Thailand says wants satellites back, but how?

BANGKOK, Feb 19 (Reuters) Thailand's military-appointed government vowed today to reclaim satellites and possibly other assets sold by ousted Prime Minister Thaksin Shinawatra's family to Singapore, but said it was unsure how to do it.

''Getting them back, that is definitely what we want to do. But the question is how?,'' Communications Minister Sitthichai Pookaiyaudom told a Bangkok radio station.

He said a government committee would study options to buy back Shin Corp assets sold to Singapore's state investment firm Temasek in 2006. The sale fuelled street protests that led to Thaksin's removal in a bloodless coup.

Bangkok has zeroed in on five satellites controlled by Shin Corp subsidiary Shin Satellite Pcl which coup leader Sonthi Boonyaratglin said he wants back as a matter of national security.

Sonthi has accused Singapore of using Shin assets, including Thailand's biggest mobile phone operator AIS, to monitor military phone calls. AIS and Shin Satellite have denied eavesdropping.

Sitthichai said Shin Satellite's market capitalisation of 10 billion baht was cheaper than a bid for the group.

''If we buy Shin Corp we will get AIS, but Shin Corp's market price is very high,'' he said, estimating its market value at 100 billion baht.

Sitthichai said the government would move quickly but carefully to ensure ''foreign investors and foreigners do not feel that we are against them''.

TEMASEK UNWILLING But the uncertainty drove Shin Corp shares down more than 7 percent today, while Shin Satellite ended up 0.71 percent.

''Shin Sat is a money-making unit. If it's taken back, the growth opportunities for Shin Corp are cloudy,'' said Warut Siwasariyanon, head of research at Globlex Securities.

There is no indication Temasek is willing to sell any Shin assets, even though the paper value of its investment has dropped by nearly half.

But that may not be necessary if a Thai probe finds that the Singaporean firm violated foreign ownership laws.

Shin Satellite's operating licence could be revoked if investigators concluded it was a foreign-owned company, Sitthichai said.

Temasek executed the Shin deal through a complicated web of Thai holding companies, one of which, Kularb Kaew, may have broken rules against foreign companies using local ''nominees'' to skirt a 49 percent limit on foreign ownership.

''If it is proved to be foreign, it would be illegal and can be revoked. There are many available legal options,'' he said.

According to Thai stock exchange data, Shin Corp holds 41.3 percent of Shin Satellite with the remaining shares controlled by Thai and foreign investors.

Temasek has declined to comment on the satellite controversy, but Singapore's Foreign Ministry has asked Bangkok to clarify Sonthi's statements, which have won favour with Thais.

A Dusit opinion poll released on Sunday found more than 78 per cent of 1,116 people surveyed backed Sonthi's bid to reclaim Thai assets from Singapore.

This latest spat came hard on the heels of a diplomatic dispute between the two Southeast Asian countries in January over a meeting between the exiled Thaksin and a Singapore minister.

That resulted in Bangkok's cancellation of an invitation to Singapore Foreign Minister George Yeo, saying the city state ought to have been sensitive to the Thai government's feelings.

Singapore said the private meeting had nothing to do with politics.

REUTERS AKJ PM1655