Lawmaker says 3 US business giants buy P8.6B PLDT shares

Three US business conglomerates that include an 80 year-old global asset manager; the world’s No. 1 hedge fund administrator, and the former investment advisers to the Rockefeller family have poured-in fresh investments in the Philippine Long Distance Telephone Company (PLDT). Boston, Massachusetts-based global asset manager Loomis Sayles & Co., L.P. was reported to have 3,862,016 shares of PLDT, or 2.1 percent of the company’s issued shares, for $129.53 million. Rep. Eduardo Gullas (1-D, Cebu) on Friday said the fresh investments “affirm the rousing positive foreign business sentiment toward the Philippines." "The continuing foreign accumulation of prime Philippine equities, as well as recent upgrades by global credit rating agencies, all bode well for the Philippine economy and for the country as a whole," Gullas said. He said it was the first time that 80-year old Loomis Sayles, with $74.5 billion in assets under management, took such a large equity stake in a single publicly traded Philippine company. He said at least two other celebrated global institutions, based on their latest quarterly US regulatory filings, also reported boosting their equity positions in PLDT. Long Island, New York-based hedge fund manager Renaissance Technologies Corp. said it bought another 346,900 PLDT shares, nearly doubling its holding in the Philippine telecommunications provider to 711,100 shares, worth $24.42 million. Launched by Massachusetts Institute of Technology-trained mathematician Jim Simons in 1982, Renaissance has averaged 35 percent annual returns since 1989. This has earned for the company the reputation as the most successful hedge fund manager, producing returns much better than legendary investors such as billionaires George Soros and Bruce Kovner. Using a "scientifically-based strategy," Renaissance employs mathematicians, physicists, astrophysicists and statisticians to thoroughly evaluate market and company data before it makes an investment decision. Meanwhile, Somerville, New Jersey-based Harding, Loevner Management, L.P. reported acquiring an additional 94,630 PLDT shares, boosting its position to a total of 343,630 shares worth $11.81 million. Established in 1989 by the former global asset managers for the Rockefeller family, Harding, Loevner administers overseas investments for wealthy families and charitable institutions. It also invests in "growing companies in non-US developed and emerging markets to achieve high excess returns with at- or below-market risk." Together, Loomis Sayles, Renaissance Technologies and Harding, Loevner reported purchasing a total of 4,916,746 PLDT shares worth $165.76 million, or P8.6 billion. Meanwhile, Standard and Poor’s (S&P) said it "viewed as favorable PLDT’s announced transaction with Japan’s largest wireless carrier, NTT DoCoMo Inc, which agreed to acquire 12.6 million, or seven percent, of PLDT’s ordinary shares." "This is expected to lead to synergy and cooperation opportunities. Both companies have agreed to collaborate in the rollout and development of 3G services. PLDT’s wireless unit, Smart Communications Inc., agreed to introduce DoCoMo’s mobile Internet service, i-mode, for Smart subscribers. At 10.5 times our 2006 earnings per share estimate of $3.40, below peers, we view PLDT’s American Depositary Receipts as attractive. Thus, we reiterate our buy recommendation," said S&P analyst Kenneth Leon.-GMANEWS.TV