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Tuesday January 13, 2004
US agricultural team says hopeful Asia will get over mad cow fears
Philippine Supreme Court voids Comelec contract for computerized polls
Philippine exchange in talks with Australian exchange for stake
Forex - Philippine peso weakens to lowest for this year, intervention
seen
Mirant Philippines may sell 10 pct stake to public, strategic investor
Philippines' Napocor renegotiates IPP contracts, saves 2.9 bln usd -
Perez
Philippine Treasury raises 3.25 bln pesos via 5-yr T-bond issue
Philippines' Nov tourist arrivals up 17.6 pct yr-on-yr
ADB approves 200 mln usd worth peso swap and loan facility for
Philippines
Philippine govt to resume peace talks with communists in Norway - Arroyo
Manila
shares close higher led by Ayala Corp, Meralco
Philippines
protests US probe of telecom firms
Philippines GDP grew 4.4 pct in 2003, 2004 growth seen at 5.2 pct -
Arroyo
Philippines' Philex Nov copper/gold/silver output gross value 285.8 mln
pesos
Philippines' Union Bank confirms 2003 net profit 'more than' 2.1 bln
pesos
STOCK ALERT - Philippines' Meralco extends rally on foreign buying,
earnings
Philippines' PSE in informal talks with Australian exchange for stake
Philippines' Vivant says Visayan Electric stake to be cut after court
order
Philippines' DMCI Holdings unit seeks Universal Rightfield
rehabilitation
Philippines' San Miguel, Japan's Kirin explore further joint venture -
report
Philippine central bank approves tighter rules on banks' big loans
Monday, January 12, 2004
Keppel Philippines says SEC to renew Keppel IVI license if capital
raised
Philippines' GMA Network says company not for sale
Philippines' Jollibee 2003 FY net profit in line with 9-mth showing
Philippines' Banco de Oro says 'open to strategic alliances'
Philippines' Petron to increase fuel prices tomorrow
Philippine
2003 motor vehicle sales up 7.75 pct
Philippine Stock Exchange releases 25 mln Federal Chemical shares from
lock-up
Philippines'
Philweb, Edsamail merge ISP business
Philippines' PCI Leasing buys back 644,000 shares on Jan 9
Manila shares
close lower on profit-taking
Philippines' Aboitiz Equity to receive Visayan Electric shares
STOCK ALERT - Philippines' Banco de Oro firmer on possible tie-up with
Fubon
Philippine oil firms hike oil prices by 0.50-0.90 pesos/liter at weekend
Philippine court awards Visayan Electric shares to Aboitiz group -
report
Philippines'
PLDT, US' AT&T settle rates dispute
Philippines Banco De Oro, Taiwan's Fubon plan strategic tie-up - source
Philippine central bank chief says economic growth targets too high -
report
Philippines' Estrada eyeing medical trip to France, Japan or Canada
Philippine leader vows to push through shift to parliamentary system
Japan's JGC to double plant designers in Philippines, Pakistan - report
Eight killed as Philippine communists attack power grid, telecom site
January 8 -
9
January 6 - 7
January 04 - 05
| US agricultural team says hopeful Asia will get over mad cow fears |
MANILA (AFX-ASIA) - US agricultural officials said today that Asians will soon feel safer about eating American beef, despite the discovery of a case of mad cow disease in Dec 2003. The find in the west coast state of Washington prompted several Asian countries, such as South Korea and Japan, to impose bans or restrictions on importing US beef despite American safety guarantees. US officials today insisted that the case has been investigated thoroughly, no beef from where the case was found has been exported and safeguards have been in place against the spread of mad cow to beef supplies for about a decade. Mad cow disease, or bovine spongiform encephalopathy (BSE), has been linked to a fatal brain disorder in humans. "Over the next month or so, we're optimistic that may of these countries will be moving forward to limit some of the bans that are in place," Gary Greene, a US agriculture department director for Asia, told a press conference here. "We're making the rounds," of Asian countries, to assure them of the safety of US beef, Greene added. Greene said a Japanese delegation was visiting the US to check on mad cow prevention measures. |
| Philippine Supreme Court voids Comelec contract for computerized polls |
MANILA (AFX-ASIA) - The Supreme Court today nullified a Commission On Elections (Comelec) contract with a private group for the computerization of the May elections. "The Supreme Court... declared the resolution of the Comelec... awarding the contract to Mega Pacific consortium null and void," Supreme Court spokesman lawyer Ismael Khan said. Comelec chairman Benjamin Abalos said the commission has yet to receive an official copy of the Supreme Court decision. Abalos said the Comelec may announce its response to the Supreme Court decision tomorrow after its commissioners have studied the ruling. Khan said the Supreme Court ruling means the Comelec cannot use automated machines acquired from Mega Franchis. The machines are supposed to be used to count votes of the May polls. "The Comelec is further ordered to refrain from implementing any other contract or agreement entered into with regards to this project (with Mega Pacific)," Khan said, reading a portion of the Supreme Court's 101-page ruling on ABS-CBN television. He said the Supreme Court has found Mega Pacific to be "not qualified at all to have entered into this... transaction." On whether the Comelec will still be able to conduct a computerized poll, it is "up to the Comelec," he said. Comelec officials said the computerized system is supposed to allow the poll body to finish the vote counting in 30 hours, unlike in previous elections when it took several days, even months, before the winner was named. They said the new system will also help curb rampant cheating, which has marred previous elections. The contract with Mega Pacific covers hardware, software and satellite links to register voters, count ballots and bounce official returns to the national canvassing center, they added. "It is very clear, on the basis of the findings of the Supreme Court, that tests conducted involving those machines (from Mega Pacific) were not in line with the standards that the Comelec itself had set," Khan said. The Supreme Court has also directed the Office of the Solicitor General "to take measures to protect the government and vindicate public interest from ill-effects of the illegal disbursements of public funds made by reason of the (Comelec) board resolution and contract," Khan said. This means the Solicitor General will have to recover government money spent, reported to be as much as 1.2 bln pesos, on buying the machines from Mega Pacific. Yesterday, the Comelec chairman assured the public that the May 10 polls will be held as scheduled, amid concerns that the commission will have to stick to the manual counting of votes. At stake in the polls are the country's presidency and vice presidency, 12 senatorial seats and positions for congressmen, city and provincial governors, vice governors, mayors, vice mayors and local government councilors. The National Movement for Free Elections (Namfrel), a civilian body deputized to ensure honest conduct of elections, said the ruling has "put the credibility of Comelec in question." "The decision has placed all of us in some kind of dilemma," Namfrel leader Guillermo Bill Luz said. A member of the House of Representatives on Monday filed a bill to seek a 10-day delay to May 20 to the elections, saying that Comelec will need additional time to revert to a manual vote count. However, members of the opposition and President Arroyo warned that this could lead to a power vacuum and worsen the situation in the country, which is still reeling from a military rebellion last year. "The president does not agree with moves to reset the May 10 elections," Arroyo spokesman Ignacio Bunye said in a statement hours before the court ruling. Bunye said the public should put its faith in Comelec, which has said it is prepared to oversee the elections at any cost. edelacruz@afxasia.com |
| Philippine exchange in talks with Australian exchange for stake |
