BRUSSELS (Reuters) - Belgium and Luxembourg are talking to several private groups about the future of troubled financial group Fortis and will send a signal before markets open on Monday, Belgian Prime Minister Yves Leterme said on Sunday.
Leterme told Belgian television and radio stations he hoped to keep the Belgian and Luxembourg operations of the banking and insurance group together after the Netherlands nationalized most of FORTIS <:FORB.BR:>(FORA.AM) Dutch units on Friday.
"There are contacts with private groups, several private groups. We are not going to decide in this situation with our backs to the wall," he said. "The only thing certain is that we are going to send a clear and strong signal to the markets before they open tomorrow."
Leterme said that the Belgian government would not, however, simply sell the remains of Fortis off in a cheap, rushed deal.
"Fortis is an important and healthy company that has good future prospects. Out of respect for the staff we're not just going to sell it off for a song. There are other possibilities than just leaving it to a private partner," he said.
"On the other hand, we will calmly study every serious offer that offers the company a future," he added.
Finance Minister Didier Reynders, also commenting on Belgian radio, said the next step would depend to a great extent on what Luxembourg decided after its capital injection last week in the form of a convertible bond.
"We'll see if the Luxembourg government goes further either by converting the bond or by going further and taking a bigger stake. We can keep the Belgo-Luxembourg company together," Reynders said.
Belgian media also said that new questions were being raised about Franco-Belgian Dexia
Leterme described Dexia as a "very solvent bank." Dexia, the recipient of a 6.4 billion euro public bailout on Tuesday, declined immediate comment.
(Reporting by Paul Taylor and Philip Blenkinsop, Erica Billingham)
