Equitable PCI Bank in talks with foreign bank

Equitable PCI Bank has reportedly started talks with a foreign bank for the sale of the bank.

A Bangko Sentral ng Pilipinas official said that Equitable PCI Bank has enlisted a broker to act as a go-between for the bank and the interested buyers.

The official said the sale will necessarily mean a sellout by any of the groups now controlling Equitable PCI Bank. He added that while there has been no official communication to the BSP about the plan to sell Equitable PCI Bank, the plan he said is feasible.

"It is a good buy, and will be good for the banking system which has to be consolidated," the official said.

He added that each one of the banks rumored to be interested in Equitable PCI Bank has the financial muscle to further strengthen the bank which has been hit by heavy withdrawals since the impeachment trial of President Estrada.

The three banks said to be eyeing Equitable PCI Bank are Rizal Commercial Banking Corp., Bank of the Philippine Islands and Metrobank.

Earlier, Finance Secretary Jose T. Pardo said there are at least two foreign groups interested in acquiring government’s 37-percent stake in Equitable PCI Bank, the country’s third largest bank.

Banking sources said the interested parties are the American Insurance Group (AIG) and Newbridge Capital Inc., a US-based firm with a subsidiary Singapore.

Pardo said the government is willing to give up its stake in Equitable PCI Bank for the right price, adding that government will not sell at less than P90 per share.

"If the price is right, we are willing to talk, otherwise there is no great hurry for government to unload, especially when the market is down," Pardo said.

Equitable PCI Bank said it was eyeing a 20-percent to 35- percent foreign investments as part of its options to beef up the bank’s resources.

The Go family owns 30 percent of the bank, SSS has 25 percent, GSIS has 12 percent, while the Romualdez family has seven percent. – Rocel Felix