PSE Circular for Brokers No. 2800-99

November 3, 1999 PSE CIRCULAR FOR BROKERS NO. 2800-99 SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. October 28, 1999 Date of Report (Date of earliest event reported) 2. SEC Identification Number 21817 3. BIR TIN 321-000-530-631 4. PHILIPPINE TELEGRAPH AND TELEPHONE CORP. (PT&T) Exact name of registrant as specified in its charter 5. Metro Manila, Philippines Province, country or other jurisdiction of incorporation 6. (SEC Use Only) Industry Classification Code: 7. Spirit of Communications Centre, 106 C. Palanca Jr., St., Legaspi Village, Makati City 1229 Address of principal office 8. (632) 818-0511 to 25 Registrant's telephone number, including area code 9. N/A Former name or former address, if changed since last report. 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding and Amt. of Debt Outstanding Common stock P 1.00 par value 799,998,728 11. Indicate the item numbers reported herein: Item 9: Other Events (a)(1)(F) Item 9 . Other Events Please be informed that the news item published in Business World on October 08, 1999 re: "PT&T employees threaten to strike" is a gross exaggeration and erroneous reportage. The facts surrounding this report are as follows: Immediately following the June 1999 joint annual strategic management conference of Phil. Telegraph and Telephone Corp. (PT&T) and Phil. Wireless, Inc. (PWI) both operating companies of the RETELCOM Group, internal announcements were made to implement a major cost containment strategy. Among other interventions, this initiative reorganized the support service units of Finance, HR, Administration and Information Technology into a single, shared set of manpower and material resources that will serve the requirements of the group. By sharing such resources that are common across the group in what can effectively called a "functional merger," it is hoped that resources are maximized and savings realized will allow the organization to channel resources into more effective and efficient ways to market and sell our services. This way of reorganizing was called "shamrock," following the concept of a flower that has multiple blooms relying on the support of a single stem. The shamrock objective is clear: to remain competitive in this global environment and to send a clear signal to our creditors that we are determined to bring down our operational expenses and channel savings towards repayment of our loans and into new revenue-generating programs. LexLib Despite open, transparent dialogues with all employees and union officers, the latter filed a notice of preventive mediation at the National Conciliation and Mediation Board (NCMB) last September 23, 1999 for the purpose of clarifying the reorganization program. To date, management representatives have had four meetings so far with the union officers in the presence of an NCMB Conciliator / Mediator during which each of the questions posed by the union are directly addressed. SIGNATURES Pursuant to the requirements of the Revised Securities Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PHILIPPINE TELEGRAPH & TELEPHONE CORPORATION Registrant By: (SGD.) LUCIE QUIDATO BANTOLINO SVP- Asst . Corporate Secretary