BDO

[obelix]

Sept. 26, 2005
Erik de la Cruz
XFN-Asia


BANCO de Oro Universal Bank said its board of directors has approved the guidelines for its Executive Stock Plan, to be implemented for an initial period of three years beginning this year.

Subsequent extensions of the program will be subject to board approval, it said in a statement, without providing other details.

Banco de Oro, the country's seventh largest bank by assets, intends to merge in the future with Equitable PCI Bank, the third largest.

[obelix]

XFN-Asia


BANCO de Oro Universal Bank said its president Nestor Tan bought 74,300 common shares of the bank from the market last Friday.

No other details were provided in the bank's disclosure to the stock exchange.

[obelix]

By Ted P. Torres
The Philippine Star

Banco de Oro Universal Bank (BdO), ranked among the top 10 commercial banks in the country, has not withdrawn its offer to acquire a bigger stake in Equitable PCI Bank (EPCIB), the country’s third largest commercial bank.

BdO, a member of the SM Group controlled by taipan Henry Sy, wants to acquire the 26.4 percent interest of the Social Security System (SSS) in EPCIB.

It is the single biggest block next to BdO’s 27-percent majority equity stake.

BdO president Nestor A. Tan said he remains open to renegotiating the December 2003 deal with the SSS, depending on how the Supreme Court will rule on the case filed by Sen. Sergio Osmeña III.

"We will be happy to renegotiate with them," Tan said.

The SM Group’s commercial bank owns over 27 percent of EPCIB following its purchase of the Go family’s interest.

BdO has been in the acquisition mode in the past two years which many believe could culminate in the acquistion of EPCIB. A merger between BdO and EPCIB wih the former as the surviving entity will make BdO the second largest commercial bank in the country.

Last September, Tan was quoted as saying that the December 2003 price of P46.50 per share still stands.

But SSS president and general manager Corazon de la Paz wants to go back to the negotiating table to re-do the December 2003 purchase agreement between the SSS and BdO.

In fact, De la Paz lamented that the price of P56.50 per EPCIB share offered by the BdO-SM Group to the Go family headed by Antonio Go in exchange for 24.76 percent stake in EPCI Bank is not acceptable.

"The interest income earned by SSS alone, in the last 20 months is a lot of money," de la Paz said, adding that the offer price of P56.50 "is not attractive" because "situation has changed."

Tan has said BDO can increase its interest in EPCIB even without the SSS, if the 10.8 percent EBC Investments Inc. (EBCII), otherwise known as treasury shares, be placed on the auction block.

[obelix]

BusinessWorld
Ma. Elisa P. Osorio

Banco de Oro Universal Bank of mall magnate Henry Sy will offer long-term negotiable certificates of time deposit worth up to P2.9 billion next month.

In a letter to the stock exchange, the bank said it has secured central bank approval for the time deposits, which are tax exempt and matures in five years and one day. They will have a fixed interest rate which will be determined before the bank offering on November 17 or 18.

The offering is the second tranche of negotiable times deposits floated by the country's eighth largest lender.

Acting as the issue's arranger is Standard Chartered Bank while BDO Capital & Investment Corp., BDO Private Bank, BDO Securities Corp. and Standard Chartered Bank will serve as selling agents.

A long-term negotiable time deposit is similar to a regular time deposit except for its maturity of at least five years. It is negotiable during its life, a feature which is not available for a regulator time deposit.

It is also an alternative form of investment to deposit products and government securities. It carries a spread over the 91-day Treasury bill rate and is covered by insurance from the Philippine Deposit Insurance Corp.

A long-term time deposit may be negotiated as prices are posted daily by an independent market maker. It is available to both corporations and individuals with investable funds of at least P100,000 and can comply with some deposit requirements.

It is primarily offered through selling agents and subsequently sold through authorized market makers and the specified coupon or interest every three months during the life of the investment According to Banco de Oro, banks issue these instruments to lengthen the maturity profile of their deposits and match fund their long- term assets.

