BNP PARIBAS POSTPONEMENT COSTS FORTIS €295M

The postponement of French bank BNP Paribas’ takeover of the Belgian assets of Fortis has cost Fortis €295m ($403.8m) in currency trading losses, the Dutch-Belgian financial services group said last week. In preparing to close the deal with BP Paribas, Fortis had bought significant amounts of US dollars and pounds sterling on December 8, which would permit Fortis to pay for its share of Royal Park Investments — a structured credit portfolio — in the currency of the portfolio’s assets. On December 12 the sale of Fortis assets was suspended by a court ruling, leaving Fortis holding dollars and pounds that had deteriorated sharply against the euro.