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.”
Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando
First full-length look is finally here
World cities ranked in terms of safety, food security and 'liveability'
"Oink! Oink! Hee hee hee!" First interview with the big-screen star
Biohacking group hopes technology will lead people to think about even more dystopian uses
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Sex abuse inquiry: 'Victims receive death threats' after MPs release names online
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Teenager brandishing fake gun taken down by police after demanding airtime on Netherlands' NOS TV station
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...