Quindell Portfolio insists no reason for share plunge

Quindell Portfolio reassured investors on Monday it knows no reason for the recent drop in its share price.

Shares have more than halved in value to 6.0p since the beginning of May, but were back up to 6.85p at 14:30 Monday following ithe announcement.

"The directors are not aware of any valid reason for the recent share price drop other than misinformed speculation and shorting activity," a statement said.

The group said it was aware of the ongoing press speculation about the equity swap and shorters, who have questioned the quality of the company's debtors.

Quindell insisted the equity swap does not expose it to any further share issue or cash payment.

"The group has a strong balance sheet, excellent debtors control, more than sufficient funding and no reliance on receiving any further cash from the equity swap to be able to fund its growth to meet market expectations in 2013 and beyond," the firm added.

RD