The Interpreter Posted July 30, 2007 Share Posted July 30, 2007 http://www.nypost.com/seven/07302007/busin...eter_lauria.htm http://www.reuters.com/article/mergersNews...034170120070730 Quote Link to comment Share on other sites More sharing options...
Browntggrr Posted July 30, 2007 Share Posted July 30, 2007 Well that was rather fast. Even though this story really means nothing, for it to hit the media with possible stipulations for the sale is really intresting. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted July 30, 2007 Author Share Posted July 30, 2007 This isn't only "hitting the media." It's hitting ONE source, the New York Post, and being repeated. Just as it was the first time. The same newspaper. It's almost as if someone intends for it to generate other bids, if there are any. Something tells me it is almost certainly true. And tomorrow is Cedar Fair's conference call. It should be, in a word, FUN. Quote Link to comment Share on other sites More sharing options...
neo8820 Posted July 30, 2007 Share Posted July 30, 2007 This isn't only "hitting the media." It's hitting ONE source, the New York Post, and being repeated. Just as it was the first time. The same newspaper. It's almost as if someone intends for it to generate other bids, if there are any. Something tells me it is almost certainly true. And tomorrow is Cedar Fair's conference call. It should be, in a word, FUN. I look forward to your interpretation of their call. Ugh that was bad. Quote Link to comment Share on other sites More sharing options...
jzarley Posted July 30, 2007 Share Posted July 30, 2007 This isn't only "hitting the media." It's hitting ONE source, the New York Post, and being repeated. Just as it was the first time. The same newspaper. It's almost as if someone intends for it to generate other bids, if there are any. Something tells me it is almost certainly true. And tomorrow is Cedar Fair's conference call. It should be, in a word, FUN. Yeah, and of all the papers to leak to...the Post! Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted July 30, 2007 Share Posted July 30, 2007 I like the part about plans to commit at least 500 million, and as much as 800 million for upgrades. There must be some of the parks needing some big upgrades. Quote Link to comment Share on other sites More sharing options...
UncleHenry Posted July 30, 2007 Share Posted July 30, 2007 HAVING THE TITLE IN CAPS MEANS IT IS VERY IMPORTANT Quote Link to comment Share on other sites More sharing options...
ragerunner Posted July 30, 2007 Share Posted July 30, 2007 The conference call on Tuesday should be interesting. I wonder if that $500 million figure includes their proposed $200 million expansion on Gilroy Gardens and how many years that $500 million is for. Quote Link to comment Share on other sites More sharing options...
jzarley Posted July 30, 2007 Share Posted July 30, 2007 Granted, you have to take the investor message boards with a grain of salt (almost everyone has some kind of alterior motive on those things), but I found some of the comments on Yahoo's FUN board kind of entertaining: http://messages.finance.yahoo.com/Stocks_%...frt=2&off=1 Particularly, I got a smile out of this line: "Isn't it funny how rumors like this seem to surface at the perfect time? (...as in right before FUN has to admit that even WITH the synergies in place, perfect weather, and per-cap spending unsustainably through the roof, the company post-Paramount is still about $30-40M worse.)" Quote Link to comment Share on other sites More sharing options...
TH13TEEN Posted July 30, 2007 Share Posted July 30, 2007 I am counfused can someone help me Quote Link to comment Share on other sites More sharing options...
tigellinus Posted July 30, 2007 Share Posted July 30, 2007 What are you confused about?? Quote Link to comment Share on other sites More sharing options...
TH13TEEN Posted July 30, 2007 Share Posted July 30, 2007 the whole thing Quote Link to comment Share on other sites More sharing options...
standbyme Posted July 30, 2007 Share Posted July 30, 2007 This will probably help... http://www.KICentral.com/forums/index.php?showtopic=10089 Quote Link to comment Share on other sites More sharing options...
