Private Equity Predators Circle Great Wolf in Bidding War
Great Wolf Resorts is now set to face a private equity bidding war as the buyout funds circle the company's water park resorts as an investment, driving its share higher.
On Thursday, KSL bid $6.25 a share, or $879 million for Great Wolf Resorts when counting the company's debt, upping by 25% a previous $5 a share offer from Apollo that had been approved by Great Wolf Resorts's board. However, that price and the company's use of a "poison pill" to thwart a hostile takeover attempt prompted a flurry of shareholder lawsuits.
KSL's $6.25 a share bid throws another wrench in that sale process, as some investors expected. Since the March 13 offer was first announced, Great Wolf shares have traded over 10% above the $5 offer price. In Thursday morning trading, Great Wolf shares rose over 12% to $6.42, topping KSL's unsolicited bid.
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