ABS-CBNnews.com
Posted at 01/31/2012 4:37 PM | Updated as of 02/01/2012 9:55 AM
MANILA, Philippines - San Miguel Corp. (SMC) is continuing its negotiations to buy flag carrier Philippine Airlines (PAL).
In a mobile text message to ABS-CBN News, San Miguel president Ramon S. Ang said the company was "still in talks" to acquire PAL. Ang was asked whether SMC has decided to buy PAL, extend the due diligence period or continue talks.
A separate source said that SMC was in "advanced" stage of negotiations for PAL.
Last December, ABS-CBNnews.com reported SMC was in talks with PAL officials for "a possible investment in the company. SMC inked a memorandum of understanding with PAL to do "due diligence" work on the flag carrier. The due diligence was slated until January 31.
The same source said the due diligence was being finalized, adding that some PAL officials are likely to be retained after the takeover.
PAL did not immediately reply to a request for its comment.
San Miguel earlier said PAL's owner Lucio Tan sought its help in its refleeting program.
"We confirm that the company was invited by Mr. Lucio Tan, the controlling shareholder of PAL Holdings Inc to participate and assist in the refleeting and modernization of the aircraft of Philippine Airlines in preparation for the projected heavy influx of tourists in the coming years," San Miguel said last December.
A few weeks ago, Tan further fueled speculation saying the airline was "for sale" at the right price. However, PAL officials said Tan's statement on sale was merely rhetorical.
The airline business is in line with San Miguel’s diversification into infrastructure-building. San Miguel is investing about $300 million to modernize the Godofredo P. Ramos airport in Caticlan, the gateway to the world-famous Boracay. - Reports from Coco Alcuaz, ANC; and Ira Pedrasa, ABS-CBNnews.com
