Pangilinan 'shocked' over PAL, GMA buyout rumors

MANILA, Philippines - Philippine Long Distance Telephone (PLDT) chairman Manuel V. Pangilinan has expressed shock over reports regarding his two alleged acquisition targets – Philippine Airlines (PAL) and GMA Network.

When asked by The STAR over rumors that he has offered P50 billion for GMA, majority owned by the Jimenez, Gozon and Duavit families, Pangilinan simply laughed and was visibly amused.

Pangilinan declined to elaborate much, citing disclosure rules that govern public companies, but he was clear he wished he already owned it.

“2001, if I recall correctly was P14 billion. It’s just that Home Cable came ahead of GMA by a few months. In 2001 and 2002, PLDT was not in good shape. If GMA came in first, I think we would have chosen GMA. But that’s fate,” he said.

Pangilinan said there have been preliminary talks, and GMA executives have said they are flattered by his interest, though he has offered no price.

When asked how does one have talks with no price, Pangilinan said with a smile: “Yes, that’s the real genius I think... I think both are public companies, so you must appreciate that it’s rather difficult to comment.”

If he is interested, Pangilinan needs to move fast before Congress passes an anti-monopoly law that got a boost from his purchase of Digitel last year.

The speculation about GMA has fueled a 40 percent jump in its stock price this year.

But when asked about reports that he is making an offer for PAL on behalf of the Gokongweis who own rival Cebu Pacific, Pangilinan, in an interview with The STAR, appeared irked and said he does not work that way.

Pangilinan said the flag carrier may have its problems – it lost $33 million from April to December last year and is subject to the same problems all airlines face. But he said he is interested because of its brand.

“Yes I’ve asked myself that question a lot of times. I can see where PAL does need a bit of help. I guess for the sake of the country, it’s been a huge brand name internationally because when you do step in, when you’re living abroad and when you step into a PAL plane, the Filipino experience is there already. I think that’s something that our countrymen misses quite a bit,” he said in an interview with ANC.

Some government officials have privately expressed concern about Pangilinan and San Miguel Corp. president Ramon Ang, controlling much of the country’s infrastructure and economy.

Justice Secretary Leila de Lima, President Aquino’s anti-monopoly point person, declined to comment on Pangilinan potentially controlling both TV 5 and GMA Network, saying it was still speculative.

“We will have to work with the sectoral regulators concerned on the issue of ‘controlling too much.’ We need to advocate and build a culture of competition in the country to ensure consumers and end-users are benefited. Businesses big and small will also benefit in the long run,” De Lima said.

In general, she said the government still needs to figure out when an industry player is too big, while advocating competition to serve consumers.

In infrastructure, Public Works and Highways Secretary Rogelio Singson said it bids out projects, which has brought in the Ayala Group, via the Daang Hari project.

“We will conduct transparent process for our projects. In fact Daang Hari brought in Ayala Corp. as a new player in tollroads... Metro Pacific and San Miguel are more aggressive and bullish specially on infra projects and they see long term investment potentials,” said Singson.

They may also take comfort in Pangilinan saying he may not have the energy to take on PAL.

“I don’t know, I don’t know. I have businesses to run and I’m not sure I have the stamina or age to tackle a business as big as PAL,” he said.

He didn’t say the same about GMA though.