This page has been archived and commenting is disabled.

As Coke Goes, So Goes 20% Of The Greek Stock Market (Which Is Now Smaller Than Vietnam's)

Tyler Durden's picture




 

The erstwhile 'developed' market of the Athens Stock Exchange has just suffered a major blow. Coca-Cola Hellenic Bottling Co (CCHBC), the world's second largest Coca-Cola bottler, will quit the exchange for London next year, cutting the value of equities listed in Athens to a mere $31bn - smaller than Vietnam's $35.2bn. CCHBC is Greece's largest company by market value and sets a rather ugly precedent in leaving the troubled nation. Accounting for 23% of the benchmark index weight, it is 50% larger than all four of Greece's major banks combined. A new company, headquartered in Switzerland, will make a share-exchange offer for CCHBC and seek a primary listing on the London Stock Exchange - which will mean around 10% of all trading volume on the Athens Stock Exchange will be lost. The decision to leave Greece was prompted by concerns over political and economic stability - so for the Greeks, Coke Is not It.

From the 3/6/09 lows, CCHBC is up 99% while the ASE is down 42%...

 

 

Via Bloomberg:

...

 

Coca-Cola HBC Chief Executive Officer Dimitris Lois said in a Bloomberg Television interview broadcast yesterday that the ratings downgrades played a role in the decision to move, along with “stability both in the economic environment and regulatory environment” in Switzerland.

 

The decision was triggered by the concerns from our investors with regards to the liquidity, so obviously we have addressed the liquidity by listing on the London Stock Exchange,” Lois said. “The second element was the downgrade from the two rating agencies. With these downgrades, the cost of potential borrowing was going up.”

 

...

 

The Greek government must work hard to prevent more companies fleeing overseas, according to Attica Wealth Management’s Krintas.

 

“The government needs to understand the problems these companies are facing,” he said. “You can’t discuss growth, you can’t try to get out of the recession without utilizing the arsenal you’ve got and the arsenal in this case is the big, productive enterprises in Greece.”

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 10/16/2012 - 15:24 | 2895850 The trend is yo...
The trend is your friend's picture

one domino after another.  but it's getting better all the time

Tue, 10/16/2012 - 15:30 | 2895885 redpill
redpill's picture

BUT VAT ABOUT ZEE EUROPEAN DREEEAMMM

Tue, 10/16/2012 - 15:35 | 2895909 walküre
walküre's picture

Bullish on Greece. Nice place to live a long productive life. Great climate, great people. Culture like few other places.

Once Greece is out of the Euro and EU, I'm going there. Forget the shitholes they call "emerging markets".

Greece is the place to be an entrepreneur and invest AFTER the Euro.

Tue, 10/16/2012 - 15:36 | 2895915 economics9698
economics9698's picture

Take the 22 LR to kill the zombies.

Tue, 10/16/2012 - 15:42 | 2895934 walküre
walküre's picture

I will wait until the Greeks have kicked out all the banker scum, kicked out every TROIKA scum, kicked out the IMF scum and then closed the barn door. Then the good people of Greece can focus on rebuilding and restarting their sovereign nation state.

Fuck the EU, fuck the ECB, fuck the IMF, fuck the TROIKA, fuck the Fed, fuck Bernanke, fuck the whole scummy lot every day and twice on Sunday!!!!

Tue, 10/16/2012 - 15:43 | 2895937 ParkAveFlasher
ParkAveFlasher's picture

"A new company, headquartered in Switzerland, will make a share-exchange offer for CCHBC and seek a primary listing on the London Stock Exchange..."

This is happening with many a European company.  They are are pulling out of Athens, Paris, etc and setting up HQ in Switzerland.  Old paper mills and brick factories being converted to glassy post-modern offices and meeting centers. 

So when someone asks, cui bono, regarding the Euro, it's the Swiss.

Tue, 10/16/2012 - 21:57 | 2896854 mrjohn
mrjohn's picture

then they try to hail a taxi away from a designated taxi rank

Tue, 10/16/2012 - 15:44 | 2895940 Ahmeexnal
Ahmeexnal's picture

Merdekell confessed to Farage that Greece would not be allowed to ESCAPE the euro because if it did, others would follow. That means a grexit would be a complete and utter euro implosion. Once that happens, I'd bet my guilders on the NL, my schillings on AT. Hell, even -and specially!- my Lire on IT. I have few drachmas for a reason.

