Another bidding war is supposedly in the making between the two groups allegedly responsible for the 275% increase in the price of Meralco (MER) during the last 7 months.
The latest battlefront: Philex Mining Corporation (Stock Code: PX).
In just one week, the price of PX has ballooned by 36%, closing today (August 11) at P10.75.
Look at the recent 3 trading days’ price increase of PX:
- August 7: Closed at P9.00; up 13.9% from previous trading day
- August 10: Closed at P9.90; up 10.0%
- August 11: Closed at P10.75; up 8.6%
In the past 3 months, the price of PX has already risen by 108%.
The current price of P10.75 is even more than the original price of PX prior to the price adjustment due to stock dividends in March 2008.
This is also getting close to the peak price of PX (around P11-12) during its heydays in late 2007.
The surge in price is said to be caused by the same two blocs fighting for a majority stake in Meralco a few weeks ago.
Bloomberg reported that Ramon Ang of San Miguel Corporation confirmed that Social Security System offered him its 22% stake in PX.
First Pacific, with PLDT’s Manny Pangilinan, is said to be bidding for the same block of shares.
If the bidding war continues, we can expect the price of PX to rise further. Will we see another Meralco-like 275% price increase here?
We’ll watch. And trade.