PLDT Inc. Chairman, CEO and President Manuel V. Pangilinan had earlier rejected an offer to buy the Inquirer Group of Companies, according to the latter’s Chairman Marixi R. Prieto.
Ms. Prieto told reporters on Friday that the family had initially offered its 85% share in the Inquirer to Mr. Pangilinan, who owns the remaining 15%.
“MVP (Mr. Pangilinan) would have had a difficult time because there’s a rule about monopoly. So he owns (The Philippine) Star, he owns TV5, he owns BusinessWorld, so that’s another thing… He was afraid of the (competition law)… It was released with that, and he knows he won’t make it,” Ms. Prieto said after the shareholders meeting of MacroAsia Corp., where she currently serves as independent director.
While Republic Act No. 10667, otherwise known as the Philippine Competition Act, does not prohibit the existence of monopolies, the Philippine Competition Commission may act on entities that “substantially prevent, restrict, or, lessen competition.”
“The Commission, in appropriate cases, shall, inter alia… determine if there is actual or potential adverse impact on competition on the relevant market caused by the alleged agreement or conduct, and if such impact is substantial and outweighs the actual or potential efficiency gains that result from the agreement or conduct,” according to Rule 7, Section 1b of the law’s implementing rules and regulations.
The Prieto family last week announced its sale of its majority shareholdings in the Inquirer group to San Miguel Corp. President and Chief Operating Officer Ramon S. Ang. The company, however, will not be managed by the San Miguel group, but instead would be a personal investment by Mr. Ang.
“He has the capabilities to grow the Inquirer with all the potential it has. You know its reach now is 25 million through the Internet and everything… He can make use of that, all the things available,” Ms. Prieto said.
She added that the price of the transaction would depend on how soon Mr. Ang’s team could finish the due diligence on the company.
Mr. Pangilinan last week said he is also willing to sell his stake to Mr. Ang, but Ms. Prieto noted that she was not aware if the two businessmen are currently in talks.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Arra B. Francia
