China’s Fosun International Ltd is seeking explanations from Folli Follie, where it is the second biggest stakeholder, about its actual financial state.
Although Fosun has supported the Athens-listed company since the market lost confidence in Folli Follie two weeks ago, following the report by US hedge fund QCM, it now appears to be unsatisfied with the flow of information from its Greek affiliate.
The story is evolving into one of the biggest and fastest stock crumblings in recent years, while the market is already weighing the exposure of third companies in Folli Follie, including banks, as the Greek group has loans of 610 million euros. Above all this generates concerns the entire country’s credibility could be harmed, this time from a private group.
In a statement to its shareholders, Fosun said that although it originally supported its holding, raising its stake from 13.89 percent to 16.37 percent yon Thursday, it still has certain questions unanswered. It added that the questions the Capital Market Commission has posed are yet to be answered.
On Thursday the stock of Folli Follie closed with a marginal fall of 0.29 percent to 6.85 euros, against almost 15 euros/share the stock was priced at before the QCM reports.