Quindell bounds higher on Australian rumors

Shares in Quindell were higher on Thursday after rumours mounted that the outsourcing company was poised to offload its legal services division to Australian law firm Slater & Gordon.

As Quindell generates a significant proportion of its outsourcing earnings from its legal and health services businesses, it has previously cited Slater & Gordon as one of its closest peers.

S&G, which is of the world’s largest personal injury legal services businesses, is a licensed client for certain of Quindell’s technology solutions, with a number of personal injury business operations in the UK operating under the same regulatory environment as Quindell.

At the beginning of the new year the bulletin board favourite said that it is has entered into "exclusivity arrangements with a third party in respect of the possible disposal of an operating division of the group."

The AIM-listed group, whose founder Robert Terry stepped down in November after his share-dealings were called into question, also said it was in early discussions with a range of parties interested in exploring possible transactions with the group relating to a number of its operating businesses.

Late last year, the company denied it was looking to raise cash by selling its 25% stake in Nationwide Accident Repair Services, after bloggers had claimed the company was keen to sell.