Suitors line up for water parks operator

Great Wolf sees shares soar as it finds itself in the middle of a bidding war by KSL and Apollo.

By Benzinga Apr 20, 2012 7:54PM
By Brett Callwood, Benzinga Staff Writer

Who knew that a water parks operator could be such a hot property?

Great Wolf (WOLF) saw shares surge more than 8% Friday to close at $8.06 after Apollo Global Management (APO) raised its bid for the company for the second time in a week. Apollo's bid now tops an offer from KSL Capital Partners.


Apollo's new offer of $7.85 per share is being backed by the board. The total offer is roughly $740 million, including debt.


This is apparently the third time that Apollo has raised its bid for Great Wolf. It seems to really want the water parks operator, and is not giving in despite the legal issues that have plagued the deal. Shareholders sued Great Wolf following Apollo's initial proposal in March of $5 per share, claiming that Great Wolf didn't do enough to obtain the highest possible offer.


KSL offered $7.25 per share Thursday in its third attempt to buy the company. It will be interesting to see if KSL raises its offer again, but it does seem that we are seeing a bidding war for Great Wolf between Apollo and KSL.


On April 16, Hilliard Lyons published a research report stating that its advice following Apollo's initial offer in March was to hold existing positions and let the situation play out.


Shareholders may get $7 per share if the latest offer from KSL is successful or could receive a potentially higher price if a follow-up offer is made. Should an acquisition of WOLF be unsuccessful for some reason, Hilliard Lyons believes current fundamentals could support a stock price in the $5 to $6 per share range.

More from Benzinga
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
267
267 rated 2
467
467 rated 3
605
605 rated 4
645
645 rated 5
691
691 rated 6
617
617 rated 7
459
459 rated 8
313
313 rated 9
130
130 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
BIDUBAIDU Inc10
BXTHE BLACKSTONE GROUP L.P10
CELGCELGENE CORP10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.