Grease and flour bundt pan. Sprinkle nuts over bottom of pan.
In a large bowl mix cake mix, pudding mix, eggs, oil and rum. Pour batter over nuts in pan and bake at 325 degrees for 1 hour. Set on rack to cool.
Melt butter in sauce pan. Stir in water and sugar and boil for 5 minutes while stirring constantly.
Remove from heat and stir in rum. Brush glaze over top and sides of cooling cake and serve.