GMA-7 gives PLDT till yearend to firm up deal

MANILA, Philippines - GMA Network Inc. (GMA-7) is giving dominant carrier Philippine Long Distance Co. (PLDT) until the end of the year to firm up its offer for a controlling stake in the broadcasting firm.

GMA-7 chairman and chief executive officer Felipe Gozon said in an interview with reporters on the sidelines of the company’s fifth year listing anniversary at the Philippine Stock Exchange (PSE) that the talks should be completed within the year.

“I think it will either terminate or go through within the year if that’s the parameter you will give me because that’s too long already to be talking,” Gozon stressed.

Gozon’s statement are in contrast with the pronouncements made by PLDT chairman Manuel Pangilinan that talks are in advanced stages and are expected to be completed within the year or next year.

Pangilinan earlier said the PLDT Group would use Mediaquest Holdings and would pay mostly in cash in the acquisition of GMA-7. The acquisition price is above the company’s market capitalization of about P34 billion and above P50 billion.

Mediaquest would purchase of GMA’s common shares while PLDT would pick up Philippine Depository Receipts (PDR). PLDT also used Mediaquest in acquiring a controlling stake in TV5 operated by Associated Broadcasting Corp.

PLDT is controlled by Hong Kong’s First Pacific Co. Ltd. and Japan’s NTT DoCoMo but MediaQuest is owned by PLDT’s Beneficial Trust Fund.

Gozon pointed out that several issues remained unresolved just like in any negotiations.

“From my standpoint, I’m wait-and-see. In any negotiations, there are outstanding issues to be resolved. If there were not, then we would have signed yesterday,” he said.

He explained that GMA is currently negotiating only with the PLDT Group amid interest from other parties including diversified conglomerate San Miguel Corp. (SMC) of businessman Eduardo Cojuangco Jr.

However, the GMA-7 chief said the broadcasting company could also enter into talks with other possible investors.

With or without new investors, Gozon explained that the controlling shareholders of GMA – Duavit, Jimenez, and Gozon families – would continue to run the broadcasting network.