Unusual Trading Detected In Movement Of Thaicom Shares

[webfact]

'Unusual trading' detected in movement of Thaicom shares

By SIRIPORN CHANJINDAMANEE,

WICHIT CHAITRONG

THE NATION

BANGKOK: -- Unusual trading in Thaicom shares has been detected among some stock accounts in terms of prices and volumes, Stock Exchange of Thailand president Charamporn Jotikasthira said yesterday.

He said the SET had concluded an investigation into trading in Thaicom shares over the past few months and submitted a report to the Securities and Exchange Commission (SEC).

"A decision on whether there has been any illegal trading [in Thaicom shares] will depend on further investigations by the SEC," he said.

Thaicom's share price has skyrocketed 30 per cent in recent days, with trading volume on Tuesday alone surging to Bt1.3 billion.

Following criticism that some politicians had benefited from the share-price rise, Prime Minister Abhisit Vejjajiva on Wednesday asked the securities authorities to launch an investigation.

Meanwhile, Finance Minister Korn Chatikavanij held his first formal discussion yesterday with Information and Communications Technology (ICT) Minister Chuti Krairiksh over the government's planned purchase of Thaicom.

Afterward, Korn said the government would make a decision on the purchase after four legal issues on Thaicom's concession were cleared up.

Three of the issues relate to the Supreme Court's February 26 ruling in the assets-seizure case against ousted prime minister Thaksin Shinawatra, involving his abuse of his power to benefit his family's telecom businesses. These included Shin Satellite (ShinSat), now called Thaicom.

The four "legal issues" are:

l Members of the Thaksin cabinet allowed Thaicom to change the terms of the concession contract to launch the iPSTAR broadband satellite as its main satellite rather than launch a back-up satellite for Thaicom 3 as stipulated in the contract.

l ShinSat's concession contract, amended in October 2004, reduced Shin Corp's minimum shareholding in ShinSat from 51 per cent to 40 per cent. This effectively reduced the investment burden of Shin while passing on the risks to smaller shareholders of ShinSat.

l ShinSat's violation of its concession when it used US$6.67 million - paid by insurance companies when the Thaicom 3 satellite was damaged while in orbit - to pay for satellite-rental charges instead of remitting the amount to the Transport Ministry, which was the satellite's owner under the concession contract at that time.

l An alleged breach of contract related to the April political turmoil.

Korn said the ICT Minister needed 21 days to clear up these issues.

On Monday, Chuti ordered state telecom-concession owners and ICT Ministry officials to wrap up within 21 days their investigations into which past amendments of telecom concessions by the state telecom agencies were unlawful, including those of Thaicom.

"The price for buying back Thaicom is not assessable, because some legal issues remain unclear," Korn said, adding that if the legal issues were clear, the government would be able to evaluate the real value of Thaicom.

The finance minister said he agreed with the prime minister on the purchase of Thaicom: if the price was too expensive, the government would not buy it back.

-- The Nation 2010-06-18

[bangon04]

What I find difficult to believe is that the authorities operating the SET in Thailand actually believe that we believe that the SET is operating according to international stock exchange standards.

[Rucharee]

What I find difficult to believe is that the authorities operating the SET in Thailand actually believe that we believe that the SET is operating according to international stock exchange standards.

This is the result of appointing a stock broker as a minister.

He/she sure know how to cover the track.

[ronz28]

additional info here http://www.totaltele.com/view.aspx?ID=456458&mail=280&C=3

Thai govt to conclude Thaicom stake buy plan once legal issues cleared

By Phisanu Phromchanya, Dow Jones Newswires

Thursday 17 June 2010

Issues include a potentially illegal amendment to licence and a compensation claim for damages to one of comapny's satellites.

The Thai government said Thursday it needs to resolve several legal issues before it can conclude a proposal to buy Temasek Holdings Pte. Ltd.'s stake in Thai satellite operator Thaicom PCL.

The announcement comes just days after the government first confirmed it was seeking to buy a substantial stake in Thaicom from Singapore's state-owned investment company, due to national security reasons. However, Prime Minister Abhisit Vejjajiva has said the deal will depend on pricing and other conditions.

Temasek and its subsidiaries own a combined 96.1% stake in Shin Corp. PCL--the telecommunications conglomerate founded by former Prime Minister Thaksin Shinawatra--which holds 41.1% of Thaicom's shares. Temasek's acquisition of Shin Corp.'s stake from Thaksin's family in 2006 sparked controversy. Later that year, Thaksin was thrown out of office in a bloodless coup.

Finance Minister Korn Chatikavanij said the legal issues include amendments to the concession contract that may not be legitimate, a dispute between the government and Thaicom over a $6 million compensation for damages to one of its satellites, and the launch of an iPSTAR broadband satellite that may have breached the concession contract, Korn said.

"We need to have these legal issues cleared before we can decide what exactly we are going to buy and who we need to talk to," Korn said, declining to confirm if the government is seeking to buy Temasek's stake in Thaicom or just the satellite business of Thaicom.

He was speaking to reporters Thursday after meeting with Information and Communication Technology Minister Chuti Krairiksh.

[chainarong]

How unusual! !

[Briggsy]

What I find difficult to believe is that the authorities operating the SET in Thailand actually believe that we believe that the SET is operating according to international stock exchange standards.

[Colabamumbai]

It should freeze trading of the stock immediately.

[givenall]

What I find difficult to believe is that the authorities operating the SET in Thailand actually believe that we believe that the SET is operating according to international stock exchange standards.

This is the result of appointing a stock broker as a minister.

He/she sure know how to cover the track.

It is only announced when someone of some group are disliked by government are involved, may be Thaksing gangs

[asiawatcher]

Nothing like insider even outsider trading - as the Govt leaks possible buy back and the brokers make a fortune selling up as others wait to short the stocks when the announcement is made to the contrary - all predictable. T.I.T.