telcos Philippine Long Distance Telephone Co. and could face a heavypenalty regarding a joint acquisition deal it made with , The Manila Times reported July 10.

In lateMay, SMC agreed tosell Vega Telecom to PLDT and Globe for $1.5 billion, with both companiestaking a 50% stake. But according to the Philippine CompetitionCommission, the telco buyout is "not deemed approved." The regulatorreportedly warned both parties that completing the deal before the PCCconcluded its review could make them subject to penalties.

The reportcalculated the possible fine as ranging from 691 million to 3.46 billionPhilippine pesos.

PLDT andGlobe claim that they notified the PCC a day before the approval of the finalimplementing rules and regulations of the Philippine Competition Act.

The PCC ismandated by law to review and evaluate M&A that are worth at least 1billion Philippine pesos.

As of July 8, US$1 was equivalent to 47.13Philippine pesos.