PLDT in talks to raise Meralco stake

Manila Bulletin
By JAMES A. LOYOLAO

Philippine Long Distance Telephone is in talks with the Lopez group for the purchase of its remaining 13.4 percent stake in Manila Electric Company.

PLDT chairman Manuel Pangilinan said told reporters Friday that he is in discussions with Oscar Lopez, chairman of the Lopez family's power conglomerate First Philippine Holdings Corporation and that discussions should be concluded in a few weeks.

The Lopez group's 13.4 percent stake in Meralco is key to breaking the impasse in the tussle for control of the utility between telephone group PLDT and food-to-power group San Miguel Corporation.

"We talked to Oscar Lopez for that, because they are the owners," Pangilinan said about the stake adding that "there are ongoing discussions."

Pangilinan's group currently controls about 35 percent of Meralco consisting of 15 percent directly owned by Metro Pacific Investments Corporation and 20 percent controlled by PLDT through subsidiary Pilipino Telephone Company.

MPIC bought 10 percent of Meralco from PLDT's retirement fund which it acquired together with the Piltel both of which got the shares from the Lopez group. The remaining 5 percent were acquired from the open market by First Pacific Company and MPIC.

On the other hand, rival SMC has sealed an agreement to acquire the 27 percent stake of the Government Service Insurance System in Meralco and is allied with Global 5000 which had acquired about 10 percent of Meralco from other government institutions. Read More...