THE GOVERNMENT SERVICE Insurance System (GSIS) has been buying shares of Philex Mining Corp. with an eye on accumulating enough stocks to gain representation in the company?s board of directors.
According to a source familiar with the transaction, no less than GSIS president and general manager Winston Garcia has expressed interest in building up a ?strategic stake? in Philex, the country?s biggest mining firm.
?GSIS wants to build up its position in the company, especially now that many business groups are interested in Philex again,? said the official, who declined to be named because he was not authorized to speak on the issue.
He said, however, that Garcia was planning to accumulate enough shares to gain ?one or two? seats on the mining firm?s board.
?It?s unclear how much he already has, but you can see from the [stock market] activity on Philex in recent days, they?ve been very active,? the official pointed out.
Last Friday, Philex closed at P11.50 apiece, after touching its highest level this year of P11.75 earlier in the day.
Trading was uncharacteristically heavy with more than P1.4 billion worth of shares changing hands on the last day of the month. Trading on the counter was also heavy throughout the last week of October.
Philex, which is primarily involved in gold and copper mining, now has a market capitalization of P52.3 billion, according to data from the Philippine Stock Exchange.
According to the source, GSIS? Garcia may be building up his holdings in Philex in anticipation of another bidding war between corporate titans Ramon Ang of San Miguel Corp. and Manuel Pangilinan of the PLDT group.
Pangilinan is the chair of the listed mining firm, but there have been persistent speculation about another Meralco-style bidding war after Ang expressed interest in acquiring the 22-percent stake of the Social Security System.
?Based on GSIS? past record, it will offer its stake to the highest bidder and profit handsomely from it,? said another stock market industry official, speaking on condition of anonymity.
