Temasek raised its offer price late Thursday for UOB's 49 percent stake in United Overseas Land to S$2.26 (US$1.31) a share after its initial bid of 2.06 was rejected two days earlier.

Wee, who is UOB's chairman and chief executive, said he had rejected Temasek's original offer because it was "too cheap", although analysts also point out that giving up his stake to Temasek would loosen his grip on UOB.

UOL and two other Wee-linked firms hold stakes in UOB in a complicated cross holding structure that allows the 75-year-old banker and his family to control more than 20 percent of the bank.

Wee has until May 28 to decide whether to accept Temasek's latest offer, although media reports suggest the price war may eventually push the selling price to as high as $2.60 a share.

Alternatively, Wee could distribute his stake in UOL to UOB shareholders, thus ensuring Temasek can not grab hold of it and the associated board power in the bank.

Wee is Singapore's richest banker and the island's third richest individual, according to Forbes Magazine, which estimates his personal fortune at US$2.2 billion.

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