The 53-year-old businessman and son of the founder of Indonesia's Sinar Mas Group, Oei Ek Tjong, bought 40.54 million NatSteel shares for nearly S$80 million (US$45 million) at prices between S$1.93 to S$2.00 each from October 8-10, according to a statement filed with the Singapore Exchange on Friday.

His average price works out to be S$1.968 a share, which is higher than a S$1.93 cash offer made by investment group 98 Holdings, led by Singapore hotel magnate Ong Beng Seng.

It was not clear whether Oei intends to mount a bid for NatSteel, whose steel operations in China make it an attractive target, or he is hoping to make a quick trading profit.

Last week, Ong's 98 Holdings -- backed by government investment firm Temasek Holdings and other private investors -- made the S$1.93 per share cash offer for NatSteel.

NatSteel already has a management buyout offer from Crown Central Assets Ltd, led by company president Ang Kong Hua, that values the assets of the group at about S$1.90 per share.

The director of 98 Holdings, David Ban, told Reuters that Oei has not been in contact with his company.

"Our bid is still there. We see value in NatSteel," Ban said.

Ang, NatSteel's president, declined to comment.

"It could be a three-corner fight," said Yang Sy Jian, research head at UOB Kay Hian. "It can only be good for minority shareholders. Mr Oei could be positioning for a competitive bid."

Yang said, with NatSteel's net tangible asset value at S$2.50, there was ample room for even higher bids.

SHARES SURGE

NatSteel shares jumped four percent to S$2.08, a level not seen since May 2000, before closing 2.5 percent higher at S$2.05. NatSteel was the seventh most active counter with 9.6 million shares changing hands.

Oei's entry further heated up speculation of a bidding war, which prompted the shares to surge to nearly two-and-a-half-year highs this week.

"He is a dealmaker. It looks like he will be buying more shares," said Victor Lim, a fund manager at Pointworth Management Ltd, which manages US$100 million.

Oei was in the news last year when he bought one million shares in takeover target Keppel Capital at S$3.42 each a day after OCBC Bank launched a bid. He walked away with a profit of about S$230,000 when OCBC completed the takeover.

Oei, who was then a director at OCBC Finance, subsequently sued OCBC for comments suggesting he broke a directive governing share purchases during the takeover. He dropped the matter earlier this year after OCBC apologised.

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