Namoi Cotton Backs New Olam Offer as Takeover War Heats Ups (2)

Namoi Cotton Ltd. has backed a higher takeover bid from Olam Agri Holdings Ltd., with the crop trader entering into agreements with two major shareholders to boost its stake in the Australian company.

Olam’s increased all-cash offer values Namoi at A$154 million ($104 million), which is 12% more than a rival bid from Louis Dreyfus Co. — a proposal that Namoi’s independent directors had recommended just two days ago.

The rival crop traders have been jostling to buy Namoi since January to gain a bigger foothold in Australia, the world’s sixth-largest cotton producer. The Louis Dreyfus bid is marginally lower ...