Agonizing Equi-tagal epic

The long-running saga of Equitable PCI Bank (EPCIB) calls to mind the story about a student who was asked to write about the US-Canada Fishing Treaty from either country’s point of view. Instead, he wrote from the point of view of the fish. In the "Equi-tagal" epic, the fish are the bank’s stakeholders – the employees, the customers and depositors – who have displayed utmost patience by putting up with minority shareholders whose sole intention is allegedly the perpetuation of their vise-like grip on the bank. To this end, these non-majority but controlling parties – represented by the Gos – have been steadfastly choreographing a grand rigodon, replacing management team after management team, and leaving the bank to stagnate and be left behind by its rivals. Underlying this saga is the perception of a Go-versus-Sy competition. To this day, however, only the Sys, through Banco de Oro, have been straightforward in their intentions, openly declaring their interest in acquiring EPCIB while the others have played it coy. This leaves the public to settle for a financial guessing game. Where does that leave the fish then? According to observers, there are three options: stay with the status quo (the Gos), partner with Banco de Oro ( the Sys), or tie up with another banking group. If the fish throw their lot with the Gos, this would mean a divided board, a distracted management, and a minority interest acting like the big bully to perpetuate his control and advance his own agenda. Effectively, all these contribute to EPCIB’s remaining a laggard. With another banking group, the fish could be lucky to find someone who can keep the cash flow growing. As for the Sys, the fish get a patient and respected group that understands what customer service is all about. The Sys know how to keep management in place where it works as seen in China Bank. More important, they employ professional management where it is needed. Just look at Banco de Oro. Granted that there will be some employee displacement should the Sys succeed in their EPCIB bid, the long term prognosis is that it would be better for all the stakeholders in the end because the Sys have a reputation for keeping what they buy and making it grow. Given all these, the fish should be given the right to choose the best solution to relieve the agony caused by the "Equi-tagal" epic.

Big business buying up colleges, universities

Reports of big businesses buying up colleges and universities is getting a lawmaker both bothered and cautiously optimistic. According to Rep. Joseph Santiago of Catanduanes, Bacnotan Consolidated Industries Inc. and Philippine Investment-Management Inc. recently bought Cagayan de Oro College for P310 million. The acquisition reportedly came after Bacnotan appropriated 80 percent of the Cabanatuan-based Araullo University last year. Santiago also cited the acquisition of Ambassador Alfonso Yuchengco of the Mapua Institute of Technology, Emilio Yap’s investment in Centro Escolar University and taipan Lucio Tan’s entry into the University of the East. While this is a welcome development because big businesses can provide badly needed capital to upgrade the quality of education provided by colleges, Santiago is worried that the trend could lead to the further commercialization of education. The lawmaker however expressed optimism that the financial muscle from big business will keep in check the deterioration of tertiary education in the country. An Asiaweek magazine survey of schools ranked the University of the Philippines 48th among Asia’s Best Universities, while De La Salle University ranked 71st and the Ateneo de Manila University, 72nd. An Asian Development Bank study also noted that while the Philippines has too many colleges and universities, not all of them offer quality education. Of the 1,380 colleges and universities in the country, 1,214 are privately owned and 166 are run by the government. Some 2.5 million students are enrolled in these educational institutions.

New IP kid on the block

Confident in the country’s long-term business prospects, particularly its growing business outsourcing and call center industries, Btnaccess executives recently arrived in Manila to explore opportunities and to meet potential strategic partners. Btnaccess – a subsidiary of the Hong Kong-based PCCW – is a leading Internet Protocol (IP) Telephony provider that designs, builds, and manages IP communications worldwide. The giant Hong Kong communications provider is owned by Li Ka Shing. Our Hong Kong Spy-ring mentioned that Btnaccess is headquartered in the US and Hong Kong with offices in London, Moscow, Prague, New Delhi, and Virginia. In the cocktails hosted by Ambassador and Mrs. Raul Goco for the firm’s executives, their son Pio Goco, who is a Btnaccess director, and other officials like CEO and president Pat Hannon and Dan Lovatt expressed exuberance for doing business here. Let’s hope the new IP kid on the block is nimble enough to jump over the hurdles to entry that this country is known for.

The listening post: Goings-on

After he resigned as House defense committee chairman, there were rumors that Congressman Roy Golez met with US Embassy officials to persuade them to withdraw their support for GMA. The rumor further stated that the walking-talking bellweather politician reportedly was accompanied by four military officers. In the meantime, our Spybiz informant told us First Gentleman Mike Arroyo went to Vancouver on CX888 via Hong Kong. Our North American Spybiz operative tells us he’ll most likely be spending his time in self-exile improving...his golf.

Spy tidbits: Lean and mean business

Big business nowadays need to be lean and mean because of the difficult times. It’s a good thing Tower Club now offers the South Beach Diet, which can literally help big businessmen lose weight in order to be lean and mean themselves. Tower Club’s chef promises the South Beach Diet menu will be very tasty to include five different flavors of sugar-free ice cream and sugar-free pastries for dessert.

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