Tue, 10/16/2012 - 15:50 | 2895954 walküre
walküre's picture

We all know what happens when Germans are trying to bolt the doors and not allowing anyone to "escape".

If this were the US, I'd be concerned. But we're talking about Germans trying to lock someone up or something in.

The US can lock anyone up for no good reason and throw away the keys. No questions asked, no trial, no judge or jury.

Good thing the US isn't running affairs in the EU!!

Tue, 10/16/2012 - 15:52 | 2895963 Vince Clortho
Vince Clortho's picture

"The US can lock anyone up for no good reason and throw away the keys. No questions asked, no trial, no judge or jury."

You say this like it's a bad thing.

Tue, 10/16/2012 - 18:12 | 2896291 sessinpo
sessinpo's picture

"The US can lock anyone up for no good reason and throw away the keys.

Any government can lock someone up for no good reason and throw away the keys. The question is how much money you have or how famous you are to prevent that. Government has the monopoly on legalized force and corruption. That applies to all governments, not just the US.

Tue, 10/16/2012 - 15:26 | 2895866 PMakoi
PMakoi's picture

I guess it's true that things better go with Coke... errr, something like that probably.

 

Tue, 10/16/2012 - 15:30 | 2895886 francis_sawyer
francis_sawyer's picture

Lou raised the price on Coke... He's been losing at the track...

~~~

http://www.youtube.com/watch?v=QY2HL1zg6Gk

Tue, 10/16/2012 - 16:27 | 2896054 max2205
max2205's picture

Nobody is going to move to a country that don't have coke.... a cola...that is

Tue, 10/16/2012 - 15:29 | 2895872 FubarNation
FubarNation's picture

Mr. Greece, Mr. Greece....do you need any help?  I just want you to know I think...I think your the best ever.  Want my Coke?  Its ok you can have it.  No you can have it.

 

Not.  Have an economic implosion and a smile.

 

Bonus ZH points if you get the above reference.

Tue, 10/16/2012 - 15:30 | 2895893 moonman
moonman's picture

Thanks Mean Ang!

 

Tue, 10/16/2012 - 15:45 | 2895943 walküre
walküre's picture

was that a Spiderman towel he threw after the kid? might as well have been. same hubris.

Tue, 10/16/2012 - 15:28 | 2895873 DavidC
DavidC's picture

To Greece.

Just get out!

DavidC

Tue, 10/16/2012 - 15:28 | 2895878 walküre
walküre's picture

The fees on that transaction are showing up in the GS balance sheet. Make no mistake.

Tue, 10/16/2012 - 15:32 | 2895882 Cognitive Dissonance
Cognitive Dissonance's picture

"....which will mean around 10% of all trading volume on the Athens Stock Exchange will be lost."

Dude! Just get a (HFTing) Dell.

Dell

Tue, 10/16/2012 - 15:32 | 2895901 tooriskytoinvest
Tue, 10/16/2012 - 15:32 | 2895902 PUD
PUD's picture

oh jesus! nothing to wash down the pickings from the dumpsters?

Tue, 10/16/2012 - 15:37 | 2895914 Duke of Con Dao
Duke of Con Dao's picture

hey, I've lived in Vietnam...

I've never been to Greece but I'd still go with it over Nam...

...

YouTube - Hillary Clinton: 'I take responsibility!' Bill's response: 'Still won't close that...'    (12 sec)

Tue, 10/16/2012 - 15:38 | 2895920 perelmanfan
perelmanfan's picture

Coke and other soft drinks are major drivers of the worldwide epidemic of type 2 diabetes. If the company went under, it would be a huge boon for mankind.

Tue, 10/16/2012 - 15:43 | 2895939 Dr. Acula
Dr. Acula's picture

Do you have any evidence that getting diabetes is objectively worse than living without soft drinks?

 

 

 

Tue, 10/16/2012 - 15:46 | 2895944 Ahmeexnal
Ahmeexnal's picture

soft drinks are for those who rhyme with maggots. hard booze is for men.

