29th Apr 2014 13:20
LONDON (Alliance News) - Directors of Quindell PLC have purchased a total of over 1 million shares on Monday and Tuesday at 19 to 20 pence per share, including Chairman Robert Terry who bought 500,000 shares on Monday. The purchases, however, represent a small fraction of the 6.19 billion Quindell shares in issue.
The purchases by the directors come after a scathing report by US short-selling firm Gotham City Research last week which caused shares in the software and consulting services company to decline sharply. The report brought into question how Quindell generates the majority of its profits.
Quindell said in response on Friday that it had taken legal action against what "it believes to be a coordinated shorting attack" and is reporting the activity to the appropriate regulatory authorities.
It added Friday that "it is the intention of a number of the directors to purchase shares in Quindell once they receive clearance from the appropriate regulatory bodies."
In addition to Terry's purchase, Quindell said Vice Chairman Anthony Bowers, Finance Director Laurence Moorse, and non-executive directors Stephen Scott, Robert Bright, Robert Burrow and Robert Cooling all also purchased shares.
Quindell are up 13% at 22.62p Tuesday afternoon placing them among the top-10 risers on the AIM All-Share Index.
By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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