"It would not surprise Chanticleer if Slater & Gordon wrote down the entire $710 million in goodwill acquired in the [Quindell] transaction. That is more than double the company's $292 million market capitalisation.
Irrespective of the size of the goodwill impairment there will be a concurrent question about the value of Professional Services Division's work in progress, which was valued at $420 million at the time of the transaction in April last year.
If goodwill is impaired then it is logical that the business underpinning that must also be doubtful."
and
"Skippen will surely be highly embarrassed about the UK write downs given he blamed the company's problems on hedge funds, short sellers and the media. Egg will stick..."
SGH Price at posting:
83.0¢ Sentiment: Sell Disclosure: Not Held
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