(Bloomberg) -- Saba Capital Management’s Boaz Weinstein and his group of billionaire backers again raised their bid for Sculptor Capital Management Inc., the day after the company accepted a new offer from Rithm Capital Corp.

Weinstein’s consortium said on Oct. 13 that it was willing to pay $13.50 a share for the embattled hedge fund firm, up from the $13 it proposed previously, Sculptor said Wednesday in a regulatory filing. On Oct. 12, Sculptor announced that it accepted Rithm’s sweetened offer of $12 a share, or $676 million.

Shares of Sculptor rose 1.8% to close at $12.38, the highest since May 2022. Rithm slid 0.9%.

Sculptor disclosed the new bid as part of a presentation it prepared ahead of a meeting with Institutional Shareholder Services, which advises investors on how to vote on corporate proxy matters.  

Rithm announced in July that it had reached an agreement to acquire Sculptor for $11.15 a share. Weinstein’s group, which includes billionaires Bill Ackman, Jeff Yass and Marc Lasry, increased its offer multiple times since making an initial unsolicited bid of $12.25 a share in August. 

Both sides have also vied to win support from Sculptor founder Dan Och, one of its biggest shareholders, who has been locked in a bitter feud with his onetime protege, Chief Executive Officer Jimmy Levin, over compensation. Och, who left in 2019, has urged the company to release Weinstein and his team from non-disclosure agreements that would allow them to present their bid to Sculptor’s shareholders and clients.

Despite the higher price, Sculptor declined to designate Weinstein’s bid as superior, citing his consortium’s refusal to accept risks tied to the potential transaction, which weren’t specified in Wednesday’s filing.   

The consortium told Sculptor late Tuesday that it may be willing to accept those risks if it could speak with the firm’s 10 largest clients and some members of the senior management team, according to the filing. Sculptor refused, saying that no other bidder had been allowed to meet with clients.

Och sued Sculptor and Rithm on Oct. 17, alleging that their latest deal would shortchange investors. He said in a statement that he wants Delaware Chancery Court Judge Sam Glasscock III to halt the acquisition until Weinstein’s consortium can present its higher bid to shareholders. 

A hearing, which Glasscock expedited, is scheduled for Nov. 9. If the judge rules in favor of Och, the shareholder vote slated for Nov. 16 would be postponed and Weinstein, now under an NDA, would be free to discuss his bid with clients and shareholders.  

Representatives for Sculptor and Rithm declined to comment, and spokespeople for Weinstein and Och didn’t return messages seeking comment.

--With assistance from Erin Fuchs and Jef Feeley.

(Updates with closing share prices in fourth paragraph.)

©2023 Bloomberg L.P.