MANILA, Philippines - Globe Telecom has maintained that Philippine Long Distance Telephone Co. (PLDT) is a foreign company and is therefore not entitled to acquire more than 40 percent of Digital Telecommunications Phils Inc. (Digitel).
In its memorandum submitted to the National Telecommunications Commission (NTC), Globe argued that the Supreme Court has already ruled that PLDT is not a Philippine national nor a duly authorized domestic public utility.
It said that assuming for the sake of argument that the ruling is not yet final and executory, the burden of proof to prove that it is a Philippine national rests entirely with PLDT.
The NTC is expected to come out with its ruling on PLDT and Digitel’s application seeking approval for the acquisition by PLDT of an initial 51 percent of Digitel by next week.
Globe also pointed out that PLDT is not a Philippine national as defined by the Foreign Investments Act of 1991 which states that “a Philippine national shall mean...a corporation organized under the laws of the Philippines of which at least 60 percent of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines.”
The Ayala-owned telecom firm stressed that independent and even in the absence of the SC ruling PLDT is a foreign corporation and is in violation of the Foreign Investments Act.
It insisted that the sale and purchase agreement (SPA) which the parties want the NTC to approve is null and void being in restraint of trade and for failure to comply with the requisites of a perfected contract.