Fortis shareholder may take legal action to stop Amlin sale

Fortis shareholders' foundation FortisEffect wants to stop the sale of Fortis Corporate Insurance by the Dutch state to Lloyd’s insurer Amlin, claiming the sale is illegal, Dow Jones reports

FortisEffect lawyer Adriaan de Gier has sent letters to the Dutch state and Amlin claiming the deal would hurt Fortis shareholders.

Amlin spokeswoman Hannah Bale told Dow Jones Newswires: "We are aware of the shareholder lawsuit, having looked at them as part of our due diligence process. We believe that any risk related to these lawsuits is effectively eliminated by the warranties we have obtained in the transaction documents."

Share price movements

The Times reports that Amlin shares fell by 19.0p, or 5.46%, to 320p, as it emerged that the insurer’s share placing to buy Fortis Commercial would dilute the stake of existing investors.

Reuters reports Amlin shares fell as much as 6.4% in early trade to a near seven-month low, but pared losses to trade 0.3% down at 338 pence by 1314 GMT.

But The Guardian reports the shares rose 2.5p to 341.5p by close of trading.