Moody’s sees more PLDT investments in multimedia

MANILA, Philippines - New York-based Moody’s Investors Service sees dominant carrier Philippine Long Distance Telephone Co. (PLDT) pursuing investments in the multimedia sector.

Yoshio Takahashi, a Moody’s assistant vice president and analyst, cited PLDT’s investment appetite amid its strong financial and liquidity profile.

“PLDT is likely to continue to seek investment opportunities in the multimedia sector to strengthen its ability to deliver multimedia content through its broadband and mobile networks,” Moody’s said.

However, the rating agency warned that the telecommunications provider should pursue large investments in the multimedia sector.

“Moody’s views that unless PLDT moves towards large debt-funded acquisitions of major companies, the near-term credit impact of its investments in the multimedia sector will be immaterial,” Moody’s added.

PLDT chairman Manuel V. Pangilinan said Tuesday that talks with broadcast giant GMA Network Inc. collapsed anew after its offer to buy a minority stake in the company expired early last month.

 â€œOur offer expired already. It expired in the first week of February,” Pangilinan stressed.

Both PLDT and GMA agreed to terminate talks for the acquisition of a controlling stake in the broadcast firm last October or even prior to the December deadline.

The PLDT Group through MediaQuest has expressed interest in acquiring the 79- percent stake covering both preferred and common shares owned by the families of Duavit, Gozon, and Jimenez in GMA with a market value of about P48 billion.

However, talks resumed last December only to be called off anew.

This was the second time the Pangilinan group had tried to acquire the broadcasting company after the deal entered into in the early 2000 was aborted by the buyer for unknown reason.