Claims Direct buys more time for deal

Independent Directors of Claims Direct, the besieged "no-win, no-fee" personal injury claims business, sought more time yesterday to reach a deal with a private investor aimed at preventing the company from being sold to its two co-founders.

The directors said in a statement that they had asked Claims Direct's co-founders, Tony Sullman and Colin Poole, to push back the closing date, calling their 10p-per-share offer a "deeply cynical" attempt to buy the company at a value which is more than 90 per cent below its float price a year ago.

The directors said: "These discussions are continuing and it is in the best interests of shareholders for them to be progressed."

The first closing date of the offer made by Mr Poole and Mr Sullman is next Monday. The directors are now looking for a two-week extension to further consider a proposal from a third party who is looking to buy some of the 43 per cent stake in Claims Direct owned by Mr Sullman and Mr Poole. It is not a bid for the whole company.

The third party is understood to be Simon Ware-Lane, an investor who has recently built up a 4.25 per cent stake in Claims Direct. Mr Ware-Lane, who is believed to be an associate of Mr Sullman, also owns a stake in the privately-owned business Claim Line.

The directors are keen for Mr Ware-Lane to increase his stake in order to reduce the influence of Mr Poole and Mr Sullman. The two have said they will sell their Claims direct shares if their bid fails. Both men are expected to step down from their current non-executive roles if an agreement is reached with Mr Ware-Lane.