this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=05&dd=25&file=2
Posted: 0:39 AM | May 25, 2006
Inquirer with XFN-Asia
THE SM group of mall magnate Henry Sy has firmed up its grip on Equitable PCIBank by getting five seats on the 15-member board of the country's third biggest bank.
This was the result of the bank's annual meeting and board election Tuesday, which lasted till past 8 p.m., and which analysts said could lead to another attempt by the SM group to merge its Banco de Oro Universal Bank with Equitable PCIBank.
A restraining order from the Sandiganbayan anti-graft court, regarding an unrelated case, prevented Trans Middle East Equity Philippines Inc. of the family of Equitable PCIBank director Ferdinand Martin Romualdez from voting its 7.13-percent stake in the bank.
The SM group increased its board representation from four directors to five: Teresita Sy, Josefina Tan, Edmundo Tan, Exequiet Villacorta Jr., and Antonio Henson who joined the board for the first time.
Dropped from the board was independent director Anthony Te, who was replaced by former executive secretary Peter Garrucho, previously a member of the bank's advisory board.
Reelected to the board were Social Security System (SSS) president Corazon de la Paz, Government Service Insurance System (GSIS) president Winston Garcia, Equitable PCIBank president Rene Buenaventura, Nazario Cabuquit Jr., Fulgencio Factoran Jr., Maria Luz Generoso, Ramon Jabar, Reynaldo Palmiery and Jesus Tirona.
The new board reelected De la Paz as chairperson and Garcia and Teresita Sy as vice chairpersons.
Sy will also continue to chair the five-member executive committee, which includes De la Paz, Buenaventura, Factoran and Garcia.
Former central bank deputy governor Alberto Reyes was appointed to the four-member advisory board, which also includes Ricardo Leong, former Monetary Board member Teodoro Montecillo and Antonio Pacis.
Banco de Oro and conglomerate SM Investments Corp. have a combined 34-percent stake in Equitable PCIBank.
But since a merger offer made by Banco de Oro in January had lapsed, De la Paz told the stockholders meeting Tuesday night: "There is no merger proposal on the table right now."
The Romualdez family has opposed a merger with Banco de Oro, along with the state-run pension fund GSIS.
The GSIS owns 12.4 percent of Equitable PCIBank.
The state-run pension fund SSS has a 29-percent stake in Equitable PCI. It kept its five representatives on the board.
Macquarie Securities analyst Gilbert Lopez said that if Equitable PCI decided to do a rights offer to beef up its capital, this could be a catalyst for a merger with Banco de Oro.
"This would cause a dilution in the holdings of shareholders such as the SSS, whose tight financial condition may prevent it from subscribing to the rights offer. This could also result in shareholders agreeing to the share swap offer by Banco de Oro," Lopez said.
Bank president Buenaventura said Tuesday that Equitable PCIBank had asked for advice about whether it needed to raise capital but that it had yet to decide how much it might need or how it should be raised.
The bank's capital adequacy ratio is now at 12 percent, above the 10 percent requirement of the central bank.With INQ7.net
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