Analysts have slashed their valuations for First Pacific shares after the Gokongwei Group withdrew its US$617 million bid for the Hong Kong-listed company's stake in Philippine Long Distance Telephone (PLDT). Five of six leading brokerage firms surveyed trimmed their valuations by between 35 per cent and 45 per cent after the deal's collapse dashed hopes of a dividend. SG Securities research director Robert Sassoon said: 'Management definitely has damaged its creditability by being unable to execute the deal.' Analysts said it might be more difficult for First Pacific to find a new buyer. On Wednesday, the Gokongwei Group, owned by one of the Philippines' most prominent business families, said it was pulling out of the deal to buy First Pacific's stakes in PLDT and Bonifacio Land, the property arm of First Pacific subsidiary Metro Pacific. It cited 'open resistance' by the managements of PLDT and Metro Pacific. Mr Sassoon said even if First Pacific managed to find a new buyer for PLDT and Bonifacio Land, the price tag was likely to be much lower than the offer from Gokongwei. In a research report yesterday, First Pacific adviser ING Barings gave a more positive view saying the company might be able to sell the asset in future if it could change PLDT's management. 'We believe that First Pacific should have better control over the composition of the PLDT board of directors when it is able to nominate new members to the board in the next shareholders' meeting, in June 2003, and we believe the options available to First Pacific are not completely exhausted yet.' Salomon Smith Barney was among the most aggressive in cutting its valuation and target price for First Pacific shares. It trimmed its per-share net asset value to HK$1.47, down from its previous estimate of HK$2.5, which assumed the PLDT deal would proceed. The United States investment bank maintained its 'underperform' rating on First Pacific and reduced its target price to 74 HK cents, a 23 per cent drop from the 96 HK cent price tag it put on First Pacific before Gokongwei walked away from the deal. Even ING Barings cut its fair-value estimate on the company by 35 per cent - to HK$1.58 - while revising down its target share price to HK$1.1. Yesterday, shares in First Pacific rebounded 4.9 per cent, to finish at 85 HK cents, after losing 7 per cent on Wednesday in the wake of the deal's collapse. Despite the downgrades, most analysts believed that the stock's downside risk was limited as the bad news was already factored in.