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Posts Tagged ‘GSIS

Power surges

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Meralco ends at year-low as board war rages

I know these are bad puns. But let’s move on.

The Lopez family has retained control of Meralco by holding 5 out of 11 seats on the board with the government holding only 4. The other two are independent members.

Meralco opened 0.50 centavos higher than it’s close of 63 Php the previous day. At 10am trading was suspended by the Philippine Stock Exchange to allow investors time to sort the events from the previous day. Trading resumed at 11 and brought Meralco stocks to it’s lowest in 12 months by almost 5% or by 3 pesos a share. The index closed 22 points down at 2,833.27

Both sides are resorting to the courts for failure to recognize the SEC stoppage of the elections. But if there’s anything constant in Manila is that this could drag out for a while. If the courts get involved, the process could take a year and even then the previous board would still control the company. So does it get anything done?

Will this long process give us lower power rates?


Written by pinoypatrol

May 28, 2008 at 8:42 am

Posted in electricity

Tagged with , , , ,

Power struggle

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I know it’s a bad pun. But it fits the current situation between GSIS President Winston Garcia and the Lopez family as the stockholders meet and see who will run the largest power distributor in the Philippines.

In the days leading to Tuesday’s stockholder’s meeting, all media entities, including Lopez owned ABS-CBN was barred from airing the meeting live on ANC (ABS-CBN News Channel). GSIS Winston Garcia was able to get approval from the board to get cameras inside.

Tuesday morning arrives and the Securities and Exchange Comission halts the board election based on a complaint filed by Winston Garcia saying that the proxies votes were selected in an “irregular” manner. A hearing in scheduled on Friday, May 30.

The election of the board pushed through despite the order from the SEC. The stockholders attendees reach 86%

Meralco shares were up 0.937% at the end of trading in Manila.

The GSIS calls the meeting “illegal”. Meralco calls the order from the SEC “null and void” since it bears no number, date, official seal of the SEC and was signed by only one commissioner.

Garcia was heckled by stockholders and employees of Meralco for trying to stop the proceedings. Garcia cries foul that it should not be decided by mob rule. (See where numerous “people power” gets us)

Counting of the votes continue as of this posting.

Well now, who needs television when things like this is going on.

Written by pinoypatrol

May 27, 2008 at 9:54 am

Posted in electricity

Tagged with , ,