PLDT blocks Globe’s takeover of Bayantel

Philippine Long Distance Telephone Co. (PLDT) is blocking rival Globe Telecom Inc.’s takeover of Bayan Telecommunications Inc., as it formally filed its opposition with the National Telecommunications Commission, officials from both companies said.

Globe, which is in the process of converting Bayantel’s debt to equity, which would give it a controlling stake  in the telco established by the Lopez family,  still needs the NTC’s approval as the move would result in a change in ownership.

Froilan Castelo, head of Globe corporate and legal services group, said the plan was being challenged by the PLDT.

“We have only one opposition to the petition, which is that of PLDT [Last Nov. 4],” Castelo told reporters in a recent interview.

PLDT public affairs group head Ramon Isberto on Wednesday confirmed that the company was opposing the deal, noting that the filing was an extension of an earlier position it took against Globe and Bayantel’s joint use of frequencies.

PLDT unit Smart Communications at the time said that frequencies in question should have been recalled by NTC and auctioned, as these were not being used by Bayantel.

But the NTC allowed the sharing arrangement, saying this would ease network congestion and translate to better quality of services.

Castelo said Globe was given until Friday to respond to PLDT’s opposition.

“The Office of the Solicitor General, which is the counsel of the government, did not file any opposition to our position. So we take that as a good sign that it [the government] is not opposing,” he told reporters.

“So the good news is the government did not oppose this, the public sector did not oppose this. So this is good for the country, the merger of Bayantel and Globe,” Castelo said.

There was no specific timing on when the NTC might have a decision on the succeeding phase of its takeover plan, but Chief Financial Officer Alberto M. de Larrazabal said the process could run “beyond the end of the year.”

Globe and Bayantel in September obtained a key approval from the the Pasig Regional Trial Court Branch 158 to amend Bayantel’s rehabilitation plan.

This would pave the way for the conversion of Bayantel’s debt into equity, and reduce its liabilities  by 69 percent  to approximately $131.3 million, a previous statement showed.