Bois Sauvage boss detained, shares suspended

 

The head of Compagnie du Bois Sauvage SA has been detained over alleged insidertrading in Fortis and the company's shares have been suspended, the Belgian holding company said late on Thursday.

The company is under investigation over 3.6 million Fortis shares it sold for 19.5 million euros ($28.4 million) on Oct. 3, just before the Netherlands announced the nationalisation of Fortis's Dutch operations, the first step in the group's carve-up.

Bois Sauvage chief Vincent Doumier was taken into custody on Thursday on charges of fraud and insider trading.

"The board of directors maintains full confidence in its chief executive and forcefully confirms that no offence was committed," the company said in a statement.

Chairman Guy Paquot would temporarily assume the role of chief executive, the company said.

The board had also asked the Belgian financial markets regulator to suspend trading in Bois Sauvage shares up to and including Monday.

Fortis shares, which had previously been regarded by many market participants as a safe investment, fell to below 1 euro after the break-up from more than 5 euros just before.

Belgian media have said the insider trading, if proven,could lead to a fine of 45 million euros.

Fortis was carved up by the Dutch, Belgian and Luxembourg governments in October after an 11.2 billion euro cash injection failed to calm investors. ($1=.6860 Euro)