MVP hand seen behind rising Benpres stock prices

By Zinnia B. Dela Peña
(The Philippine Star)

MANILA, Philippines - Shares of Benpres Holdings Corp. have been on the upswing, rising 28.8 percent since Monday on speculations that the group of telecommunications magnate Manuel V. Pangilinan has been buying shares to further strengthen its position in power utility giant Manila Electric Co.

Benpres is owned 53.7 percent by Lopez Inc., which has an indirect ownership in Meralco through its 43 percent stake in First Philippine Holdings Corp. As of end-June this year, FPHC had a 10.7 percent stake in the country’s largest power retailer.

From only P2.95 last Monday, Benpres’ share price is now worth P3.80 or seven percent higher than Tuesday’s close of P3.55 each share.

The stock rose to its 52-year high of P4 yesterday on volume of 70.84 million shares valued at P271.89 million.

A local brokerage house said speculation of a continuing struggle for control over the power distributor has caused the upward movement in the share prices of Benpres as investors snapped up on the holding firm’s shares to get a much better return rather than directly acquiring Meralco, which has become too overvalued.(Read More)