The sale of Belgian-Dutch financial group Fortis' assets has been voted down at the shareholders meeting, reflecting the will of most investors, including its largest shareholder, China's second-largest life insurer Ping An.

The shareholders met in Brussels on Feb 11 and voted against the company's three deals on asset sales, including the sale of the banking and insurance units to the Netherlands, the nationalization of Fortis Bank NV by Belgium governments, and subsequent transfer of a 75 percent stake to French bank BNP Paribas SA.

Sheng Ruisheng, spokesman of Ping An Insurance (Group) Co, said: "The results at the shareholders meeting reflected the will of most shareholders and Ping An will work with other shareholders to find out feasible plans to make sure of Fortis' sustainable profitability."

Ping An said on Feb 8 that it will vote against the sale of Fortis assets at the shareholders' meeting, and said in a statement that "the decisions, initiated by the government, to sell Fortis assets have not only destroyed its value but also severely impaired shareholders' interests as a whole."

Analysts with Orient Securities said it's possible for Ping An and the other shareholders to try for more favorable proposals. Looking ahead, investors could benefit from the shares on hand when the markets recover, though it's a time-consuming process.

However, analysts with Essence Securities said it was just a temporary victory for Ping An, since Fortis would face a capital gap of 2.3 billion euros after the reform proposals were voted down and the risks are high for the company going bankrupt.

"I expect new negotiations will take place with BNP and the Belgian state but there's a lot of room between what the shareholders want and what the government and BNP are willing to give. It's realistic that BNP Paribas will withdraw at a certain point," Bloomberg quoted an Amsterdam-based analyst as saying.

Aimed at seeking international cooperation and market expertise from Fortis, Ping An invested 23.87 billion yuan in the company and gained a 4.99 percent stake.

So far, Ping An's investment has lost 90 percent of its value. The company took a 15.7 billion-yuan writedown on its investment in the third quarter. Ping An's shares dropped 0.32 percent to 33.79 yuan on Thursday.

(China Daily February 13, 2009)