From Gotham City to Fidelity and Canaccord: The unfortunate tale of Quindell’s share price 

You’d be forgiven for forgetting the full detail behind the story of Quindell – here, we wrap up the last seven months of headache-inducing stories that kept the insurance outsourcer in the headlines.

April 23 – Mysterious short seller Gotham City Research publishes a 74-page dossier, claiming Quindell had “magical… paper profits” and raising a question mark over the business. Shares dive 52 per cent, and close down 39 per cent, wiping out nearly £1bn in a day. Quindell calls in the FCA to investigate.

April 25 – Quindell accuses Gotham City of being “highly defamatory [and] deliberately misrepresentative”, adding it “entirely rejects the conclusions that are made”.

August 21 – Quindell reports half year revenues climbed 119 per cent to £357m, but shares still drop – down 12 per cent in early trading to 185p per share.

September 9 – Quindell wins libel case against Gotham City Research. Shares soar 7.26 per cent to 176.8p per share.

September 29 – Quindell releases statement saying it is baffled by the continued share price declines. Share price falls to 141p per share.

October 13 – Quindell reveals revenues up 115 per cent to £198m, with adjusted core profits up 141 per cent to £83m. Share price initially rises nearly six per cent but by the end of the day it has fallen 7.3 per cent to 143p.

October 14 – Chairman Rob Terry claims the company is undervalued and he would consider selling off parts of the business.

November 11 – Quindell is forced to explain its convoluted share dealing led by Rob Terry and two other directors, who borrow £8.76m in order to fund the purchase of more Quindell stock. Shares plummet 19.83 per cent and closed at 95p, a two-year low.

November 13 – Fidelity cuts its stake in half. Shares fall more than 10 per cent to 73p per share.

November 17– Quindell’s joint broker and financial adviser Canaccord resignation is announced. Canaccord was supposed to work out a full month’s notice, but ended the relationship several days before that period was up. Shares open 24 per cent down at 52p per share.

November 18 – Quindell confirms that chairman Rob Terry will step down alongside non-executive director Steve Scott. Former head of investment banking at Investec, Dave Currie, is taking over the role on a temporary basis. Shares initially rose by 15 per cent, but within 20 minutes of the markets opening were falling again.

Source: cityam – From Gotham City to Fidelity and Canaccord: The unfortunate tale of Quindell’s share price

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