The Philippine rum maker Tanduay Holdings Inc, announced today that it expects its net income this year to rise to 500m pesos ($10m) from last year's Peso421.45m.  And the San Miguel competitor also confirmed it had no plans to sell a stake in the company.

Despite the positive projections, net income in the first quarter was likely to be lower than the same year-ago period, the company said.

"Tanduay projects a net income of 500 million for the year 2002," the company said in a statement.

"Although the results of operations for the first quarter were still lower than last year's figures, the company expects sales to pick up in the second semester (second half)."

The president of San Miguel, Ramon Ang, which owns Tanduay rival Tondena, announced last month that it was interested in making a local acquisition, which fuelled speculation the two producers were in talks.

When asked about the rumours Nestor Mendones, Tanduay vice president and chief finance officer said: "As far as I know, there have been no formal offers to buy the company."