(Reuters) - Activist hedge fund Oasis Management Co Ltd has raised its stake in Britain's Premier Foods Plc (>> Premier Foods Plc) to 5.18 percent, a regulatory filing on Thursday showed, sending the company's shares up as much as 4 percent.

Hong Kong-based Oasis has been building up its stake in Premier, the maker of Mr Kipling cakes. The fund, founded in 2002 by Seth Fischer, earlier this month raised its stake to 4.64 percent from 3.05 percent reported in July.

The stake raise comes months after Premier's second-largest shareholder, hedge fund Paulson & Co, criticised the food company's board for rejecting a 1.5 billion pound takeover proposal from U.S. food maker McCormick & Co Inc (>> McCormick & Company, Incorporated).

Paulson holds a 7.62 percent stake in Premier, while biggest shareholder, Japanese noodle maker Nissin Foods Holdings Co Ltd (>> Nissin Foods Holdings Co Ltd), holds 19.76 percent as of May 16, according to Thomson Reuters data.

Shares in Premier reversed course and closed up 4 percent at 44 pence on the London Stock Exchange. They fell as much as 1.2 percent in morning trading.

(Reporting by Rahul B in Bengaluru; Editing by Maju Samuel)