Morgan Stanley’s Quindell hokey cokey – you put your money in, then take it out


Stock exchange: reporting thresholds

Stock exchange: reporting thresholds

Morgan Stanley has dumped Quindell stock just four days after becoming the alternative business structure’s second largest shareholder, it has emerged.

Quindell’s shares jumped on Monday after announcing that Morgan Stanley had taken a 5.03% stake in the business, but after yesterday’s close another announcement revealed that Morgan Stanley’s stake is now below 3% and any disclosure requirements.

There is a delay in making these announcements, so Morgan Stanley actually bought last Thursday, 12 February, and sold on Monday.

Morgan Stanley’s entry had also improved the tenor of the chatter around Quindell, with the Daily Mail reporting that it was a sign of the company’s “revival… gathering pace”.

Despite the sudden sale, Quindell’s share price has been largely unaffected today, down just 1% to 72.25p at the time of writing.

Hedge fund Toscafund, which tipped over the 5% mark last month, last week sold 2m shares to take it below that reporting threshold.

Financial website Motley Fool suggested that “both trades highlight the reality that institutional investors are not buying into Quindell ahead of the publication of the PwC report into the firm’s accounting practices, which is due at the end of February”.

“Until then, I believe Quindell is far too speculative to invest in and remains a sell: even if the firm’s business does turn out to be healthy, I believe there are too many questions about the value of its assets and its funding situation for it to be a safe investment.”




Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Reports

Our latest special report, produced in association with Temple Legal Protection, looks at the role of after-the-event (ATE) insurance in commercial litigation post-LASPO. We are at a time when insurers, solicitors, clients and litigation funders work ever more closely to create funding packages that work for all of them, with conditional fee and even damages-based agreements now part of many law firms’ armoury.

Blog

21 November 2019

Analysing the October PII renewal

Our clients that renewed during this period recorded an average fee increase of 7.5%. The partner size segment that experienced the largest growth in percentage terms was 11-25 partners, at 11.3%.

Read More

Loading animation