MANILA, Philippines - Shares in GMA Network Inc. fell sharply to hit six-month lows after the media company's talks with the PLDT Group, which sought to buy a controlling stake in it, broke down.
GMA lost as much as 9.5% in early trade on Thursday while its Philippine Deposit Receipts fell nearly 11% after it said shortly before the market opened that the talks failed. The non-voting PDR is equal to one share of the issuer.
The Philippines' main share index was up 1.2% while Philippine Long Distance Telephone Co (PLDT) gained nearly 1%.
GMA, which operates television and radio networks and produces films, has made a 37 percent gain this year on speculations about the acquisition price.
"The parties have been unable to arrive at mutually acceptable terms despite the continual discussions and efforts exerted in good faith," GMA and PLDT said in separate disclosures.
The local media reported in July that MediaQuest, in which PLDT Retirement Fund has a stake, was moving closer to a deal to acquire control of GMA at an estimated price of P52.5 billion ($1.3 billion). MediaQuest owns a GMA rival network, TV5.
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