PHILIPPINE TELEPHONE FIRM PLANS STOCK SPLIT
The Philippine Long Distance Telephone Co
<PLDT.MN> is planning a two-for-one stock split and a 20 pct
stock dividend later this year to reduce excess market
buoyancy, Vice-President Sennen Lazo told Reuters.
    Lazo said the stock split would reduce the par value of the
company's common stock from 10 to five pesos.
    He said the stock split would apply to holders of about 18
mln common shares of stock on the record date of September 15
1987. "The exercise should make our stock more marketable," Lazo
said. "Now it is beyond the reach of many small investors."
    PLDT common stock surged from a low of 37 pesos in February
1986 to 367.50 at close of trading yesterday on the Manila
Stock Exchange.
    Lazo said the 20 pct stock dividend, payable on October 15,
would also apply to stockholders on record as of September 15.
    PLDT reported 1986 net income of 1.89 billion pesos, up 68
pct from 778.9 mln pesos in 1985, on operating revenues of six
billion pesos, up from 4.7 billion pesos in 1985.
    At end December 1986 the company had 417,100 stockholders.
    A PLDT spokesman said the company's profits are likely to
be substantial since the government raised its franchise tax to
three pct from two and to impose a 35 pct corporate income tax
from which it was previously exempt.
    The government has not so far ordered the implementation of
the tax decision.
    PLDT is the largest of 58 telephone companies in the
Philippines. On December 31 1986 the company had 856,014
telephones in operation, representing 94 pct of all instruments
in the country.
    In Manila item "Philippine Telephone firm plans stock split"
please read in page 3, first para, "the company's profits are
likely to be substantially cut" (inserting dropped word). This
replaces  "the company's profits are likely to be substantial"
