The recent buzz on a looming boardroom battle for control of the Manila Electric Co. (Meralco), with businessman Manuel V. Pangilinan warming up in one corner, was a rosy news for traders on Thursday.

Meralco shares zoomed wildly, gaining P13 to P105 by midday before closing up 21.7 percent or P20 at P112, a level last seen in July 2007. The stock, one of the top gainers and the most actively traded, has soared about 78 percent since the start of the year.

A total of 10.92 million Meralco shares worth about P1.1 billion changed hands on Thursday. Trading in the stock accounted for almost 40 percent of total turnover. Data from the Philippine Stock Exchange showed some 7.27 million Meralco shares worth P743.18 million were bought from the open market and brokered by Macquarie Securities.

Analysts said apart from some public investors rushing to buy the stock, a party was continuously accumulating Meralco shares.

Media reports have come out that Pangilinan, chairman of Philippine Long Distance Telephone Co. (PLDT), has already gobbled up a 6 percent stake in Meralco, signaling a likely boardroom war at the power utility.

Meralco said in a statement on Thursday it was not in a position to confirm the reports.

Pangilinan told reporters on Wednesday Meralco's fiber optic network in Manila is used by PLDT for its phone network.

"We have a relationship with Meralco now, our wires are on their poles," he said.

The 30-company composite index rose 38.38 points or 2 percent to 1,924.30.

The broader all-share index climbed 21.40 or 1.8 percent to 1,233.84.

Index heavyweight PLDT jumped P35 or 1.5 percent to P2,310. With a report from Reuters