well I think you would have seen Peacock leave earlier if you had all got behind the 'resignation letter' competition. As it is he has timed his own leaving as a consumate politician - more talent than Howard. Now you will all get the pucks from Hutson! Without Peacock all focus will be on Scott. Good luck to us all.
Fiona Cameron | March 19, 2008
MFS chairman Andrew Peacock is understood to be planning to step down within two months, as the troubled company yesterday reached agreement for rebel shareholder Chris Scott and two cohorts to join the board.
The appointment of the three new directors means the extraordinary general meeting that Mr Scott had called for April 7 to seek the appointment of himself and four others to the board has now been called off.
"I and the current directors are looking forward to working with the new directors in the best interests of the company and all its shareholders," Mr Peacock told The Australian.
But it is understood Mr Peacock, who has a home and business interests in the US, has been planning his exit from MFS for some time in order to focus on other corporate responsibilities, including his position as director of the Perth-based, ASX-listed Amadeus Energy.
A teleconference board meeting will be held today to formally appoint Mr Scott, David Burke and Craig Chapman as MFS directors. The new board is expected to hold its first face-to-face meeting early next week.
The new directors will be up for re-election by shareholders at the next MFS annual general meeting, expected in November.
Mr Scott called the EGM two weeks ago, claiming the support of about 5 per cent of the company's voting stock.
He became a large shareholder after his travel company S8 was taken over by MFS in a scrip deal in 2006. His adviser, Jenny Hutson, said yesterday her office had been receiving between 300 and 500 proxy forms every day since the EGM notice went out.
She did not know how many votes Mr Scott now controlled.
"We're still counting is the truth of it, but we have everybody from small shareholders to some of the largest, all wanting us to get past the conflict," she said.
Ms Hutson said it was not important that Mr Scott gained three places on the board rather than the five he sought because there was "a very firm understanding" among the board members that consensus was "the way forward".
Ms Hutson said she believed the new board would be stable and forward-looking, and would not review the Stella sale, or the Mirage resort sale.
She believed Mr Peacock had the new board's full support.
"I've spoken to Andrew Peacock in recent days -- he's been gracious and I say that very genuinely," Ms Hutson said.
"He has some tremendous ideas that can be brought to bear in the next phase and everybody is supportive of endeavouring to make that happen."
Ms Hutson said it had been a "very difficult eight weeks for MFS" and all the efforts of the new board would go into addressing the company's immediate issues and concerns.
Shaw Stockbroking analyst Brent Mitchell said MFS had chosen to defuse the situation by appointing the three new board members, "but it's hard to see what difference it will make".
Key decisions such as the Stella sale had already been made and asset sales would continue "whether they are on the board or not".
The board would have to remain focused on preserving shareholder value, he said.
He said the EGM on Friday next week, called by MFS to approve its change of name to Octaviar Ltd, would be revealing, as Mr Peacock had undertaken to open it up to shareholder questions.
"They expect to provide an update on the strategic review at that stage."
On Mr Peacock's role, Mr Mitchell said: "Obviously it hasn't helped his reputation to be involved with MFS but I don't think it would necessarily help his reputation to leave at this stage either."
MFS was plunged into crisis in January when its shares nosedived after it announced a $550 million capital raising. It has since been forced into an asset fire sale and its shares remain suspended from trade.
MFS
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