PAL's Woes

Posted by Arianespace on
URL: http://philippine-aviation-forum.259.s1.nabble.com/Airlines-in-the-Philippines-tp2p322.html

seven13 wrote

Same query here. 5J has announced its KWI operations this September. When can/will PR be allowed to fly to DOH, JED and KWI?

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When I wrote 301, I was referring to the 212T version, not the 235T version A330. I think with its current configuration at 42J260Y, it can fly direct to HNL nonstop. Maybe it can be utilized alongside with 8771 (if it'll have a loner configuration among the rest of its sister).

From what I'm told there is supposed to be some announcement this month. Whether its Australia or Middle East I don't know.

I hope that announcement is shielded by Corporate wars.

Meanwhile, my story last Saturday came out in the papers today.

Biz Buzz: Lowball offer for PAL

Lucio Tan’s eagerly anticipated buyback offer to San Miguel for the latter’s stake in Philippine Airlines was presented to the conglomerate’s head honcho Ramon Ang last Friday, as scheduled.

According to our sources, “Kapitan” offered to pay San Miguel $372 million for the 49-percent stake in the airline (which the conglomerate acquired two years ago for $500 million). The balance of the buyback offer—some $800 million—would be settled over a two-year installment period, the term sheet further stated.

One source with knowledge of the transaction details commented that the payment period was simply too long, and that Tan put nothing on the table by way of guaranteeing that the payments will be made.

“Without any payment guarantee, a two-year installment period is a long time,” the source said. “And the offer is, frankly, a bit low.”

When asked for comment, Ang simply replied: “Still in talks.”

At this point, however, the offer doesn’t look attractive enough for SMC’s boss.

Now I will add something to the twist. Source from grapevine says that they are proposing to raise the rest of the funds from its future partner, whoever that may be, EY if they accept.

The ball is rolling.

Now watch for the SMC counter offer.