Quindell share sales by ousted Rob Terry spur eight stock market suspensions in one day
Quindell shares were suspended eight times by stock exchange authorities yesterday after its founder caused chaos by selling almost all of his holding.
Shares in the scandal-hit claims processor hit an all-time low after Rob Terry, ousted last month, slashed his stake in the business from 8.7 per cent to just under 3 per cent.
He netted £9.2million from the deal, on top of the controversial £6million windfall he previously received from offloading stock.
Cut and run: Quindell shares were suspended eight times by stock exchange authorities yesterday after its founder caused chaos by selling almost all of his holding
The turmoil caused by Terry forced AIM regulators to intervene to try to stem the selling spree, trading data reveals.
On eight occasions trading was halted for up to five minutes to allow large numbers of deals to complete. Shares fell as low as 24p – half their opening value – before closing 12.75p, or 28 per cent lower, at 32.75p.
They have now lost more than 95 per cent of their value since peaking at 660p earlier this year before questions were raised over its accounting policies.
Many small shareholders have called on the Financial Conduct Authority to investigate Terry for selling £6million of shares while choosing not to disclose the company’s joint broker had resigned – which turned out to be price sensitive information.
The London Stock Exchange, which regulates the junior AIM market, is believed to be investigating whether Quindell breached listing rules.
Within an hour of the announcement confirming Terry’s sale, Quindell released details of contracts it had won or extended, including with the UK’s largest insurance broker Swinton Group.
These ‘demonstrate the ongoing support of customers to the group’, it said.
Robert Fielding, chief executive of Quindell, said: ‘Sales of shares by Robert Terry have no impact on the day-to-day operations of the business. The group’s business remains robust and we continue to work hard to deliver excellent service to our customers.’
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