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Thailand braces for Thaksin verdict

Reuters - February 26, 2010

Thousands of police and soldiers went on alert across Bangkok on Friday, ready to tackle any violence by supporters of ex-premier Thaksin Shinawatra if a court orders the seizure of $2.3 billion of his family's assets.

Authorities fear a violent backlash by anti-government protesters who have rallied behind Thaksin, a 60-year-old fugitive telecommunications tycoon at the centre of a five-year political crisis in Southeast Asia's second-biggest economy.

Security was tight around Bangkok's Supreme Court on what has become known as "Judgment Day".

Analysts expect seizure of all, or at least part of, his family's frozen wealth, keeping investors on edge after a week of strong gains in local stocks.

"We will likely have a very volatile session with investors taking direction from the ruling," Chakkrit Charoenmetachai, an analyst with Globlex Securities in Bangkok, said of Thailand's stock market.

"People believe that if the ruling is a partial seizure of the assets, any political turbulence will be small. But if it is a total asset seizure, we should expect heavy selling because of concerns of strong resistance from the 'red shirts'."

The pro-Thaksin "red shirt" movement, who forced a regional summit to be abandoned last April and staged protests that sparked Thailand's worst street violence in 17 years, plan a mass rally in Bangkok on March 14 but say they will not protest on Friday. They accuse authorities of playing up the risk of unrest.

Prosecutors say Thaksin and his former wife, Potjaman na Pombejra, concealed ownership of shares in telecoms firm Shin Corp while he was in office from 2001 to 2006, and that he abused power by tailoring policies to benefit the company. Thaksin and his family deny the charges.

Judges will begin reading the verdict at 1:30 p.m. (0630 GMT). It could take several hours before a decision on the assets is announced.

The twice-elected Thaksin is believed to be in Dubai and says he will fight any seizure of the assets.

The verdict is the latest chapter in a polarizing, colour-coded political crisis that has alarmed many investors and is showing no signs of resolution. Some analysts say another court verdict unfavourable to Thaksin, who was ousted in a 2006 coup and convicted in absentia of graft, could add weight to allegations he is the victim of a political vendetta and may spark an angry response from his supporters.

Checkpoints have gone up across the capital, with more than 600 police guarding the court. Security agencies said thousands of riot troops were on standby in case of violence.

"We believe there won't be any unrest, but officers are ready," Deputy Prime Minister Suthep Thaugsuban told reporters on Thursday.

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