MADISON, Wis. (AP) – Great Wolf Resorts is being sued by investors who say a proposed sale to a private equity firm undervalues the company.
The $703 million sale of the Madison-based waterpark operator would pay shareholders $5 a share in cash and assume outstanding debt. A complaint filed in Delaware Chancery Court says Great Wolf’s own financial adviser values the company as high as $7.98 a share.
The Milwaukee Journal Sentinel reports investors say the proposed sale is the result of “unfair and flawed sales process” in which the private equity firm, Apollo Global Management, was favored over other interested parties.
Great Wolf said Friday the Apollo transaction was announced after a comprehensive review of alternatives by a special committee of independent directors over a 9-month period. The company says the legal action is without merit.
Information from: Milwaukee Journal Sentinel, http://www.jsonline.com