UPDATE 1-Bank of Ayudhya buys GE Capital units in Thailand

* To spend $400 mln to buy GE's Thai financial businesses

* Subject to shareholder approval on Aug. 20 (Adds details)

BANGKOK, July 10 - Thailand's Bank of Ayudhya <BAY.BK>, 33 percent owned by a unit of General Electric <GE.N>, said on Friday it would spend 13.7 billion baht ($400 million) to acquire stakes in GE's financial businesses in Thailand from GE Capital.

Thailand's fifth-largest bank told the stock exchange its board approved the plans, which included the acquisition of GE Capital (Thailand) and General Card Services, which operate personal loan and credit card businesses.

The acquisition is subject to approval by shareholders at a meeting on Aug. 20, the statement said, adding KT ZMICO Securities <ZMICO.BK> was financial advisor for the deal.

In February, the bank bought two consumer finance businesses from American International Group Inc <AIG.N> for 2.06 billion baht and said it expected to buy more retail banking businesses.

Bank of Ayudhya has an aggressive target of increasing consumer loans to half its lending by 2010. The AIG acquisitions boosted its consumer loan portfolio to 36 percent.

As of May, it had 713 billion baht in assets and 497 billion baht in loans.

At 0315 GMT, its shares were down 0.71 percent at 14 baht, in line with the main Thai index <.SETI>, which was down 0.75 percent. ($1=34.06 Baht)