Pangilinan group eyes control of business newspaper

Manuel V. Pangilinan-led Philippine Long Distance Telephone Co. (PLDT) confirmed on Thursday a plan to hike its stake in BusinessWorld, the country’s oldest business paper, to a possible controlling position seven years after taking an initial 30 percent interest.

The potential deal—which still has no identified closing date or value—could involve the acquisition of new shares or even buying out existing shareholders, said Ray Espinosa, president of PLDT subsidiary Mediaquest Holdings Inc.

No reason was stated for the planned acquisition, although Pangilinan has been taking concrete steps to making the convergence between the telecommunications and media sectors a long-term strategy of PLDT.

Mediaquest also owns television network TV5 as well as minority stakes in Philippine Daily Inquirer and The Philippine Star.

Espinosa noted that one of the objectives was to infuse fresh funds into BusinessWorld  through the acquisition of new shares.

The business daily was established more than two decades ago by its late publisher Raul L. Locsin but has recently been reporting inconsistent profits and sometimes losses, Pangilinan, who chairs PLDT, had said.

Sources present during a BusinessWorld general meeting held on Tuesday also said a possible management shakeup could occur post-transaction.

“One of the options is to acquire new shares of [BusinessWorld]. The extent of the investment option will depend on the funding requirements of the company for this year and next year,” Espinosa said in a text message on Thursday.

“This may have to be done in combination with the purchase of shares held by the company’s retirement fund in order for it to have money for its retirement liabilities,” he added.

Espinosa said the deal remains under review while declining to comment further.

“We are taking all factors into consideration, including timing,” he said.

BusinessWorld chair Vergel Santos did not return calls by the Inquirer to his office seeking his comment while executive editor Arnold Belleza also did not respond.

Espinosa’s comment was sought after TV5’s online news publication, Interaksyon.com, reported that Mediaquest planned to increase its stake to BusinessWorld to 70 percent, citing sources.