Thanachart Bank Plc (TBANK), controlled by Canada’s Bank of Nova Scotia, was awarded the winner for the endured auction to acquire a controlling stake in Siam City Bank Plc (SCIB).

An official announcement is set on Feb. 4, 2010.

A news source confirmed that Thanachart has won the bidding with an offer at 31.5 baht a share, or 1.0 baht higher than its fearsome rival HSBC.

“Choosing a local bank as a winner is an excellent decision,” the news source said citing a quote from people familiar with the matter. “This would also help accelerating the deal processes.”

He said if Thanchart Bank’s representative, Thanachart Capital Plc (TCAP), win the bidding, it would double a profit record at 4.0 billion baht for the year from 2.0 billion baht a year ago.

Thanachart’s return on equity (ROE) would also increase to 11.0 percent from an annual 9.0 percent.

Analysts forecast the bank’s appropriate value should be 30.0 baht a share following the merger.