June 19, 2012 / 7:16 PM / 7 years ago

UPDATE 1-Bluegreen, BFC Financial shareholders approve merger

June 19 (Reuters) - Shareholders of time-share vacation provider Bluegreen Corp and BFC Financial Corp approved the proposed merger between the companies, despite a higher offer from privately held rival Diamond Resorts.

Under the terms of BFC Financial’s offer, holders of Bluegreen’s common stock will receive eight shares of BFC’s class A common stock for each share of Bluegreen’s common stock they hold, valuing the company at about $5.60 pe r share, as of Monday.

Bluegreen’s board determined on Monday that Diamond’s $6.25-per-share cash offer, a t a premium of 9 percent, was not ‘superior’ to BFC Financial’s $176.34 million deal, a diversified holding company.

It also said Diamond’s offer was contingent on satisfactory due diligence and obtaining sufficient financing.

Diamond Resorts, which had called for a delay in the shareholder vote, said it was ‘disappointed’ by the actions of Bluegreen’s board.

“We think this failure of governance is stunning,” Diamond Resorts said in a statement on Tuesday.

It said it received financing commitments from Guggenheim Partners, but blamed the Bluegreen board for not disclosing the receipt of this financing commitment to shareholders.

Shares of Bluegreen Corp were trading at $5.75 in afternoon trade. They have almost doubled since Nov. 14, when BFC Financial had made its offer.

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