16-06-2010: Fortis : Deminor reacts to the report of experts appointed by the Dutch Enterprise Chamber

Deminor takes notice of today's release of the report of experts appointed by the Dutch Entreprise Chamber on November 24, 2008.

The 581 pages report contains a detailed description of Fortis' deteriorating financial situation from its decision to participate to the consortium's takeover bid on ABN Amro to the dismantling of the group end September / early October, 2008. The report covers a long period (from July, 2007 to early October, 2008) and a broad range of issues, including financial communication, solvency and liquidity management, and the dismantling transactions.

 

The report is important for Deminor clients' action that was initiated against Fortis in January, 2010 before the Commercial Court of Brussels. The purpose of this law suit is to recover Deminor's clients' losses resulting from Fortis' misrepresentation of its financial situation during the relevant period, which coincides with the period covered by the experts report.

 

While describing in detail the factual circumstances that have brought Fortis to the crisis situation of end September / early October 2008, the experts do not hesitate to express their fierce criticism of Fortis' lack of management of its deteriorating situation and its failure to timely communicate its financial problems (including sub-prime exposure and solvency and liquidity issues) to the market. In general, the tone and contents of the experts' report is very critical of Fortis' and its management's conduct during the relevant period.

 

Deminor therefore concludes that the experts' report confirms its analysis, i.e. that Fortis misled investors on several material aspects, including its subprime exposure, its liquidity and solvency, its commitments not to launch dilutive share issues and to maintain the dividend policy, and the consequences of the takeover of ABN Amro. Based on this misleading information, investors bought and/or held Fortis shares. They suffered losses as a result of the significant fall of the stock price after the market became aware of the true situation of Fortis.
Deminor will communicate in further detail about the experts' report in the next few days.

 

Various institutional investors have joined Deminor's group action before the Commercial Court of Brussels and many are still in the process of joining. Given the publication of the experts' report, Deminor had decided to extend the deadline for participation to its action to July 31st, 2010.

 

Deminor is looking forward to the report of the experts appointed by the Commercial Court of Brussels.

 

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Contact person:

 

Erik Bomans
Tel +32-2-674-71-10

erik.bomans@deminor.com

 

 

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1_Press Release Deminor - Fortis Case - June 16 2010.pdf