No turning down of invitations

In an effort to ensure that nothing bad is said about him – you know, that he has become snooty or that he is too shy for the job – Bangko Sentral deputy governor (and governor-designate) Amando Tetangco Jr. is said to not turn down any invitation that reaches his desk these days.

One of the invitations that is said to have truly pleased him, however, was a recent reunion of officers of the Department of Economic Research, back when the central monetary authority was still known as the Central Bank of the Philippines.

Aside from Say Tetangco, that reunion drew three other deputy governors in charge of economic research at one time or another. These were Benito Legarda Jr., Escolastica Bince, and Edgardo Zialcita.

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Just imagine how much more interesting banking, as an industry, would become if Henry Sy decides to use some of the money raised in the recent initial public offering of holding company, SM Investment Corp. (not to mention the money he has been saving to buy the stake held by the Social Security in Equitable PCI Bank) in the targeted third quarter privatization of Philippine National Bank?

For one thing, Mr. Sy would have to deal with Lucio Tan, whose war chest for acquisitions might be divided by his interest in also buying the stake of bankrupt Italian company Cirio Finanziera in Del Monte Pacific. Mr. Sy is majority owner of Banco de Oro Universal Bank while Mr. Tan is not only majority owner of Allied Banking Corp. but , together with the national government , also of PNB.

For another, such a move by the SM Group would probably be spearheaded by BDO president and chief executive officer Nestor Tan (one of whose areas of expertise is mergers and acquisitions). Mr. Tan’s younger brother, Lorenzo Tan, is the current president of PNB.

On Lucio Tan’s side, expect friendly and highly valued advice to come from former Bangko Sentral Governor Gabriel Singson. It was Gabby Singson also worked quietly with then Philippine Deposit Insurance Corp. president Norberto Nazareno to cobble together PNB’s most recent rehabilitation program.

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While Manila Electric Co. does contribute to the Lopez Group, it does so only in terms of the 26-percent stake held by the heirs of Eugenio Lopez.

You see, 44 percent of Meralco are publicly listed shares while the second biggest stake of 29 percent is held by government financial institutions like the Government Service Insurance System and Land Bank of the Philippines.

For this reason, government has six of its people in the 11-man board.

Other members of the board are Meralco chairman and chief executive officer Manuel Lopez; vice-chairman and former president of the Asian Institute of Management Felipe Alonso; chief operating officer Jesus Francisco; and former Commission on Elections chairman Christian Monsod.

Oh yes, Union Fenosa of Spain, which owns one percent of Meralco, is also represented in the board by its Philippine representative Emilio Vicens.