PING AN PULLS OUT OF FORTIS DEAL

China-based insurer Ping An has abandoned its planned deal to buy half of the asset management business of troubled Belgo-Dutch bank Fortis. The original deal was struck back in March when Ping An, China’s second biggest insurer, agreed to pay $3 billion for a 50% stake in Fortis Investments. However, since Fortis was bailed out by the governments of Belgium, Holland and Luxembourg to the tune of €11.2 billion, the two parties have been trying to renegotiate the deal, which was still subject to the approval of the Chinese regulator. Earlier this week Ping An was forced to issue a statement to the market following a sharp drop in its share price, stressing that it remained in a “solid position” as regards capital adequacy and liquidity despite making a $1.5 billion investment loss through its existing 4.9% share in Fortis, revealed in Ping An’s half yearly report for 2008.