on Thursday amid continuing worries about the solvency of the Dutch bank and insurance company.
Fortis denied having any problem “concerning solvency and liquidity,” spokeswoman Lililane Tackaert said.
She said several “unfounded rumors” were circulating. “We’ve heard one rumor that we are desperate to sell activities that we don’t even own,” she said.
Fortis shares fell 20 percent in Amsterdam to 5.61 euros ($8.21) on Thursday. This year they have lost two-thirds of their value.
The company had said in July it needed to raise 5 billion euros ($7.4 billion) in additional capital by 2010 to maintain solvency targets. It also caught investors by surprise by announcing a 1.5 billion euro ($2.2 billion) share issue, and canceling dividends to preserve capital.
That triggered a decline in shares, credit downgrades, and the abrupt departure of Chief Executive Jean-Paul Votron in July.
Some analysts are skeptical of Fortis’s ability to issue debt or sell assets at a reasonable price in the current market environment.
The spokeswoman said Fortis has a viable plan to improve capital ratios.
“We have a plan in place and we are carrying it out,” Tackaert said. “We have some flexibility about the timing of that plan.”
She denied rumors that Fortis was planning another new share issue.
Dutch and Belgian financial market watchdogs last week began investigating allegations of a malicious e-mail campaign spreading rumors against Fortis.
Copyright 2008 The Associated Press.
Footnote: Fortis Healthcare is now Assurant Health which is headquartered in Milwaukee, Wisconsin.
Fortis denies solvency problem as shares drop
Posted on 25th September 2008 by Gordon Johnson in Uncategorized
fortis, fortis insurance, insurance concerns, insurance in the economy, insurance issues, insurance solvency, non-life insurance
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