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Tuesday, January 18, 2000
 
AC ( 01/18/2000 : PSE )
This is in reply to request for a clarification of the news article which was published in the January 17, 2000 issue of the Business World, entitled 'Ayala, First Pacific fight over broadcasting firm?." Please be advised that Ayala Corporation has not entered into discussions with GMA 7 for the purchase of an equity interest in the said firm.
- posted by StockMarket @ 11:01 PM

 
AC ( 01/18/2000 : AFX )
Ayala Corp said it is not in discussion to acquire a 40 pct equity in television network GMA 7. In a notice to the Philippine Stock Exchange, Ayala said it "has not entered into discussions with GMA 7 for the purchase of an equity interest in the said firm." It is reacting to recent newspaper reports which said the planned acquisition will complement its telecom business under Globe Telecom.
- posted by StockMarket @ 11:01 PM

Monday, January 17, 2000
 
AC ( 01/17/2000 : BW )
It looks like the First Pacific Group of business tycoon Manuel V. Pangilinan and local conglomerate Ayala Corp. will not only be fighting over the domestic cellphone market. Market talks have it that the two rivals are also competing for the purchase of a local broadcasting company to complement their respective telecommunication businesses and meet the challenge of convergence. The pressure of "convergence" is taking its toll on the two big companies which are reportedly scrambling to acquire GMA Network, Inc. that will eventually be put up for sale. BusinessWorld learned that listed conglomerate Ayala Corp. allegedly intends to stop negotiations between Mr. Pangilinan and GMA president Menardo Jimenez for possible acquisition. Industry sources said Ayala Corp. is reportedly interested to purchase GMA since its broadcast business will complement the conglomerate's telecoms interest under Globe Telecom GMCR, Inc. Sources added that discussions between Ayala and GMA have already started and both camps have agreed to close the deal at P8bn for Ayala's 40% stake in GMA. In an interview with BusinessWorld last Friday, GMA EVP Antonio Seva declined to comment on talks that the broadcast firm is indeed on the negotiating table with Ayala Corp. When asked which group GMA is more likely to have compatibility, the company official also declined to comment. Sources, however, said Ayala Corp. has more chances of getting the deal since both groups have already formed a partnership. GMA is presently engaged in the television broadcasting business through GMA Channel 7. The company is also involved in radio operations through dzBB (AM) and dwLS (FM). BusinessWorld earlier reported that Messrs. Pangilinan and Jimenez have been in talks for the sale of GMA. Mr. Seva, however, denied the discussions as well as GMA's financial difficulties. In spite of market rumors that the publicly listed giant has set its sights on broadcast, company officials said Ayala has one hand tied behind on its back due to a restriction on ownership of media firms. Philippine laws mandate that ownership of media companies, to prevent monopoly, should be limited 100% to Filipino investors. "We cannot go into broadcast. We have foreign stockholders. But there are other areas outside broadcast and we're bullish about (technology convergence)," Rufino Luis Manotok, managing director at Ayala Corp. said. Mr. Manotok said the company's largest foreign shareholder is Japan-based Mitsubishi Group which holds 30% of the company.

- posted by StockMarket @ 11:00 PM


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