First Philippines Holding Corp., yesterday claimed that the Lopez Group will not participate in the bidding of the government’s stake in Manila Electric Co.

Oscar M. Lopez, FPHC chairman, said FPHC has 33.4 percent of Meralco and has no intention of buying more shares.

"We will continue to do what we have been doing, operating the company to the best of our ability" Lopez said.

Last year, the Lopez group increased its stake in Meralco from 18 percent to 33.4 percent after buying out Union Fenosa’s 9 percent stake in Meralco for about $250 million and the 6.6 percent stake of Meralco Pension Fund.

FPHC previously said the company might tap a foreign partner to acquire the government holding.

Finance secretary Margarito Teves said that the government will push through with the sale this year, and that the auction will be open to any interested bidder including the Lopez Group.

The Government Service Insurance System (GSIS) controls 23 percent of Meralco, building up from 10 percent early in the year.

Meanwhile, Elpidio Ibañez, FPHC president, said that the FPHC power generation subsidiary First Gen Corp., plans to sell its shareholdings in Red Vulcan Holdings Corp., which recently acquired the government’s 60-percent stake in PNOC-Energy Development Corp. (PNOC-EDC).

He added said that the company targets to sell a yet to be specified number of shares in the said company by the third quarter of this year.

He said that several groups have already expressed interest in the FPHC’s proposed move and will be conducting "their own due diligence process."

PNOC-EDC is the country’s largest geothermal energy producer and largest provider of onshore drilling services