SMU Professor of Finance Melvyn Teo provided his comments on Temasek’s offer to take over Olam International Ltd.  Prof Teo said that having big stakes in companies can increase the risk of a portfolio. “There is also the potential moral hazard problem where companies linked to Temasek can adopt high-risk growth strategies and count on Temasek to bail them out should those strategies fall out of favour with the stock market,” he wrote in an e-mail.