Vovos stock plummets on ruling

The free fall in the stocks of Babis Vovos continued for a second consecutive day on the Athens bourse yesterday, due to the injunction by the Council of State against the construction of a new mall at Votanikos. The construction firm saw its shares lose another 29.87 percent of their value after a similar decline on Monday, taking its total loss so far this week close to 50 percent. The decline has led several stockbrokers and banks to revise their estimates on the stock downward, as they suggest that the future of the company is closely tied to the project in western Athens. In order to appease investors, the firm issued a statement yesterday arguing that «the future of the company is safeguarded by its strong fundamentals.» It stressed «the very satisfactory financial situation of the company, while for the current year revenues from leasing will come to 47 million euros.» Last week the country’s highest administrative court upheld the injunction application made by 131 Athenians against the construction of a shopping center at Votanikos, which forms part of the «twin facelift» project by the City of Athens and also concerns the area of Ambelokipi. The project is driven by Panathinaikos sports club’s desire to build its own sports center at Votanikos.

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