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MANILA
Electric Co. (Meralco) dropped 8.28 percent Tuesday to
close the session at P72 from P78.50 on Monday’s heavy
value turnover of P878.055 million, which landed Meralco
among the session’s most active stocks, second only to
Philippine Long Distance Telephone Co.
The
market report showed dumping by foreign funds as net
foreign selling amounted to P112.088 million, which was
equivalent to 12.765 percent of Meralco’s value turnover
for the day.
Apparently, the controversy generated by the activism of
Winston Garcia, president and general manager of the
Government Service Insurance System (GSIS), has started
to take its toll on Meralco’s market performance, which
hit a 30-day high of P82.50 on April 21.
Garcia,
who sits on Meralco’s 11-man board on the 245.819
million shares, or 22.05 percent, owned by GSIS, has
sought more transparency in the company’s deals and
contracts with its affiliates, particularly the Lopez
family-owned independent power producers, which are
owned by First Gen Corp.
Garcia
has also asked the Lopezes for copies of Meralco’s
audited financial statements, which are easily available
to investors on the web site of the Philippine Stock
Exchange.
On
Tuesday, Meralco filed with regulators its new
definitive information statements, which are being
distributed to its stockholders. In a filing, Meralco
said it had to amend for the second time its DIS after
two of the nominees for independent directors to its
board withdrew their nomination.
“Messrs.
Federico Puno and Washington Z.Sycip recently withdrew
their acceptance and conformity to their nomination as
independent directors of the company,” Anthony Rosete,
Meralco’s senior assistant vice president
and assistant corporate secretary, told regulators in a
letter dated May 5, 2008.
Rosete
said Sycip and Puno were replaced by retired Chief
Justice Artemio Panganiban and Vicente Panlilio, who
used to sit in the boards of Equitable PCI Bank.
Puno is
a former president of the government-owned National
Power Corp. while Sycip is the founder of SGV & Co.,
Meralco’s external auditor.
Garcia
has questioned the nomination of Sycip for his ties with
Meralco auditor SGV, though Sycip has long retired from
that company. |
