Name: Reyenna Lonica S.

Ralutin Year and Section: BSBA

3D
Subject: CSR MGT 4C
MODULE 3
Mini-Case 1
1. What are the implications of PLDT move to acquire digital?
 All consumers will be benefit from improved services a as result of the PLDT-
Digitel merger. PLDT stated that their combined expertise will result in a more
capable telecommunications company that will provide high quality and a broader
range of services ranging from voice, SMS, data, internet and video.

2. Two effects of Gokongwei’s failure in its bid of PLDT.

 PLDT would take over majority control of Gokongwei-led Digital
Telecommunication Philippines Inc.
 Digital parent Company JG summit holdings would give up a 51.55 % stake in
Digital in a share- swap deal that would give it 12.8 % stake in PLDT.
Mini-case 2
Debt vs Equity Holders
Companies obtain their funds from two sources: debt and equity. The providers of their funds
are protected in different ways. Debt holders have specific contracts with the company, and if
the company defaults, they have recourse ahead of shareholders.
Shareholders are the bearers of residual risk and in return for the uncertainly this creates,
equity finance is more expensive than debt finance – reflecting the risk premium and risk
appetite of the shareholders. But, because the shareholders come last and it is not clear what
they are entitled to, they operate in conditions of an incomplete contract.
Question;
If the shareholders position is not protected by a contract – unlike the provider of debt- how it is
in fact made viable? Discuss.
 Shareholders are people or companies that have invested time or money into a
company in return for shares in that company. I think it is a shareholders
agreement but nonetheless like a contract. The minor shareholder may seek
protection from major shareholders who are
abusing their power and the protection for majority shareholders will be determined by the
voting power and the board control of the majority.