City Pacific withdraws MFS bid
City Pacific Limited has altered the dynamics surrounding the separation of businesses falling under the MFS Limited banner, announcing today that it had withdrawn its merger proposal.
City Pacific made its merger proposal to MFS Limited more than a week ago. The proposal acted as a catalyst for the diversified financial services group to announce on Friday that it would be separating its financial services and tourism businesses at the same time as undertaking a capital raising.
The MFS Limited Friday announcement in turn led to a further decline in the value of MFS shares on the Australian Stock Exchange.
City Pacific announced today that after reviewing the demerger proposal announced by MFS on Friday, it had informed MFS that it intended to withdraw its merger proposal.
However, City Pacific said that it would be maintaining an interest in the business and assets of the MFS Financial Services division.
AUTHOR
Mike Taylor
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