UPDATE 1-KSL sweetens bid for Great Wolf Resorts

April 19 Thu Apr 19, 2012 8:53am EDT

April 19 (Reuters) - Private equity firm KSL Capital Partners raised its offer to acquire Great Wolf Resorts to $7.25 per share, a day after Apollo Global Management increased its bid to acquire North America's largest operator of indoor water parks.

On Wednesday, Apollo matched KSL's previous offer of $7 a share after Great Wolf said KSL's bid was superior to a deal it had signed with Apollo.

Apollo now has three days to match or outbid KSL's $242 million offer.

For a timeline on the battle

Great Wolf had been shopping itself for most of last year, and had contacted 38 possible buyers. KSL and Apollo were one-upping each other even during that initial bidding process.

The company agreed to be bought out by Apollo for $5 per share in March, angering investors who called the price 'woefully inadequate', and leading KSL to start the now public phase of the bidding war.

Shares of Great Wolf were up 4 percent at $7.45 in premarket trading on Thursday morning.