Talks on future of Fortis to run into Sunday

By Reed Stevenson and Philip Blenkinsop

AMSTERDAM/BRUSSELS (Reuters) - Financial authorities were examining ways to restore confidence in Fortis (FOR.BR) this weekend, while the troubled Belgian-Dutch financial group sought to close key divestment deals.

Financial authorities were contacting other institutions, a source familiar with the situation told Reuters on Saturday, although no particular solution was preferred and nothing concrete was likely to emerge before Sunday.

Asked about the talks, Belgian Prime Minister Yves Leterme told reporters after a party meeting: "We are being informed."

"It is crucial for people of this country who entrust their savings to a bank that we safeguard the credibility of these banks and, in particular, ensure that every person who has entrusted a bank with a euro can be sure of getting it back."

The stakes are high in Belgium, where Fortis is the biggest private sector employer and where over 1.5 million households, roughly half the country, bank with the group.

Veerle De Schryver, a spokeswoman for the Banking, Financial and Insurance Commission (CBFA), said: "The CBFA and the national bank are assessing initiatives to reestablish confidence in Fortis."

She added Belgian and Dutch financial authorities were in touch. "There will be communication by the end of the weekend."

The Dutch central bank (DNB) declined to comment, although DNB governor Nout Wellink, who is also a European Central Bank governing council member, cancelled a Chicago trip to return to the Netherlands.