Thailand Probes Shin Sale For Insider Trading

January 25th, 2006 by admin

Thailand Probes Shin Sale For Insider Trading

Wednesday January 25, 2006, 9:23 am

DJ UK PRESS: Thailand Probes Shin Sale For Insider Trading

DOW JONES NEWSWIRES

Thailand stock market authorities have launched an investigation of possible insider trading related to Singapore state-owned investment company Temasek Holding’s (TEMAH.YY) US$1.9 billion takeover of Shin Corp. (SHIN.TH), the Financial Times reported on its Web site Tuesday.

Shin was founded by Thailand’s prime minister, Thaksin Shinawatra. On Monday, Thaksin’s family sold its 49.9% stake in Shin to Temasek.

Shin’s management, as well as Thaksin and his son have for weeks been denying knowing about a takeover being in the works, even as market chatter sent Shin’s stock price 25% higher, FT reported.

However, the culmination of the merger has renewed concerns about Thailand’s corporate disclosure rules and the government’s commitment to protect minority shareholders.

“It is just incredible that the largest deal in the history of the country can go on without an announcement. It’s a very poor comment on corporate governance,” said a Bangkok-based merger and acquisition expert, FT reported.

But lawyers involved in the deal as well as Thailand market authorities said the Thaksins had no legal obligation to disclose their intentions before selling their shares.

“This was not an action taken by the company; it was an action taken by the shareholders of the company. The fact that the shareholders were related to a public figure doesn’t change the rules,” said Edward Koehler, managing partner at Hunton and Williams, according to FT.