FIRST Pacific Co. Ltd. of Hong Kong did not yield its right to match the P25.2-billion bid of a Singaporean company for the government’s slightly over 46 percent stake in Philippine Telecommunications Investment Corp. (PTIC).

Had it done this, PTIC would have been buying its own shares which it could not, as it did not have enough retained earnings to buy back its own shares.

The Hong Kong-based conglomerate, in fact, is tapping local lenders to raise half or P12.6 billion of the amount it needs to acquire PTIC shares that it does not own, a source in the banking industry told BusinessMirror on Monday.

The rest of the money will be provided by First Pacific, said the same source, who added that participation in the local consortium is “by invitation only.”

Two subsidiaries of First Pacific combine for 54 percent of PTIC, which owns 26,034,263 shares in Philippine Long Distance Telephone Co., or close to 14 percent of outstanding common shares. Metro Pacific Assets Holdings Inc. holds 30,702 PTIC shares and Larouge B.V., 96,619 shares. 

The same source, who is privy to the ongoing fund-raising, said that Manuel V. Pangilinan, managing director of First Pacific, has appointed Credit Lyonnaise, an investment bank, to form the consortium that would lend the HK group over P12 billion.

Pangilinan, who heads the local companies controlled by First Pacific, is PLDT chairman.

Earlier, First Pacific informed the government that it was giving up its right to match the P25.2-billion bid of Parallax Ventures Fund of Singapore for the government’s shares in PTIC—and it was yielding this to PTIC itself.

Based on its filings, PTIC could not participate in the matching game as it does not have enough money to buy the government’s stake, which is listed under the name of Prime Holdings Inc.

Under SEC rules, a company can buy back its own shares using retained earnings. As of December 31, 2004, PTIC had P6,309,627,084 in retained earnings.

THE government has once again declared the bidding for the 25-year concession of the National Transmission Corp. (Transco) a failure after only one of three prequalified bidders submitted a bid.

THE Senate ratified Monday night a bicameral conference committee report on a proposed remedial legislation granting a one-time amnesty on certain tax and duty liabilities incurred by investor-locators in special economic zones subsequently created outside the Subic freeport.

THERE are potential risks of a financial crisis arising from the inadequacy of regulatory oversight over the activities of financial conglomerates (FCs), mostly universal banks, operating in the country, a financial market policy group said Monday.

THERE are no difficult barriers for government to target and actually achieve higher levels of growth with positive factors propping the local economy, a noted economist said on Monday.

AS the threat of a bird flu hovers above the region, the Department of Budget and Management said Monday that a P122.8-million “bird flu” fund in the soon-to-be-signed national  budget for 2007 will be made  available to the Department  of Agriculture for surveillance and quarantine

ONLY around half the country’s savings actually get invested in productive undertakings but even then, the little set aside by Filipino savers helps expand the economy by more than 5 percent every year, the Department of Finance reported on Monday.

FIRST Pacific Co. Ltd. of Hong Kong did not yield its right to match the P25.2-billion bid of a Singaporean company for the government’s slightly over 46 percent stake in Philippine Telecommunications Investment Corp. (PTIC).