Quindell (LON:QPP) shares advanced Monday on reports that Slater & Gordon is to pull the trigger on its proposed purchase of Quindell’s legal services division.
A Sunday broadsheet reported that the Aussie law firm is to pay £640mln for the division, worth around 145p a share, on top of which it is prepared to share half of the receipts from noise-induced hearing loss cases being pursued by Quindell.
Slater & Gordon has until 23 March to make its move before Quindell is within its rights to invite other potential purchasers in for a look-see at the accounts.
Meanwhile, calls are growing for the Financial Conduct Authority (FCA) to investigate last year’s dramatic collapse in Quindell’s share price after a heavy-duty short-selling attack in the first half of 2014 on the back of some research from Gotham City, the hedge fund-backed US research house that subsequently lost a libel action brought against it by Quindell.
Vince Cable, the Business Secretary, and Andrew Tyrie, chairman of the Treasury Select Committee, have lent their support to The Quindell Shareholder Action Group (QSAG), which wants the FCA to investigate whether the share price collapse was a case of market abuse.
The FCA said it investigates every allegation of market abuse that it receives, but it does not comment on individual cases.
Quindell shares were the top risers in London on Monday morning, advancing 27.6% to 127p, but are still down 76% over the last year.