The immobile Piltel (price) the Staff Philippine Daily Inquirer
June 24, 2009
MANILA, Philippines—Some investors and stockbrokers are raising their eyebrows at the “curious” behavior of Pilipino Telephone Corp.’s share price on the Philippine Stock Exchange these last few weeks.
Despite a sharp market run-up that started in March, Piltel shares have underperformed the PSE index, as well as the PLDT and Globe Telecom stocks during this period.
Indeed, Piltel’s price has fluctuated over these last three months in a narrow 80-centavo band, from P7.90 to P8.70 ... as if the collective wisdom of the market wanted the average price to fall within that range (the company the other day offered to buy out minority shareholders at P8.50 apiece for a total cost of P7.1 billion).
One hawk-eyed bourse director felt, however, that there was something else going on. “Every time the price would try to break out, someone would always flood the market with shares, as if they didn’t want it to rally,” the director said, noting that the selling became especially acute last week.
Some market watchers initially thought it was former Piltel chair Tony Boy Cojuangco who was selling out some of his remaining holdings in Piltel. “But it now looks like someone else was trying to keep the price in check,” the director said. Daxim L. Lucas
If you can’t beat them ... sell
WHEN IRRECONCILABLE differences erupt among partners within the boardroom, there is usually one simple way to go, as has often been done in corporate Philippines over the years: Cash out of the business and split the profits.
So this prominent family—or at least some of the feuding siblings—is said to be toying with the idea of offering a controlling stake in their holding company (which controls shares in various publicly listed firms) to the highest bidder. This move is hoped to lay to rest all intrigues and misunderstanding within the family. But there is, of course, some resistance from the more senior sibling and the outcome, industry sources said, would depend on the usual numbers game. Doris C. Dumlao
Cabinet exits ...
MALACAÑANG MAY lose most of its economic technocrats soon, not to another Hyatt 10-type “uprising,” but to the forthcoming national and local elections.
A number of Cabinet officials are said to be considering to run for public office, some in the Senate and some in Congress.
Suffice to say, financial markets expect at least two of them to remain in office—Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. and Trade Secretary Peter Favila. Doris C. Dumlao
... and entries
AMID PERSISTENT rumors that Revenue Commissioner Sixto Esquivias IV is “on his way out” (something that his camp has denied), talk is rife about his possible would-be replacements.
“Candidate JR” is a relatively young official of the BIR who has already served in various capacities with the Department of Finance. This person, who is also a lawyer, has the backing of several influential people in the government.
“Candidate JT,” meanwhile, has the strong and vocal backing of the private sector, as well as tax lawyers and the auditing industry. He was one of the ranking officials of a large auditing firm who “mutinied” against their chair earlier this year. Candidate JT boasts of Harvard credentials and has served in the BIR until the last decade, attaining the rank that Candidate JR now has.
Given the vagaries of the Palace appointment process, only time will tell which one of them will get the post. Daxim L. Lucas