MANILA (AFX-ASIA) - The Philippine Stock Exchange said it is in informal talks with representatives of the Australian Stock Exchange for a possible strategic investment in the local bourse. However, it said no formal agreements have been reached. The Philippine Daily Inquirer earlier reported that the Australian Stock Exchange has expressed an interest in acquiring a minority stake in the PSE. The Singapore Stock Exchange is also reported to have expressed the same interest. "PSE clarifies that, although there are informal discussions with the representatives of the Australian Stock Exchange, no formal matters/agreements have resulted from those discussions," it said in a disclosure. President Cayetano Paderanga said the PSE plans to sell 20-40 pct of its equity to strategic investors this year as part of its mandated demutualization process. He said the exchange may be able to sell a portion of its stake through private placements by new investors before the year's end. Paderanga said he could not, however, give a more specific time table as to when the PSE's demutualization will be completed. The Securities Regulation Code of 2000 requires the PSE to dilute the shareholdings of brokers to only 20 pct. Although the PSE has been transformed to a profit corporation and listed its shares, brokers still hold close to 100 pct of its equity. Paderanga said a partnership with another exchange will widen the PSE's market base and may also lead to cross-ownership between exchanges. This will, in turn, result in greater collaboration and eventual cross- border trading, he added. The PSE is also still in talks for possible investment opportunities with multilateral institutions, such as the Asian Development Bank and International Finance Corp, as well as institutional investors like pension funds. "The ADB has invested in two stock exchanges in the region," Paderanga said, although he noted that the bank's policy may have veered more towards lending than equity investment. However, he said there may be other entry modes that the PSE can explore with ADB, such as offering of preferred shares, which is a form of borrowing. Paderanga sees 2004 as a better year for the PSE in terms of operating profits. He said the PSE likely booked a net profit of "a few millions" pesos in 2003, thanks to extraordinary income from investment holdings, after booking a net loss for the first nine months of last year. For 2004, he said the PSE expects a boost in revenue from the re-imposition of a transaction fee for each share purchase and sale. It is also encouraging more listings and looking at new products to offer to the investing public, he said. PSE closed today up 1.00 peso at 200.00. afxmanila@afxasia.com |
| Forex - Philippine peso weakens to lowest for this year, intervention seen |
MANILA (AFX-ASIA) - The peso lost more ground in afternoon trade to close at its weakest level against the US dollar for this year after the Supreme Court nullified a Commission on Elections (Comelec) contract with a private group for the computerization of the May elections, dealers said. Regional currency weakness against the US unit also weighed on the local unit, they said. The peso closed at 55.400 to the dollar after trading between 55.270 and 55.450 on volume of 164.10 mln usd. It closed at 55.275 yesterday. The central bank was seen supporting the peso at the 55.400 levels. "Two factors pulled down the peso today. First, the regionals were weak, and in the afternoon, the Supreme Court ruling added pressure on the local currency," a commercial bank dealer said. "There's a hanging question now on whether the May elections will push through, and this uncertainty will likely worry the (local) markets in the coming days." The Supreme Court nullified the Comelec contract with the Mega Pacific group for the use of automated machines in counting votes in the May polls. The Supreme Court found Mega Pacific to be unqualified to enter into such a contract with the Comelec, Supreme Court spokesman Ismael Khan said. Comelec chairman Benjamin Abalos said the commission has yet to receive an official copy of the Supreme Court decision. Abalos said the Comelec may announce its response to the Supreme Court decision tomorrow after its commissioners have studied the ruling. Yesterday, he assured the public that the May 10 polls will be held as scheduled, amid concerns that the commission will have to stick to the manual counting of votes. The commercial bank dealer said the central bank sold about 10 to 20 mln usd worth of dollars on the spot market today at above 55.400 levels. Central bank officials could not be reached for comments. The dollar may be traded between 55.400 and 55.500 tomorrow, although the market may not be too aggressive to test the 55.450 level again because of the apparent strong central bank support for the peso at that level, the dealer said. edelacruz@afxasia.com |
| Mirant Philippines may sell 10 pct stake to public, strategic investor |
MANILA (AFX-ASIA) - Mirant Philippines Inc said it is still keen on offering a 10 pct stake to the public, for an estimated 18 bln pesos, adding that an IPO may finally take place this year. The company, however, is also considering an option to allow just a strategic investor to come in, instead of conducting an IPO. Mirant Philippines president Edgardo Bautista said the power producer is currently preparing the structure for such an offering which is "probably going to happen this year." "We are readying our organizational structure for this kind of public offering. Some necessary preparations are ongoing. We have to finish a very long process before we can proceed with the offering. It's a very long process. If we can complete it this year, we can make the offering (within the year)," he told reporters. Mirant Philippines has yet to appoint a financial advisor for the offering, he said. "The selection of a financial advisor will come later (in the process)," he said. Mirant Philippines is a subsidiary of the US-based Mirant Corp. The company has spent 600 mln pesos to put up a 12.5-megawatt power plant in Aklan to boost supply in the central Philippines, and is to build and operate a 7.5-MW plant and another 5-MW facility in the region. The facilities will be operational by the first quarter next year. Mirant will also finance, construct, operate and maintain a 10-MW diesel generating power station in Iloilo province. To date, Mirant's total capacity has reached 2,000 MW. Mirant is a shareholder in the 1,200-MW gas-fired Ilijan power project and also operates the Pagbilao and Sual coal-fired power plants on Luzon island. (1 usd = 55.40 pesos) afxmanila@afxasia.com |
| Philippines' Napocor renegotiates IPP contracts, saves 2.9 bln usd - Perez |
MANILA (AFX-ASIA) - The government has finished renegotiating all the power supply contracts of the National Power Corp (Napocor) with its independent power producers (IPPs), which resulted in nominal and present value savings of 2.9 bln usd and 1.03 bln usd respectively, Energy Secretary Vincent Perez said. Perez made the announcement at a joint news conference with visiting US Energy Secretary Spencer Abraham. "We have successfully negotiated and amendments were made (to the IPP contracts) in such a way that both parties will benefit from the new agreement," Perez said. The government had sought to revise the contracts with dozens of IPPs, who were awarded power generation projects beginning in the late 1990s when a power crisis hit the country. The move to renegotiate the contracts was aimed at bringing down electricity costs in the country, as the cost of power purchased from IPPs are eventually passed on to end-users by power generators and retailers. Abraham, who is in Manila for a one-day working visit, has affirmed the continuing interest of US power firms in investing in the Philippines. "My impression is that the interest level is still very high. They are still very interested and dedicated and are willing to continue to expand their businesses in the Philippines for the long-term," he said. In the last two years, US investment in the upstream petroleum industry in the Philippines came to as much as 305 mln usd, the Energy department said. It said financial support from US companies such as California Energy, San Roque Power Corp and Mirant Philippines Inc in the Arroyo administration's rural electrification program totaled 33.67 mln usd. Perez said that since US firms are active in developing geothermal energy, the two countries could also collaborate in developing the Philippines' geothermal resources. The US and the Philippines are the world's largest and second largest geothermal producers respectively, accounting for 49 pct of the world's total installed geothermal capacity, he said. afxmanila@afxasia.com |
