Banco de Oro drops merger offer to Equitable PCI

Banco de Oro Universal Bank said it is abandoning its January 6 merger offer to Equitable PCI Bank. In a press conference held yesterday before the bank’s annual stockholders’ meeting, Banco de Oro President Nestor V. Tan said the merger of equals proposal is off the table. However, the banker clarified that there is a difference between an offer and the bank’s willingness to talk. "We are willing to talk but there is no offer," he told reporters. "It is silly to say we have plunked in P1 billion and just forget all about it," he added. Mr. Tan explained that the long term intention of Banco de Oro is still for consolidation. Although, he said Banco de Oro may not be able to pursue this given the opposition from some Equitable PCI stockholders, specifically the Government Service Insurance System, which holds a 12.15% stake in Equitable PCI. As such, Mr. Tan said the bank has placed the merger plan "in the back burner. We are now concentrating on organic growth." When asked if he thinks Equitable PCI is willing to talk to Banco de Oro, Mr. Tan said "I would assume no or probably not yet." Mr. Tan said the study of the bank, where the P56-per-share offer price was based, needs to be updated. Although he admits a new study must be conducted, he said the bank is currently not putting time and effort to it. - Ma. Elisa P. Osorio / Business World