PRESS DIGEST - Philippine newspapers - May 12

MANILA, May 12 (Reuters) - These are the leading stories in Manila newspapers on Monday. Reuters has not verified these stories.

- The president of the state pension fund Government Service Insurance System, Winston Garcia, plans to buy out the Lopez family and other shareholders in Manila Electric Co MERB.PS and divide the firm's concession to promote efficieny and transparency. (PHILIPPINE DAILY INQUIRER)

- Libya has approved the government's request for it to lead the International Monitoring Team in place of Malaysia, which has started its gradual pullout of peace monitors in Mindanao. (THE PHILIPPINE STAR)

- Oil companies are set to increase pump prices by 7 pesos ($0.16) per litre over the next few weeks as global prices hit a record high above $126 per barrel over the weekend. (MANILA STANDARD TODAY)

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BUSINESS

- The government said gross domestic product likely grew close to 7 percent in the first quarter of the year, almost the same as last year, due to strong agriculture production and the robust manufacturing sector. (MANILA STANDARD TODAY, BUSINESSWORLD, THE MANILA TIMES)

- India's third biggest pharmaceutical firm, Dr. Reddy's Laboratories, is expected to enter the 76 billion pesos Philippine market through a distribution deal that will take advantage of government policy allowing the entry of cheaper medicines. (BUSINESSWORLD)

- Aboitiz Power Corp (AP.PS) is setting aside 10 billion pesos for investments in new power plants starting this year until 2011. (PHILIPPINE DAILY INQUIRER, MANILA STANDARD TODAY)

($1 = 42.48 pesos)

(Reporting by Karen Lema)