An investor in NASDAQ:WOLF shares filed a lawsuit against members of board of directors to stop the proposed takeover of Great Wolf Resorts, Inc. by an affiliate of Apollo Global Management, LLC for $5 per NASDAQ:WOLF share.
Investors who purchased shares of Great Wolf Resorts, Inc. (NASDAQ:WOLF) prior to March 13, 2012, and currently hold those (or some of those) NASDAQ:WOLF shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com 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. (NASDAQ: WOLF) and an affiliate of Apollo Global Management, LLC (NYSE: APO) 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
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. (NASDAQ:WOLF) 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. (NASDAQ:WOLF) and purchased their NASDAQ:WOLF shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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