Aug 12 (Reuters) -

Hong Kong's CK Infrastructure Holdings ( CKISF ) has

emerged as a leading contender to take over Thames Water and

could assume control within weeks if Britain's largest water

utility is placed into special ­administration, The Times

reported on Tuesday.

Reuters could not immediately confirm the report.

CKI has indicated it would be prepared to operate under

tougher penalties for environmental breaches, a regime that

Thames Water's creditors say is financially unviable, the report

said.

Thames Water did not respond immediately to a Reuters

request for comment outside regular business hours, while CKI

could not be immediately reached for comment.

Earlier on Tuesday, Reuters reported that Britain had

appointed FTI Consulting ( FCN ) to advise on contingency plans

for heavily indebted and loss-making Thames Water to be

placed into a special administration regime.

Thames Water is seeking to

avoid nationalisation

by securing 5 billion pounds ($6.75 billion) of financing

from senior bondholders. In July, the company said it had enough

cash to operate for 12 months but needs a reset of regulations

for any deal to proceed.

($1 = 0.7409 pounds)