'Yuchengco did not lose shares'

MANILA, Philippines - The Yuchengcos did not lose their shares in Philippine Long Distance Telephone Co. (PLDT) as taipan Alfonso Yuchengco had reportedly claimed, the lawyer of businessman Manuel Pangilinan said yesterday.

Meanwhile, former President Joseph Estrada said yesterday he will sue Yuchengco for libel and demand P5 million to P10 million in damages for accusing him of coercing the taipan to sell his PLDT shares to Pangilinan’s group.

If he wins the case, he will donate the money to the plan holders of the Yuchengco-owned Pacific Plans, who until now have not received payment for their children’s tuition, he added.

Estrada said he learned that former ambassador Albert del Rosario is also planning to sue Yuchengco for libel for implicating him in the alleged coercion of the Yuchengco family to sell their PLDT shares.

“Why do they believe that supposed order?” he said.

“It’s not even signed. I don’t even know him (Yuchengco).”

Estrada is filing the libel suit against Yuchengco before the San Juan Prosecutor’s Office tomorrow, according to his spokeswoman Margaux Salcedo.

On the other hand, Yuchengco’s lawyers said in a text message to The STAR: “Best to await AY’s (Alfonso Yuchengco) return, specially of there is a threat of criminal charges.”

Yuchengco will be back from New York after two weeks, according to the law firm of Villaraza Cruz Marcelo & Angcangco.

Ray Espinosa, one of Pangilinan’s lawyers, said Metro Pacific Assets Holdings Inc. paid P2.61 billion in cash and PLDT shares (now worth P4.7 billion) for the Yuchengcos’ 7.75 percent stake in Philippine Telecommunications Investment Corp. (PTIC), which held around 28 percent of PLDT 11 years ago.

Reacting to Yuchengco’s allegation that he was coerced into selling his 7.75 percent in PITC to Metro Pacific Investments Corp. 11 years ago,

Espinosa said on Nov. 24, 1998, Metro Pacific Assets Holdings, Inc. bought from Yuchengco and Y Realty Corporation, a company owned and controlled by the Yuchengco group, a total of 18,720 PTIC shares.

“As consideration for the PTIC shares, Metro Pacific Assets Holdings, Inc. paid and delivered to Y Realty Corp. a compensation package consisting of PLDT shares and cash totaling P2.61 billion,” he said.

“The compensation package was broken down into a total of 2,017,650 PLDT common shares (with a value of P1,085.00 per share based on the closing trading price of such shares at the Philippine Stock Exchange on Nov. 23, 1998) plus P424,036,931.00 by way of cash premium.

“With respect to recent press articles citing what appears to be an unsigned statement being attributed to Amb. Alfonso Yuchengco, I wish to point out that the Yuchengco group did not lose their underlying PLDT shares even as they sold their PTIC shares to the group of Mr. Manuel V. Pangilinan.”

Espinosa said the PLDT shares delivered to the Yuchengco group are now valued at P4.7 billion based on yesterday’s closing price of P2,330 per share.

“These details of the transaction belie the unsigned statement being attributed to Ambassador Yuchengco that the ‘2,017,650 PLDT common shares…were taken from me in 1998.’”

Espinosa said as part of the terms of the purchase, both parties agreed that Malayan Insurance Company, which is controlled

by the Yuchengco group, would insure two-thirds of the non-life insurance requirements of PLDT.

“These commercial considerations are being implemented up to the present time,” he said.

“In fact, Malayan Insurance also handles the property insurance requirements of Smart Communications, Inc. and the

other subsidiaries of PLDT, and RCBC (Rizal Commercial Banking Corp., also owned by the Yuchengco family) is now also a major banker of PLDT’s subsidiaries.”

It was also agreed to have RCBC as a major lender to the PLDT Group, he added.

First Pacific took over management of PLDT in November 1998 after acquiring a 17.2-percent stake in the telecommunications giant for P29.7 billion. 

In his statement, Yuchengco said his holdings in PTIC were equivalent to 2,017,650 PLDT common shares.

“These shares were taken from me in 1998 through sheer intimidation and serious threat to my businesses, myself and my family,” read the statement.

 ‘Yuchengco playing politics’

San Juan Mayor JV Ejercito said yesterday Yuchengco is playing politics to get a graceful exit from the millions of pesos in obligations to insurance policy holders which his group of companies has failed to honor.

“How can the Yuchengcos have been coerced?” he asked.

“The truth is a premium price had been paid by Manny Pangilinan, and PLDT was even required to maintain accounts in RCBC.

“Also, if the allegations made by Sen. Panfilo Lacson and Yuchengco are true, why only now? They have had eight years to file charges.”

Ejercito said he is skeptical that Yuchengco prepared the information for Lacson, as the businessman is said to be sick.

“We just received credible information coming from within the RCBC Group that Mr. Yuchengco is suffering from Alzheimer’s,” he said.

“I wonder how he can prepare something like that.”

 ‘Keep GMA out’

A pro-administration lawmaker asked Sen. Jinggoy Estrada yesterday to leave President Arroyo out of his personal conflict with Sen. Panfilo Lacson.

Reacting to Estrada’s claim that Lacson was now working for Mrs. Arroyo, Camiguin Rep. Pedro Romualdo said the Estradas and Lacson must resolve their conflict among themselves.

“They can throw mud at each other for as long as they want but they should not drag in their mess President Arroyo, who has better things to do than join in their mudslinging,” he said.

Romualdo said Sen. Estrada should defend his father, but not do it at the expense of Mrs. Arroyo.

 “I cannot see the logic,” he said. Senator Lacson is a publicly known fierce detractor of the President.” —With Jose Rodel Clapano, Jess Diaz