April 5 (Reuters) - Shares of Great Wolf Resorts Inc rose as much as 16 percent, a day after the company received a buyout offer from private equity firm KSL Capital Partners that topped its existing deal with Apollo Global .
Late Wednesday, KSL Capital, which focuses on travel and leisure businesses, offered to buy the operator of indoor water park resorts for $6.25 a share in cash, beating Apollo’s bid of $5 a share.
Great Wolf shares were trading above the offer price at $6.59, indicating some investors possibly expect a higher bid. The shares last traded at these levels four years ago.
Great Wolf said its board would evaluate KSL’s offer and did not comment further.
Last month, Great Wolf shareholder PWK Partners raised serious concerns about the company’s deal with Apollo, calling the $5 bid ‘woefully inadequate.’
Earlier on Thursday, Great Wolf said that affiliates of Apollo Global would extend their tender offer for its stock to April 20. They did not disclose what percentage of shares were tendered in the offer so far.
As part of the deal with Apollo, Great Wolf was required to adopt a shareholders’ rights plan to thwart hostile acquirers.
The first Great Wolf Lodge resort opened in 1997 in Wisconsin Dells, Wisconsin and the company now operates 11 properties throughout North America.