Greek regulator asks Folli for independent audit, shares dive again

Folli Follie SA

07/05/2018 09:07

ATHENS, May 7 (Reuters) - Greece's securities regulator said
on Monday it will ask luxury goods maker Folli Follie  HDFr.AT 
to have its 2017 consolidated accounts scrutinised by an
independent auditing firm after an equity fund report sent its
shares crashing last week.
    Folli stock fell 30 percent on the Athens stock exchange on
Friday after long-short equity fund Quintessential Capital
Management (QCM) issued a report saying the company had
overstated the number of points of sales it operates worldwide.
    "Quintessential Capital Management's report is unfounded,
false, defamatory and misleading which results in damaging the
interests of the firm and its shareholders," Folli said in a
stock exchange filing on Friday, adding that it has ordered its
legal advisers to defend its legal right.
    Folli has activities in Greece, China and other countries
around the world and a current market value of 719 million euros
after 300 million euros of capitalisation was wiped out on
Friday.
    Its shares tumbled a further 30 percent in early Monday
trade to 7.52 euros.
    Headquartered in New York, QCM has a short position on Folli
shares. It also said in its report that it was concerned over
Folli's finances.
    The Greek securities regulator said there would be a clear
timetable for the conclusion of the audit and that it would also
ask QCM to come up with an "analytical explanation of its
arguments" and submit the relevant data.
    The securities watchdog is also probing transactions on
Folli shares, including short sales, since last Friday, it said.

 (Reporting by George Georgiopoulos, editing by Louise Heavens)
 ((george.georgiopoulos@thomsonreuters.com; +30210 337 6437;
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