RFM raps Syjuco over new allegations

RFM Corp. lambasted yesterday the new allegations of Rep. Augusto L. Syjuco Jr. that the Concepcion family is engaged in insider trading and market manipulation.

According to RFM Corp. spokesman Elmer Yanga, Syjuco’s allegations "are just another example of harassment that Syjuco usually employs against legitimate Filipino businesses."

"There is no stock market manipulation or insider trading on RFM or Cosmos shares," Yanga said. "How can there be insider trading when the proposed deal between RFM and San Miguel Corp. (SMC) on Cosmos has been continuously and publicly disclosed."

Yanga said that the claims of Syjuco that RFM and Cosmos shares would go into a "free fall" because the companies are bankrupt "will expose him to thousands of possible lawsuits from shareholders of RFM and Cosmos whose investments may be adversely affected by his exaggerated and irresponsible statements about the two publicly-listed companies."

"Both RFM and Cosmos are financially sound companies, and anyone who takes the effort to read their audited financial statements can confirm that," Yanga said.

Ramon M. Lopez, RFM vice president and executive assistant to the president, also denied Syjuco’s allegations that the softdrinks company will remain in debt to the tune of P3.6 billion.

"Cosmos right now is in a very positive net cash position, if one is to examine the last submitted quarterly financial report to PSE, Lopez said.

Lopez also refuted Syjuco’s allegations that RFM and Cosmos are bankrupt, even if they were to receive the full P15-billion payment from their proposed sale to San Miguel Corp.

He said that the P15-billion enterprise value for Cosmos, and the corresponding P12.5 billion proceeds to RFM would allow the company to pay its debts and still be left with excess cash of approximately P5 billion.

"There is no truth to the senseless allegations that RFM and Cosmos are bankrupt even if they were to receive full value of the Cosmos sale," he said.