A simple statement from Quindell directors says a lot about changes happening in the business.
Rose and Sutcliffe in a response to speculation about the pending sale of Quindell Legal Services said:
“When we agreed to join Quindell, at the invitation of the group’s leading investors, we had no knowledge of the details of the potential disposal now being discussed.”
‘We are not prepared to gain personally from any short-term value accretion that is not directly attributable to our efforts.’
We can conclude from this:
1. The new directors are acting with integrity. They will be entitled to millions in share options should as a result of the deal the share price increase.
This will go a long way to improve market sentiment and kill the allegations that BOD are acting in their own interests rather than in the interests of the company.
2. Releasing the statement highlights Rose and Sutcliffe knew about the deal but not the details of the deal.
This indicates that when they joined Quindell they had been informed discussions taking place but at that time an offer price wasn’t known.
3. The value of any deal has to be significant otherwise Rose and Sutcliffe wouldn’t have released the statement regarding any possible impact on their share option triggers.
The announcements from both companies indicate the negotiations are coming to a conclusion and we will therefore know the outcome soon.