Flailing insurance outsourcing firm Quindell saw its shares jump over 30 per cent yesterday as it denied rumours it was looking to sell its 25 per cent stake in Nationwide Accident Repair Services.
Quindell, which provides claims processing technology to car insurers among other services, issued a statement in response to social media speculation that it was desperately seeking to offload its share in the British building society’s vehicle repair service.
The company said in the one-sentence statement: “Quindell, a market leading global provider of professional services and digital solutions, confirms that, contrary to speculation, it is not actively seeking to sell its shares in Nationwide Accident Repair Services.”
Quindell’s share price has been on a roller-coaster ride in recent months, easily among one of the London Stock Exchange’s most volatile stocks. It inflated as much as 32 per cent to 56.75p in morning trading yesterday before tapering off to 53p at the close.
Shares in Nationwide Accident Repairs Services were down seven per cent to 69.25p.
The Hampshire-based Quindell has been through the wringer recently, with the company losing £2bn in market value in just a matter of months.
Founder and chairman Rob Terry resigned earlier this week, together with two other Quindell directors, after the company disclosed a complex share-transfer agreement that saw the three directors sell shares to a US securities-backed lender in exchange for cash to buy more Quindell shares.