The buy-out group, led by Kerzner chairman Sol Kerzner and chiefexecutive Butch Kerzner, raised an earlier offer. Bahamas-basedKerzner, which owns brands such as Atlantis resorts andOne&Only hotels, said as a result of the raised offer it wouldno longer seek higher offers. The higher offer by managementfollows the refusal of one large investor to support an earlieroffer. Ronald Baron, who controls 15.8% of Kerzner through variousentities, suggested the investor group raise its offer to $80 ashare.

The total deal, including the $599 million of net debt, is about$3.8 billion and carries a break-up fee of 3% of the equity valueof the deal, or about $95 million.

The buy-out consortium includes United Arab Emirates-basedIstithmar PJSC, Whitehall Street Global Real Estate, Goldman Sachs,Colony Capital LLC, Providence Equity Partners, Inc. and theRelated Cos., L.P.