Stock Watch

French bank BNP Paribas expects annual synergies of euro900 million by 2012 from the acquisition of Belgian lender Fortis, raising its earlier savings target of euro500 million. The acquisition would make BNP Paribas as a top financial institution by deposits across the 16 euro using nations. Fortis faced a run by depositors and investors started to lose confidence given to huge debt burden it incurred while funding the acquisition of parts of ABN Amro of the Netherlands. It also announced agreements with the Dutch, Belgian and Luxembourg governments to avoid possible bankruptcy. Revising its expectations for restructuring costs from integrating Fortis from euro750 million to euro1.3 billion over 2009 to 2011, the French bank hopes increased earning next year before restructuring costs. Unveiling its plans, France's largest bank said, "The group is well positioned for growth and value creation in the new environment. It is not only deepening its European domestic retail presence but also transforming its asset gathering capabilities." The bank hopes better returns from joint organization, information technology, procurement, and human resources activities during the financial year.