Tue, 10/16/2012 - 16:05 | 2895928 Urban Redneck
Urban Redneck's picture

If I were Greek I would be more concerned with the several hundred million dollars of (otherwise) taxable profit and those increasingly endangered non-GOV jobs, that are walking out the door, not the headline-grabbing HFT fodder headed for Ponzi Circus in London.

Tue, 10/16/2012 - 15:42 | 2895933 darteaus
darteaus's picture

Throw out all the other companies to show you don't need Capitalists!

Tue, 10/16/2012 - 15:50 | 2895953 Seasmoke
Seasmoke's picture

Time for a video from the talking polar bears

Tue, 10/16/2012 - 16:18 | 2896036 Long-John-Silver
Long-John-Silver's picture

They never talked, they only groaned. I can understand why now that all I can do is groan when I watch the news.

Tue, 10/16/2012 - 16:32 | 2896064 disabledvet
disabledvet's picture

I'm thinking more Warren Buffet than talking Polar Bears myself. Dollars to donuts "he's licking his jops over Greece."

Tue, 10/16/2012 - 15:53 | 2895964 Motorhead
Motorhead's picture

No Coke, Pepsi.

Tue, 10/16/2012 - 16:16 | 2896030 Long-John-Silver
Long-John-Silver's picture

and you can only buy 16oz at a time.

Tue, 10/16/2012 - 20:42 | 2896594 NidStyles
NidStyles's picture

The bottle may be capable of holding 16oz, but that's not what is in it.

Tue, 10/16/2012 - 16:05 | 2895998 Let The Wurlitz...
Let The Wurlitzer Play's picture

The ESF is now going to open a new bottling company in Greece to replace the one that is leaving.  It will be called Draghi Cola.  They will create the new soda out of thin air and sell it to thirsty money managers and hedge funds.

Drink up!

 

Tue, 10/16/2012 - 16:15 | 2896027 Long-John-Silver
Long-John-Silver's picture

Coke-a-cola and other carbonated, sugar water products are now government controlled substances. This is is to be expected for any product that comes under government regulation.

Tue, 10/16/2012 - 16:19 | 2896040 BudFox2012
BudFox2012's picture

I thought it was "As Coke Goes So Goes Columbia"   Who knew?

Tue, 10/16/2012 - 16:33 | 2896068 Flounder
Flounder's picture

Coke.

Greek Bank.

Hard to say which is more toxic.

Tue, 10/16/2012 - 16:51 | 2896109 negative rates
negative rates's picture

Anything smaller than Vietnam, can turn into India or Brazil, in a heartbeat!

Tue, 10/16/2012 - 17:02 | 2896137 Peter Pan
Peter Pan's picture

The Euro has turned out to be a prison camp with the two sentinels of Germany and debt standing at the gate to ensure that no one leaves.

Greek airports as well as Spanish ones will soon have signs saying ÄRBEIT MACHT FREI (work sets you free) which is what used to be at the entrance of the Auschwitz Prison Camp.

Wed, 10/17/2012 - 09:40 | 2897756 anomand
anomand's picture

HOW TAXES IN GREECE CAN BE 100%, 200….500% AND SO ON OF PERSONAL INCOME

 

PAY ATTENTION EVERYBODY!!

 

I COULD WRITE PAGES AND PAGES ABOUT THE GREEK SITUATION BUT THIS ONE SUMS IT ALL UP AND EXPLAINS WHY GREECE IS DOOMED AND UNIQUE IN THE WHOLE WORLD:

 

 

THE EXAMPLE IS EXTREME BUT  REAL AND INDICATIVE.

 

OWNER RENTS PROPERTY FOR 72,000 EUROS PER YEAR

PAYS TAXES 29,000 EUROS  (40%)

PAYS PROPERTY TAXES (JUST FOR OWNING THE BUILDING) 35,000-40,000 EUROS

 

 

NET PROFIT:  MAXIMUM 3,000 EUROS

 

SUPPOSE THIS PERSON DOES NOT RENT HIS PROPERTY. HIS HAS TO PAY EVERY YEAR 35,000- 40,000 EUROS NO MATTER WHAT HIS OTHER INCOME IS OR WHETHER HE IS UNEMPLOYED.

 

NOW DO YOU STILL WONDER WHY THE NAZIST PARTY IS GAINING IN POWER?

 

 

Do NOT follow this link or you will be banned from the site!