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AFTER
more than 12 hours of waiting by shareholders at the
Manila Electric Co.'s (Meralco) annual stockholders'
meeting, the Lopezes emerged victorious by managing to
maintain control over the country's largest power
distributor.
At 10:27
p.m. Tuesday night, Meralco acting corporate secretary
Anthony V. Rosete announced that SGV has tallied and
tabulated shareholders votes that elected Manuel M.
Lopez, Jesus P. Francisco, Christian S. Monsod, Felipe
B. Alfonso, Cesar E.A. Virata, Winston F. Garcia, Daisy
P. Arce, Bernardino R. Abes, and Jeremy Z. Parulan into
Meralco's Board of Directors covering the period 2008 to
2009.
Rosete
also announced that former Chief Justice Artemio V.
Panganiban and Vicente L. Panlilio were elected as
independent Meralco directors.
Lopez,
Francisco, Monsod, Virata and Alfonso were among the
Meralco management nominees.
The
Government Security Insurance System (GSIS) nominees
were Garcia and Abes, while Arce and Parulan were
nominated to the board by Philippines First Insurance
Co., Inc.
First
Grade Holdings, Inc. managing director Astro del
Castillo earlier told the BusinessMirror that the dust
is not expected to settle down even after the issue of
whoever gains or retains control of the management of
Meralco is resolved on Tuesday at its annual
stockholders meeting.
"The
innocent victim to the weeks-long word war against
Winston Garcia, president of the Government Securities
Insurance System (GSIS), and the Lopezes are the Meralco
shareholders," del Castillo said in a phone interview.
The word
war, said del Castillo, has already affected Meralco's
share price. He expressed hope that the debacle will not
affect the quality of Meralco's service.
In
yesterday's trading, Meralco shares dropped to P63 from
P64 last Friday.
Del
Castillo declined to make further projections as to how
much the electricity utility's share price could end
today, after the annual stakeholder's meeting. "Until
the dust settles, the corporate squabble to gain control
of the Meralco management will continue," said del
Castillo, although he expects the Lopezes will retain
control of the company. He added that the "[Lopezes] are
prepared for [control of management] ever since."
But the
market observer was quick to add that "the government
can still give the Lopezes a bolt of thunder."
Meanwhile, a source told the paper, that Garcia "has
right to seek for transparency [in Meralco's
transactions], but was uncalled for was his ploy of
trial by publicity. He should have not engaged the
Lopezes in a word war."
The
source further noted that Garcia's interests over
Meralco are somewhat contrary to the government's thrust
of privatizing or selling shareholdings in private
companies.
"[Garcia's] goals to bring down rates are noble, but if
the government gains control of Meralco, it could bring
the company into the doldrums," said the source.
The
source echoed Oscar M. Lopez's, First Philippine
Holdings Corp. chairman, earlier statement that even if
the government runs Meralco, it could not guarantee a
reduction in rates. In fact, it could even result in a
deterioration of the power distributor's systems and
services.
The
Lopez Group, through First Philippine Holdings Corp.,
owns 33.4 percent of Meralco.
Lopez
earlier said breaking down the Meralco franchise into
concessions will not guarantee that power rates will be
brought down to a comfortable level for consumers.
At the
very least, "it [breaking down or splitting Meralco's
franchise area to concessions, as suggested by Garcia]
is an interesting concept," Lopez said. If Meralco is
split into different concessions, there is a tendency
for suppliers to demand a higher price for the power
they supply to customers, he pointed out.
Alluding
to the government's "threat" to revoke Meralco's
franchise, Lopez said [the government] can do anything.
"Of course, all we can say is that there are laws and we
will fight by the law. It's up to them." |
