Fortis Bank will remain in the hands of Belgium government if its shareholders reject the sale of a 75-per cent stake to French banking major BNP Paribas next week, Belgian prime minister Herman Van Rompuy said yesterday.

"The government continues to fully back the agreement with France's BNP Paribas. It does not consider an alternative. If shareholders reject that plan, Fortis Bank will remain 100 per cent in the hands of the authorities for the coming years,'' he told the parliament.

Fortis Holding shareholders will vote on 28 April to decide the fate of the troubled bank.

Fortis, once the largest bank in Belgium and the Netherlands, failed last year, struck by the credit crisis as well as weighed by the acquisition of banking giant ABN Amro 's Dutch retail banking arm in 2007 for 24 billion euro.

''Under no circumstances will there be new negotiations. Not with BNP Paribas, not with Fortis Holding," he said.

The Netherlands government in October 2008, acquired Fortis Bank Nederland (Holding) N V, including the participation in RFS Holdings B V that represents the acquired activities of ABN AMRO, Fortis Verzekeringen Nederland N V, and Fortis Corporate Insurance N V. (See: Netherlands government acquires Fortis' Dutch unit for €16.8 billion).

In December, shareholders of Fortis bank won a legal battle blocking the Belgium government's sale of Fortis' Belgium and Luxembourg operations as well as international franchises to BNP Paribas for an estimated €14.5 billion, saying that the authorities have not discussed the sale plan with them. (See: Belgian court rules freezes Fortis sale to BNP Paribas, rules shareholders vote necessary).

Under new terms agreed in February, Fortis Holding won back control of Fortis' Belgian insurance business.

Van Rompuy said that the new conditions were ''positive for the savers, shareholders, personnel, taxpayers and the country itself.''

Meanwhile, the shareholders had on Monday unveiled an alternative strategy.

Mischael Modrikamen, a lawyer representing some 2,400 Fortis shareholders, and Pierre Deminor, partner of investor activist group Deminor, said the Belgian state, Fortis investors and the group's staff would benefit under their plans.

At a news conference they said the restored banking business should be able to generate a net profit of 1.6 billion euros to 1.8 billion euros ($2.1 to $2.3 billion) by 2011, when Fortis shares could be worth between 6 euros and 8 euros, compared with 1.55 euros now.

They hope that the shareholders will say 'No' to the scheduled vote next Tuesday.

Meanwhile, in Mumbai, BNP Paribas said it will take a decision on the integration of Fortis' Indian operations with itself, only after it received Fortis Bank's shareholders approval.

Both BNP Paribas and Fortis Bank have stakes in separate asset management companies in India - Fortis Mutual Fund and Sundaram BNP Paribas Mutual Fund.

''Shareholders are meeting late this month to approve the Fortis' acquisition...we haven't yet decided what to do with the Indian asset management business,'' BNP Paribas, corporate and investment banking, chief executive and country manager, Frederic A Moudru, said.

In India, BNP Paribas has a tie-up with the Sundaram Group for mutual fund business. BNP Paribas holds a 49.9 per cent stake in the joint venture.

Geojit renamed
In a related development, on Thursday, BNP Paribas has rechristened Geojit Financial Services as Geojit BNP Paribas Financial Services.

BNP Paribas has 28-per cent stake in Geojit BNP Paribas Financial Services. It also holds warrants which, on conversion, will raise its stake in the Indian company to 34 per cent.

"By partnering with BNP Paribas, Geojit will further extend its services to the growing population of non-resident Indians. The company will take advantage of the expertise of BNP Paribas Personal Investors to rapidly develop its online trading business and marketing of mutual funds and life insurance," said C J George, CEO, Geojit BNP Paribas.