GSIS' Garcia says Meralco dispute to be resolved soon
11/30/2009 | 03:24 PM
Mactan City, Cebu State pension fund Government Service Insurance System said it is open to a discussion with the groups of Metro Pacific Investments Corp. and the Lopez family over the tender offer dispute on shares of Manila Electric Co.
Winston Garcia, GSIS president and general manager, said he is confident that the issue would soon be settled “amicably".
“I think this fight will be resolved without going to court (and) the issue can be resolved amicably," Garcia told reporters during a roundtable media forum, which the state pension fund hosted in Cebu.
GSIS holds about four percent in Meralco, the country’s largest and Metro Manila’s sole power distributor, and has filed complaints before corporate regulators and Pasig prosecutors to compel MPIC to launch a tender offer for other Meralco shares.
MPIC’s agreement with the Lopez’s First Philippine Holdings Corp. put a P300 price tag for every Meralco share.
If MPIC exercises its call option next year for the 6.7-percent stake of First Holdings in Meralco, the group would hold about 41 percent in Meralco, above the 35-percent threshold as mandated by the Securities and Regulation Code.
Presently, MPIC and Pilipino Telephone Corp., a unit of telecommunications giant Philippine Long Distance Telephone Corp., own 34.7-percent stake in Meralco. Hong Kong conglomerate First Pacific Co. Ltd. is both the parent firm of PLDT and MPIC.
The pension fund agency for government employees has accused the Pangilinan-led MPIC of shortchanging Meralco’s shareholders by skirting the tender offer rule after sealing a deal that effectively increased the PLDT group’s stake in Meralco. - GMANews.TV
Winston Garcia, GSIS president and general manager, said he is confident that the issue would soon be settled “amicably".
“I think this fight will be resolved without going to court (and) the issue can be resolved amicably," Garcia told reporters during a roundtable media forum, which the state pension fund hosted in Cebu.
GSIS holds about four percent in Meralco, the country’s largest and Metro Manila’s sole power distributor, and has filed complaints before corporate regulators and Pasig prosecutors to compel MPIC to launch a tender offer for other Meralco shares.
MPIC’s agreement with the Lopez’s First Philippine Holdings Corp. put a P300 price tag for every Meralco share.
If MPIC exercises its call option next year for the 6.7-percent stake of First Holdings in Meralco, the group would hold about 41 percent in Meralco, above the 35-percent threshold as mandated by the Securities and Regulation Code.
Presently, MPIC and Pilipino Telephone Corp., a unit of telecommunications giant Philippine Long Distance Telephone Corp., own 34.7-percent stake in Meralco. Hong Kong conglomerate First Pacific Co. Ltd. is both the parent firm of PLDT and MPIC.
The pension fund agency for government employees has accused the Pangilinan-led MPIC of shortchanging Meralco’s shareholders by skirting the tender offer rule after sealing a deal that effectively increased the PLDT group’s stake in Meralco. - GMANews.TV
