19 March 2008

Board truce at MFS

An article in The Herald Sun says that one of the biggest investors in embattled MFS will join the board despite his failure to oust much-criticised chairman Andrew Peacock.

The Gold Coast financier and funds manager announced yesterday that Singapore-based Chris Scott and two associates will join an expanded board effective from today.

Mr Scott, who controls 8.4 per cent of the shares, has agreed to cancel an April 7 extraordinary general meeting called to topple Mr Peacock and four other board members.

Mr Scott denounced Mr Peacock earlier this month as being "responsible for the mess" in MFS, which has languished in a trading halt since January, frozen its biggest fund and continued unloading assets to relieve debt.

Mr Peacock said this month that he had "no respect whatsoever" for Mr Scott, who sold his tourism group S8 to MFS in 2006.

Mr Scott's adviser, Jenny Hutson, said yesterday that the two men would be able to work together to find "common ground" to salvage the company.

MFS said in a statement that the board "looks forward to working with the new directors in the best interests of the company and all shareholders".

Mr Scott, along with David Burke and Craig Chapman, will be subject to re-election at the November annual meeting.

Shareholders will get an interim report at an EGM in Melbourne on March 28 and approve a name change to Octaviar Limited

A Report by The Mole from The Herald Sun