Ms Chew Gek Khim's Tecity investment group cranked up its initial bid price of $5.70 by 80 cents, or 14 per cent, to $6.50.

Tecity's new offer - described as a 'gutsy move' by one observer - was in response to a dramatic intervention on Thursday when OCBC Bank's Lee family offered $5.76 for Straits Trading. That was six cents above Tecity's initial offer of $5.70 lodged early this month.

Tecity's rapid reaction yesterday impressed one market observer: '[They] must have had it all planned, to be able to respond so quickly.'

Another observer said the new offer was a strong response to the Lee family's entrance into the fray: 'It's a strong message that is being sent. The Tan family are serious about taking control of the company.'

It also confirmed what shareholders already suspected - that a bidding war was in the offing.

Last Friday, the day after the Lee family's surprise offer, Straits Trading shares hit an intra-day high of $6.11 before closing up 18 cents at $5.89.

Read the full story in Tuesday's edition of The Straits Times.