Philippines telco has new deadline to close its acquisition of rival player.
Philippine Long Distance Telephone Co. may call off a deal to acquire rival Digital Telecommunications Philippines Inc. if it fails to secure regulatory approval for the transaction by August 26, the new deadline to close the deal, PLDT Chairman Manuel Pangilinan said Thursday.
The PHP74.1 billion ($1.7 billion) deal was originally expected to close on June 30, but that deadline was moved to July 30 to allow regulators extra time to hear complaints over the impending merger between PLDT and Digitel, particularly from rival Globe Telecom Inc. A new deadline was set for late this month because some issues are still being discussed by the National Telecommunications Commission.
"We have extended that (deadline) until the 26th of August and if nothing would happen by that time, then maybe we will just call it a day," Pangilinan told reporters."We will just move on and Digitel can move on as well and all of this hullabaloo will just die down."
Pangilinan has described the proposed merger with Digitel as a "game changer" for the local telecommunications industry since it will create a company that will hold more than two thirds of the country's cellular subscribers.
"If it's not meant to be then it's not going to happen. Let's move on. PLDT won't die because of it," he said.
By Cris Larano, Dow Jones Newswires
Thursday 18 August 2011
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