Announcement by Fortis regarding call option on BNP Paribas - PDF by mly12543


									Press release
Brussels / Utrecht, 12 November 2009

Announcement by Fortis regarding call option on BNP
Paribas shares
Under an agreement between Fortis, BNP Paribas and the Société Fédérale de
Participations et d’Investissement/Federale Participatie- en Investeringsmaatschappij
(SFPI/FPIM) concluded on 12 May 2009, Fortis is the holder of a cash-settled call option                                     Fortis
written by the SFPI/FPIM that allows Fortis to benefit from an appreciation in the value
of the BNP Paribas shares held by the SFPI/FPIM for a period of eight years.                                                 Koningsstraat 20
                                                                                                                             1000 Brussel
The option entitles Fortis to the difference between the strike price and the market price of BNP
Paribas shares at the time the option is exercised or the selling price of the underlying shares if
the SFPI/FPIM opts to sell them. The option replaces the so-called ‘Coupon 42’ arrangement, a
                                                                                                                             Archimedeslaan 6
compensation mechanism benefiting certain Fortis shareholders that was proposed by the
Belgian State.                                                                                                               3584 BA Utrecht
The SFPI/FPIM and Fortis appointed Petercam as the independent calculation agent for the call
option. The agent is responsible for making value calculations in the event of exceptional                         
circumstances, e.g. super dividends, mergers and takeovers, and particularly share issues.

Subsequent to BNP Paribas’s recent rights issue with preemptive rights on 13 October 2009, the
calculation agent has recomputed the strike price of the call option and has reduced it from
EUR 68.00 to EUR 66.672.1

Fortis (, with insurance as its core business, employs over 10,000 people in Belgium and elsewhere.
Its four key markets are Belgium, the United Kingdom, Continental Europe and Asia. Fortis’s 75%-owned subsidiary
AG Insurance is the undisputed leader of the domestic Belgian market for Individual Life and Employee Benefits and
is also one of the top players in Non-Life. Outside Belgium, Fortis Insurance International, a wholly owned Fortis
subsidiary, operates in the other three markets through its own network, joint ventures and local partnerships. Fortis is
set to become the second largest motor insurer in the UK and it utilising its knowhow to form high value-added
alliances in Asia. In 2008, 54% of Fortis's insurance revenues were generated in Belgium and 46% in the other three

Fortis holds a 45% stake in Royal Park Investments, an entity that incorporates a structured credit portfolio, and is
also the sole owner of several financial vehicles, whose assets and liabilities it manages.

Fortis is listed on Euronext (Brussels – Amsterdam).

  As previously mentioned, the call option is not standard and differs from the ISDA market standard. In the event of
a share issue, the strike price of an ISDA standard option is reduced by a certain factor and the number of options is
increased by a factor. It has been agreed to adjust only the strike price of the Fortis-held call option, depending on the
value of the preemptive rights sold or exercised by SFPI/FPIM.
Press contacts:

Brussels:             +32 (0)2 565 2266

Investor Relations:

Brussels:             +32 (0)2 565 5378   Utrecht:   +31 (0)30 226 6566


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