SHARE prices of Manila Electric Co., the country?s largest power retailer, rose to their highest level in more than eight months amid speculation that its two main shareholders will increase their holdings as they compete for control of the utility.

Meralco advanced 4 percent to P65.50 at the close yesterday, the highest since May 22. The stock is the fifth-biggest gainer in the main Philippine Stock Exchange Index, which climbed 2.4 percent.

San Miguel Corp.?s chairman Eduardo Cojuangco and three of his nominees were elected last month to Meralco?s board after the country?s largest food and drinks maker and an ally group agreed to buy about 34 percent of the utility.

Manuel Lopez, whose family?s First Philippine Holdings Corp. controls about 33.4 percent of Meralco, stayed on as the utility?s chairman.

?There?s strong anticipation that the fight for Meralco is far from over,? said Astro del Castillo, managing director of First Grade Holdings Inc., a Manila-based investment advisory firm.

?San Miguel has always indicated it wants to be in the driver?s seat in its major investments, and the Lopezes aren?t expected to just roll over and give it all up.?

Meralco also named last month Jose de Jesus, former chief of the Lopez family?s toll-road venture, as its president. San Miguel Corp.?s chief finance officer, Ferdinand Constantino, was given the same post in Meralco.

?It?s clear that the arrangement now is a compromise,? Del Castillo said.

?This distribution may change if any of the group is able to increase their holding by the time Meralco holds its annual stockholders? meeting.? Bloomberg