Apparent second thoughts by Citic Resources Holdings about bidding for a controlling stake in Thai Petrochemical Industry strengthens the likelihood that a consortium led by Thai state oil and gas conglomerate PTT will complete the take-over of the debt-burdened company unimpeded.

Prachai Leophairatana, TPI's founder and former controlling shareholder, announced last month that he was teaming up with Citic to buy the 75 per cent stake of TPI held by the company's creditors. The bid was seen as a last ditch effort by Mr Prachai, who built south-east Asia's largest integrated petrochemical complex, to thwart a PTT takeover of the business.