Quindell share price rises slightly as it says trading to be suspended as court hearing looms

 
Jessica Morris
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Quindell used to be an insurance outsourcer (Source: Getty)

Shares in embattled Quindell will be suspended from trading next month, to avoid wild price swings ahead of a hefty payout to its shareholders as well as a court hearing.

Quindell said shares will be suspended from 7.30am on December 16 to the market opening on Monday 21.

"Due to the gap between the record dates for the return of capital and the consolidation, and because of the likely impact of the outcome of the court hearing on the share price of the company, there is a risk of confusion in the market and volatility in the share price of the company between the date of the court hearing and the Consolidation becoming effective," it said in a statement to the London Stock Exchange today.

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Quindell will begin trading on the Aim under its new name Watchstone Group tomorrow, as part its bid to draw a line under its tumultuous history.

It's had a difficult 18 months since being targeted by US short-seller Gotham City Research in early 2014. Quindell later won a libel case against the group, but its troubles continued throughout the year. By the end of 2014, chairman and founder Rob Terry had resigned, as had its broker, Canaccord Genuity, while investor Fidelity halved its stake.

Since then the company has sold its professional services division, which accounted for 90 per cent of its business, to law firm Slater & Gordon.

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