SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 

 

FORM 6-K

Report of Foreign Private Issuer 

 

Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934

 

 

**For the month of October 2006**
 

 

**Commission File Number 1-03006**

 

 

Philippine Long Distance Telephone Company
(Exact Name of Registrant asSpecified in Its Charter)

 

**Ramon****Cojuangco Building**

**Makati Avenue**

**Makati****City**

**Philippines**

(Address of principal executiveoffices)

 

 

(Indicate by check markwhether the registrant files or will file annual reports under cover Form 20-For Form 40-F.)

 

Form20-F      Ö                                  Form40-F

 

 

(Indicate by check markwhether by furnishing the information contained in this Form, the registrant isalso thereby furnishing the information to the Commission pursuant to Rule12g3-2(b) under the Securities Exchange Act of 1934.)

 

Yes                                                        No       Ö

 

 

(If "Yes" ismarked, indicate below the file number assigned to the registrant in connectionwith Rule 12g3-2(b): 82- ________ )
****
 

 

NOTE REGARDINGFORWARD-LOOKING STATEMENTS

 

Some information in this report may containforward-looking statements within the meaning of Section 27A of the U.S.Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of1934.  We have based these forward-looking statements on our current beliefs,expectations and intentions as to facts, actions and events that will or mayoccur in the future.  Such statements generally are identified byforward-looking words such as “believe,” “plan,” “anticipate,” “continue,” “estimate,”“expect,” “may,” “will” or other similar words.

A forward-looking statement may include astatement of the assumptions or bases underlying the forward-lookingstatement.  We have chosen these assumptions or bases in good faith.  Theseforward-looking statements are subject to risks, uncertainties and assumptions,some of which are beyond our control.  In addition, these forward-lookingstatements reflect our current views with respect to future events and are nota guarantee of future performance.  Actual results may differ materially frominformation contained in the forward-looking statements as a result of a numberof factors, including, without limitation, the risk factors set forth in“Item 3. Key Information – Risk Factors” in our annual report on Form 20-Ffor the fiscal year ended December 31, 2005.  You should also keep in mind thatany forward-looking statement made by us in this report or elsewhere speaksonly as at the date on which we made it.  New risks and uncertainties come upfrom time to time, and it is impossible for us to predict these events or howthey may affect us.  We have no duty to, and do not intend to, update or revisethe statements in this report after the date hereof.  In light of these risksand uncertainties, you should keep in mind that actual results may differmaterially from any forward-looking statement made in this report or elsewhere.

 
 

 

**EXHIBITS**
 

 

 

Exhibit Number

 

Page

 

1

 

A copy of the disclosure letter we sent today to the Philippine Stock Exchange and the Securities and Exchange Commission regarding the news article entitled “PLDT says to up dividend payout to 70% in 2007” published in the 
** **

   
 October 18, 2006 issue of the BusinessWorld.

 

 

4

 

Exhibit 1

 

 

 

October 18, 2006

 

 

SECURITIES &EXCHANGE COMMISSION

CorporationFinance Department 

SEC Building, EDSA

Mandaluyong City

 

Attention:        DirectorJustina F. Callangan

                        CorporationFinance Department

 

Gentlemen:

 

Re       :           PhilippineLong Distance Telephone Company

                        SECRegistration No. PW-55

 

In compliance with Section17.1(b) of the Securities Regulation Code and SRC Rule 17.1, we submit herewithfive (5) copies of our letter dated October 18, 2006 to the Philippine StockExchange, Inc. regarding the news article entitled“PLDT says to up dividend payout to 70% in 2007” which appeared in today’sissue of the BusinessWorld.

 

 

Respectfully yours,

 

 

/s/Ma. Lourdes C. Rausa-Chan

MA. LOURDES C. RAUSA-CHAN

Corporate Secretary

 

MLCRC:amq

Page 1 of 4

  Encs.