The Bangko Sentral ng Pilipinas has authorized the bank to issue a total of P5 billion long-term negotiable time deposit. The bank's first series of issuance, totaling P2.1 billion, was issued on June 1, 2005.

[obelix]

Eileen A. Mencias
The Manila Standard

Banco de Oro Universal Bank (BDO) has assumed the P6.8 billion loan extended by Philippine Deposit Insurance Corp.(PDIC) to United Overseas Bank Philippines (UOB).

In a disclosure to the stock exchange, Banco de Oro (BDO) said PDIC has restructured the subject loan and has now dropped to P4.4 billion.

UOB obtained a P6.8 billion loan from PDIC after it took over Westmont Bank in 1999, which it then renamed to UOB Philippines. BDO said it is entitled to the loan since it assumed the deposit liabilities of the 66 branches it acquired from UOB last year, which were the same branches that belonged to Westmont Bank.

With the sale, UOB will convert itself into a thrift bank, mostly handling consumer deposits and residential mortgage loans.

The UOB loan is equivalent to the deposit liabilities assumed by BDO. UOB completed the sale of 66 of its total 67 branches in the country to BDO last month.

BDO has been the most aggressive domestic bank, having acquired several banks in the past two to three years including First e-Bank and the local operations of Banco Santander.

Banco Santander was the only bank it bought that was not experiencing difficulties.

When BDO bought First e-Bank some years back, they were given a P10 billion financial assistance by the PDIC. The interest rate on the package for First e-Bank was at 1 percentage point over the 91-day treasury bill rate and had a maturity of 20 years.

There have been concerns over the mounting financial assistance extended by PDIC that were financed mainly through loans from the BSP. PDIC’s loans from the Bangko Sentral ng Pilipinas has run to over P80 billion. PDIC is the single biggest borrower of BSP and account for over 60 percent of BSP’s loan portfolio.

One of the criticisms on PDIC’s rehabilitation of banks was that it has accepted questionable and problematic nonperforming assets as security for the rehabilitation loans that may not be realized in the future.

[obelix]

Ma. Elisa P. Osorio
NegosioMundo


Banco de Oro Universal Bank removed the intangible assets when it computed for Equitable PCI Bank's worth thus resulting in a relatively low valuation for the bank, an insider said.

In an interview, a ranking official of Equitable PCI said Banco de Oro President Nestor V. Tan attended Equitable PCI's executive committee meeting yesterday.

After the meeting, the official said Mr. Tan briefed Equitable PCI's board members with the method used to reach the valuation that 1 Equitable PCI stock is equivalent to 1.6 Banco de Oro stock.

Banco de Oro last Friday proposed a "merger of equals" between the two banks through a share-swap. It is to be the surviving entity. Mall magnate Henry Sy has substantial interest in both banks.

In his briefing, Mr. Tan said Banco de Oro wanted the comparison to be "apples to apples" or "solid to solid." This means Banco de Oro considered only tangible assets when it computed for Equitable PCI's value. Intangibles, such as goodwill, were removed from the equation, Mr. Tan's presentation stated.

BusinessWorld tried to get in touch with Mr. Tan who sent a text message saying he is out of the country and will be available for interview when he returns.

The Equitable PCI source said Mr. Tan's offer remains the biggest bone of contention in the merger proposal.

Social Security System's representative to the Equitable PCI board, Fulgencio S. Factoran, Jr., said he believes the offer of Banco de Oro is a jump-off point for negotiations. "It's probably not the final offer," he said.

For his part, Equitable PCI Chairman Ferdinand Martin Romualdez said the proposal of Banco de Oro must be studied thoroughly. He said it is most unusual that the smaller bank will be the surviving entity. He said the board will meet next week to discuss the offer.

Yesterday, the bank held an executive committee meeting. The group was
supposed to discuss the proposed merger. However, since the members of the
board have yet to discuss the matter, the meeting was adjourned immediately.

Banco de Oro shares were last sold for P35.50 per share while Equitable PCI was last sold at P61.50 per share.

