Ceasefire

Some may call it a fragile ceasefire but for the minority shareholders of companies in the Lopez Group, it is a welcome break from the ugly and very public battle that erupted among the Lopez cousins.

The Lopez family feud, after all, has not been good for any of the warring parties. One camp comprises the Lopez family majority led by Gabby Lopez while the other is led by Federico “Piki” Lopez. To put it simply, it’s everyone else versus Piki, currently the president and CEO of Lopez Inc., the ultimate parent firm of Lopez-owned companies.

The fight, which had been simmering since last year, erupted in public when Piki filed an injunction against a board resolution that ousted him as president and CEO of Lopez Inc.

His cousins moved to replace Piki over a loss of trust and confidence stemming from Piki-led First Gen’s deals with the Razon Group.

But that’s water under the bridge – at least for now – as the Gabby Lopez-led faction withdrew its resolution removing Piki.

Both camps have indicated a willingness to work things out but also remain ready to go back to the boxing ring if needed.

It was on the morning of May 14, a day after the Senate descended into chaos, that the Lopez family majority withdrew its Feb. 27 resolution removing Piki as president and CEO.

Perhaps they realized they didn’t want to add more chaos to our already chaotic country or, more realistically, with time ticking on ABS-CBN’s fragile fiscal situation, Gabby’s camp realized it had more pressing matters to focus on.

It’s also possible that the cousins decided to extend an olive branch as a different way of getting what they want – transparency and details on the deals between First Gen and the Razon Group.

Still ready to fight

A careful reading of their statements showed that both sides are willing to return to a fighting stance if the peace talks bog down.

In withdrawing the resolution, the Lopez majority said the move opens a window for discussions among family members.

They said the whole family can step back, reconsider their adversarial positions and look for options least injurious to the family.

“Harm has been done to everybody. Reputational damage is there. Our family has been in a fishbowl. Agreements have been signed with undeserved financial penalties, especially for the investing public,” the Lopez majority said in a statement.

As such, Gabby’s camp said it is open to a ceasefire but subject to a reasonable expectation of a fair compromise and access to information. They also stressed that it is more than ready to ramp up efforts to protect its legal and pecuniary interests if there is none.

In response, Piki said he views the gesture as a possible first step for all parties to finally resolve the issues dividing the family.

He said he hopes the other side will back up the gesture with genuine, positive and concrete efforts leading to an amicable, fair and lasting resolution of the rift within Lopez Inc.

In discussing solutions, Piki said he would continue to fulfill his fiduciary duties to all shareholders in the companies of the Lopez Group and remain steadfast in acting as a responsible steward of these various businesses – particularly First Philippine Holdings Inc. and First Gen – which have institutional minority shareholders with significant economic interests.

Piki, still defending the so-called “poison pills,” said it was in fulfillment of these duties that he supported the agreements with the Prime Infra Group.

ABS-CBN issues

In his statement, Piki also reminded the Gabby-led camp to address unresolved questions about ABS-CBN so the media firm can finally chart a path to recovery to protect not only the family legacy but equally, or even more importantly, the welfare of investors and employees.

Piki said he “remains fully prepared for any outcome following this gesture, given that the formal processes in the Mandaluyong Regional Trial Court and the Securities and Exchange Commission are proceeding in due course.”

He is focused on leading FPH and First Gen in delivering value through strategic projects and partnerships with reputable industry players, he added.

The statements show guarded optimism on both sides, with strong indications that each is willing to return to an ugly war if necessary.

The ceasefire nonetheless is a big, bold move.

Maybe their fathers and grandfather visited the cousins in their sleep and reminded them of the essence of kapamilya.

Another plausible theory is that some buyers are already hinting at an offer to buy some Lopez Group assets but would only do so if the family members work out their differences. If this is true, peace would also benefit the sellers, especially since the tensions have only been eroding the value of Lopez companies’ share prices.

Or both camps have simply realized that war is such a waste of resources and that there are more important things to focus on.

Investors

ABS-CBN’s financial situation, for one, badly needs immediate help, with some loans either falling due or already having been called by lenders.

Will the ceasefire pave the way for a much-needed infusion?

I heard that the company is trying to talk to some investors to help the financially troubled media giant.

Whichever it is, kibitzers watching the Lopez Group hope that, for the sake of what remains of the family empire and the legacy of Don Eugenio Lopez, the cousins will finally commit to a peace pact for good.

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