Wednesday, 14 January 2015

RARE alert: PWC said to have completed first draft of Quindell review

If you are following the Quindell saga, I picked up another interesting titbit on the insurance claims group yesterday that I thought I might share with loyal readers.

Some of my top sources claim that auditors at PricewaterhouseCoopers have done the first draft of the "independent review" and so far no major issues have been found.

For readers that don't recall, in early December, 2014 Quindell hauled in PWC to carry out the review of its legal services division, which had underperformed since September. Here is a link to the Financial Times story on the topic: http://www.ft.com/cms/s/0/61ad7a76-7eaf-11e4-a828-00144feabdc0.html#axzz3OmV9TqK0

Anyway, I am told by well-placed sources that Quindell has retained PWC for another month or so.

I guess some of what I have been told might have easily been inferred from the fact that Quindell has managed to hire a new chairman/deputy chairman. Also, the press release from earlier week said:

"The Independent Review is ongoing and shareholders will be updated as appropriate. The Board's current expectation is that the review will be completed by the end of February."    

A Quindell spokesperson declined to comment. But when I asked people close to the situation about PWC's completion of a first draft of the review one person said: "it was the first they had heard of it".    

Given the lack of response from the Quindell spokesperson, I have to put a medium [as the story has come from good sources] RARE disclaimer on the story. For readers that don't recall, RARE is:

Market gossip that hasn't been tested through formal journalistic channels (public relations executives, bankers etc). The rumour might be total codswallop but then again there may be something in it, so it's worth airing on Betaville.

UPDATE: A person close to the situation has been back in touch. Whilst the person acknowledged that several drafts of PWC's report have been completed, no firm conclusions have yet been drawn...

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