| Philippine Treasury raises 3.25 bln pesos via 5-yr T-bond issue |
MANILA (AFX-ASIA) - The Bureau of Treasury said it raised 3.25 bln pesos at today's auction of five-year fixed-rate Treasury bonds, with the coupon rate set at 10.750 pct, 50 basis points higher than the previous rate of 10. 250 pct. Tenders totaled 12.8 bln pesos against an offering of 4.5 bln. (1 usd = 55.29 pesos) edelacruz@afxasia.com |
| Philippines' Nov tourist arrivals up 17.6 pct yr-on-yr |
MANILA (AFX-ASIA) - Tourists arrivals in the Philippines in November rose 17.6 pct year-on-year to 170,921, data from the Department of Tourism show. In the 11 months to November tourist arrivals fell 4.2 pct to 1.67 mln from 1.74 mln. No other details were given. edelacruz@afxasia.com |
| ADB approves 200 mln usd worth peso swap and loan facility for Philippines |
MANILA (AFX-ASIA) - The Asian Development Bank (ADB) today approved a 200 mln usd worth peso swap and financing facility for the Philippines in what is considered to be the first arrangement of its kind a multilateral agency has implemented. Under the facility, the ADB will execute a cross-currency swap with the Philippine government to generate pesos. The ADB will then lend the generated funds to 17 private banks for re-lending to a variety of businesses. "This is a highly innovative pilot project that aims to promote private sector and capital markets development in the Philippines," ADB senior structured finance specialist Ajay Sagar said at a press conference. "It not only marks the first time that the ADB is providing long-term local currency financing in the Philippines, it is also its first local currency swap with a government," Sagar added. It also marks the first time that ADB is providing long-term local currency funding aimed at strengthening the banking system in a developing member country. The ADB is "considering" replicating the pilot project to other countries, such as Indonesia, Bangladesh, Vietnam and Pakistan, Sagar said. The 17 local and foreign banks eligible to participate in the 15-year loan facility are ABN Amro Bank, ANZ Banking Group, International banks with a long-term credit rating of BBB or better can borrow up to 75 mln usd equivalent each under the facility, while local bank's maximum borrowing limit will be set at 10 mln usd each. They may re-lend to businesses in the following sectors: Infrastructure, manufacturing, small and medium enterprises, housing, non-bank finance firm, consumer lending, retailing, modernization of production facilities, securitization, bond market development, environment improvement expenditure and resolution of banks' non-performing loans. The multilateral agency will also allow loans for restructuring infrastructure projects "that benefit the ultimate consumers or general public." Sagar said the project also aims to remove the currency and tenor mismatches local commercial banks have been experiencing from the end of the Asian financial crisis. He noted commercial banks, which are main providers of long-term financing, are exposed to asset-liability mismatch risks since they rely on short-term deposits for long-term financing. The ADB loans will have terms of up to 15 years and will be charged a market-based interest rate linked to credit rating of the borrowing bank. The currency swap, meanwhile, should effectively help boost the country's foreign exchange reserves, which stood at 16.815 bln usd as at end-2003. cecille.yap@afxasia.com |
| Philippine govt to resume peace talks with communists in Norway - Arroyo |
MANILA (AFX-ASIA) - The government will resume formal peace talks with communist guerrillas in Norway in February, despite the insurgents' recent spate of attacks, President Gloria Arroyo said today. Negotiators from the National Democratic Front, the political wing of the Communist Party of the Philippines, and the Philippine and Norwegian governments are thrashing out details of the talks, Arroyo said. "I commend both sides for their work and I thank the Royal Norwegian government for its gracious assistance and support," Arroyo said in a statement. However, she said the armed forces, as well as the police, will remain on high alert to thwart further attacks from the New People's Army (NPA), the armed wing of the communist movement. Eight people were killed and nine wounded last weekend as NPA guerrillas attempted to burn down a coal-fired power plant south of Manila and ambushed a member of the House of Representatives. Military officials say the weekend raids were part of a guerrilla strategy to make money ahead of the May 10 national elections, extorting candidates who wished to campaign in rebel-influenced areas and collecting "taxes" from businesses. |
| Manila shares close higher led by Ayala Corp, Meralco |
MANILA (AFX-ASIA) - Share prices closed firmer on buying in select blue chips such as Ayala Corp and Manila Electric Co (Meralco) as well as in a few lower-line stocks, dealers said. They said investors, including foreigners, continued to position themselves in stocks with positive earnings forecasts for 2003 and 2004, particularly Meralco. Wall Street's gains overnight also provided a positive backdrop, dealers added. The composite index closed up 6.15 points or 0.41 pct at 1,507.17 on volume of 397.28 mln shares worth 1.14 bln pesos. It moved between 1,498.64 and 1,520.22. In the broader market, gainers led losers 43 to 21 while 37 stocks were unchanged. "We continue to see interest in select blue chips like Meralco because of earnings prospects. We also saw buying in select second-liners and third-liners while the telecom stocks are in a consolidation phase," DA Market Securities president Nestor Aguila said. He said the market is now trying to "seek a new high before entering a consolidation phase...and we may see it testing highs above 1,560 or even 1, 600." "The market's support at the 1,500-point level seems to be holding. There's also some rotational buying, benefiting select second-liners such as Petron and Piltel," said Westlink Global Equities chairman Rommel Macapagal. He said support from foreigners for Meralco has been sustained. Top-traded Ayala Corp was up 0.10 pesos at 5.80 on volume of 41.19 mln shares, with turnover boosted by cross sales. Philippine Long Distance Telephone (PLDT) was down 15 at 935, capping the market's upside. Meralco B, available to foreign investors, was up 3.50 pesos, or 10.61 pct, at 36.50 on 4.2 mln shares. Meralco A was up 3.25 pesos, or 17.57 pct, at 21.75 on 2.1 mln shares. Meralco expects the provisional 0.12 pesos per kilowatthour rate hike it was allowed to implement from Jan 1, 2004, to boost its annual revenues by 1. 9 bln pesos. It also expects its overall cost of purchased power to decline 0. 01 peso/kWh due to a renegotiated supply contract with affiliate power producer First Gas Power Corp. Meralco parent First Philippine Holdings Corp was up 2.75 pesos, or 12.64 pct, at 24.50 on 3.3 mln shares. First Philippine Holdings parent Benpres Holdings Corp was up 0.05 peso, or 8.20 pct, at 0.66 on 36.2 mln shares. PLDT rival Globe Telecom was down 35 at 910. Petron Corp rose 0.11 to 2.55 on 19.8 mln shares, sustaining its gains after breaching the 2.42 resistance level, analysts said. Early today, the oil refiner increased pump prices by 0.80 peso per liter for gasoline, 0.50 peso for diesel and kerosene, and 0.90 peso per kilogram for liquefied petroleum gas. The company said it made the adjustment to recover additional costs arising from the increase in international crude and product prices. Regina Capital Development Corp analyst Gomer Tan said a 10 pct year-on-year increase in Petron's full 2004 net profit is reasonable, given the strong economic growth expected this year. President Gloria Arroyo said today the country's gross domestic product (GDP) grew 4.4 pct in 2003, within the official target of 4.2-5.2 pct. Arroyo said she expects the Philippines' GDP to grow 5.2 pct this year, with construction to lead the expansion with a projected 7.8 pct increase. The government's GDP growth target for this year ranges from 4.9 to 5.8 pct. PLDT affiliate Pilipino Telephone surged 0.14 peso or 12.96 pct to 1.22 on 39.9 mln shares. The all-shares index was up 4.06 points at 911.89. The commercial-industrial index rose 11.24 to 2,290.70. Property was down 1.04 at 575.58, while mining was up 41.42 at 1,625.65. Oil was up 0.02 at 1.33. Banking and financial services gained 3.53 to 464.34. (1 usd = 55.29 pesos) edelacruz@afxasia.com |
