PLDT increases satellite stake offer

PLDT increases satellite stake offer

MANILA (AFP): A consortium led by the Philippines' dominant
carrier, along with its Indonesian and Chinese partners, has
offered rival telecommunications firms an increased stake in a
satellite it plans to launch in 1996, an official said yesterday.

Philippine Long Distance Telephone Co. (PLDT) and Indonesian
partners PT Telkom and Pacific Satelit Nusantra and China's
Everbright Group Ltd. have offered "a sizable increase" to the
Agila consortium, said Communications Undersecretary Josefina
Lichauco.

A report from the official Philippine News Agency (PNA) said
PLDT upped its initial seven percent offer to Agila to 30 percent
equity.

The Agila consortium, which also includes PLDT, had earlier
planned to launch the country's first satellite by December 1996
with the government's blessing, but PLDT said it formed another
consortium because the Agila group would not be able to
immediately secure the orbital slots needed for the launch.

Over the past few weeks, the two consortia have been engaged
in a series of meetings to resolve the rival bids.

Agila has charged that the PLDT-led group, known as Consortium
B would "compete" with its satellite.

PLDT however, is asking Agila for US$26.2 million as "finder's
fee" to compensate its efforts, and an additional $2.6 million to
be paid to the satellite's major holders, the PNA report said.

"Whether that is palatable to the other group, it's for the
members (of Agila) to discuss," Lichauco said.

She added the final equity divisions still had to be worked
out.

"Our responsibility is making sure the two consortia act as
one team," Lichauco said, upholding the government's stand that
the Philippines launch only one satellite, considering the
competition from other birds in the Asia-Pacific and global
markets.