Quindell shares jump as Morgan Stanley takes a bigger slice of it
SHARES in Quindell closed 9.5 per cent higher to 75p yesterday, after Morgan Stanley increased its stake to more than five per cent.
Shares in the insurance claims processor are still more than half of their value compared to last year, after the company was accused of having “magical… paper profits” by mysterious US-based short seller Gotham City Research.
After a series of catastrophes, the year culminated in the departure of founder and chairman Rob Terry.
But shares have jumped since the beginning of January, when it announced it had appointed Richard Rose and Jim Sutcliffe as chairman and deputy chairman.
Although the appointment came with its own problems – Sutcliffe was forced to step down as chairman of the Financial Reporting Council’s codes and standards committee after it emerged the pair had been granted more than £25m in stock options, which contradicts the UK’s corporate governance code – investors have largely welcomed the move.