By Roderick T. dela Cruz

San Miguel Corp. confirmed yesterday its plan to buy into Express Telecommunications Co., which is seeking a re-entry into the mobile phone business.

?We advise that San Miguel Corp. is still in discussions in relation to the acquisition of Express Telecommunications Co. and investment in Liberty Telecom Holdings Inc. No definitive agreement has been reached as regards the proposed acquisition and investment,? San Miguel told the Philippine Stock Exchange.

The food and beverage conglomerate, which has begun to diversify into other industries, made the clarification following reports quoting San Miguel president Ramon Ang that the company wants to establish a strong presence in the highly lucrative telecom business through Liberty and Extelcom.

The Lopez group, through Marifil Holdings, however, is contesting the current ownership of Extelcom, now controlled by Trans Digital Excel Inc., a creditor-turned-shareholder with which San Miguel is reportedly in talks.

Trans Digital Excel, an institutional investor, gained a majority interest in Extelcom, through negotiations with Millicom Cellular S.A., one of the original shareholders in Extelcom.

Shares of the Lopez group in Extelcom were diluted when the Securities and Exchange Commission approved the conversion of Extelcom?s debt into equity of under a court-supervised rehabilitation plan.

Lawyer Plaridel Bohol II of Trans Digital said Bayan Telecommunications Inc. of the Lopez group in its proposal merely wanted to use Extelcom?s assigned frequencies ?in a scheme that does not really aim to revive Extelcom as a viable business concern.?

Bohol claimed that BayanTel had long given up on Extelcom and allowed its stake to be diluted due to its unwillingness to put in more capital to pay P9 billion in debts.

Bohol said while BayanTel kept on opposing the Extelcom?s debt-to-equity conversion, it never took any steps to help pay off millions of the company?s debts to the National Telecommunications Commission, Bureau of Internal Revenue and other regulators.

He claimed that in 1999, BayanTel wrote off its interest in Extelcom by setting up a 100 percent provision for loss in the value of its investment, citing significant losses that raised doubt on Extelcom?s ability to continue operations.