Quindell shares rise on reports of potential non-core disposals

Quindell's share price soared again on Monday amid speculation that the insurance outsourcer is considering selling some of its non-core assets.

Despite quashing rumours on Friday that it was not looking to offload its 25.3% stake Nationwide Accident Repair Services, the stock has since risen by over 50% over the last two trading sessions.

The shares finished Monday up 11.7% at 79p.

The Telegraph reported at the weekend that Quindell, which has expanded rapidly in recent years through an acquisition-focused strategy, is expected to examine the disposal of peripheral businesses.

Shares in the embattled AIM company hit a three-year low last week after the resignation of chairman and founder Robert Terry, who - along with two other directors, including finance director Laurence Moorse - prompted controversy following a complex share-dealing arrangement. The three board members have all now quit.

Quindell was valued at as much as £2.7bn earlier in the year - the stock hit a high of 682.5p - after a series of acquisitions, but has since seen over £2bn wiped from its market cap.

US short-seller Gotham City Research released a 74-page scathing attack on the company back in April, causing shares to plummet. Quindell has now successfully sued the company for libel.

However, negative news-flow has continued to weigh on the stock, including regulatory concerns and the recent resignation of one of its brokers, Canaccord Genuity. Canaccord did not disclose a reason for quitting, prompting media speculation that the broker left because of concerns over the firm's financial position.

However, according to sources cited by City AM on Monday, Canaccord decided to leave Quindell due to a lack of information and breakdown in dialogue between the two parties and not due to its finances.

Even including Monday's rise, the stock has still fallen over 70% since the start of 2014.