Tan wants more time to study SMC offer

MANILA, Philippines - Taipan Lucio Tan is taking his time to decide on an offer by diversifying conglomerate San Miguel Corp. to acquire a substantial stake in flag carrier Philippine Airlines.

Sources said the Chinese-Filipino tycoon is not in a hurry to sign any deal and opted to buy more time to decide on the possible divestment of his stake in Asia’s oldest airline.

Tan controls PAL through publicly-listed PAL Holdings.

In a disclosure to the stock exchange yesterday, San Miguel said it is “in talks with the controlling stockholders of PAL and (budget carrier) Air Philippines Corp. with respect to the possible investment by the company in PAL and Air Philippines.”

 Other sources said Tan had a change of heart and reportedly decided to study the offer thoroughly. Earlier reports said the PAL chairman was supposed to sign a deal with San Miguel yesterday, which would reportedly allow the food-to-infrastructure conglomerate to own a 49 percent stake in the carrier.

“No deal was signed. Mr. Tan wants to study it carefully and doesn’t want to rush things. I think that’s his prerogative as the owner of the company,” the source said.

San Miguel president Ramon S. Ang likewise confirmed in a text message that discussions are still ongoing. “We’re still in talks,” he said.

Other sources said Tan’s family may also have a hand in the tycoon’s decision to take things slow.

PAL has been scouting for investors to help them stay afloat amid high fuel costs and tough competition from budget carriers.

 San Miguel, meanwhile, has been expanding into capital-intensive sectors such as infrastructure, power, mining, and telecoms in the last four years to spur faster growth.

Shares of PAL Holdings surged to a 52-week high of P8.58 in early trade on reports a deal was soon to be consummated. The stock has risen by by more than 22 percent this year, outpacing a 17 percent gain in the main index, while San Miguel has lost 2.65 percent.