Meanwhile, there will be no leadership change in Equitable PCI Bank amid talk that the Sy group, one of the biggest stockholders in the country's third largest lender, wants top man Rene J. Buenaventura replaced.

"You can bet on it," board director Mr. Factoran told BusinessWorld when asked if Mr. Buenaventura will stay on as president.

Mr. Factoran, who represents the 25.8% stake of the Social Security System (SSS), belied reports that the Sy group has been bullying other shareholders who have a smaller stake in the bank.

He said Teresita Sy, the group's representative in the bank, has been "very fair."

The government, through SSS and another state-owned pension fund Government Service Insurance System, controls around 38% of the bank. Together with the Romualdezes, who own 10%, they have in the past voted on the same side regarding bank issues. The Sy group owns 27.2% of Equitable PCI.

[miner]

Banco de Oro Shares Fall as Lender May Pay More for Equitable
2006-02-21 23:04 (New York)


By Jun Ebias
Feb. 22 (Bloomberg) -- Banco de Oro, owned by Philippine
retail tycoon Henry Sy, fell for the first day in five on
concerns the lender may pay a higher price for additional shares
in bigger rival Equitable PCI Bank.
Social Security System President Corazon de la Paz, 64, was
yesterday elected chairman of Equitable, replacing Ferdinand
Martin Romualdez. Her appointment was supported by stockholders
including Banco de Oro, Romualdez said. That raised speculation
de la Paz will agree to the merger between the two banks.
``The shareholders want a higher price for their Equitable
shares,'' said April Lee-Tan, head of research at
Citiseconline.com in Manila. ``There is a concern that Banco de
Oro may agree to a higher price.''
Banco de Oro and SM Group, both controlled by Sy, own 34
percent of Equitable. Sy, the nation's richest man according to
Forbes magazine, has been trying to buy Equitable since 2004 and
plans to merge it with Banco de Oro.
Shares of Banco de Oro fell 1.4 percent to 34.50 pesos at
11:23 a.m. in Manila. Social Security is a government-owned
pension fund which owns 29 percent of Equitable and is the
second-biggest shareholder next to the Sy group.
Banco de Oro, the nation's No. 7 lender by assets, on Jan.
6 offered 1.6 of its shares for every share of Equitable in an
offer that lapsed on Jan. 31. Banco de Oro President Nestor Tan
said yesterday that the offer still stands.
Shares of Equitable, the nation's third-largest lender by
assets, were unchanged at 64 pesos.
De la Paz said yesterday that Social Security is still
studying Banco de Oro's offer. De la Paz on Sept. 28 said Social
Security wants a higher price for its Equitable stake than what
was agreed between the fund and Banco de Oro in 2004.
The fund in January 2004 agreed to sell its stake to Banco
de Oro for 43.50 pesos a share. The agreement was suspended
pending a ruling on whether its terms were disadvantageous to
beneficiaries of Social Security.
Government Service Insurance System, another state-owned
pension fund that has a 12.4 percent stake in Equitable, is
interested in selling its holdings. The fund on Jan. 25 said it
will auction its Equitable stake for at least 92 pesos a share.

[cbdude]

try: buy @ break 34.5 target 39

[camel]

await unwind of dots at ac awhile

then rotate to bdo and bpi

in alphabetical order

[cbdude]

tough nut to crack huh 34.5. let c.

[camel]

guess wala na chance gtc bid ko sa 33

[camel]

MAyBe there's still a chance for my GTC@33

[camel]

I adjusted gtc bids

MAkipot sellers dito

dobol cross in-house lang luMAlabas

[cbdude]

bos C adjusted upward?

target still holds ..

banking yummy

[camel]

bini-bitin pa M&A ni Winston e

tanggapin nalang bayad and respect the MAjority opinion

baka MAiwan pa sa minority; take the money and move forward to the next deal

[miner]

pakipot lang yan Boss Camel


Bibigay din yan sa huli


Tatang will never buy it at 92 (over my dead body daw) :wink:

[diaph]

I think nobody will it at 92!