NOW Corp. mulls lawsuit vs acting DICT chief
NOW Corp. could file charges against acting Department of Information and Communications Technology (DICT) chief Eliseo Rio over allegedly “reckless” remarks that caused the listed firm’s share price to plunge.
Affiliate NOW Telecom Co., Inc. has questioned fees imposed by the government for the third telco search and Rio last week said that P1 million paid by NOW for selection documents “may have significantly cost NOW Telecom’s mother company, NOW Corp., of its operational income which only stood at P6.3 million in 2017.”
Miguel Lopez, NOW Corp. investor relations head, called the statement “false” and “malicious.”
“NOW Corp. has assigned its lawyers to study the damages of the reckless statements and the immediate filing of cases,” he said.
Lopez claimed that Rio’s statement had hurt the company’s share price, which fell by 31 percent on October 10 to P5.15 through the rest of last week.
NOW Corp. slightly rebounded on Monday, closing up 4.81 percent or 27 centavos to end at P5.88.
Rio told reporters that he was ready to answer a lawsuit but said that it was NOW Telecom’s move that had “caused the drop.”
He rejected a suggestion to file a countersuit, saying: “The people are punishing them enough. We don’t have to do anything.”
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