| Philippines protests US probe of telecom firms |
MANILA (AFX-ASIA) - President Gloria Arroyo has asked the US government to explain its actions against 30 Filipino telecommunications executives summoned to testify before a Honolulu grand jury in connection with the US Department of Justice investigations into alleged anti-competitive practices. The Department of Foriegn Affairs earlier said it has summoned Washington's envoy to Manila to protest a US investigation into local telecom companies' alleged anti-competitive practices. Foreign Affairs Secretary Delia Albert expressed Manila's "concern and dismay" to ambassador Francis Ricciardone yesterday after US Federal Bureau of Investigation agents served summonses to the Filipino telecoms executives who attended a conference in Hawaii at the weekend. "We have a strong constructive relationship (with the US) and this should not be marred by such incidents," Arroyo said in a statement from the presidential palace. "There must be amends if a mistake was made or if harassment is proven." Arroyo said the Philippines government is asking for "decency and dignity in the treatment of Filipinos in legitimate business of work in any foreign land." The Filipinos have been called to testify before a Honolulu grand jury this week in connection with the US Department of Justice investigations, Albert said. The inquiry apparently focuses on a row between US and Philippine telcos which began last year. American firms had accused several Filipino companies of unfairly raising rates on calls coming from the US. The row had caused major disruptions in phone services between the two countries and huge losses to both sides, officials said. However, Albert said all parties concerned had agreed to resolve the issue through dialogue and that telcos from the two countries had been negotiating to end the row. The US move "is alarming and perhaps motivated by the desire of the complainants to embarrass the Filipino telecom executives while abroad and, perhaps, even the Philippine government in general," Albert said in a statement. "This action by the US Department of Justice goes against the understandings we had achieved through negotiations. This is inconsistent with what has been discussed and is an action that we would not expect from a close friend and ally," she added. Albert said she had asked Manila's consul general in Honolulu to ensure that the rights of Filipinos who have been summoned are protected. edelacruz@afxasia.com |
| Philippines GDP grew 4.4 pct in 2003, 2004 growth seen at 5.2 pct - Arroyo |
MANILA (AFX-ASIA) - The Philippines' gross domestic product (GDP) grew 4. 4 pct in 2003, within the official target of 4.2-5.2 pct, President Gloria Arroyo said. In a statement from the presidential palace, Arroyo said she expects the Philippines' GDP to grow 5.2 pct this year, with construction expected to lead the expansion with a projected 7.8 pct increase. "The economy is moving up," Arroyo, who will seek a full six-year term at the May 10 polls, said, adding that last year's growth was the fastest since the Asian financial crisis. "The fiscal gains we have achieved, despite numerous crises and doomsayers, should speak for themselves," she said. The government's fiscal managers earlier said preliminary figures show the government's 2003 budget deficit came in at 198.7 bln pesos, lower than the 202 bln pesos ceiling the government set. The National Statistical Coordination Board is not expected to release the official GDP data until next month. The government's GDP growth target for this year ranges from 4.9 to 5.8 pct. (1 usd = 55.29 pesos) edelacruz@afxasia.com |
| Philippines' Philex Nov copper/gold/silver output gross value 285.8 mln pesos |
MANILA (AFX-ASIA) - Philex Mining Corp said it produced in November 1.54 mln kilograms of copper, 218,416 grams of gold and 239,529 grams of silver with an estimated gross value of 285.8 mln pesos. The company earlier reported an output with a value of 285.4 mln pesos for October. Shipments of copper concentrate in November were valued at 280.44 mln pesos, Philex said in a statement to the stock exchange. (1 usd = 55.28 pesos) edelacruz@afxasia.com |
| Philippines' Union Bank confirms 2003 net profit 'more than' 2.1 bln pesos |
MANILA (AFX-ASIA) - Union Bank of the Philippines said it registered a net profit of more than 2.1 bln pesos for full-year 2003. It gave no other details in its statement to the stock exchange. It confirmed a local newspaper report that its 2003 net profit rose more than 36 pct from 1.54 bln pesos in 2002. The bank expects a net profit growth of 10-15 pct year-on-year in 2004, with contributions likely to come from consumer loans, treasury activities and transaction banking. In the nine months to Sept 2003, Union Bank's net profit stood at 2.07 bln pesos, up 77 pct from the year-earlier period. At 10.57 am, Union Bank was up 1.00 peso at 28.50 on volume of 11,600 shares. (1 usd = 55.28 pesos) edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Meralco extends rally on foreign buying, earnings |
MANILA (AFX-ASIA) - Manila Electric Co (Meralco) shares were firmer early, extending gains on sustained foreign interest amid expectations of an earnings boost from a recent rate hike, dealers said. The positive sentiment for Meralco has also pushed up the stock of parent First Philippine Holdings. Meralco B, available to foreign investors, was top traded and up 3.00 pesos at 36.00 on volume of 2.10 mln shares. Meralco A was up 2.25 at 20.75 on 826,300 shares. First Philippine Holdings was up 1.25 at 23.00 on 1.47 mln shares. Meralco expects the provisional 0.12 pesos per kilowatthour rate hike it was allowed to implement from Jan 1, 2004 to give a 1.9 bln pesos boost to its annual revenue. At the same time, Meralco expects its overall cost of purchased power to decline 0.01 peso/kWh due to a renegotiated supply contract with affiliate power producer First Gas Power Corp. (1 usd = 55.28 pesos) edelacruz@afxasia.com |
| Philippines' PSE in informal talks with Australian exchange for stake |
MANILA (AFX-ASIA) - The Philippine Stock Exchange said it is in informal talks with representatives of the Australian Stock Exchange for a possible strategic investment in the local bourse. However, it said, no formal agreements have been reached. The PSE made the statement in response to a Philippine Daily Inquirer report that the Australian Stock Exchange has expressed interest to acquire a minority stake in the PSE. Earlier, the Singapore Stock Exchange was also reported to have expressed the same interest. "PSE clarifies that although there are informal discussions with the representatives of the Australian Stock Exchange, no formal matters/agreements have resulted from those discussions," the PSE said in a disclosure. At 10.04 am, PSE was up 1.00 peso at 200 on 20 shares. (1 usd = 55.28 pesos) cecille.yap@afxasia.com |
| Philippines' Vivant says Visayan Electric stake to be cut after court order |
