MANILA - The share price of the country's largest power distributor continued to soar to record-highs on Wednesday on speculation that one of its 2 key shareholders would offer to buy the other out, setting off a tender offer.

Manila Electric Co. (Meralco) shares rose 8.3% or P22.50 to P295 each at the end of trading Wednesday, the best level since the power retailer's shares were first sold to the public in 1992.

This lifted the Philippine Stock Exchange (PSE) index by 34.653 points to 2,803.39, the highest since June 2, 2008, when the key index closed at 2,839.29.

Meralco's 2 largest owners are diversified conglomerate San Miguel Corp. (SMC) and telecommunications giant Philippine Long Distance Telephone Co. (PLDT). Earlier, SMC President Ramon Ang said PLDT Chairman Manuel V. Pangilinan offered to acquire the company's stake in Meralco through an asset swap, which the latter denied.

The Pangilinan-led PLDT Group—in an alliance with the Lopez family who controlled Meralco for decades—dominate the power distributor's board and management with a combined 47% stake. SMC and its allies, on the other hand, reportedly cornered up to 43%.

Any buyout of at least a 35% of Meralco would entail a tender offer, as provided under the Securities Regulation Code. (SRC). For purchasing a considerable block of a listed company, the SRC requires the buyer to offer the same purchase price and terms to all stockholders.

The mandatory offer aims to prevent juicy deals among and between major stockholders, in the process discriminating minority shareholders who are excluded from the chance to also sell their investments at a premium.

Meralco, meanwhile, refused to comment on the said issue. "Meralco is not in a position to comment on speculation about the company or any action taken by its shareholders," it told the PSE in a letter on Wednesday. With a report from Agence-France Presse