Singapore establishment challenged by short-seller block on Olam

On Temasek’s investment in Olam, SMU Director of the BNP Paribas Hedge Fund Centre and Associate Dean (Research) Melvyn Teo said, “Companies like SingTel and Singapore Airlines are strategic investments for Temasek” while Olam is not, and “they must have seen great prospects in the company and in the commodities business in general.” SMU Assistant Professor of Law Eugene Tan added that the Merrill Lynch investment was hasty because the world was in the throes of the global financial crisis, and that Temasek had learned from that and done its due diligence on Olam. He added that “Temasek’s support for Olam is an attempt to protect its investment and avoid any domino effect. If the investment turns out to be bad, that will be a severe blow in the eyes of the public. However, investors know that there are always hits and misses.”