Philippine Long Distance Telephone (PLDT) has filed suit in a United States court against its parent, First Pacific, in an attempt to block the sale of its controlling stake.
In an unusual move, PLDT yesterday accused the Hong Kong-based conglomerate of violating corporate disclosure laws by proposing to sell the stake in the Philippines' largest telecommunications company to businessman John Gokongwei in a US$616.7 million transaction.
The lawsuit is being seen as a challenge by Manuel Pangilinan, chairman of First Pacific and PLDT, to the deal, which was originally proposed by Salim Group, the ultimate controlling shareholder of First Pacific. Mr Pangilinan was not informed of the proposed transaction.
In a complaint filed in a New York district court, PLDT charged that First Pacific had failed to disclose to the US Securities and Exchange Commission and the New York Stock Exchange a copy of a legally binding memorandum of agreement (MOA) it made with Gokongwei group.
'First Pacific's failure to disclose the MOA is consistent with their broader disregard of securities law, PLDT's corporate by-laws and shareholder agreements which could create legal liabilities for First Pacific and their board,' PLDT spokesman Butch Jimenez said yesterday.
'PLDT believes that this is just one of several violations that First Pacific has made and PLDT is concerned about the negative impact to the company and its shareholders as a result of these violations.'