UK 14:36 Monday, 26 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The quisling blogs reported at the weekend that Quindell (QPP) has received a £700 million offer for QLS from Slater & Gordon. A statement from Quenron this morning gives hope to the bulls and the shares have shot ahead to 94p but I would not be putting the champagne on ice just yet.
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Comments
Elrico
Tom
I viewed today’s announcement for Quenron, as nothing more than a bear attack ahead of PWC report. It would have had the effect of bears being closed or stopped out. I was rather slow to cover my loss (as was my intention), when ETX CLOSED my position without even a courtesy call.
Richard
You cannot ignore the stated fact that :
‘Discussions are progressing with SGH and the indicative terms being discussed would imply a significant premium to the Company’s market capitalisation at the close of trading on 20 February 2015. ‘
– So your thoughts of a 250m bid are totally out of the question as this is lower than Fridays close of business market cap of around 330m.I’m also of the opinion that S&G will make an offer, even if it is a cheeky one, the figures being discussed I would postulate are around 600-700m – Quindell will still be left with their other main division which is going from strength to strength and is in an exciting and growing market.
I would seriously be reconsidering my position now if I were short – Quindell as it stands now is seriously undervalued – S&G can see that it seems…
Elrico
Richard
You are basing your valuations on known lies & FRAUD and as TW has stated, this will come out once the PWC report is published, which seems to be taking an age. Today’s RNS is nothing short of a bear attack (a risk I accept), but is indicative of the mindset of the, so called new management adopting the sort of despicable tactics of the RT regime. Question is, if this RNS has no basis of truth, would this open up yet another door for a class action against the new management in pursuit losses bears have taken on the back of highly suspect RNS?
Steve
I wouldn’t touch QPP with your bargepole Tom and I am incredibly surprised by the announcement this morning but I presume it must have some substance to it. I don’t buy point 2 here – I don’t believe that SGH will simply be doing superficial due diligence based upon the financial accounts. They will be going in depth into QLS processes and case reviews to determine the quality of the work done, the state of the cases and ultimately the likelihood of cash to come in. Ultimately while I agree SGH will wait for PWC to report (if anything so they can strike a better deal) its unlikely to make much difference on SGH’s assessment of the value of QLS – SGH due diligence of QLS and its cases will likely to be even more thorough than PWC will be and they will base there valuation on that.
However what does nag at the back of my mind is that if Quindell have a business here valued at +/- £700million it is obviously reasonably successful then why sell it under stress? Take the write downs from PWC, get everything in the open, restore shareholder confidence, simply shut down the parts draining cash and then raise the money to continue to focus on what must be a viable business. Why give away the good bit and keep the trash – it doesn’t add up?
Pauly Walnuts
So, this RNS says that we’re looking at the sale of the whole Professional Services Division (PSD). If my memory serves, this includes the Health businesses (Mobile Doctors + hotch potch of others) and also the Hire business (Ai Claims). Maybe other acquired businesses as well, I can’t keep track of them all. I’m surprised that SGH want to take these on, but good luck to them if they do. The intangibles at 30/6/14 were half a billion or so, how much of these relate to the PSD who know. Will be fascinating to see this play out. Deffo better than Eastenders.
Mac
Rather bemused by this morning’s RNS. S&G previously RNS’ed to its own shareholders that any deal would not be material so for QPP to say that talks would be £700m is strange as this would be hugely material given S&Gs balance sheet, P&L and market cap. The largest deal S&G has ever done looks to be sub £100m and they don’t have the cash to do anywhere near this level.
I continue to believe that this is a smokescreen although have to confess that it would seem completely idiotic for QPP to issue this sort of RNS without some credence behind it. Mind you, they do have form here…
alcira16247
Tom
Given the business practices and customs of the excellent, Moorse and Fielding, I believe folk would be justified in taking today’s RNS with a huge dose of scepticism and ask what maybe a truer motive behind such a ‘ramping’ statement?
‘What do you want first the good news or the bad?’……. clearly Quindell have decided on so called ‘good’ news first!
As other posters have alluded to…… something don’t seem quite right here on all sorts of levels.
Invetigate
Am I getting this right from QPP RNS that they are selling the whole of Professional Services Division which was in 1H report £300m revenue and £121m not just Legal Services.
How many leaks can you have from Quindell transactions!!!!
its me
I think they will drag it out, QPP will go to the wall and S&G will do a deal with the Administrators. Why pay top dollar for something on borrowed time? Good things come to those who wait!!