Dutch-Belgian banking and insurance group Fortis has asked the financial markets watchdog AFM and its Belgian counterpart to investigate rumours that led to its share price falling 25% this week, reports Thursday’s Financieele Dagblad.
The AFM has confirmed it will look into whether there has been illegal trading in Fortis shares after complaints that false rumours were being spread about the company, says the paper.
‘We follow market developments and certainly these sorts of rumours, especially if Fortis itself reports them to us,’ an AFM spokesman is quoted by the paper as saying.
On Tuesday Fortis stocks dropped 20% on speculation that the company is considering a new share issue.
The company sent out a press release ‘categorically denying’ the rumour. Nevertheless, its share price fell a further 10% on Wednesday, reducing its market value to €15.7bn, says the FD.
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