MANILA, Philippines ? The country?s richest man has just upped the ante in the race to control Manila Electric Co., the Philippines? largest power retailer.

Henry Sy is willing to pay a hefty premium for the Lopez family?s remaining 13.4 percent stake in Meralco?a block that is also hotly eyed by the group of Manuel V. Pangilinan.

The tycoon?s eldest son Henry Sy Jr. confirmed Friday that he had submitted an offer to the Lopezes to acquire their remaining shares in Meralco.

Sy did not reveal the offer price, but Inquirer sources said the tycoon?s family was willing to buy the Lopez shares for P300 apiece, or near Meralco?s highest close for the year.

Shares worth P44.22B

The Lopez family?s remaining 13.4 percent stake in Meralco is equivalent to about 147.4 million shares.

At P300 a share, the block may be worth about P44.22 billion.

?The plan reflects our confidence in the future prospects of the power sector in general, and Meralco in particular. Our offer price represents a fair market value for such assets,? said the younger Sy, who is president of Triratna Holdings Corp., the firm seeking to make the acquisition.

It was earlier announced that the Lopezes would only sell half of its stake in the power distributor. But the Sy family appears to be bent in securing the entire block and is willing to pay top price for Meralco.

The offer of the tycoon?s son represents a 59-percent premium to yesterday?s closing price of Meralco at P188 a share.

The Sy group is allied with food-to-power conglomerate San Miguel Corp., which is in the middle of a battle with Pangilinan?s group for control of Meralco.

Right of first refusal

But even if the Sy family were to acquire the entire stake, the Pangilinan-led group would still have the right of first refusal on the shares in the power retailer.

This means that Pangilinan still has the option to match Sy?s offer.

According to sources privy to the negotiation, Sy?s offer is much higher than the price Pangilinan has in mind in acquiring the Lopez stake.

If Pangilinan?s group were to match Sy?s offer, it would be obliged to buy out all other shareholders at the same hefty price of P300 apiece.

Balance of power

If Pangilinan would not match the offer, the balance of power in Meralco would tilt in favor of San Miguel Corp. and the Sy family, analysts said.

At present, Pangilinan?s group currently controls 34.7 percent of Meralco through Philippine Long Distance Telephone Co. (20 percent) and infrastructure holding firm Metro Pacific Investments Corp. (14.7 percent).

With its bid, the Sy family has become the thorn in the side of the Pangilinan group, which was earlier reported to be nearing a deal to acquire an additional 6.7-percent stake in Meralco from the Lopezes.

San Miguel owns a 27-percent voting block in Meralco. Another group perceived to be allied with San Miguel, Global 5000 Investments Inc., owns at least another 7 percent of the power retailer.

?It?s now up to who wants it more,? said Joseph Roxas, president of local stock brokerage Eagle Equities Inc.

Too expensive

At P300 a share, Roxas said, ?it will be very expensive to buy out everyone else at that price.?

?I guess Meralco is attractive to these investors because of the fact that it has strong cash generation now,? said Conrado Bate, president of online stock brokerage CitisecOnline.

According to Inquirer sources, the Sy family is being advised on this transaction by Stephen CuUnjieng, formerly a senior adviser at Macquarie and now with investment bank Evercore Partners.

The 13.4-percent Lopez stake in Meralco is under First Philippine Holdings Corp.