By S. Emmanuil
[email protected]
The Athens Stock Exchange (ASE) was reeling this week under the weight of a high-profile report by a NYC-based hedge fund claiming major discrepancies in results reported by the Folli Follie Group (FFG), with the jewelry and accessory retailer’s share price taking a nearly 30-percent dive on Monday.
The negative “press” generated in the wake of the report by QCM also pressured the entire Greek market.
Since Friday’s session, FFG’s capitalization at the ASE has shrunk by roughly 500 million euros, from 1.027 billion euros to 503.45 million euros, beginning on Thursday, a day before the QCM report was released.
Developments have also generated concern in Greece’s thrice-recapitalized banking sector, as FFG’s total borrowing is roughly 612 million euros. According to banking analysts, however, lenders at present are not expected to initiate measures, considering that FFG’s stake in the Swiss group Dufry is valued at roughly 250 million euros.
FFG also lists stakes in Qivos, the Attica department store, Cosmobrands and a marina in Mytilene, the capital of the island of Lesvos.
In response to the market pressure, FFG on Tuesday is expected to release more financial information, and is also reportedly close to hiring an international accounting firm to audit its books.
