MANILA – San Miguel Corp. president Ramon Ang admitted losing profits on the company’s investment in Philippine Airlines.
The loses on profits occurred despite moves on turning around the moribund flag carrier for two years that the conglomerate was running the firm.
“SMC lost money in this deal,” Ang said, adding that the conglomerate also failed to break even on its PAL venture because of failing to recover its cost of fund.
He also said that he was also willing to let go of the negotiation with Lucio Tan following possibilities of the process to be turning hostile.
This is due to the frustrations coming from both sides along with the unstable decisions made by PAL’s former owner.
“If we fought over it, it would destroy the value of PAL,” he said, adding that adopting a hardline negotiating stance would result in a “lose-lose” situation for both sides and eventually erode the value of both tycoons’ holdings. “So I agreed to sell.”