SingTel and Ayala let share option deadline slip: could still buy Globe

11 Aug 2003

Deutsche Telekom’s June offer for its 24.8% stake in Filipino mobile operator Globe Telecom closed today, although Singapore Telecommunications (SingTel) and Ayala Corp both decided to let an option to buy the shares pass them by. The German giant is struggling to reduce its crippling debt pile and had hoped the two companies, which each hold 25% of Globe, would come in for the additional shares. Despite the setback industry watchers think that SingTel and Ayala are still obvious candidates for the deal. Singtel has been criticised for overpaying for its international interests and could be biding its time to secure a more favourable deal from Deutsche Telekom.

Philippines