SINGAPORE, April 5 (Reuters) - Temasek's [TEM.UL] $3.8 billion acquisition of Thailand's Shin Corp was looking costly as well as controversial on Wednesday as the Singapore state firm faced a loss of over 20 percent on its investment.

A decision by the family of Thai Prime Minister Thaksin Shinawatra to sell Temasek its 49.6 percent stake without paying tax on the gain fuelled street protests in Bangkok, forcing an early election and leading to Thaksin's resignation on Tuesday.

Shares in telecoms conglomerate Shin have fallen since the deal was struck, leaving Temasek and two majority-owned Thai holding companies sitting on a paper loss of over $850 million on their holding, which was 96 percent as of March 14.

Temasek spokeswoman Eva Ho declined to comment on whether any provisions would be made for the financial year that ended on March 31 -- Friday of last week.

If they just sit on the shares long enough the price will come back up, but I agree:

A couple of friends have told me there's a' buy back' clause in the contract whereby if Temasek suffer losses due to a public backlash in terms of a boycott they can sell back to Thaksin.

Is it possible there could be such a clause?

SINGAPORE, April 5 (Reuters) - Temasek's [TEM.UL] $3.8 billion acquisition of Thailand's Shin Corp was looking costly as well as controversial on Wednesday as the Singapore state firm faced a loss of over 20 percent on its investment.

A decision by the family of Thai Prime Minister Thaksin Shinawatra to sell Temasek its 49.6 percent stake without paying tax on the gain fuelled street protests in Bangkok, forcing an early election and leading to Thaksin's resignation on Tuesday.

Shares in telecoms conglomerate Shin have fallen since the deal was struck, leaving Temasek and two majority-owned Thai holding companies sitting on a paper loss of over $850 million on their holding, which was 96 percent as of March 14.

Temasek spokeswoman Eva Ho declined to comment on whether any provisions would be made for the financial year that ended on March 31 -- Friday of last week.

Som nam bl00dy naa. And waen kham.

A couple of friends have told me there's a' buy back' clause in the contract whereby if Temasek suffer losses due to a public backlash in terms of a boycott they can sell back to Thaksin.

Is it possible there could be such a clause?

Financial market rumour, saying that thaksin is leaving for UK to clears up the paper loss with temasek. Since the takeover, there are still fund bring withhold by temasek.

According to business news report, shin corp. would have to bear whatever unforeseen circumstance if the shares transfer is not success as stated in one of the clause.

Edited April 6, 200620 yr by Thaising