Exhibit 1

 

 

SECURITIESAND EXCHANGE COMMISSION

 

SEC FORM 17-C

 

CURRENT REPORTUNDER SECTION 17

OF THE SECURITIES REGULATION CODE

AND SRC RULE 17.1

 

 

1.                 October 18, 2006 

(Date of earliest event reported)

 

2.                 SEC Identification Number  PW-55

 

3.                 BIR Tax Identification No. 000-488-793

 

4.                 PHILIPPINE LONGDISTANCE TELEPHONE COMPANY                                            

            Exactname of issuer as specified in its charter

 

5.         PHILIPPINES                                                  6._____________ (SEC Use Only)  

            Province, country or otherjurisdiction    Industry Classification Code

of Incorporation

 

7.         Ramon Cojuangco Building, Makati Avenue, Makati City            1200 

     Address of principal office                                                         PostalCode

 

8.         (632)816-8553; 816-8556                                 

Issuer's telephone number, including area code
 

9.         NotApplicable                                                               

            Formername or former address, if changed since last report

 

10.            Securities registered pursuant to Sections 8 and 12 ofthe Securities Regulation Code or Sections 4 and 8 of the Revised SecuritiesAct

 

 

            Titleof Each Class                            Number of Shares of Common Stock

          Licensed and Amount of Debt Outstanding

 

Page 2 of 4

  Exhibit 1

 

 

 

11.            Item 9 – Other Events

 

            Attachedhereto is a copy of our letter to the Philippine Stock Exchange, Inc. (“PSE”)dated October 18, 2006 in connection with the news article entitled “PLDT saysto up dividend payout to 70% in 2007” which appeared in today’s issue of theBusinessWorld

 

SIGNATURE

 

 

            Pursuantto the requirements of the Securities Regulation Code, the Issuer has dulycaused this report to be signed on its behalf by the undersigned hereto dulyauthorized.

 

 

 

 

PHILIPPINE LONG DISTANCE

TELEPHONE COMPANY

 

 

/s/ Ma. Lourdes C. Rausa-Chan

MA. LOURDES C. RAUSA-CHAN

Corporate Secretary

 

 

 

Date:  October 18, 2006

 

Distribution Copies:  5copies – Securities & Exchange Commission

                        1copy    - Philippine Stock Exchange

                                    1copy    - Company Secretary

 

Page 3 of 4

  Exhibit 1

 

October18, 2006

 

ThePhilippine Stock Exchange

DisclosureDepartment

4thFloor PSE Centre

Exchange Road, Ortigas Center

Pasig City

 

Attention:Ms. Jurisita M. Quintos

Senior vice President

 

Gentlemen:

 

We refer to the letter ofAtty. Pete M. Malabanan, Head-Disclosure Department, dated October 18, 2006,requesting confirmation of the information contained in the news articleentitled “ PLDT says to up dividend payout  to 70% in 2007, “ published in theOctober 18, 2006 issue of the Business World, as quoted below: 

 

         “SINGAPORE – Philippine Long Distance Telephone Co.(PLDT), the country’s most valuable firm, plans to raise its dividend payout to70% of core earnings in 2007, it said on Tuesday. ‘Funding is not a constraintright now, ‘PLDT President Napoleon Nazareno told Reuters on the sidelines of aconference here. We have a good level of yearly free cash flow, about $800million for the entire PLDT group. Most likely we are enhancing our dividendpayout to 70% of core earnings in 2007,’ he added. x x x”

 

Weadvise that PLDT is targeting to increase its dividend payout in 2007 to 70% ofits core earnings.  For 2006, PLDT is committed to pay common dividendsrepresenting 60% of its core earnings per share, of which an interim dividendper share of P50.00 was already paid in September 2006.

 

ThePLDT Group continues to generate strong free cash flows which are sufficient tosupport the Group’s internal requirements as well as dividend paymentcommitments to shareholders. While our free cash flow may vary from time totime due to a number of factors including capex and working capital requirements,we estimate that the annual free cash flow being generated by PLDT Group to beapproximately US$700 – US$800 million per year.  

 

Respectfullyyours, 

 

/s/Ma. Lourdes C. Rausa-Chan

MA.LOURDES C. RAUSA-CHAN

CorporateSecretary

 

Page 4 of 4

   

 Signatures

 

 

Pursuantto the requirements of the Securities Exchange Act of 1934, the registrant hasduly caused this report to be signed on its behalf by the undersigned,thereunto duly authorized.

 

 

 

PHILIPPINE LONG DISTANCE

TELEPHONE COMPANY

 

 

 

By        :     /s/ Ma. Lourdes C. Rausa-Chan Name  :     Ma. Lourdes C. Rausa-Chan

Title     :     Senior Vice President, Corporate

                  Affairs and Legal Services Head 

                  and Corporate Secretary

 

 

 

 

 

 

 

Date:October 18, 2006