In the latest twist to the first attempted acquisition manoeuvres between stock exchange-listed law firms, Australian firm Slater and Gordon has given a lukewarm response to Quindell’s statement on sale talks.
The UK company released a statement to the London Stock Exchange yesterday saying it had extended the exclusivity period for the possible disposal of its professional services division. Talks can now continue until the end of March.
Quindell said the terms discussed would ‘imply a significant premium to the company’s market capitalisation’.
The Quindell statement noted there was ‘no certainty’ the discussions would lead to an offer or disposal of the division.
That update was expanded upon by a statement to the Australian stock exchange overnight from Slater and Gordon.
The potential buyer stated that no offer has been put to Quindell and no certainty that an offer will be put that will be ‘attractive’ to the UK firm. It also noted that Slater and Gordon is completing due diligence on a portfolio of Quindell personal injury litigation case files with rights to take a transfer over the coming months.
Yesterday’s announcement saw a 25% increase in the Quindell share price value to end the day at 96p per share. Since the Slater and Gordon update, the share value has dropped by 4.7% to 91.5p.
Quindell’s professional services division includes its insurance claims and medical and repair services, with the other division being for ‘digital solutions’ including providing black boxes for motor insurers.