Philippine National Bank (PNB)

[Mr. Banker]

Sandiganbayan rules business tycoon’s wealth not ill-gotten

AFTER almost 25 years of litigation, the Sandiganbayan has ruled that the assets of business tycoon Lucio Tan are not part of the ill-gotten wealth of former President Ferdinand Marcos.

In a 156-page decision dated June 11, the anti-graft court’s Fifth Division threw out the petition filed by the government, represented by the Presidential Commission on Good Government (PCGG), to forfeit Tan’s assets for lack of evidence.

The court said that the PCGG failed to show proof that Tan’s vast wealth came from the government. It pointed out that the evidence presented by the PCGG were hearsay and the documents submitted were merely photocopies, not original documents as required under the Best Evidence Rule.

The Sandiganbayan blamed the government for failing to present evidence to prove its claim that Tan’s wealth were owned by the Marcos family.

The decision written by Associate Justice Roland Jurado, Chairman of the Sandiganbayan’s Fifth Division, said that there was no showing that Tan collaborated with the Marcoses to build his empire of businesses. Associate Justices Teresita Diaz-Baldos and Alex Quiroz concurred with the decision.


http://www.manilatimes.net/index.php/ne ... -lucio-tan

[spitzserfun]

Thanks for the updates Mr. Banker. Mukhang malapit na ang news. Do you think its ok to add more now near the 70s level or it could still dip?

[Mr. Banker]

Thanks for the updates Mr. Banker. Mukhang malapit na ang news. Do you think its ok to add more now near the 70s level or it could still dip?

The possibility of dips will always be there given the nervous behavior of investors each time there is bad news coming from Europe or US, friend Spitzserfun. What I am fully convinced though is PNB will be worth more than 85 if the merger happens...and I believe it would. Though I am already above my self-imposed allocation for this position, I usually can't resist the temptation to add each time there are big drops.

[Davinci]

I am also buying the dips here. Significant position already but not yet full.

D

[Luckypick]

Macq and UBS are clearly accumulating. Thanks for posting the info on PCGG Sir Banker. Am buying on dips too

[Mr. Banker]

Happy to be in the company of friends, Davinci and Luckypick.

Here is the latest statement from the Lucio Tan camp:

PNB, Allied Bank must now merge’
Posted June 14th, 2012 by Manila Standard Today

FOLLOWING is the statement of Estelito P. Mendoza, counsel of businessman Lucio C. Tan, on the case of his alleged ill-gotten wealth:

“The dismissal of the ill-gotten-wealth complaint by the Sandiganbayan instituted by the PCGG in 1987, after nearly 25 years of litigation before the Sandiganbayan, should put to rest any claim that the assets of Lucio C. Tan have been acquired through illegal means.

“It is Dr. Tan’s hope that with this decision of the Sandiganbayan, the PCGG will relent in its effort to lay claim to Dr. Tan’s assets and in restricting the exercise of full rights over those properties.
“The PCGG sequestered nearly all of Dr. Tan’s shares of stock in the major corporations he controls in 1986. In 1993 and 2006, the Sandiganbayan nullified the writs of sequestration of those shares on the ground that there was not even a prima facie foundation to consider them as ill-gotten wealth. The nullification of the sequestration of those shares was affirmed by the Supreme Court in 1996 and 2007.

“With the decision of the Sandiganbayan on the merits of Civil Case No. 0005, the illegality of the limitation by the PCGG of the exercise of the rights of Dr. Tan over his assets through the years has received confirmation.

“Unfortunately, notwithstanding such explicit resolutions by the courts, firstly, the nullification of the writs of sequestration, the denial of motions for the issuance of writs of attachment and now the dismissal of Civil Case No. 0005, the PCGG continues to limit the exercise of Dr. Tan over his properties, the latest being its opposition to the merger of Allied Bank and Philippine National Bank simply because the Allied Bank shares of stock of Dr. Tan are among the alleged ill-gotten wealth of Dr. Tan are the subject of Civil Case No. 0005. He trusts that with this decision of the Sandiganbayan, the Central Bank, the PDIC and the SEC will see their way clear to expeditiously give their respective approval to the merger of Allied Bank and PNB. The delay has not only been prejudicial to the stockholders but to the banking system and the economy of the country.”

