Gov't defers PNB auction

The government has postponed the auction for 76 percent of the Philippine National Bank.

Bangko Sentral ng Pilipinas (BSP) Gov. Rafael B. Buenaventura said the original bidding date of May 15 may not be met. By that time he said the government may only be ready to release the list of prequalified bidders.

After that, Buenaventura said the bidders will have to be given sometime to conduct their own due diligence studies.

As such, the bidding will have to be conducted before May 30, he said.

In its Memorandum of Economic and Financial Policies (MEFP) to the International Monetary Fund, the government has committed to privatize PNB before June 10 this year.

Buenaventura said the date holds only if the bidding is successful. If the bidding falils, Buenaventura said Lucio Tan and the government will be free to go their separate ways.

According to Buenaventura, Tan said he is likely to sell his 46 percent stake on his own if the joint bidding fails.

Government for its part is exploring the possibility of teamming up with the other investors.

But even at this point, government and Tan have not yet agreed on a minimum sale price for the shares.

The valuation of the PNB shares is still being discussed as another auditor, Arthur Andersen, is supposed to conduct on audit of PNB's finances from January to March this year.

Arthur Andersen will also revalidate the audits of Price Waterhous Coopers, Punong bayan and Araullo and that of SGV.