MVP denies rumor of GMA acquisition by PLDT

MANILA, Philippines - Philippine Long Distance Telephone Co. (PLDT) has reportedly signed a deal last Tuesday to acquire a 79-percent stake in GMA Network Inc. for P52 billion, according to market rumors.

But PLDT chairman Manuel V. Pangilinan, who is currently in Hong Kong, when asked to confirm if the rumors of a signed deal are true, told The STAR in a text message: “No!”

Another set of rumors indicate that Pangilinan is in Hongkong since Monday, accompanied by a lawyer, allegedly to sign deals with financiers for the GMA acquisition deal.

To this, Pangilinan said: “No, just working quietly here.”

The PLDT Group earlier said it still remains hopeful that the acquisition of GMA will still push through. The negotiations with the owners of the broadcasting network have taken the tone of an “on again, off again lovers quarrel,” Pangilinan earlier said.

Earlier, GMA Network chairman Atty. Felipe Gozon revealed that there are several unresolved issues in the negotiations that could threaten the outcome of talks with the PLDT Group, including pricing. He added that until all these issues are resolved, a deal could not be forged.

The 79-percent stake in GMA, which the PLDT group is proposing to acquire, is held in equal shares by the Gozon, Jimenez and Duavit families.

The PLDT Group, through MediaQuest Holdings, also owns TV5.

GMA earlier also said that it is giving PLDT until the end of the year to firm up its offer.

“I think it will either terminate or go through within the year if that’s the parameter you will give me because that’s too long already to be talking,” Gozon stressed.

Pangilinan earlier said the PLDT Group would use Mediaquest Holdings and would pay mostly in cash in the acquisition of GMA. The acquisition price is above the company’s market capitalization of about P34 billion.

Mediaquest would purchase of GMA’s common shares while PLDT would pick up Philippine Depository Receipts (PDR). PLDT also used Mediaquest in acquiring a controlling stake in TV5 operated by Associated Broadcasting Corp.

Gozon, for his part, has pointed out that several issues remained unresolved just like in any negotiations.

“From my standpoint, I’m wait-and-see. In any negotiations, there are outstanding issues to be resolved. If there were not, then we would have signed yesterday,” he said.

He explained that GMA is currently negotiating only with the PLDT Group amid interest from other parties including diversified conglomerate San Miguel Corp. (SMC).

However, the GMA chief said the broadcasting company could also enter into talks with other possible investors.

With or without new investors, Gozon explained that the controlling shareholders of GMA – Duavit, Jimenez, and Gozon families – would continue to run the broadcasting network.