Sandigan gives P29-B PTIC shares to gov't

The Sandiganbayan on Monday awarded to the government up to P29 billion in hotly-contested Marcos shares in Philippine Telecommunications Investment Corp. (PTIC), which owns part of telecom giant Philippine Long Distance Telephone Co. (PLDT). The order paves the way for the sale of PTIC shares to private investors. The government has offered to sell the PITC shares, which are valued at between P25-29 billion and are equivalent to a 46 percent stake in the company. The shares could be acquired by the Manuel Pangilinan-led First Pacific Co., which already controls PLDT and thus strengthen its hold on the telecommunications giant. First Pacific has a 24.3 percent interest in PLDT, which could rise to 27 percent if it can acquire the shares. In its eight-page resolution, the Sandiganbayan fourth division ordered the PITC's corporate secretary to cancel the 111,415 shares registered in the name of Prime Holdings, Inc. (PHI) and to issue new certificates in the name of the Republic of the Philippines. Presidential Commission on Good Government (PCGG) Commissioner Nicasio Conti said the agency will immediately deliver the new stock certificates to the Department of Finance which has pre-qualified a number of bidders for the PTIC stake. "We would like to commend the Office of the Solicitor General and the lawyers of the PCGG legal department for their diligent effort in seeing this case to its conclusion. This has been a difficult case and a great victory for the people," Conti said. The Sandiganbayan overruled objections filed by intervenors Alfonso Yuchengco and Y Realty Corporation and defendants PHI, Estate of Ramon Cojuangco and Imelda O. Cojuangco who cited the pendency of an Omnibus Motion before the Supreme Court seeking permission to file a third motion for reconsideration. "All told, there exists no legal impediment for the immediate enforcement of the (SC) Decision dated Jan. 20, 2006,"the Sandiganbayan said in its resolution. "Verily, accepting the proposition that mere filing of a third motion for reconsideration after an entry of final judgment had already been issued and even after a second motion for reconsideration had already been denied, as in this case, would only lead to absurdity," the anti-graft court added in the same resolution. The PCGG estimates the auction of the PTIC shares would fetch between P25 to P29 billion. The Supreme Court in January this year ruled that the PTIC shares registered with PHI should be transferred to the government for being part of the ill-gotten Marcos wealth. The high court ruled that the PHI was organized in behalf of the late dictator Ferdinand Marcos and could thus be taken over by the government. Aside from PHI’s 46 percent stake in PITC, the remaining 54 percent is owned by First Pacific. The total PITC shares make up 14 percent of PLDT. Singaporean hedge fund Parallax Venture Fund XXVII submitted the highest bid of P25.2 billion bid for the government's PITC shares. First Pacific, which has the right to match offers for the shares, has vowed to equal the Parallax bid. It will match the offer in a joint bid with Japanese telecommunications giant NTT DoCoMo. NTT DoCoMo currently has a 13 percent stake in PLDT, which will increase to 17 percent should the bid match be successful. -GMANews.TV