PRESS DIGEST - Thai newspapers - December 26

BANGKOK, Dec 26 (Reuters) - These are some of the leading stories in Thai newspapers on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.

TOP STORIES

- The People Power Party is on the verge of forming the next government by bringing aboard Ruam Jai Thai, Chart Pattana, Matchima Thipataya and Pracharaj parties, which will give the coalition 254 parliamentary seats out of 480 (THE NATION)

- The People Power Party's fears came true when three elected PPP candidates in Nakhon Ratchasima were yellow-carded on suspecion of cheating at the polls (BANGKOK POST)

- Deposed Prime Minister Thaksin Shinawatra said he wanted to return to Thailand in February and called for reconciliation with the military (BANGKOK POST)

- Political and business leaders warned Thaksin against interfering with the political and judicial systems after he announced his plan to return to Thailand in the near future (THE NATION)

- The Criminal Court sentenced publisher Sondhi Limthongkul to three years in jail on charges of defaming Thaksin and dragging the monarchy into politics. The court refused to suspend the sentence (BANGKOK POST)

- Despite the assurance by the military junta that there will not be another coup, one could still happen, Chulalongkorn University military affairs expert Surachart Bamrungrak said (THE NATION)

- The influx of aid agencies and recovery projects in tsunami-struck communities in the six Andaman coastal provinces has helped villagers get back on their feet, but has also had some negative impact, researchers say (BANGKOK POST)

BUSINESS

- Thai stocks surged 3.65 percent as investors welcomed the successful polling results even as it remains uncertain who will form the next government (BANGKOK POST)

- A worsening oversupply is expected soon to create a major price-cutting war in Thailand's electrical appliances market, with all players involved in cut-throat competition (THE NATION)

- Eastern Thailand may face water shortages within five years unless additional resources can be made available to meet growing demand, the Industry Ministry said (BANGKOK POST)

- The national telecoms regulator has postponed the introduction of its second master plan from this month to next year's second quarter, so it can see the new government's telecom policy (THE NATION)

- PTT Exploration and Production ((PTTE.BK) said it would invest 286.9 billion baht ($8.5 billion) in the next five years expanding domestic natural gas output and seeking fields overseas (BANGKOK POST)

- The economic slowdown in the United States has prompted American importers to focus more on cheaper goods and this is expected to put pressure on Thai garment exporters (THE NATION)

($1=33.7 Baht)

** Looking for more information from local sources? Factiva.com has eight Thai sources including the Bangkok Post and Business Day.