Quindell insists Slater & Gordon talks still on as share price tanks 20 per cent
Quindell has moved to reassure investors that talks are still ongoing with legal giant Slater & Gordon after its share price tanked this morning.
The troubled insurance claims processor, whose share price had been rallying since the start of the year, saw its share price fall by as much as 20 per cent today.
Following this, Quindell released a statement to the market saying: “contrary to speculation, the exclusivity arrangements with Slater & Gordon in respect of the possible disposal of an operating division of the group continue, and discussions are ongoing”.
It added that there “can be no certainty that these discussions will lead to an offer” but said it would make an announcement if the talks were called off in future.
The share price has recovered slightly, though was still down 14.2 per cent at 72.5p. At its peak the share price was 656p.
Still, the outsourcer will be hoping to be leaving the woes of 2014 behind. Last year Quindell's share price plummeted after claims were made against it by shadowy analyst firm Gotham City.
It was subsequently plagued by a series of problems that saw its share price dwindle even further, and by the end of the year, chairman and founder Rob Terry had resigned, as had its broker, Canaccord Genuity, while investor Fidelity halved its stake.
On reports that it was in talks with Slater & Gordon last month, however, its share price soared 15 per cent.