New suitor? Ayala in talks with GMA Network

MANILA, Philippines - Ayala Corp. is looking to enter into a partnership with media broadcasting company GMA Network Inc. to complement its telecommunications business.

Ayala Corp. chairman and chief executive officer Jaime Augusto Zobel de Ayala told reporters the group is in talks with broadcast firms as it is interested in opportunities to enhance its telecommunications business.

Asked if it is in talks with GMA, he said the group is always in discussions with all the players.

“We’re always looking for new opportunities on that front. The telecommunication business is changing. You’ve seen some of the arrangements that Globe has been reaching with entertainment companies. The lines are blurring. It’s an exciting new area that’s developing on that front,” he said.

The Ayala Group is involved in the telecommunication business through Globe Telecom Inc.

Earlier this week, Globe announced it is acquiring for P1.83 billion the entire stake of the Lopez Group in Bayan Telecommunications Inc. (Bayantel).

The deal will raise Globe’s ownership in Bayantel to 98.57 percent from 56.87 percent.

“This acquisition will allow Globe to fully unlock the intrinsic value of Bayan, as a duly enfranchised entity whose performance has been hindered by its significant debt loan. By potentially combining the assets and capabilities of Globe and Bayan via a broad range of collaborative efforts, this will enable both companies to become more competitive and help accelerate the completion of Bayan rehabilitation,” it said in a disclosure to the Philippine Stock Exchange yesterday.