RFM debunks charges of Iloilo solon

RFM Corp. doused cold water yesterday on allegations by Iloilo Rep. Augusto Syjuco that it engaged in insider trading and stock market manipulation of Cosmos and RFM shares to keep share prices up.

In a letter to Securities and Exchange Commission Chairman Lilia R. Bautista, RFM executive vice president Felicisimo Nacino, Jr. said that over the last three months alone, RFM made no less than 25 disclosures to the Philippine Stock Exchange and to the media regarding the planned sale of RFM shares in Cosmos Bottling Corp. to San Miguel Corp., "reporting developments as they emerge."

"There is no insider trading or any form of stock market manipulation whatsoever on Cosmos or RFM shares," Nacino wrote. "It is simply not possible when the ongoing discussions on the sale of Cosmos is one of the most widely-publicized and fully-disclosed deals in the market."

Nacino was reacting to an Aug. 28 letter sent by Syjuco to the PSE alleging that the Concepcion family was buying RFM and Cosmos shares to prevent share prices from going down.

According to him, a closer look at the price movements of Cosmos and RFM shares in the last three months would show that these movements were purely "market-driven."

"There was a gradual uptrend in prices over the last few months as news of the Cosmos sale was reported to the market," Nacino pointed out. "(However) More recently, said prices have begun to dip, primarily due to the efforts of Rep. Syjuco to publicize his court case and the TRO he secured against Cosmos."

Nacino also dismissed as exaggerated Syjuco’s claims that share prices of Cosmos and RFM stocks have gone into a "free fall." "Majority of the investing public have discounted the credibility of the Syjuco case and still look forward to the tender offer on Cosmos shares if and when the deal with SMC goes through."

Nacino appealed to the SEC to protect investors and legitimately-listed Filipino companies from what he termed as "clear examples of harassment" from individuals like Syjuco.

"Thousands of small shareholders could get hurt if Rep. Syjuco is allowed to continue spreading false and misleading claims (against RFM and Cosmos)," he said.