MANILA (AFX-ASIA) - Vivant Corp said its stake in Visayan Electric Co (VECO) is likely to be reduced to 8.15 pct after a Cebu regional trial court awarded Aboitiz Equity Ventures (AEV) a direct 46.66 pct stake in the utility firm. "The court decision ordering the divestment of the 2.086 mln VECO shares and the subsequent re-investment, thereof, in Hijos de F Escano ... entail a reduction in the investment of (Vivant) in VECO shares to the extent of approximately 30 pct of total outstanding shares of VECO, Vivant said in a disclosure to the stock exchange. "Hence, (Vivant) shall be left owning about 8.15 of the total oustanding shares in VECO," the statement added. As of Oct 8, Vivant had a 38.15 pct stake in VECO. In Sept 2002, AEV filed a 613 mln pesos suit against Vivant for the alleged dilution of AEV's shares in VECO. The subject of the complaint was the dissolution of HDFE, a private holding company whose principal assets were its controlling shareholdings in VECO, through a share swap agreement with Vivant. The Garcia family, who also own Vivant, have a majority stake in Hijos. AEV holds a 46 pct stake in Hijos. Under the share-swap deal, Vivant acquired about 2.09 mln VECO shares from Hijos in exchange for Vivant shares. In its complaint, AEV sought damages of 613 mln pesos and a return of the transferred properties "so that Hijos may be dissolved and its assets distribute d proportionately among its shareholders." The Cebu court late last week awarded AEV its shares in VECO, giving it a direct 46.66 pct stake in the country's second largest power distribution firm. The court also ordered the partial liquidation of Hijos. Under the decision, AEV will get 46.66 pct, or about 1.6 mln, of Hijos' shares in VECO. It will also receive 46.66 pct of Hijos' cash and liquid assets after payment of debts and a 46.66 pct co-ownership interest in Hijos' other assets. "Furthermore, in view of the order of the court for AEV to surrender all its Hijos shares to Hijos, in exchange for 46.66 pct of the VECO shares owned by Hijos, (Vivant) shall now own approximately 95.38 pct of the total outstanding shares of Hijos," Vivant said. Vivant said that, after the execution of the deed of exchange on April 29, it had already proceeded to implement the share-swap transactions, and has issued preferred shares in exchange for the VECO shares transferred. (1 usd = 55.283 pesos) cecille.yap@afxasia.com |
| Philippines' DMCI Holdings unit seeks Universal Rightfield rehabilitation |
MANILA (AFX-ASIA) - DMCI Holdings Inc said its wholly-owned flagship construction company D.M. Consunji Inc has filed a petition with the Mandaluyong Regional Trial Court for the corporate rehabilitation of Universal Rightfield Property Holdings Inc. DMCI chief finance officer Herbert Consunji said the DMCI's unit, which is a major creditor of Universal Rightfield, has "substantial" receivables due and outstanding from the latter. The Philippine Stock Exchange has suspended trading of Universal Rightfield shares even after the Securities and Exchange Commission has set aside an order revoking the company's permit to sell securities to the public. DMCI Holdings gave no specific financial details in its disclosure to the stock exchange. edelacruz@afxasia.com |
| Philippines' San Miguel, Japan's Kirin explore further joint venture - report |
MANILA (AFX-ASIA) - San Miguel Corp and Japan's Kirin Brewery Co are exploring expansion of their partnership to areas other than beer production and distribution in a bid to strengthen their business base in Asia and maintain earnings growth, the BusinessWorld newspaper reported, citing a Kirin report. The Kirin report said the Japanese brewer's collaboration with San Miguel would extend to food, beverages, packaging and even joint procurement of ingredients and raw materials. It did not provide any details. Kirin has a 15 pct stake in the Philippines' largest food and beverage conglomerate. The report, citing a San Miguel source, said there was no new deals with Kirin just yet, but that the Philippine brewer was open to new ventures. (1 usd = 55.275 pesos) cecille.yap@afxasia.com |
| Philippine central bank approves tighter rules on banks' big loans |
MANILA (AFX-ASIA) - The central bank's policy-making Monetary Board has approved tighter rules on banks' large credit exposures to strengthen the banking system. The central bank issued a new circular supporting the policy on a single borrower's limit and listing the minimum standards to manage large exposures in stand-alone and group borrowers. The single borrower's limit caps a bank's allowable loan exposure to a single borrower at 25 pct of its portfolio. In a statement, the central bank said it now requires banks to maintain the following in monitoring large loan exposures: - a central liability record that would track credit exposures, preferably based on an automated system - an adequate management information and reporting system - an annual review of the quality of large exposures and controls to safeguard against credit risk concentrations to be conducted by external or internal auditors - an independent compliance function to ensure all relevant internal and prescribed requirements and limits are complied with. cecille.yap@afxasia.com |
| Keppel Philippines says SEC to renew Keppel IVI license if capital raised |
MANILA (AFX-ASIA) - Keppel Philippines Holdings Inc said it expects unit Keppel IVI Investments Inc's application to renew its investment house license to win Securities and Exchange Commission approval if a prospective new owner complies with the registration requirements. Keppel Philippines is looking for a buyer for the unit, which is no longer operational. It was licensed to engage in the investment banking business until operations were suspended in 2001 due to financial difficulties. Among the requirements a new owner will have to meet is addressing Keppel IVI's capital shortfall of more than 100 mln pesos. Keppel IVI is required to maintain its capital at a minimum of 300 mln pesos. The renewal of its investment house license is said to be crucial in the negotiations between the Keppel group and the interested buyer of Keppel IVI, food and beverage conglomerate San Miguel Corp. However, the sale of Keppel IVI has yet to be concluded, Keppel Philippines said. edelacruz@afxasia.com |
| Philippines' GMA Network says company not for sale |
MANILA (AFX-ASIA) - GMA Network Inc said its majority owners have announced that the company is not for sale at this time. The majority owners of the radio and television network decided to issue the statement to end all speculation of a possible offer from Smart Communications Inc to acquire a majority stake in GMA Network. "GMA Network is not for sale. In fact, the company plans to go public when it feels that the market is favorable," said GMA Network head for corporate communications Butch Raquel. GMA Network earlier said it has not received any new offer from Philippine Long Distance Telephone Co (PLDT) or its wireless unit, Smart Communications, to acquire a majority stake in the broadcasting firm, amid a newspaper report about a supposed offer. GMA Network believes a PLDT or Smart acquisition of a broadcasting company is unconstitutional since the two firms are not 100 pct Philippine-owned. Mediaquest Holdings, which PLDT employees own, was the vehicle for the acquisition PLDT proposed as early as 2001. edelacruz@afxasia.com |
| Philippines' Jollibee 2003 FY net profit in line with 9-mth showing |
MANILA (AFX-ASIA) - Jollibee Foods Corp expects its 2003 net profit to come in broadly in line with its performance in the first nine months of the year, during which it posted double-digit earnings growth due to a 7.1-pct rise in systemwide sales, chief financial officer Ysmael Baysa said. The country's largest food chain posted a nine months to Sept 2003 net profit of 910 mln pesos, up 17.2 pct year-on-year. It is expected to maintain double-digit net profit growth in 2004 on the back of increased sales attributable to the May general elections and improved consumer spending stemming from the widely-anticipated economic recovery. The May elections are likely to give sales a 3-5 pct boost, Baysa said. "We expect sales to pick up 3-5 pct in the two months before the elections and the two months after," he told reporters. The company may post a single-digit growth in systemwide sales in 2004, but lower operating expenses will likely lead to a margin improvement, Baysa said today at the inauguration of Jollibee's 1.5 bln peso commissary at Canlubang in the province of Laguna. "This commissary is designed to improve our costs further," Baysa said. President Gloria Arroyo was guest of honor at the inauguration. She said she expects Jollibee's new investments to help create more jobs for Filipinos. Jollibee chairman Tony Tan Caktiong said the company invested in the new facility to support its fast-growing business and as part of its thrust to ensure consistent product quality and improve efficiencies in line with moves to make Jollibee a truly global brand. The manufacturing and logistics center stands on a 10-hectare plot and is capable of servicing the supply requirements of about 800 stores. Jollibee vice president for commissary Belen Rillo said the new facility will help bring about a 10-15 pct improvement in productivity as most lines, from mixing to packaging, are fully automated, thus requiring minimum human intervention. Baysa said the commissary's capacity could be expanded in two years to accommodate the expected increase in outlets. With the opening of 106 stores in 2003, the group now has 468 Jollibee stores, 248 Chowking outlets, 213 Greenwich outlets, 27 Delifrance branches, and 33 stores abroad for a total of 989 stores globally. Jollibee intends to open 70-80 new stores this year on a budget of 1 bln pesos, which is lower than the 1.3 bln pesos set aside last year. The group will not require new borrowings, Baysa said, adding "we have excess cash of 2.2 bln pesos to cover our capex requirements this year." The company used an 850 mln peso loan from Citibank NA to finance partly the two-year construction of the commissary, with the balance coming from its cash surplus. Jollibee, which already operates stores in the US, Hong Kong and the Middle East, is also considering setting up stores in Indonesia from this year, Baysa said. "We're looking at Indonesia. It could be this year," he said, without elaborating. Jollibee's planned entry into the China market is still on the back-burner, he said. "We've always been looking at China, but we're still trying to determine the best model for our entry into that market," he said. Of the 70-80 stores to be put up this year, five will be in the US, mostly in California, he said. (1 usd = 55.275 pesos) edelacruz@afxasia.com |
