UPDATE 1-PLDT forges deal to raise Manila Electric stake

* Lopez clan sells half of its Meralco stake for $471 mln

* Deal raises PLDT group's Manila Electric stake to 41.4 pct

* Deal is via loan, call option exercisable until March 2010

(Adds company statement, background)

By Rosemarie Francisco

MANILA, Nov 5 (Reuters) - The PLDT group (TEL.PS) forged a $471 million deal on Thursday for a 6.7 percent stake in Manila Electric Co (Meralco) (MER.PS), edging out rival San Miguel Corp (SMC.PS) and cementing its control over the utility.

First Philippine Holdings (FPH.PS), the holding firm of the Lopez business clan, said it had agreed to sell 6.7 percent -- half of its holdings -- in Meralco to Metro Pacific Investments Corp (MPIC) (MPI.PS), an affiliate of the PLDT group.

The deal gives PLDT a direct stake of 41.4 percent in Meralco and with First Holdings voting with the group, it will effective controls 48 percent of the power retailer.

The Lopez clan said for now it would hold on to the remainder of its shares in Meralco, which are equivalent to one board seat.