THAI ready for privatization

BANGKOK (AFP): Thai Airways International (THAI) on Monday cleared the first hurdle on the road to its long-awaited privatization, receiving the green-light on plans to sell 400 million shares from the state enterprises policy committee, officials said.

Committee chairman and Deputy Prime Minister Supachai Panitchpakdi said the plan called for the sale of 300 million new shares and 100 million old shares held by the Finance Ministry. The plan was put forward by THAI advisors, including Credit Suisse First Boston, he said.

Supachai said it would now be submitted to cabinet for approval, either at a weekly meeting Tuesday or next week. He said the share sale was expected to begin over the next three months, given cabinet approval.

According to the advisors, the 400 million shares should be sold to a strategic partner and to general investors, while the Finance Ministry should maintain a stake of at least 70 percent.

Speculation has been rife in the media here in recent months over reported talks between THAI and a range of potential partners world-wide.