| Philippines' Banco de Oro says 'open to strategic alliances' |
MANILA (AFX-ASIA) - Banco de Oro Universal Bank (BDO) said it is "open to strategic alliances in any of its business lines", reacting to reports that Taiwan's Fubon Group is reportedly eyeing a partnership with the bank given its impending entry into Equitable PCI Bank. However, Banco de Oro said there are "no dicussions" with the Fubon group at the moment over a strategic partnership, in relation to the acquisition of shares in Equitable PCI Bank. "As a matter of policy, BDO is always open to strategic alliances in any of its business lines," the bank said. At the New Year break, BDO signed a letter of intent to buy state-run pension fund Social Security System's (SSS) 29 pct stake in Equitable PCI for 14 bln pesos. Taiwanese financial giant Fubon has long been planning to enter the Philippine banking sector through Equitable. It expressed an interest in buying the bank in 2001, when the latter suffered massive withdrawals at the height of the impeachment trial against former President Joseph Estrada. A government source has said Fubon has been "courting" BDO, although no further details were provided. "I would welcome it, if they (could) get in touch with us. I am open to many things including an alliance," BDO chairman Teresita Sy-Coson told reporters. BDO, controlled by shopping mall tycoon Henry Sy Sr, will pay SSS 43.50 pesos for each Equitable PCI share, or a total of 14 bln pesos for four board seats in the bank. (1 usd = 55. 275 pesos) cecille.yap@afxasia.com |
| Philippines' Petron to increase fuel prices tomorrow |
MANILA (AFX-ASIA) - Petron Corp is set to increase prices of its petroleum products tomorrow, the company said in a statement, in line with the recent price adjustment by other oil companies which decided to pass on higher crude costs to consumers. Petron will increase pump prices by 0.80 pesos per liter for gasoline, 0. 50 pesos for diesel and kerosene and 0.90 pesos per kilogram for liquefied petroleum gas (LPG) effective 12.01 am of Jan 13. "We have been holding on to our prices as long as we could. However, because of the continued rise in international crude and product prices, we can no longer sustain current prices," Petron public affairs manager Virginia Ruivivar said. Petron also said it has added nine more stations offering diesel discounts for jeepneys and buses plying major routes in metropolitan Manila, bringing the total number of service stations with discounts to 18. The company has offered diesel discounts at selected stations since September 2003. "We would also like to assure the public that we will continue to provide discounts to the public transport sector to mitigate the impact of rising crude prices," Ruivivar said. (1 usd = 55.239 pesos) cecille.yap@afxasia.com |
| Philippine 2003 motor vehicle sales up 7.75 pct |
MANILA (AFX-ASIA) - Philippine motor vehicle sales in 2003 grew 7.73 pct from a year earlier to 90,535 units, slightly lower than the 91,000-unit sales target for the year, the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and Truck Manufacturers Association (TMA) said. Sales of commercial vehicles, which account for 74 pct of the market, grew 7.0 pct to 67,156 units from 62,743 units in 2002. Passenger car sales, accounting for 16 pct of the market, improved 9.8 pct to 23,379 units from 21,298 units in 2002. The local automotive industry is projecting 10 pct year-on-year growth in 2004 sales following the full implementation of the new excise tax law on automobiles, which effectively lowers the tax rates on most vehicles save for 10-seater vehicles for which tax exemptions were removed. Toyota Motor Philippines Corp led sales in 2003 with 27,821 units, with Mitsubishi Philippines Corp and Honda Cars Philippines Inc next with 15,421 units and 15,252 units respectively. cecille.yap@afxasia.com |
| Philippine Stock Exchange releases 25 mln Federal Chemical shares from lock-up |
MANILA (AFX-ASIA) - The Philippine Stock Exchange has released 25 mln Federal Chemical Inc common shares from a two-year lock-up. In a circular, the PSE said the shares, representing 100 pct of the company, will be tradable starting today. The shares were locked-up for two years under an escrow agreement executed on Dec 12, 2001. (1 usd = 55.239 pesos) cecille.yap@afxasia.com |
| Philippines' Philweb, Edsamail merge ISP business |
MANILA (AFX-ASIA) - Philweb Corp said it has agreed to integrate its Internet Service Provider (ISP) products and services with those offered by Edsamail Holdings Pte Ltd. Philweb and Edsamail also agreed to form a strategic partnership under which Edsamail will handle all consumer product sales and marketing. Philweb, meanwhile, will continue to collaborate with Edsamail in the marketing of all connectivity requirements of Philweb's clients and partners regarding its core business which is Internet sports betting and Internet gaming. "This latest strategic move of Philweb shall now allow the company to focus its business development and expansion activities on its core business of Internet Sports Betting and Internet Gaming," Philweb corporate information officer Josephine Manalo said in a letter to the stock exchange. edelacruz@afxasia.com |
| Philippines' PCI Leasing buys back 644,000 shares on Jan 9 |
MANILA (AFX-ASIA) - PCI Leasing and Finance Inc said it bought back 644, 000 shares from the market on Jan 9 at 1.32 pesos each or a total of 850,080 pesos. PCI closed unchanged at 1.32 pesos on 130,000 shares. No further details were provided. (1 usd = 55.239 pesos) cecille.yap@afxasia.com |
| Manila shares close lower on profit-taking |
MANILA (AFX-ASIA) - Share prices succumbed to profit-taking after the market's sharp gains in the first trading week of the year, with Philippine Long Distance Telephone (PLDT) leading losers, dealers said. The 30-company composite index closed down 27.85 points or 1.82 pct at 1, 501.02 on 252.5 mln shares worth 1.04 bln pesos. It traded between 1,497.22 and 1,528.00. In the broader market, decliners beat gainers 46 to 17, with 40 stocks unchanged. PLDT was top-traded, down 45.00 pesos at 950 on 333,830 shares. Dealers said most stocks have reached oversold levels and broad-based profit-taking is warranted before the market prepares for another ascent. The market's further correction is expected in the next few days after gains of almost 6 pct last week, which saw the index hit its highest level in 33 months. "We're going through a bout of profit-taking and it might be spread over the next few days," Asiasec Equities analyst Oliver Plana said. Despite today's decline, Plana said general sentiment on Philippine equities remains upbeat on the back of positive earnings forecast for 2003 and this year. Second most active Ayala Corp was down 0.10 pesos at 5.70 on 34.22 mln shares, while unit Ayala Land shed 0.10 to 6.20 on 4.03 mln shares. Manila Electric B, available to foreigners, gained 1.50 to 33 on 5.59 mln shares. Meralco A was unchanged at 18.50 on 67,500 shares. Dealers said sentiment on the company remains strong thanks to a provisional 0.12 pesos per kilowatthour tariff increase the distributor started implementing this month. The hike is expected to boost Meralco's annual revenues by 1.9 bln pesos. Globe Telecom ended down 35 at 945. Piltel was down 0.02 at 1.08. Petron gained 0.08 at 2.44 after oil firms increased oil prices by 0. 50-0.90 pesos per liter to recover the rising cost of crude in the world market. Bank of the Philippine Islands was down 0.50 at 49.50. The all-shares index gained 0.05 points to 907.83. The commercial-industrial index dropped 46.57 to 2,279.46. Property shed 5.57 to 576.62, while mining was down 59.91 at 1,584.23. Oil was unchanged at 1.31. Banking and financial services shed 4.69 to 460.81. The market will continue to be supported at the 1,480 level, dealers said. (1 usd = 55.239 pesos) cecille.yap@afxasia.com |
