PhilWeb, ePLDT set to finalize accord

PhilWeb Corp. and ePLDT, Inc. expect to sign a deal this week on the purchase of the wholly owned unit of Philippine Long Distance Telephone Co. (PLDT) of a 20% stake on the expanded capital of the Roberto Ongpin-led internet firm. In a letter to the Philippine Stock Exchange (PSE), PhilWeb President Eric O. Recto said the two firms are in the final stages of negotiations. "The PhilWeb and ePLDT management are finalizing the terms and conditions of the ePLDT investment. The primary issues to be finalized are the pricing and payment terms of the investment," he said. On Monday, PhilWeb shares closed 9.09% stronger to P0.036 from P0.033, while PLDT shares went up 0.27% to P1,855. ePLDT will become a significant stockholder of the the country’s first publicly listed internet company after the PhilWeb board of directors approved ePLDT’s acquisition of 24 billion shares in PhilWeb’s resulting expanded capital. Meanwhile, Infocom Technologies, Inc., a fully owned company of ePLDT, and youth network MTV Philippines tied up to provide subscribers with music television content in internet and mobile phones. Under the deal, Infocom and MTV Philippines will create local MTV-branded mobile imaging, infotext services, short-messaging-service (SMS)-initiated search engine, enable mobile promos, provide SMS to television services, ring back tones, true tones and other content. Infocom will also render its interactive television chat facilities to MTV by re-airing MTV programs and showing them on the video wall section of CUBE iTV Channel. "It would be a whole new level of experience for MTV fans. MTV will become more accessible and exciting because of the new content that will be made available," said Infocom President and Chief Executive Edgardo R. Bautista. "This is a great value and synergy in strategic alliance between PhilWeb and ePLDT," he said. - Ruby Anne M. Rubio and Kerlyn G. Bautista/BusinessWorld