Monday, January 6, 2014

No deal yet between PLDT, GMA

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Philippine Long Distance Telephone Co. (PLDT) and its acquisition target GMA Network Inc. on Monday said that a final deal had yet to be reached amid continued speculation that they were close to sealing an agreement.


PLDT and GMA, which made the statements through separate disclosures to the Philippine Stock Exchange, were reacting to the Inquirer’s BizBuzz column that came out yesterday, which said that negotiations were nearing completion and the deal was valued at about P48 billion. It cited an unnamed source.


“As far as the company is aware, as of this date, the Mediaquest Group has not entered into any definitive transaction regarding any commercial or strategic arrangements (with GMA),” PLDT said.


GMA separately said it was “unaware of any agreement having been reached.”


GMA shares were up Monday, closing 2.4 percent higher at P8.55 per share, as the broader benchmark index was up 0.64 percent. PLDT gained 0.68 percent to P2,652 per share.


PLDT last month confirmed that it was in exploratory talks with various companies, including GMA Network, for a possible commercial or strategic deal.


PLDT, the country’s biggest telecommunications provider, sought to acquire GMA at least twice in the past, with the most previous attempt last year bogging down due to concerns over regulatory risks.


It already owns the country’s third-biggest television network, TV5, and it has been seeking to expand its footprint in the media content space, in line with a convergence strategy it believes is the business model of the future.


Apart from TV networks, it owns satellite TV operator Cignal Digital TV. The group also owns a controlling stake in Businessworld, the country’s oldest business newspaper, and minority stakes in newspapers Philippine Star and Philippine Daily Inquirer.



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Short URL: http://business.inquirer.net/?p=159135


Tags: acquisition , Business , GMA network , PLDT



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