Bidding war ensues for Great Wolf

Two private equity firms are embroiled in a bidding war to buy out Great Wolf Resorts, Madison, Wisconsin.

After KSL Capital Partners, Denver, Colorado, bid US$6.25 per share after an initial bid from Apollo Global Management, New York City, for US$5 per share, Apollo answered with a US$6.75 per share bid. However, on Sunday KSL sent a US$7 per share offer. Great Wolf said it is considering KSL’s offer.

Great Wolf’s board unanimously approved the sale to Apollo in March, accepting a “poison pill” requiring it to pay Apollo up to US$7 million if it accepts another buyout offer. However, Great Wolf shareholders have since sued, alleging the sale price was too low.

Great Wolf, through its subsidiaries and affiliates, owns and operates 11 family resorts in the U.S. and Canada. The first was opened in Wisconsin Dells, Wisconsin, in 1997.