Amsterdam  - Shareholders and analysts were waiting for the stock exchanges to open Monday to see if the 49-per-cent nationalization of Dutch-Belgian insurance and banking giant Fortis would regain the confidence of investors.

Late Sunday night the governments of the Netherlands, Belgium and Luxembourg announced they had each purchased 49 per cent of Fortis, paying the bank a total of 11.2 billion euros (16.35 billion dollars).

The Dutch government will take over 49 per cent of the insurance company, for which it will pay some 4 billion euros. The Dutch banking division ABN Amro is to be sold.

The Belgians will take over 49 per cent of the banking division, paying some 4.7 billion euros, while Luxembourg will take over 49 per cent of all divisions located on its territory, paying some 2.5 billion euros.

The purchase provides the bank with the funding it desperately needed since the takeover of ABN Amro in October 2007.

In June, Fortis had publicly announced its need for substantial extra funding. Its share value has dropped dramatically ever since, reaching a low of 5.18 euros per share
(down 20.89 per cent) at close of business on Friday.

Under the agreement reached late on Sunday, Fortis chairman Maurice Lippens will step down.

Shareholders have requested Lippens' departure since June when the bank first announced its need for substantial extra funding.

Dutch ABN Amro bank, bought by Fortis in October 2007 for more than 24 billion euros (35.04 billion dollars) but operating as an autonomous bank until late 2008, will be sold again.

Dutch Finance Minister Wouter Bos said following the meeting that Fortis remains a credible bank.

"We feel obligated to keep a bank like Fortis going in difficult times like these," he said.

Bas said that there was no other choice but for the Benelux governments to step in, as Fortis' position had become "very vulnerable."

"We could also not have intervened, but the question was if Fortis would have survived Monday morning," he said.

The Benelux governments will sell their 49-per-cent share in Fortis after confidence in the banking system has been regained, officials said. (dpa)