Shares in Quindell (QPP) surged more than a fifth after two new directors took on roles at the embattled insurance claims processor. The group also remains in exclusive talks over the possible disposal of one of its operating divisions, and is in early discussions with multiple suitors regarding several of its other businesses.
Quindell has appointed Richard Rose, chairman of white goods e-retailer AO World and meat retailer Crawshaw, as non-executive chairman. It has also anointed Jim Sutcliffe, chairman of Canadian insurer Sun Life Financial and former Prudential UK chief, as strategy director and deputy chairman. The pair have been tasked with improving Quindell's accounting policies and developing both its business strategy and financing structure. However, the group courted controversy once again by granting about 8.7m share options to Mr Rose - when non-executive directors aren't generally remunerated in that way - and issuing 10.9m options to Mr Sutcliffe that will vest over the next 12 months, rather than the typical three-year period. Quindell has also divvied up around 11.6m share options between chief executive Robert Fielding and two regional chiefs.
The company - whose founder and chairman, Rob Terry, left following a spate of share dealings late last year - will also receive guidance from Mr Sutcliffe's consultancy firm, BaxterBruce. At least two BaxterBruce associates, one of whom is former Royal Mail finance director Marisa Cassoni, will be involved.
Quindell's shares have nearly tripled in value in the past month, following speculation about a possible sale, reduced short-selling and because hedge fund Toscafund revealed a stake in the business of more than 5 per cent. Both the claims-processing and telematics technology divisions continue to perform robustly. But Quindell's second-half operating cash inflow of £13m was well below the £30m-£40m it targeted at the half-year mark. Moreover, accountants at PwC aren't expected to complete their independent review of Quindell's finances until the end of February.
