Reuters logo
3 years ago
Quindell denies plans to sell stake in Nationwide Accident
November 20, 2014 / 11:58 AM / 3 years ago

Quindell denies plans to sell stake in Nationwide Accident

Nov 20 (Reuters) - Quindell Plc, a provider of technology used by car insurers to assess claims, denied on Thursday that it was actively seeking to sell its 25 percent stake in Nationwide Accident Repair Services Plc

Quindell's one-sentence statement followed a comment by blogger Tom Winnifrith that the company was "desperate" to sell, and was seeking "any offers at all". (bit.ly/1xFj614)

Quindell's heavily shorted stock, among the most volatile on the London Stock Exchange in recent months, rose as much as 32 percent to 56.75 pence in morning trading.

NARS' shares fell 5.4 percent to 71 pence on light turnover.

Quindell has had a tumultuous few months, facing allegations about its business model and questions about the motivations behind some acquisitions.

The company's founder and chairman, Robert Terry, and two senior executives stepped down on Tuesday over their involvement in complex deals involving the company's shares.

Fidelity Management & Research Co, a major investor, halved its stake in Quindell on Nov. 11, a day after the company disclosed details of the share dealings. (bit.ly/1ySgn18)

On Monday, the company said Canaccord Genuity had resigned as its joint broker. The reason was not disclosed.

Quindell's problems started in April when Gotham City Research called into question the company's revenue model and profit quality. The stock has never recovered, even though Quindell won a libel suit against the U.S.-based short-seller.

Quindell has lost more than 2 billion pounds ($3 billion) of market value since April, and as of Wednesday it was valued at 188 million pounds. NARS was valued at 32 million pounds.

NARS declined to comment on Quindell's statement, while Quindell did not respond to requests for comment.

1 US dollar = 0.6387 British pound Reporting by Noor Zainab Hussain in Bangalore; Editing by Ted Kerr

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below