(Published in the Manila Standard Today newspaper on /2012/June/14)

[Mr. Banker]

Meanwhile, here is an earlier news item that presents Moody's expectations once the merger has been accomplished:

'Merger with Allied is credit positive for PNB'
ABS-CBNnews.com
Posted at 03/12/2012 3:46 PM | Updated as of 03/12/2012 6:17 PM

MANILA, Philippines - New York-based Moody's Investors Service said the long-planned merger of Philippine National Bank (PNB) and Allied Banking Corp. is a credit positive for PNB.

PNB and Allied, both Lucio Tan-controlled banks, are set to be merged by the end of June this year. The merger will be executed via a share-for-share swap, leaving PNB as the suviving entity.

Moody's analyst Simon Chen said the new shares issued under the swap will boost PNB's capitalization and loss-absorption capacity. PNB's domestic and international franchise, funding mix and profitability will be strengthened with Allied's existing branch network and customer base.

"The merger will expand PNB’s distribution network by over 320 branches to more than 750 branches and offices. In particular, it will enhance the bank’s physical presence in the significant markets of Metro Manila and Luzon, thereby increasing its deposit-gathering opportunities and improving its funding mix. Also, the bank will be able to leverage Allied’s overseas operations to strengthen its remittance business and income stream," he said.

Chen said post-merger, PNB will see a slight increase in its customer loan-to-deposit ratio to 53% from 49%. But this compares favorably to the industry average of 66%.

PNB and Allied were the sixth- and 12th-largest banking groups in the Philippines by assets, as of end September 2011. After the merger, they would form the 5th largest banking group with estimated market share of 6% of system loans and 8% of system deposits.

Last week, shareholders of PNB and Allied approved the revised terms of the banks'
merger.

PNB executive vice president and chief financial officer Carmen Huang earlier said the bank expect P1 billion in cost savings once operations of the banks are fully integrated in about 18 months.

[spitzserfun]

Thanks a lot Mr Banker. Exciting na. Madami ng balita. Mukhang malapit na talaga merger kaya di na bumababa ng 70. Tomorrow pa plan ko mag-add. Hope meron pang below 70.

[moisture888]

Good news coming in...exciting. Lapit na end of June.

[Mr. Banker]

Looks like difficult already to add below 70...

[Luckypick]

Up in a down day. Something is brewing here na talaga. Looks like this will survive the coming Greek Storm

[Mr. Banker]

I wonder what it was that the consultant suggested? Change in name???


Biz Buzz: A billion per letter
By: the staff
Philippine Daily Inquirer

Philippine National Bank, once the country’s largest in terms of assets, has hired a big-time foreign consultant to work on a rebranding program.

The bank, after all, will soon merge with sister firm Allied Banking Corp. and celebrate its centennial in 2016.

But the Singapore-based consultant had proposed certain changes that PNB’s controlling shareholder, tycoon Lucio Tan, found unpalatable.

Some insiders said the suggestions were so radical that the tycoon couldn’t help but mouth something to this effect: “You know how much I had invested in PNB? As many letters as there are in its name.” (There are 22 letters in its fully spelled out name.) Ergo, he wanted everything left as is.

The junking of the consultant’s suggestions (which of course didn’t come free) doesn’t mean, though, that PNB isn’t working hard to regain its former glory in the banking industry. Under the leadership of PNB president Eugene Acevedo, who assumed the post a year ago, branches are being spruced up, the consumer and middle-market lending portfolios being beefed up to boost recurring earnings, and more idle assets being unloaded.—Doris C. Dumlao

[surfer]

friend banker, nice story

new name : PAlaBan ?

what a lousy poren brand consultant
si uncle Lucio, mahilig yan sa companies na may name na Philippines
may bragging rights siya sa mga poren prens niya

pd. just bot more pnb because of this chismis