(Reuters) - Private equity firm Apollo Global Management raised its offer to acquire Great Wolf Resorts WOLF.O to $7.85 per share, above rival bidder KSL Capital Partners’ most recent offer.
Shares of Great Wolf — North America’s largest operator of indoor water parks — rose to $7.95 in premarket trade on Friday. They had closed at $7.42 on the Nasdaq on Thursday.
KSL had raised its offer for Great Wolf to $7.25 per share on Thursday after Apollo matched its $7 per share bid the day before. The two firms have been in a bidding war over Great Wolf since March.
Apollo’s raised bid was “unanimously approved” by Great Wolf’s board which has determined that KSL’s offer is no longer a “superior proposal,” the companies said in a statement on Friday.
Great Wolf’s board will recommend that the company’s shareholders tender their shares into Apollo’s revised offer.
It also raised the termination fee payable to Apollo to up to $10.47 million from up to $9.33 million.
Apollo’s initial offer to buy Great Wolf at $5 per share had triggered shareholder outrage, prompting a shareholder to call it “woefully inadequate.”
Reporting by Sharanya Hrishikesh in Bangalore