MNB Case Digest: Manila Prince Hotel vs. Government Service Insurance System (GSIS)
Manila Prince Hotel vs. Government Service Insurance System (GSIS) FACTS: The controversy arose when respondent Government Service Insurance System (GSIS) to sell 30% to 51% of the issued and outstanding shares of respondent Manila Hotel Corporation through public bidding as part of the Philippine government's privatization initiative under Proclamation No. 50. The winning bidder, or the eventual "strategic partner," is to provide management expertise and/or an international marketing/reservation system, and financial support to strengthen the profitability and performance of the Manila Hotel . Only two (2) bidders participated: petitioner Manila Prince Hotel Corporation, a Filipino corporation, which offered to buy 51% of the MHC or 15,300,000 shares at P41.58 per share, and Renong Berhad, a Malaysian firm, with ITT-Sheraton as its hotel operator, which bid for the same number of shares at P44.00 per share, or P2.42 more than the bid of petitioner. The GSIS declared Re...