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Great Wolf Resorts, Inc. Investor files Lawsuit to Stop Takeover
A lawsuit was filed by an investor in NASDAQ-WOLF shares in effort to block the proposed buyout of Great Wolf Resorts, Inc. and NASDAQ-WOLF stockholders should contact the Shareholders Foundation at email@example.com
If you are a current investor in Great Wolf Resorts, Inc. shares and purchased your NASDAQ-WOLF shares prior to March 13, 2012, you have certain options and you should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges that defendants failed to undertake a process to obtain maximum value and adequately compensate NASDAQ-WOLF shareholders. Specifically the plaintiff claims that defendants breached their fiduciary duties owed to NASDAQ-WOLF stockholders arising out of the attempt to sell Great Wolf Resorts to an affiliate of Apollo Global Management, LLC at an unfair price via an unfair process.
On March 13, 2012, Great Wolf Resorts, Inc. and an affiliate of Apollo Global Management, LLC announced that they have entered into a merger agreement whereby Apollo Global Management, LLC, will acquire Great Wolf Resorts, Inc for approximately $703 million, including the assumption of the Company’s outstanding debt. Under the terms of the proposed transaction, the affiliate of Apollo Global Management, LLC will make an offer to purchase all outstanding shares of Great Wolf Resorts, Inc common stock for $5.00 per share
Great Wolf Resorts, Inc said the $5offer represents a premium of 72.9% over the six-month average of Great Wolf’s share price ending on March 12, 2012, a premium of 50.4% over the ninety-day average of Great Wolf’s share price ending on March 12, 2012, and a 19.3% premium over Great Wolf’s closing stock price on March 12, 2012.
However the plaintiff claims that the $5offer is unfair to NASDAQ-WOLF stockholders and undervalues the company. Indeed, following the takeover news shares of Great Wolf Resorts, Inc. jumped from $4.19 on Monday to $5.49 during Tuesday, thus above the offer. Additionally, at least one analyst has set the high target price for NASDAQ-WOLF shares at $6.00 per share, also above the current offer. Furthermore, Furthermore, so the plaintiff, Great Wolf Resorts’ own financial adviser, Deutsche Bank Securities Inc., valued NASDAQ-WOLF shares as high as $7.98 a share.
The plaintiff also claims that the proposed transaction is unfair to NASDAQ-WOLF investors as it was the result of an unfair and flawed sales process in which Apollo Global Management, LLC was favored over other interested parties. The plaintiff says that the Merger Agreement contains preclusive deal protection devices, such as a no-solicitation provision and a $5.3 million termination fee that do not benefit the Company or its stockholders, but, instead, benefit Apollo Global Management, LLC.
Those who are current investors in Great Wolf Resorts, Inc. and purchased their NASDAQ-WOLF shares prior to the announcement, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.