PLDT, JG Summit mull extending deadline for Digitel deal

Philippine Long Distance Telephone Co. (PLDT) is mulling on extending its self-imposed August 26 deadline to buy a rival telecom firm after Malacañang said on Thursday that it will take its time in coming out with a decision on the matter. In a statement, PLDT said Friday it is in "joint consultation" with JG Summit Holdings, parent company of Digital Telecommunications Philippines Inc. (Digitel) on whether or not to extend the date for making final P69.2-billion share-swap transaction. "The two parties shall consult their respective boards of directors and make a formal announcement as soon as practicable," PLDT said. Presidential Spokesperson Edwin Lacierda said Thursday that despite the August 26 PLDT deadline for the NTC to come up with a decision or it will walk away from the deal, Malacañang will study the deal on its own terms. "As far as I know, we did not impose on ourselves a deadline. We are studying it carefully, judiciously. It was a deadline imposed by Mr. Pangilinan," Lacierda said, referring to PLDT chairman and CEO Manuel Pangilinan. Pangilinan on Friday last week said if he does not get an approval by August 26, PLDT will walk away from the Digitel deal. “Just like any deal, you have to go by a certain timetable," said Ray Espinosa, PLDT's regulatory affairs and policy head. “There is no serious deal that is open-ended in terms [of] time. Timing is important," he stressed. Meeting in Malacañang Hours before the PLDT's deadline lapsed at 5 p.m., Pangilinan met with Transportation and Communications Secretary Manuel Roxas II in Malacañang. After the meeting, Pangilinan was asked what the company will do if he fails to get approval of the merger by today. He responded: "Magdadasal na lang kami." It was not specified what the meeting was all about, and if President Benigno Aquino III was present. Pangilinan said he is not aware if the Palace made any decision on the Digitel deal. “The deadline is at 5 p.m., siguro tingnan na lang natin," he said. As of this posting, the National Telecommunications Commission (NTC), the agency tasked to review the transaction, could not be reached for comment. The NTC concluded its hearings on the joint application of PLDT and Digitel for the approval of the share-swap deal on July 18, but more than a month had passed and the regulator has yet to come up with a final decision. PLDT lamented it had to push forward twice its own deadline for the conclusion of the deal because the NTC proceedings had dragged on longer than expected. It had accused competitor Globe Telecom Inc., the chief oppositor to the deal, of employing delaying tactics to stall the NTC hearings. — VS, GMA News