A US$703 million deal from Apollo Global Management, New York City, to buy Great Wolf Resorts, Madison, Wisconsin, could be under threat after rival private equity firm KSL Capital Partners, Denver, Colorado, submitted a higher buyout bid.
The offer from KSL is US$6.25 per share, quite higher than Apollo’s offer of US$5 per share, which some analysts said was low. 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.