Great Wolf Bidding Gets a Boost (WOLF, APO)

Pretty much as expected, the bidding for Great Wolf Resorts Inc. (NASDAQ: WOLF) is heating up. Last week the company got an offer from K-9 Acquisition Inc., an affiliate of Apollo Global Management LLC (NYSE: APO) for $6.75/share. Last night Great Wolf issued a press release announcing a countering bid from KSL Capital Partners of $7/share.

Great Wolf filed a Form 8-K with the SEC this morning listing the details of the K-9 offer:

Under the Merger Agreement Amendment, (i) the Offer Price (as defined in the Merger Agreement) was increased from $5.00 per Common Share to $6.75 per Common Share and (ii) the amount of the Company Termination Fee (as defined in the Merger Agreement) was increased (a) in certain circumstances, from $5,300,000 plus reimbursement of certain expenses up to $1,700,000, to $6,700,000 plus reimbursement of certain expenses up to $2,300,000 and (b) in certain other circumstances, from reimbursement of certain expenses up to $1,700,000, to reimbursement of certain expenses up to $2,300,000.

Total breakup fees of $7-$9 million are nothing to sneeze at, but investors clearly think the bidding is just getting started. Shares of Great Wolf are up nearly 11% today at $7.28 after posting a new 52-week high of $7.34 earlier this morning.