MANILA, Philippines--Shrugging off speculation that the deal was off, Philippine Long Distance Telephone Co. chair Manuel V. Pangilinan said Wednesday his group was still in talks to take over the country's third most widely read newspaper, the Philippine Star.

On the sidelines of the annual stockholders meeting of Philex Mining Corp., Pangilinan said the talks were continuing and that a deal may be finalized by July or August.

Pangilinan's group is seeking to acquire around 75-77 percent of Philstar. The purchase will be made through MediaQuest Holdings Inc., a subsidiary of the PLDT Beneficial Trust Fund.

MediaQuest is the PLDT group's vehicle for media-related investments. The company owns 100 percent of Mediascape Inc., which has a congressional franchise that allows it to provide broadcast services.

It also holds a controlling interest in Nation Broadcasting Corp., which operates a network of radio stations; a minority interest in Central CATV, a cable TV company operating under the name of Sky Cable; and a 30-percent stake in the newspaper BusinessWorld.

The PLDT trust fund has been conducting a due-diligence audit on the Philippine Star
group, including its affiliate media outfits and printing plants.

Majority of the publication is owned by the Belmonte family, while the estate of the late journalist Max Soliven accounts for 10 percent.

It was earlier reported that Pangilinan's group was willing to invest as much as P4.8 billion in this Philstar venture.