| Philippines' Aboitiz Equity to receive Visayan Electric shares |
MANILA (AFX-ASIA) - Aboitiz Equity Ventures confirmed that a Cebu regional trial court awarded it shares in Visayan Electric Co, giving the group a direct 46.66 pct stake in the country's second largest power distribution firm. In a disclosure to the stock exchange, Aboitiz Equity said the court ordered the partial liquidation of Hijos de F Escano Inc, which controls Visayan Electric. Under the court decision, Aboitiz Equity will get 46.66 pct, or about 1.6 mln, of Hijos' shares in Visayan Electric. It will also receive 46.66 pct of Hijos' cash and liquid assets after payment of debts and a 46.66 pct co-ownership interest in Hijos' other assets. Earlier, Aboitiz Equity filed a 613-mln peso suit against Vivant Corp (formerly Philstar.com) for the alleged dilution of Aboitiz's shares in Visayan Electric after the dissolution of Hijos's relationship with Vivant Corp last April. The Garcia family, which also owns Vivant, has a majority stake in Hijos. (1 usd = 55.23 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' Banco de Oro firmer on possible tie-up with Fubon |
MANILA (AFX-ASIA) - Banco de Oro Universal Bank was firmer mid-trade after reports of a possible strategic partnership with Taiwan's Fubon Group amid the Philippine bank's impending entry as Equitable PCI Bank's largest shareholder, dealers said. Banco de Oro was up 0.25 pesos at 18.00 on 58,200 shares worth 1.04 mln pesos. At the New Year's break, Banco De Oro signed a letter of intent to buy state-run pension fund Social Security System's (SSS) 29 pct stake in Equitable PCI for 14 bln pesos. Taiwan financial giant Fubon has long been planning to enter the Philippine banking sector through Equitable PCI. It expressed interest in buying Equitable PCI in 2001, when the bank suffered massive withdrawals at the height of the impeachment trial against former Philippine President Joseph Estrada. Banco De Oro chairwoman Teresita Sy-Coson said Fubon has yet to contact it, although a government source said the Taiwan group has been "courting" the Philippine bank for a possible tie-up. Nevertheless, Sy-Coson said she is "open to many things, including an alliance." Banco De Oro's 14-bln peso investment will give it four board seats on the board of Equitable PCI. Dealers said a possible tie-up with Fubon will further strengthen Banco De Oro's capability to acquire additional shares in Equitable PCI. (1 usd = 55.23 pesos) cecille.yap@afxasia.com |
| Philippine oil firms hike oil prices by 0.50-0.90 pesos/liter at weekend |
MANILA (AFX-ASIA) - Local oil companies raised pump prices of petroleum products at the weekend to pass on to customers the higher cost of crude in the world market, officials of the oil firms said. The prices of gasoline and kerosene were increased by 0.80 pesos per liter, diesel by 0.50 pesos and liquefied petroleum gas (LPG) by 0.90 pesos. Implementing the price increase on Saturday night were Total Philippines Corp and Caltex Philippines Inc. Pilipinas Shell Petroleum Corp and new players Eastern Petroleum Corp and Seaoil Philippines Corp were reported to have followed suit on Sunday. Partially government-owned Petron Corp has yet to make any price adjustment, its corporate communications officer Raffy Ledesma said. On Jan 3, local oil firms raised their diesel product prices by 0.30 pesos per liter to recover costs arising from new diesel specifications under the Clean Air Act. Energy Secretary Vincent Perez has said oil prices may soften by the second quarter on expectations of higher oil output from non-OPEC producers such as Russia and Mexico. He said increased output from Iraq may also help bring down prices, which he earlier said have been kept "excessively high" by OPEC. Perez said the current high price levels are temporary, adding prices have remained high because of seasonal demand for heating oil due to colder weather in the US and Europe, strong demand from China and supply constraints from Iraq. Perez said the country's oil inventory is sufficient to last up to April. (1 usd = 55.26 pesos) cecille.yap@afxasia.com |
| Philippine court awards Visayan Electric shares to Aboitiz group - report |
MANILA (AFX-ASIA) - A Cebu regional trial court has awarded Aboitiz Equity Ventures (AEV) shares in Visayan Electric Co (Veco), giving the Aboitiz group a direct 46.66 pct stake in the utility firm, the BusinessWorld newspaper reported, citing AEV's disclosure with the Securities and Exchange Commission. The court ruling is also seen to end the feud between the Aboitiz and Garcia groups, the two most influential clans in the province of Cebu in the Visayas island. AEV senior vice president and chief financial officer Juan Antonio Berhad, in the disclosure, said the court has ordered the partial liquidation of Hijos de F Escano Inc, the company that controls Veco, the country's second largest power distribution firm. The partial liquidation involves the surrender by AEV of all its shares in Hijos for cancellation. In return, AEV will bet 46.66 pct of Hijos shares in Veco or about 1.6 mln Veco shares. It will also receive 46.66 pct of Hijos' cash and liquid assets after payment of debts, and a 46.66 pct co-ownership interest in Hijos' other assets. Earlier, AEV filed a 613-mln peso suit against Vivant Corp (formerly Philstar.com) for the alleged dilution of Aboitiz's shares in power utility firm Veco. The subject of the complaint is the dissolution of Hijos de F. Escano, a private holding company whose principal assets were its controlling shareholdings in Veco, through a share swap agreement with Vivant. Hijos is majority owned by the Garcia family, which also owns Vivant. Aboitiz holds a 46 pct stake in Hijos. cecille.yap@afxasia.com |
| Philippines' PLDT, US' AT&T settle rates dispute |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) has signed at the weekend an interim agreement with US carrier PLDT senior vice president Alfredo Panlilio said the agreement between the two carriers was signed in Hawaii. AT&T reportedly owes PLDT 6-7 mln usd in unpaid termination charges. The US Federal Communications Commission earlier ordered US carriers to suspend payments to their Philippine counterparts for processed inbound calls from America. The decision is based on the US carriers' claims that PLDT and other local telecom companies are blocking calls to force them to pay higher termination fees. Earlier, PLDT settled its rates dispute with another US carrier MCI International, with the former already reopening its circuits to allow inbound calls from the US. cecille.yap@afxasia.com |
| Philippines Banco De Oro, Taiwan's Fubon plan strategic tie-up - source |
MANILA (AFX-ASIA) - Taiwan's Fubon Group is reportedly planning a strategic partnership with Banco De Oro Universal Bank (BDO) given the Philippine bank's impending entry as Equitable PCI Bank's largest shareholder, a government source said. At the New Year's break, BDO signed a letter of intent to buy state-run pension fund Social Security System's (SSS) 29 pct stake in Equitable PCI for 14 bln pesos. The Taiwanese financial giant has long been planning to enter the Philippine banking sector through Equitable PCI. It expressed interest in buying the bank in 2001, when the latter suffered massive withdrawals at the height of the impeachment trial against former President Joseph Estrada. The source said Fubon has been "courting" BDO, although no further details were provided. "I would welcome it if they get in touch with us. I am open to many things including an alliance," BDO chairman Teresita Sy-Coson told reporters. BDO, controlled by shopping mall tycoon Henry Sy Sr, will pay SSS 43.50 pesos for each Equitable PCI share, or a total of 14 bln pesos for four board seats in the bank. (1 usd = 55. 29 pesos) cecille.yap@afxasia.com |
