Shareholders of European insurer Fortis have rejected deals that would see the business carved up between the Dutch and Belgian governments and French financial services company BNP Paribas.

Faced with the prospect of a share of toxic assets, shareholders voted against the proposal to approve transactions with the three parties at a meeting last week.

The transactions with Belgium and the Netherlands have already closed but the Fortis board will have to review the situation with BNP Paribas.

BNP Paribas is the only obstacle to the deal. It says an initial agreement to buy the assets of the beleaguered banking and insurance group, signed last October, is legally binding.