LONDON (ShareCast) - Software and technology outsourcing group Quindell on Monday announced share purchases by three of its board members following its decision to start legal proceedings against a short-seller at the end of last week.

Rob Terry, the firm's founder and Executive Chairman, bought a stake worth £95,000 with the acquisition of 500,000 shares at 19p each, increasing his holding to 684.5m.

A smaller purchase worth £25,000 was made by independent Non-Executive Vice Chairman Anthony Bowers, who added 131,579 to his holding at the same price. He now owns just under 1.47m shares.

Robert Burrow, an independent non-executive director, purchased 150,000 shares at 19.9p each, growing his stake in the company to 15.9m shares.

The company on Friday said it had begun suing a short-seller that questioned its profits and said it was trading at record levels.

Quindell, which serves insurers and telecom companies, said it had initiated legal action against Gotham City Research LLC for what it said it believed was a "co-ordinated shorting attack". The group also said it was reporting the activity to regulators.

"It is disappointing my executive directors have been forced to spend time responding to these allegations," he said in a statement," Bowers said.

"I hope with this extensive response to the Gotham 'research' that investors will be reassured as to the company's transparent approach to investor relations. It is the intention of a number of the directors to purchase shares in Quindell once they receive clearance from the appropriate regulatory bodies.

"I have personally taken the time to ensure the level of detail of our response meets the needs of all the investors, including those with whom we have personally spoken.

"The board continues to target the company's move to the main market, as stated previously. With trading at the start of the year being at record levels, the board remains confident."


Top Director Buys

Reconstruction Capital II Ltd. (RC2)
Director name: Mr Ion Alexander Florescu
Amount purchased: 4,000,000 @ € 0.12
Value: € 500,000

Quindell (QPP)
Director name: Mr Robert Terry
Amount purchased: 500,000 @ 19.00p
Value: £95,000

Schroder Real Estate Investment Trust Ltd (SREI)
Director name: Mr David Warr
Amount purchased: 70,000 @ 50.25p
Value: £35,175

Quindell (QPP)
Director name: Mr Tony Bowers
Amount purchased: 131,579 @ 19.00p
Value: £25,000

Sinclair Is Pharma (SPH)
Director name: Mr Robert Stuart Swanson
Amount purchased: 44,131 @ 30.50p
Value: £13,460

FirstGroup (FGP)
Director name: Mr John McFarlane
Amount purchased: 8,829 @ 128.80p
Value: £11,372


Top Director Sells

Northbridge Industrial Services (NBI)
Director name: Mr David Marshall
Amount sold: 125,000 @ 455.00p
Value: £568,750

Ironveld (IRON)
Director name: Dr Peter John Cox
Amount sold: 216,804 @ 10.67p
Value: £23,133

NR

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