Major Australian law firm halts trading ahead of announcement

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Slater and Gordon shares have been placed in a trading halt ahead of a major announcement by the firm.

The firm has entered into a $1.225 billion acquisition of the professional services division of UK-based Quindell.

Business Spectator reported this morning that Slater and Gordon is looking to raise $890 million in new equity to fund the acquisition through a fully underwritten two for three pro rata accelerated renounceable entitlement offer.

Managing Director Andrew Grech said the acquisition is an opportunity allowing the company to penetrate the disjointed UK personal injury market.

"The combination of Slater and Gordon and PSD creates the number one personal injury law group in the UK," he said.  "It further diversifies our sources of legal work, broadening access to claims management companies, insurers and insurance brokers."

According to business Spectator, the company requested a trading halt for its shares as it completes the pro-rata renounceable entitlement offer.

The deal is subject to regulatory approvals and conditional on a majority vote by Quindell shareholders, scheduled for Friday 17 April.