Singapore's Temasek raises stake in Olam to 18 percent

SINGAPORE Wed Dec 19, 2012 7:43pm EST

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SINGAPORE Dec 20 (Reuters) - Olam International Ltd said Singapore state investor Temasek Holdings Pte Ltd bought 23.9 million shares in the commodity trader over the last two days, raising its stake to 18 percent from 17 percent.

Earlier this month, Olam got the full backing from Temasek, its second-biggest shareholder, for a complex $1.2 billion bonds-with-warrants issue to battle short-seller Muddy Waters, which had launched a scathing attack on Olam's accounting, debt and investment projects.

Olam's shares fell as much as 21 percent after the attack by Muddy Waters, but have since pared losses over the past few sessions.

Critics including Muddy Waters and many analysts warned that Olam needs to shore up its weak cash position after piling up debt to finance expansion. (Reporting by Charmian Kok; Editing by Anshuman Daga)