The price of Shin Corp stocks collapsed yesterday, a day before the tender offer linked to Temasek Holdings' controversial takeover is due to be completed.

Shin shares fell to Bt44 - a far cry from the public tender price of Bt49.25 - on investors' nervousness about uncertainty over the outcome of the deal.

The Shin Corp price plunged to Bt42 before rebounding to Bt44, a sharp fall of 8 per cent from its close on Tuesday. The SET index also tumbled by almost 2 per cent yesterday to end at 723.86 over growing concern about the political turmoil.

Kiatnakin Securities' assistant vice president Wiriya Lappromrat-tana blamed the sharp fall in stock prices on investors' mounting concern over local protesters' demand for Temasek - Singapore's state investment agency - to pull out of the Shin deal.

"Although tomorrow [Thursday] is the last day for the tender offer, those who have yet to proceed with the tender-offer process, which would take more than one day, rushed to unload the Shin Corp shares on panic selling. They are also concerned about the uncertainty of the deal," she said.

Local activist groups that are part of the People's Alliance for Democracy have called on the Singapore government to halt the Temasek takeover - or face a boycott of Shin products and services. They have condemned the deal as a sell-off of state assets by Prime Minister Thaksin Shinawatra and his family.

A group of about 20 protesters, led by Prathin Vekhawatayanont, rallied yesterday in front of the Singapore Embassy amid tight security from police, calling for Temasek to pull out of the deal.

And today Somsak Kosaisuk, a key member of the People's Alliance for Democracy, will head to the Singapore Embassy to get an official response from the Singapore government. They then plan to stage a protest in front of the Stock Exchange of Thailand.

Saree Ongsomwang, secretary-general of the Foundation for Consumers' Protection, said yesterday: "We expect to get a response from the Singapore ambassador on the Shin Corp deal tomorrow. We hope that we'll get their cooperation because we have informed them that the businesses of Shin Corp do not belong to the prime minister's family but are also public assets of Thailand.

"If Singapore fails to respond to our request, we will go ahead and boycott all services or products of any businesses in which Singaporean companies own more than 25 per cent of the stocks."

Cedar Holdings and Aspen Holdings, controlled by Temasek Holdings, are due to complete their joint public tender for all shares of Shin Corp today in Thailand's largest takeover deal ever, which values Shin Corp at about Bt150 billion.

The cheques for the tender will be handed out on Tuesday. However, rallies calling for Thaksin to resign have had a spill-over effect on the Shin Corp deal, causing panic among retail investors that the takeover might fall through.

"I'm quite stressed now since I'm not sure whether Temasek will cancel the tender offer or not after all the anti-Thaksin rallies and a threat of a boycott of all Shin Corp services," said one retail investor, who holds a chunk of the Shin stocks. She did not want to be named.

"I always make a wish that nothing happens until the close of a tender offer. I know some people may think I'm quite selfish, but what would they do if they were in my situation? My friends have advised me to keep cool because I cannot do anything," she added.

"To be fair, if the protesters ask Temasek to drop the deal, they should also ask Temasek to cancel the deal with the Shinawatra and Damapong families. However, I'm not sure whether Temasek has this agreement or not. Otherwise, only minor shareholders will feel the pain," she said.

Saree, of the Foundation for Consumers' Protection, led a group of 30 protesters calling for a boycott in a protest staged outside the Shinawatra 3 Building, where Advanced Info Service, ITV and the Thai Rak Thai Party have their offices. The group read out a statement calling for Thaksin to resign unconditionally because of his abuse of power. They vowed to boycott all Shin Corp's related services - from AIS, SC Asset, CS Loxinfo, Capital OK and SC Matchbox to Howcome Entertainment.

The group also applied pressure on the Charoen Pokphand Group, Suriya Jungrungreankit's Summit Group, the Mahakitsiri Group, the Maleenont Group and Dr Surapong Suebwonglee - to withdraw their support of the prime minister - or it would campaign for a boycott of their businesses.

Saree broke an AIS mobile-phone sim card as a symbolic protest. Her group plans to hand out 100,000 copies of a manual about the boycott of products and services related to or owned by people who support Thaksin. The manual will be distributed nationwide today if Singapore fails to quit the Shin deal. 

Finance Reporters

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