Investors in fund manager MFS have questioned the longevity of Michael King as company chief after the share price plummetted.
At a company briefing held last Friday to announce the separation of MFS companies MFS Financial Services and property group Stella, investors lashed out at King's new plans to raise $550 million to capitalise on the split between the two MFS companies.
Many investors expressed their concern over the new capital raising claiming it would create unnecessary debt for the group, with one investor suggesting MFS is close to following Centro Properties Group's path.
"The share price [on Friday] is $2.20 it is absolutely telling you that nobody believes you," an MFS investor and analyst with Hunter Green said.
"And I don't understand how you can come up with a recapitalisation proposal rather than fall on your sword like the bloke at Centro. I don't think you'll make Valentines Day, Michael," he said.
In response, King admitted he would consider his role after the proposal had been considered.
"I will actively consider my role as CEO of MFS Limited after this proposal has been maturely and sensibly considered," he said.
"MFS and its advisers took the view that it wasn't a matter of needing money, but rather appropriately capitalising two stand alone businesses. We've given the guidance, we think we've been transparent, we can't do more."
In his presentation to shareholders King said raising $550 million would reduce indebtedness and achieve capital structures.
He said the separation will also enable MFS shareholders to retain all the benefits of ownership of both MFS Financial Services and Stella.
King also commented the conditional proposal from City Pacific to acquire MFS Financial Services, stating discussions were along way from being finalised.
MFS shares were down 69 per cent or $2.19 to 99 cents at close on Friday.
