Top Business News

San Miguel's share swap offer a 'scam' - NGO
[ABS-CBNNEWS]MANILA - Diversified conglomerate San Miguel Corp.'s (SMC) recent offer to swap debt-like preferred shares for the common shares held by its stockholders is a "major scam or trick in the making designed to swindle" coconut farmers who own about 24% of the company, non-government organization Centro Saka Inc. said in a recent commentary.
A few weeks ago, SMC announced the said offer, which was meant to allow stockholders who are doubtful of its expansion into new businesses to reduce exposure to risk by holding debt-like shares rather than just pure equity.
Preferred shares usually pay higher yields and are given priority in dividend payouts, but they are not entitled to voting rights. On the other hand, common shares, which do not promise consistent yields, have voting rights regarding company matters such as the election of board members and approval of business plans.

Atlas gets $11.5-M loan from Anglo Philippines
[ABS-CBNNEWS]MANILA - Infrastructure and property development firm Anglo Philippines Holdings Corp. has agreed to extend a $11.5-million loan to Atlas Consolidated Mining and Development Corp.
In a disclosure to the Philippine Stock Exchange, the company said its board has approved the loan facility, which will carry an interest rate of 15 percent per annum and a term of one year.
"Atlas and Anglo executed the loan agreement covering a facility for the amount of $11.5 million," Anglo Philippines said.
Anglo Philippines said proceeds from the loan will be used primarily to fund the working capital requirements of Atlas' Toledo mining project in Cebu. As of end-March, the company holds an 11.5% interest in the mining firm.

Meralco eyes loan for broadband project
[ABS-CBNNEWS]MANILA - Power utility giant Manila Electric Co. (Meralco) plans to borrow to finance a proposed broadband over power lines project.
Alan T. Ortiz, a member of Meralco’s board of directors, told reporters over the weekend that the borrowing plan has been discussed in the recent board meeting.
He said the company is set to pilot test the broadband over power lines project which is one of the synergies Meralco and its new shareholder, the Philippine Long Distance Telephone Co. (PLDT), will undertake.
“It will be used for broadband over power lines which PLDT is proposing. They want it to be tested already. In the last board meeting, they made a suggestion to test this broadband over power lines – which incidentally (Ramon) Ang (of San Miguel Corp.) talked about in the May board meeting – so this is a confluence of interest,” Ortiz said.

Online gaming boosts PhilWeb profits in H1
[ABS-CBNNEWS]MANILA - Listed firm PhilWeb Corp. reported a 52% growth in profits for the first six months of the year, owing to the strong performance of its Internet gambling business.
In a statement to the Philippine Stock Exchange on Monday, the company said its net income reached P227.6 million as of end-June from P149.6 million in the same period in 2008.
The latest amount is also close to PhilWeb's 2008 core net income, before exceptional items, at P231.6 million.

Liberty subscription tally may reach P1.5B
[BUSINESSMIRROR]LIBERTY Telecoms Holdings Inc. (LTHI) expects to be paid a total of P1.5 billion from the subscriptions of shares by existing investors.
The company told the stock exchange on Monday that Vega Telecom Inc. will subscribe a total of 587,951,737 preferred shares; wi-Tribe Asia Ltd. with 367,661,680 shares; and White Dawn Solution Holdings Inc. with 244,386,583 shares. The Board of LTHI approved the subscriptions, totaling to 1.2 billion at P3 per preferred share.
Vega Telecom is San Miguel Corp.’s (SMC) wholly owned subsidiary which bought 32.7 percent of LTHI for P1.88 billion on Wednesday. It now has 579.11 million shares at an average price of P3.25 each and wants to acquire up to 49 percent of the phone firm. Liberty is seen as a good purchase since it holds the most number of frequencies that can be utilized for the planned broadband wireless access (BWA) service offering.

GMA Network inks new collective bargaining deal with workers
[BUSINESSWORLD]GMA NETWORK, Inc. has committed to improved benefits for regular rank-and-file employees under a new, three-year collective bargaining agreement (CBA).
In a press release, GMA Network announced the signing of the agreement with its employees’ union, paving the way for bonuses and wage increases.