Philippine Long Distance Telephone Co.NYSE
Tue, May 31, 3:09 PM
- Philippine Long Distance Telephone (NYSE:PHI) is up 12.9% today after news that it would acquire the telecom assets of conglomerate San Miguel Corp., along with Globe Telecom.
- The two are spending $1.5B to take over the assets in a 50/50 split. PLDT is putting in about $568M in equity and $185M in assumed debt.
- Synergies include higher call quality and faster Internet access across fixed and mobile networks.
- Today, San Miguel said the price was enough to cover costs of developing the telecom business. It's selling to the country's main telecom partners because "no foreign technical partners would like to come in," said the company's president, Ramon Ang.