The Bank of Nova Scotia is said to be among the bidders for a stake in one of Thailand's biggest banks.

Thailand's central bank is seeking about US$1-billion for a 47.6% stake in Siam City Bank Plc, according to Bloomberg News, citing unnamed sources familiar with the matter.

Scotia, rumoured to be one of about half a dozen banks that have expressed interest in Siam City, reportedly tabled its offer jointly with its Thai subsidiary Thanachart Bank.

Hit by political unrest and a struggling economy, Thailand is seeking to bolster confidence in its financial system by removing barriers to foreign investment and encouraging more competition.

A spokesperson for Scotiabank declined to discuss the matter.

"Like any company anywhere in the world, we are always looking at opportunities for growth that fit with our strategy, but we don't comment on market rumour or speculation," said Ann DeRabbie, director of public affairs.

Over the last few months most of the major domestic banks have kicked the tires at numerous potential foreign acquisitions, though so far no major transactions have been announced.

And given recent warnings from the financial regulator that banks should maintain their capital, no such deals are expected.

Since the start of the year shares in Siam City, Thailand's seventh largest bank by assets, have soared more than 300%, compared to a rise of less than 60% at the country's SET Index over the same period.

"Everyone is looking but they're just looking," said one analyst who asked not to be named, adding he believes it is "unlikely" that Scotia will end up buying a slice of Siam City any time soon.

"I'd be kind of surprised, but we'll see," he said.

Meanwhile, shares in First BanCorp Puerto Rico jumped higher on Wednesday in the wake of reports in the local media that Scotia officials had been spotted at the bank's headquarters and looking at potentially acquiring the bank.

According to Dow Jones, Scotia picked up a 10% stake in the Puerto Rican bank two years ago in connection with a US$94.8-million private placement.

As a significant player in the Caribbean, the Canadian bank might look at buying First BanCorp as a way to increase its presence in the region.

jgreenwood@nationalpost.com