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http://www.news.com.au/couriermail/story/0,23739,23149182-3102,00.html

A DEAL to rescue besieged investment group MFS Ltd could be completed as early as tomorrow.

The Gold Coast-based company needs to sell its Stella Group of tourism and accommodation operations to clear hundreds of millions of dollars in debts.

Talks were continuing yesterday and sources said a quick deal was looking likely.

Despite other media reports of a bidding war, The Sunday Mail understands MFS chiefs are negotiating with only one party – CVC Asia Pacific.

An earlier offer by CVC, believed to be $1.6 billion, was rejected by MFS, which spent $1.9 billion building the Stella Group, which includes Harvey World Travel, BreakFree Hotels, Peppers Retreats and Saville Hotels.

MFS has debts of $1.7 billion, $220 million of which has to be repaid during the next three months. New MFS chief executive Craig White yesterday declined to speculate on a time frame but said: "We continue to work as quickly as we can on the proposition on the table. That will enable us to release cash needed within the business to move forward."

At its peak last year, the company had a market capitalisation of $3.6 billion. Share trading was suspended on January 21 when the price crashed to 99¢, wiping off $2.8 billion.

Once touted as the next Macquarie Bank, MFS enjoyed a spectacular ascent after its formation in 1999 by Southport lawyers Michael King and Phil Adams.