SINGAPORE : There continues to be speculation that Temasek Holdings will buy a controlling stake in Thai telecoms group Shin Corp.

According to a Reuters newswires report quoting banking sources in Singapore, Temasek will pay less than 50 baht a share and the transaction is likely to be completed through a series of cross-trades.

When contacted by Channel NewsAsia, Temasek declined to comment.

Market talk has been rife that Temasek will buy a 49 percent stake in the Thai telecoms group for US$2 billion from the family of Thai Prime Minister Thaksin Shinawatra.

Shin Corp and the Prime Minister have denied the rumours more than once, but on Thursday the talk gained some credence.

Bank of Thailand Governor Pridiyathorn Devakula was asked to comment on the strength of the Thai baht, which hit its highest level in nine months against the US dollar.

He said the strength was due partly to inflows related to an impeding major transaction in shares of Shin Corp. - CNA /ct