BANGKOK, THAILAND - A POLICEMAN died when a bomb he was carrying exploded in north-east Thailand near a house rented by a politician loyal to the ousted premier, police said on Monday, while a separate blast hit nearby.

The small bombs come as political allies of former premier Thaksin Shinawatra struggle to form a coalition government after winning last month's general elections but falling just short of an absolute majority in parliament.

The 49-year-old policeman died when the bomb exploded late Sunday in the town of Nakhon Rachasima, said police Colonel Veerawat Peungsuwan.

The policeman did not work in the district where he died, and investigators were trying to find out why he was carrying a bomb near Suporn's house, Veerawat told reporters.

Mr Suporn, who rents the house when he visits Nakhon Rachasima, said he believed the bomb was intended as retribution over a lawsuit he filed against a local businessman.

'I have no conflicts with anyone else. This businessman is the only person I have a problem with, and that case is in court,' he told Thai television.

Mr Suporn also survived a shooting last year, which he believed stemmed from another business dispute.

Mr Suporn was a senior member of Thaksin's Thai Rak Thai party.

After the coup in September 2006, he was barred from politics by a military-appointed court and has not appeared involved in Thailand's current political problems.

In nearby Buriram province also on Sunday night, a bomb was thrown into a building owned by a member of Puea Pandin party, which won a handful of seats in the Dec 23 elections.

'The bomb injured no one and caused slight damage. Police believe it was a threat against the candidate as a by-election will be held on Jan 17,' said Police Colonel Tanawut Tuamsomboon.

Thai Prime Minister Surayud Chulanont warned Monday that intelligence reports suggested further violence, and said he had urged the police chief to step up security in the kingdom.

'I have asked the police to be more strict on security after intelligence reports pointed to the possibility of more violence,' he told reporters.

'But we don't know yet who will create it, or whether it will be linked to politics,' he added. -- AFP