Company director Chanin Donavanik said yesterday: "We would like to inform you that the due diligence has been completed. However, the management of the company and a major shareholder of Pacific Assets were unable to conclude the negotiations on certain details such as potential related tax issues etc.

As a result, the company is no longer pursuing the deal."

Pacific Assets told the Stock Exchange of Thailand (SET) that it had already learned that Dusit Thani's acquisition plan would not be pursued.

Earlier, the hotel chain had reportedly wanted to acquire more than 50 per cent of Pacific Assets from a major shareholder, who wanted to sell out at a price of Bt7-Bt9. Ayudhya Securities is the financial adviser for the deal.

Pacific Assets operates hotels, serviced apartments and office buildings. It is planning to build a hotel on Samui later this year, but the project has not yet been finalised.

As of April 5, Natural Park Plc held 63.40 per cent of Pacific Assets, UOB Kay Hian Private owned 10.77 per cent, while Finance Life Assurance, Bangkok Bank and SP Tower accounted for 2.92 per cent, 2.69 per cent and 2.22 per cent, respectively.

Shortly after the SET removed the "H" (halt) sign from Pacific Assets' stock in yesterday's late morning trading session, its price fell sharply by 10.57 per cent to Bt4.74. Dusit Thani was unchanged at Bt53.

Meanwhile, SET executive vice president Suthichai Chitvanich said the stock exchange has launched a probe into whether investors used confidential information ahead of the public disclosures for their own gain.

The move came after Pacific Assets' shares plunged nearly

21 per cent from Bt6.70 at the

close on August 22 to Bt5.30 on Monday.

If the SET finds evidence of insider trading it will forward the case to the Securities and Exchange Commission for further investigation, Suthichai said.

Pacific Assets also reported that its board has approved extending the terms of purchase with right of land and building redemption with Corner Management for three months to November.

The company earlier allowed its wholly owned subsidiary, Pacific Phuket, to negotiate with Corner Management about entering into a joint venture and/or purchasing Corner Management's hotels.

Pacific Assets in the second quarter swung back to a net profit of Bt52.72 million from a Bt92.2-million net loss in the same quarter last year.

Siriporn Chanjindamanee

The Nation