Ex-Tory Leader Howard Holds Quindell Talks

Lord Howard, the former Conservative Party leader, is in talks to join the board of Quindell, one of the London stock market's most controversial companies.

Sky News can reveal that Lord Howard has been approached about a non-executive directorship at the professional services group, which was once valued at more than £2bn.

The talks between the company and the Tory life peer are at an early stage, insiders said on Wednesday, and may be terminated without an agreement.

Quindell, which has seen its share price slump after a series of governance scandals, is seeking to refresh its board in an attempt to rebuild investor confidence.

If it does reach a deal with Lord Howard, it would add some political nous to the company's boardroom.

Since entering the House of Lords in 2010, the former Tory leader has taken a number of company directorships, including Entree Gold Inc and Soma Oil and Gas Holdings.

Quindell recently agreed the sale of its professional services arm to Slater & Gordon, an Australian law firm, for £640m, which will leave it focused on technology businesses with high growth potential such as telematics and insurance claims management systems.

Richard Rose, a turnaround veteran who is well respected in the City, is due to take over as chairman when the transaction completes, while Rob Terry, the controversial former chief executive, and Laurence Moorse, the finance director, have left the company.

PricewaterhouseCoopers, conducted a review of Quindell's business practices, which concluded that "certain of the accounting policies historically adopted by the company, in respect of recognising revenue and deferring case acquisition costs in a number of the group's product areas were... at the aggressive end of acceptable practice".

Last week, it emerged that Tantalum, a vehicle headed by City financier Edi Truell, had offered to buy much of Quindell's remaining business.

Quindell raised £200m from investors in 2013 with a promise to "revolutionise the insurance industry" by offering a one-stop shop for car insurers.

A partnership with the RAC was hailed as the beginning of a far-reaching initiative that would involve installing more than two million telematics black boxes in cars across the UK, but was subsequently scaled back to a far more limited project.

Quindell had faced persistent questions over the way it booked revenues and its financial forecasts, which it initially rebutted.

Last November, a further row erupted when the company announced that Mr Terry and Mr Moorse were adding to their shareholdings in Quindell.

It subsequently transpired that the trio had received £8.8m from Equities First Holding, an American firm, and had pledged Quindell shares as collateral, spooking investors.

A Quindell spokesman declined to comment on Wednesday.