Lopez majority opens door to talks after reversing Piki ouster

Federico ‘Piki’ Lopez

MANILA, Philippines – The majority bloc of Lopez Inc. has withdrawn its earlier resolution removing Federico “Piki” Lopez as president and CEO, saying the move could pave the way for talks aimed at resolving the escalating family dispute.

In a statement issued on Thursday, the 71-percent Lopez majority led by Eugenio “Gabby” Lopez III said the board of Lopez Inc. voted that morning to withdraw its Feb. 27 resolution ousting Piki from the top post.

The group said the withdrawal opened “a window for discussions among the family members,” while the case remained pending before the Court of Appeals over the lifting of an injunction.

“The withdrawal presents an opportunity for the whole family to step back, reconsider their adversarial positions, and look for options that are least injurious to the family, the Lopez group and the investing public,” the statement read.

The majority bloc acknowledged the damage caused by the public dispute, saying the feud had already hurt the family’s reputation and raised concerns over agreements involving listed firms.

“Harm has been done to everybody. Reputational damage is there. Our family has been in a fishbowl with everybody looking in,” the group said.

The majority, however, reiterated its concerns over what it described as “undeserved financial penalties” tied to agreements entered into under Piki’s leadership.

It said it remained open to a “ceasefire” if there was a “reasonable expectation of a fair compromise and access to information,” but warned it was likewise prepared to intensify legal action if negotiations failed.

The dispute stemmed from the Lopez majority’s decision earlier this year to remove Piki through a 5-2 board vote, citing provisions in the company’s by-laws allowing the removal of officers with or without cause.

The majority claimed it had lost trust and confidence in Piki after he allegedly caused First Gen Corp. to enter into roughly P125 billion worth of transactions without authority from the controlling family bloc.

Central to the conflict were the controversial “poison pill” provisions tied to First Gen’s deals with Prime Infrastructure Capital Inc. involving gas and hydropower assets.

The Lopez majority earlier alleged these provisions could expose the Lopez group and First Gen shareholders to penalties of as much as P24 billion if Piki or his designated officers were removed during a specified period.

The feud intensified after the majority accused Piki’s camp of failing to fully disclose the provisions and other related risks tied to the transactions.

The dispute has since spilled into the courts and triggered calls for regulatory scrutiny over governance and disclosure practices involving the Lopez group’s listed companies.