4th Aug 2014 05:55
LONDON (Alliance News) - Quindell PLC has run into trouble over one of its largest contracts, a joint venture with RAC to place telematics devices in cars, the Financial Times reports Monday citing people familiar with the project.
The IT outsourcing services provider is facing a disagreement with RAC over Connected Car Solutions, a joint venture created in April under which the pair aim to install more than 2 million black boxes at a rate of 50,000 per month, the FT said.
But installation of the devices is yet to start and talks about restructuring the project have stalled, according to the people familiar with the matter.
Since the deal was signed in April, Quindell has seen its share price plunge on the back of a critical report on the company by Gotham City Research.
Quindell told the FT it had 'not fallen out with the RAC and continues to have a positive relationship' with the group. The RAC declined to comment to the paper.
http://www.ft.com/cms/s/0/00345d10-1afe-11e4-a633-00144feabdc0.html?ftcamp=crm/email/201484/nbe/UKBusiness/product#axzz39OoZxL7X
By Sam Unsted; [email protected]; @SamUAtAlliance
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