Quindell chairman blasts critics as he vows to increase stake
Thursday 21 August 2014
Quindell chairman Robert Terry has launched a scathing attack on short-sellers as he vowed to buy more shares of the insurance outsourcer after being hit by a damning piece of research.
Quindell stock has fallen almost 230 per cent since its highs in April after US-based Gotham City Research, which admits to taking short positions in companies it covers, said Quindell was “built on sand” and its shares were worth only 3p.
Quindell has denied all the allegations and is taking legal action.
Despite announcing first-half profits have trebled to £153.7 million in the first six months of the year and revenue rose 119 per cent to £357.3 million, Quindell shares today fell a further 8 per cent, 17p, to 193.25p.
Terry blamed the fall on short-selling activity, saying the slip was “certainly not a reaction to the results”. He added: “Once I’m able to, if the price stays at this level I’ll be buying more [Quindell shares].”
Quindell handles outsourced claims from insurers such as Aviva and Direct Line and also has legal processing and medical diagnostic businesses.
In addition to the accusations from Gotham, the company was this week hit by an accusation of fraud by a financial blogger.
Quindell has denied the charges and Terry said both attacks were “purely commercial”, saying: “Clearly someone’s making money shorting the stock.” The company is taking legal action against the blogger, while Terry said progress on the Gotham case was due “within days”.
Last month there were reports that its relationship with joint-venture partner RAC was on the rocks. Quindell teamed up with the roadside rescue firm to install black boxes that monitor driving in its customers’ cars, a field known as telematics. Terry said relations with RAC remain strong.
Quindell today named Stefan Leon Borson, the former boss of Redbus Media, as its new head of legal. But Terry denied this was a defensive move, saying: “We’re the largest global publicly listed law firm. We employ about 1500 legal professionals. Adding one more is not a response to Gotham.”
- 1 BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
- 2 Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
- 3 Number of young homeless people in Britain is 'more than three times the official figures'
- 4 Motorists taunt suicidal woman on bridge and tell her to 'get on with it'
- 5 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
Number of young homeless people in Britain is 'more than three times the official figures'
The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...