Go family has change of heart about Equitable sale

The Go family which owns about 30 percent of Equitable PCI Bank is reportedly no longer interested in selling its stake in the bank.

Banking sources said the Go family decided to keep their shareholdings in the bank, especially, now that a significant number of its depositors who had earlier withdrawn heavily from the bank at the height of the impeachment trial against former President Estrada, have returned.

The sources said this prompted the Go family’s change of heart.

"As far as I’m concerned, the Go family is not selling anymore," a banking source said.

Earlier this week, it was reported that despite its reluctance to push through with the sale, Equitable PCI Bank had tapped investment bnak ING Barings as its financial advisor to assist the bank in packaging the sale and in looking for an investor.

Equitable PCI Bank was supposed to choose yesterday from for proposals submitted by four banks, but Equitable PCI Bank chairman Ricardo Romulo said the bank’s majority shareholders, the Go family, and state-pension funds Government Service Insurance System and the Social Security System, are rethinking their plans of selling their shares.

Romulo said the bank has not chosen which of four proposals it will accept, and being negotiations with.

The four groups interested in getting a piece of the bank are Banco Santander, Bank of the Philippine Islands, Metropolitan Bank and Trust Co. and Rizal Commercial Banking Corp.

Equitable PCI Bank earlier made it known that it wanted a sale, especially after it was reported to have suffered heavy withdrawals with many depositors being skeptical about the bank’s involvement in the corruption scandal.

One of its top executives, Clarissa Ocampo testified that former President Estrada opened an account with the bank under the name of Jose Velarde. This crucial testimony led to Estrada’s eventual overthrow as president.

Sources said the Go family and GSIS and SSS were studying offers for a buyout deal involving cash and stock swaps last week. – Rocel Felix