PRESS DIGEST - Philippine newspapers - May 25

MANILA, May 25 (Reuters) - These are the leading stories in Manila newspapers on Monday. Reuters has not verified these stories.

- The Philippines recorded its second case of the new H1N1 virus, a 50-year old Filipino woman from Chicago who flew into the Philippines on May 20. (ALL PAPERS)

- President Gloria Macapagal Arroyo ordered the Department of Finance to scrap taxes on imported books and reading materials after the tax policy drew criticism from various sectors and lawmakers. (THE PHILIPPINE STAR, BUSINESSMIRROR)

- The House of Representatives committed to approve a new agrarian reform bill and the proposed reproductive health measure before it goes on recess on June 6. (BUSINESSWORLD)

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BUSINESS

- The Lopez family and businessman Manuel Pangilinan have thwarted a takeover attempt on Manila Electric Co (MER.PS) (Meralco) ahead of the annual stockholders' meeting by acquiring enough shares and soliciting shareholders' proxies to nominate five directors to Meralco's 11-member board, sources said. (PHILIPPINE DAILY INQUIRER)

- Aboitiz Power (AP.PS) is investing as much as 17 billion pesos ($361 million) for the rehabilitation of three power facilities, which are expected to shore up the company's generating capacity. (PHILIPPINE DAILY INQUIRER)

- A central bank official has warned economic growth could slow to 1.5 to 2 percent this year unless the government steps up pump-priming efforts. (THE PHILIPPINE STAR, BUSINESSWORLD)

($1 = 47.04 Philippine pesos)

(Reporting by Karen Lema)