Quindell share price spirals further
Quindell shares plummeted almost 20 per cent this morning, extending this week's losses, which took it to a three year low yesterday.
The stock has already fallen 36 per cent this week, closing at 75.5p per share yesterday, then plummeting as low as 61p per share this morning.
The insurance outsourcer has had a torrid few days after spooking investors by failing to properly explain the share deal it announced last Wednesday.
The company was forced to restate the deal on Monday in which it clarified three directors had transferred shares to US hedge fund Equities First Holdings (EFH) to fund the purchase of more shares.
Chairman Rob Terry, finance director Laurence Moorse and independent director Steve Scott cashed in stock worth £8.6m last week. They have spent just over £1m of that so far buying new shares.
The trio said they will repurchase the shares as part of the deal, in two years' time “at 69 per cent of the three-day average market value per share applicable at the date of entering into the facility, less margin calls paid”.
If Quindell stock falls more than 20 per cent below the value they were transferred to EFH, all three directors will have to transfer more stock or pay cash to the hedge fund as part of the deal.
Shares recovered slightly this afternoon however, down six per cent at 71p per share in mid-afternoon trading.