| Philippine central bank chief says economic growth targets too high - report |
MANILA (AFX-ASIA) - The central bank does not expect the country's gross domestic product (GDP) to expand by 5.8 pct this year, with even the low-end growth target of 4.9 pct unlikely to be met, the Philippine Daily Inquirer newspaper reported, quoting central bank governor Rafael Buenaventura. The government had set the 2004 GDP growth target at 4.9-5.8 pct, despite the central bank's proposal to reduce it to 4.5-5.3 pct. In 2003, GDP was seen to have hit the low-end of the 4.2-5.2 pct goal. "Even the 4.9 pct GDP growth is already aggressive. Given that, we probably won't hit the higher end of 5.8 pct unless exports hit a high double-digit growth," Buenaventura was quoted to have said. He said investors would likely adopt a wait-and-see attitude in the first half of the year until after a new administration has been elected in May. "If we have a peaceful and orderly elections, we could have an uptick in the second half especially if a clear and strong mandate is given to whoever wins the polls. Then we could have a renewed activity in the second half," Buenaventura said. Economic Planning Secretary Romulo Neri said the country's 2004 economic growth targets are achievable given the expected surge in exports and a better performance of the agricultural sector. The gross national product (GNP), or GDP plus income from abroad, is expected to grow 5.2-6.0 pct year-on-year. cecille.yap@afxasia.com |
| Philippines' Estrada eyeing medical trip to France, Japan or Canada |
MANILA (AFX-ASIA) - Deposed Philippine president Joseph Estrada will likely travel to either Japan, France or Canada to seek medical treatment if the United States rejects a visa request, his lawyer said Sunday. A special anti-graft court last month gave the 66-year-old former president permission to leave detention and undergo surgery on his arthritic knees in the United States. But it appears the US embassy may not grant him a visa, forcing him to look for alternatives, lawyer Noel Malaya said. "It looks like the US embassy will deny the application. So, we're looking for alternative places," Malaya said. Estrada is to leave later this month but has to return by the end of March, according to the court. State prosecutors have appealed the ruling, arguing that Estrada may not return to face charges of corruption, which is punishable by death here. A military-backed popular revolt toppled Estrada in 2001. He is charged with plundering some 80 mln usd from state coffers in his 30 months in office. |
| Philippine leader vows to push through shift to parliamentary system |
MANILA (AFX-ASIA) - Philippine President Gloria Arroyo said on Saturday she would try to shift government towards a parliamentary system despite growing criticism of the initiative. "We shall push for a parliamentary ... form of government because it will give peace, unity and progress to the average Filipino," Arroyo said in a statement. "Whatever the means eventually threshed out by Congress, this will be an integral part of my political platform of security," Arroyo said. Earlier this month, Arroyo announced that she would work for such a change in government systems if elected to another term in the May national elections. Arroyo did not specify how the Philippines would make the transition from the existing US-style, presidential, bicameral form of government. Arroyo's statements have touched off a debate with business groups reluctant about changing systems and congressional leaders saying they have more pressing issues to worry about than revising the constitution to change the form of government. In recent years, there have been several attempts in Congress to change the Philippine constitution to a parliamentary system of government which supporters say will make it more effective and responsive to grassroots organizations. However, they have been blocked by civic groups and the influential Catholic church due to fears that the changes might be used by politicians to entrench themselves in power. |
| Japan's JGC to double plant designers in Philippines, Pakistan - report |
TOKYO (AFX-ASIA) - Major plant-engineering firm JGC Corp (1963) will double the number of technicians at its design units in the Philippines and Pakistan to 1,800 in three years. The company aims to improve earnings by bolstering the capabilities of units abroad, where labor costs are less than one-fifth those of Japan, rather than increasing technicians at home. JGC Philippines Inc will see personnel increased from about 600 to 1,200. The unit has already extended its building to accommodate additional workers, and will build employee housing soon to help in securing skilled personnel. Personnel at the joint venture in Pakistan, J-Tech (Private) Ltd, will also be increased from about 270 to 600. With these expansions, the capabilities for design will be shifted overseas from Japan, and personnel at the units abroad will be trained so that the work beginning with basic design can be done there in the future. |
| Eight killed as Philippine communists attack power grid, telecom site |
MANILA (AFX-ASIA) - Eight people were killed as communist insurgents launched a new wave of attacks in the Philippines, including an attempted raid on a power plant and the burning of a telecommunications tower, the military said on Saturday. The attacks came as the spokesman of the communist New People's Army (NPA) declared that they would no longer pursue peace talks with the government of President Gloria Arroyo and would instead wait for her successor. "We have no more hope in engaging in peace talks with the government of Arroyo even if she says they are ready to talk," said NPA spokesman Gregorio Rosal in a television interview. The government had expected to hold preliminary talks later this month towards resuming formal peace negotiations. He said the rebels would instead ask rival presidential candidates running against Arroyo in the May presidential elections, to send their proposals for re-starting the peace talks if they are elected. Rosal also said the guerrillas would also demand that they be removed from US and European lists of terrorist groups as a precondition to resuming negotiations. Three soldiers and four NPA rebels were killed and seven soldiers wounded after 50 guerrillas attacked an airforce detachment defending a power plant in Calaca town, just south of Manila before dawn Saturday, spokesman Lieutenant Colonel Daniel Lucero said. The soldiers repulsed the assault, prompting the rebels to attack the military headquarters in Balayan town, also in Batangas, Lucero said. Lucero said the raid may have intended to knock out the power plant which is a crucial part of the electrical grid serving the main Philippine island of Luzon, including Metropolitan Manila. However Rosal said they were only after the soldiers and were not trying to disrupt the electric supply. Elsewhere, about 60 NPA guerrillas raided a mobile phone relay station in Dumarao town in the central island of Panay on Friday. They disarmed two guards, set fire to the control room and blew up the relay tower, local military spokesman Captain Norman Zuniga said. Suspected NPA rebels also stopped and torched three commuter buses outside Canlaon City in the central island of Negros on Friday, Zuniga said. In the southern island of Mindanao, one guerrilla was killed and a government soldier was wounded when troops caught a fleeing NPA band in Compostela Valley on Friday, said spokesman Colonel Fredesvindo Covarrubias. The NPA, which has been waging a Maoist guerrilla campaign since March 1969, has traditionally extorted money from businesses operating in rural areas, often vandalizing them if their demands are refused. The attacks were the first major offensives by the NPA since a Christmas season ceasefire ended earlier this month. The communists had rejected an appeal by the government to extend the ceasefire until the May 10 presidential and national elections. Arroyo suspended peace talks with the rebels in 2001 after the NPA assassinated several high-profile politicians. |
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