PLDT accuses Globe of being 63% foreign owned

News General Philippines 15 SEP 2011
PLDT accuses Globe of being 63% foreign owned
Philippine Long Distance Telephone (PLDT) has accused rival Globe Telecom of being majority owned by foreigners. PLDT is currently embroiled in a dispute over its foreign ownership structure. The high court earlier this year directed the Securities and Exchange Commission (SEC) to study whether PLDT has breached the 40 percent limit on foreign ownership of public utilities. The court also ruled that only voting or common shares could be used in determining the capital stock and foreign ownership. In its battle to stop PLDT from buying a controlling stake in Digitel, Globe has frequently brought the foreign ownership issue up. In response, PLDT issued a statement saying that around 63 percent of Globe's common shares are owned by foreigners and 40 percent of preferred shares are owned by foreigners. According to PLDT's calculations, Globe's largest shareholder is Singapore Telecom with a share of around 47.3 percent of Globe's total issued and outstanding common shares. PLDT bases its accusation on filings with the SEC and dividend records. "Now, if Globe Telecom's corporate communication head follows her own logic regarding proper ownership structure and applies her own 'legal prescription', she should turn her company to the authorities for being a foreign-owned telecommunications company" PLDT taunts in its statement.

Categories:

General

Companies:

PLDT,  Digitel,  Globe Mobile,  Philippine Long Distance Telephone

Countries:

Philippines

Tags:

Corporate, Market research

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