CHICAGO-Two companies have upped their offers in takeover bids in requests for more time to act. New York City-based Apollo Global Management has increased its offer to acquire Madison, WI-based Great Wolf Resorts Inc. to $7 per share, and Equity Residential has raised its offer by$15 million to $1.5 billion to buy an interest in Denver-based Archstone.
Locally based Equity said in a recent statement that it has reached an agreement with Bank of America and Barclays Bank to extend the deadline for Equity’s purchase offer for 26.5% of Archstone to May 21. In return, Equity has increased its offer to a level $1.5 billion from $1.485 billion.
(While the negotiations drag on, Zell was his ever-pithy self at Thursday's NYU Schack Conference. See our New York Story.)
Lehman Bros., the majority owner of Archstone, has sued in bankruptcy court to stop the Equity purchase, and may be forced to again use its right of first refusal to buy up the remaining shares from the banks. Lehman calls Equity, chaired by Sam Zell, Archstone’s “biggest competitor.” However, Equity has an $80 million break-off fee clause if the Lehman buys up the remaining interest.
Also this week, Apollo increased its offer for the takeover of the indoor water park company Great Wolf in answer to a competing bid by Denver-based KSL Capital Partners. KSL offered bid of $6.25 per share in early April, following Apollo’s $5 per share agreement it had worked out with Great Wolf. On Thursday, Apollo countered back with an offer of $7 per share, and has pushed back the agreement date to April 27. The Apollo-Great Wolf deal also has a poison-pill clause.
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