Wisconsin waterpark operator sued by investors
MADISON, Wis. — 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.
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.
The Milwaukee Journal Sentinel says shareholder Scott Ferguson has filed a separate lawsuit accusing directors of making it more difficult for a company other than Apollo to buy Great Wolf.
The company did not immediately return a call for comment.