SMC framed up

ARE San Miguel Corp. and its top honchos?Eduardo Danding Cojuangco Jr. and Ramon S. Ang?really ?out of the loop? when it comes to access to the new Aquino administration and doing business with it?

If recent opinion columns and news items are to be believed, SMC has been left out in the cold after the Ayala-Lopez-MVP ?triumvirate? supposedly ?cornered? the lion?s share of key appointments in the Aquino Cabinet, namely those of Public Works Secretary Babes Singson (supposedly an MVP man), Energy Secretary Rene Almendras (an Ayala man) and Transportation and Communication Secretary Ping de Jesus (jointly an MVP and Lopez man).

In fact, there?s been a couple of white papers in circulation of late (clearly the basis for the opinion columns and news items) saying exactly this, and lamenting the fact that SMC?despite the substantial campaign contribution of ?Uncle Danding??has been left with no part of the pie. The white paper, columns and news items have gone out of their way to try to paint a sympathetic picture of the conglomerate, especially Ang.

The only thing is this: SMC had nothing to do with it. The top honchos at SMC were just as shocked as everyone to see these things published.

The company now believes that the white paper is being spread by a third party that wants to create animosity between the three Cabinet secretaries and SMC, which has a long list of projects that these departments will have to sign off on.

The white paper has been traced to the former chief of a regulatory agency that has had a recent falling out with SMC after he changed his mind and cancelled a project that the conglomerate had earlier bagged. Daxim L. Lucas

Real targets

KOREA?S Hyundai Motors, which recently grabbed the coveted third spot in the Philippine auto market, is recently tagged as one of the principal targets of a ?midnight? Arroyo administration executive order granting more perks to local car manufacturers. A source from the Alliance of Vehicle Importers and Dealers (Avid) stresses, however, that all car traders who import from countries other than Asean and Japan are the real losers if EO 877-A is implemented by the Aquino administration.

Avid says EO 877-A is just one of numerous regulations that threaten the viability of car imports. According to the source, the Asean Free Trade Agreement (Afta) already allows tariff-free importation of completely built-up units from Asean countries, particularly Thailand. Adding to Avid?s woes is the controversial Jpepa (Japan-Philippines Economic Partnership Agreement) which likewise allows zero-tariff car imports direct from Japan that is expected to have an adverse impact on European luxury brands.

The Avid source claims that Hyundai?s ascent is merely one of the issues in the overall campaign against auto imports. He stressed that the hastily approved EO, coupled with Jpepa, are the real serious threats to all car traders who import outside of Asean and Japan. Sensing the urgency and gravity of the trade implications posed by the questioned EO and Jpepa, the German and Korean ambassadors have already communicated their respective positions to the Philippine government seeking fairness and due respect for WTO trading rules. Watch for this issue to become the country?s next big trade dispute if left unresolved. Daxim L. Lucas

Rethinking Fort Bonifacio

THE Philippine Stock Exchange board recently dissolved the board-comprised committee working on the construction of its future headquarters in Fort Bonifacio, with the goal of expediting the process that has dragged on for the last five years.

Instead, the PSE management led by chief operating officer Val Antonio Suarez was given a ?broad? mandate to explore options on this project.

While the PSE is not closing its doors to Ayala Land Inc., which inherited the donation commitment when it took over the Fort Bonifacio Global City project from the Metro Pacific group, sources say the exchange is now willing to seek offers from other parties. This now puts ALI under pressure to improve the terms of its offer as some brokers are not too happy with what?s currently on the table.

The PSE board is also hopeful that, with the management taking over negotiations on the Fort Bonifacio project, there will be more continuity and focus given that the bourse elects a new board every year. And that a deal could be closed, whether with Ayala or not, sooner rather than later. Doris C. Dumlao

On Tektite woes

SPEAKING of the PSE, its COO Val Suarez wrote us to assure Ortigas-based brokers that the exchange is committed to support the Tektite trading floor and is maintaining people to support the aggrieved brokers.

While it?s true that PSE had a broadcast problem in Tektite recently, Suarez says Tektite-based brokers can continue to post orders and execute trades just like those orders entered via the Ayala trading floor. Brokers with broadcast problems were informed to refresh their windows from time to time to receive updates.

?Technology is always subject to glitches but will never be used to discriminate against any broker,? Suarez adds. Doris C. Dumlao

New PNB treasurer

PHILIPPINE National Bank, now headed by a treasury veteran from Citibank, Eugene Acevedo, recently hired a new treasurer to handle the bank?s dealing room, which is very closely watched by peers in the industry given the new chief?s expertise.

The new treasurer is Horacio Cebrero III, formerly of East West Bank. Doris C. Dumlao

Tough talent search

THE PHILIPPINE Business for Social Progress, the country?s biggest corporate-led foundation currently chaired by Manny Pangilinan, is having a hard time looking for a new executive director.

The PBSP executive committee met recently to go over candidates to replace Gil Salazar, who is retiring from PBSP after more than 30 years with one of the country?s most well funded, nongovernment organizations with interests in enterprise development, health and poverty alleviation.

PBSP, however, did name Klaas Oreel, former CEO of Alcatel in the Philippines, as chief executive adviser.

Ric Saludo, one of the spokespersons of former President Gloria Macapagal-Arroyo, was considered as executive director. But apparently his ties with the unpopular president did not go well with some of the directors of PBSP.

Biz Buzz learned that one person did get the nod of the influential leaders of PBSP, but he has yet to accept. Perhaps the huge responsibility and not-so-high salary are to blame for his reluctance.

So the search?or the wait?goes on? Tina Arceo-Dumlao

Undervalued

IF you had bought RFM shares last year when they were selling for as low as 38 centavos apiece, then you would be far richer today as the share price closed last Friday at P1.34.

But RFM president and CEO Jose A. Concepcion III is not exactly ecstatic.

Concepcion claims that the stock is still significantly undervalued, considering that the food and beverage firm yielded a net income of P320.8 million as of May, more than seven times the net income for the same period last year.

With such an income growth, he is confident that the company will surpass its original income target of P500 million for 2010.

Now, if only the brokers and the investing public will agree with him. Tina Arceo-Dumlao

Hot item

SOME real estate buyers, after snapping up units at Ayala Land Premier?s Park Terraces (the newly launched high-rise condo development in Ayala Center) have started queuing up for prime units at the final high rise tower of One Serendra called the West Tower.

Ayala Land?s top-tier brand is marketing this project, which includes ?limited edition? Sky Garden units and Sky Pool units, in the neighborhood of P50 million upward.

Previously at One Serendra, the East Tower was sold at a record pace, prompting Ayala Land?s business development group to order the construction of the second tower ahead of schedule.

If the current trend keeps up, Ayala Land will keep its track record of calling real estate market booms right every time. From what we hear, its executives and buyers are keeping their fingers crossed. Daxim L. Lucas

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