Globe hit over delayed action on Digitel deal

The Philippine Long Distance Telephone Company (PLDT) expressly blamed Globe Telecom and other oppositors for the “protracted proceeding" at the National Telecommunications Commission (NTC) which is reviewing the telecom giant’s merger-acquisition deal with Digital Telecommunications Philippines Inc. (Digitel). “What should have been a straightforward summary proceeding turned into protracted proceeding as Globe and other oppositors raised extraneous matters," according to PLDT Corporate Secretary Ma. Lourdes Rausa-Chan in a disclosure to the Philippine Stock Exchange on Friday. PLDT issued the disclosure to clarify statements its chairman and CEO, Manuel V. Pangilinan, who said the Digitel acquisition may be called off if NTC’s regulatory approval is not secured by August 26. http://www.gmanews.tv/story/229848/business/no-ntc-approval-no-digitel-deal-pldt Rausa-Chan said among the dilatory issues brought before the NTC were “a grant of additional frequency assignments to Globe as well as IP peering…" The PLDT corporate secretary said the oppositors “even sought for the suspension of the proceeding and disapproval of the transaction arguing that PLDT’s foreign ownership exceeds the Constitutional limit. Rausa-Chan stressed that the Supreme Court’s June 28 decision, “has not even attained finality." She informed the PSE and the investing public that PLDT has “obtained SEC’s confirmation of the valuation of the… Digitel shares and convertible bonds and advances which PLDT will acquire in consideration of new shares of common stock to be issued by PLDT." l Globe's counsel Rodolfo Salalima, during an NTC hearing last May, asked why the contract to sell was not included in the joint application filed by the two telcos [PLDT and Digitel] with the “Why are they hiding the document? Ano nga ba talaga ang binili? The mobile business or the landline? There are issues that they are hiding something from the public [by not including the contract of sale] in their application," Salalima told reporters during the hearing’s recess. Rausa-Chan said they “remain hopeful that the NTC approval will be forthcoming." — Earl Victor Rosero/VS, GMA News