Bluegreen continues talks with Diamond Resorts

Bluegreen Corp., an operator of vacation ownership plans and planned residential communities, said Monday it will continue exclusive acquisition talks with Diamond Resorts International until November.

In July, Bluegreen reached a tentative deal to be purchased by Diamond Resorts for about $500 million, excluding debt. Talks on the $15-per-share transaction were set to expire today, but will now continue until Nov. 15. The price represents a premium of 132.9 percent over its closing price the day before the deal was made public.

Bluegreen Chairman Alan B. Levan said in a statement that Diamond Resorts wanted more time to complete due diligence and tie up financing arrangements.

If a deal is not reached by the new deadline, the companies will continue to work toward and agreement for another month but other parties will be allowed to hold acquisition talks with Bluegreen as well.

Any final agreement between Bluegreen and Diamond Resorts would likely include a "go-shop" provision that would allow Bluegreen to solicit a more lucrative offer.

Diamond Resorts is an operator of vacation ownership plans with 110 resorts located across 14 countries.

Bluegreen's stock fell 56 cents, or 5.1 percent, to $10.41 in morning trading, along with the broader market as Wall Street digested news of Lehman Brothers' bankruptcy plans and Merrill Lynch & Co.'s proposed acquisition. The shares have traded in a 52-week range of $5.91 to $12.54.