April 26 (Bloomberg) -- An investor lawsuit challenging fairness of Apollo Global Management LLC’s planned $740 million buyout of water park operator Great Wolf Resorts Inc. was tentatively settled in exchange for additional information about the deal, according to court papers.
Investors had claimed executives of Madison, Wisconsin-based Great Wolf didn’t seriously seek higher bids and that New York-based Apollo’s $5-a-share cash offer in March, later raised to $7.85 a share, was inadequate.
“Great Wolf has agreed to make certain supplemental disclosures” to shareholders and “to negotiate in good faith” a final settlement agreement, subject to approval of Delaware Chancery Court Judge John W. Noble, according to papers made public today in Wilmington.
Great Wolf owns, manages and licenses family resorts featuring indoor water parks, suite-style rooms, restaurants, spas and arcades. The company started its first Great Wolf Lodge in Wisconsin Dells, Wisconsin, in 1997, and the chain has since expanded into eight other U.S. states and Canada.
Private-equity firm KSL Capital Partners LLC engaged in a bidding war with Apollo over Great Wolf until it curtailed bids April 20.
The case is In re Great Wolf Resorts Inc. Shareholder Litigation, CA7328, Delaware Chancery Court (Wilmington).
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