Coyiuto-Yuchengco feud seen to heat up anew as PSE election nears

The perennial conflict between veteran stockbrokers Robert Cuyiuto Jr. and Vivien Yuchengco is expected to fire up anew as the Philippine Stock Exchange (PSE) prepares for its bi-annual elections on March 9, 2002.

The Cuyiuto group unrolled its campaign platform yesterday, calling for the immediate and full demutualization of the PSE.

In the Cuyiuto line-up are other veteran brokers Ramon C. Garcia Jr., Eddie Gobing, Federico Lim, former PSE chairman Harry Liu and Edwin Luy.

The non-broker candidates in the line-up are Fr. Joaquin Bernas, Mario Camacho, Ramon T. Garcia, Vicente Jayme and incumbent PSE president Ernest Leung.

Garcia told reporters yesterday that the group is pushing for the immediate listing of PSE shares in order to provide shareholders with a channel through which to profitably trade their shares.

According to Garcia, a lot of preparations will be needed before the listing of PSE shares can be implemented and the process should be started immediately.

Garcia said the group intended to organize a professional association of trading participants in order to develop the trading practices of the exchange.

"There is already an association of brokers and this organization could be revived or activated to carry out this functions," Garcia said. "They would be primarily responsible for safeguarding the rights of the brokers." Garcia said there would have to be a clear separation of the functions of the PSE as the exchange operator and trading participant.

Since the PSE’s demutualization would give a new dimension to the operation of the exchange and add an imperative to improve shareholder value, Garcia said trading participants should be protected against abuses.

"For example, in its desire to improve profits, the PSE could suddenly decide to increase fees," Garcia explained.

"The trading participants should have a mechanism to protect their interests as well."

Garcia said the group’s campaign platform also specifies its plan to immediately obtain the deed of donation and the title for the property at Fort Bonifacio Global City that was donated by the Metro Pacific Group to the exchange. Added to the other assets at Tektite and Ayala, Garcia said this property would substantially increase the value of the PSE shares.

The Yuchengco group, on the other hand, is expected to come out with its own line up for the PSE elections traditionally held on the first Saturday for March.