jzarley Posted July 30, 2007 Share Posted July 30, 2007 Well, basically... Cedar Fair is actively seeking a private equity company to buy them, with the agreement that current managment (Dick Kinzel and his immediate team) will be allowed to stay on for a minimum amount of time. "Private Equity" means a company (usually non-public, although that is changing of late) with cash to invest in businesses which they hold on to for a few years to improve the value, then divest to make a profit on their investment. If this occurs, it means that CF would no longer be a public company (meaning there would be no share/unit holders, and CF would no longer have to pay out a dividend to those unit holders). The sale price would also be used to pay off the nearly $2B in CF debt, which would free up around $100M annually that they're currently paying in interest. Bottom line, it means that the the management of CF has some serious doubts that current business operations can relieve their current debt burden in a timeframe acceptable to them and the unit holders. (See the comment I repeated from the FUN investor board a few messages above...) By selling the company, they'll be able to get out from under the debt, stop worrying about keeping investors happy with the ever increasing dividends, focus on the operating efficiency of the company, AND arrange for a nice payday for Dick Kinzel and his direct reports. Quote Link to comment Share on other sites More sharing options...
jzarley Posted July 30, 2007 Share Posted July 30, 2007 Cedar Fair also filed this revised 8K with the SEC last week... http://biz.yahoo.com/e/070724/fun8-k.html So, regardless of the outcome of this particular deal, senior management is making sure the "golden parachutes" are in order Quote Link to comment Share on other sites More sharing options...
Scooby_Doo Posted July 30, 2007 Share Posted July 30, 2007 Wow that was quick someone already bidding to take over I hope they do the upgrades I can think three parks that need it badly. Quote Link to comment Share on other sites More sharing options...
TH13TEEN Posted July 30, 2007 Share Posted July 30, 2007 what parks Quote Link to comment Share on other sites More sharing options...
Kenban Posted July 30, 2007 Share Posted July 30, 2007 what parks This would be for everything the entire Cedar Fair chain. Quote Link to comment Share on other sites More sharing options...
ragerunner Posted July 30, 2007 Share Posted July 30, 2007 Cedar Fair also filed this revised 8K with the SEC last week... http://biz.yahoo.com/e/070724/fun8-k.html So, regardless of the outcome of this particular deal, senior management is making sure the "golden parachutes" are in order jzarley, You know and I know that Kinzel the Great and company are only focus on what best for the guest and each park. They would never let the dollar get in the way or be concerned about their own long term fortune. Quote Link to comment Share on other sites More sharing options...
jzarley Posted July 30, 2007 Share Posted July 30, 2007 There's some real interesting comments over on Coasterbuzz about this... http://www.coasterbuzz.com/2007-211-718754.htm Apparently, this private equity company was just recently formed in order to buy Gilroy Gardens! So, you have to wonder where these guys are going to come up with $4+B... After reading about the involvement these guys have with Gilroy Gardens, this thing is starting to sound really odd... Quote Link to comment Share on other sites More sharing options...
ragerunner Posted July 30, 2007 Share Posted July 30, 2007 I've got to wonder if this is not just some smoke and mirrors rumor to take some heat off Tuesday's conference call. I guess we shall find out soon enough what the numbers look like. Quote Link to comment Share on other sites More sharing options...
Carowinds2005 Posted July 30, 2007 Share Posted July 30, 2007 Dick says NO!- http://biz.yahoo.com/prnews/070730/clm052.html?.v=95 "We have received numerous inquiries and questions regarding stories that have appeared in the press concerning a possible sale of the company," said Dick Kinzel, Cedar Fair chairman, president and chief executive officer. "Although as a matter of policy we do not normally comment on market rumors, an article today reports a claim by an organization referred to as "Destiny Capital" that constructive negotiations with the company have been undertaken. We are not currently in discussions with that organization or any other party for the sale of the company. Of course, the board continuously challenges management to find the best strategic alternatives available to increase value to our unitholders, and I do receive inquiries from time to time about a particular park or group of parks, whether it is to sell or to even buy additional parks. Consistent with our policy, I do not intend to comment on any of these discussions on an ongoing basis." Quote Link to comment Share on other sites More sharing options...
JjAmSaOnN Posted July 30, 2007 Share Posted July 30, 2007 CF is denying they are in talks with Destiny Capital. Sounds very shady to me. I am wondering if Dick is getting involved in some shady business. NY Post is not a very reliable news source keep in mind. CNN, NYTimes, Wall Street ... watch for those stories. http://money.cnn.com/news/newsfeeds/articl...230072007-1.htm Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted July 30, 2007 Share Posted July 30, 2007 Well, if they are in negotiations with Destiny Capital, I highly doubt that they would publicly say that they are discussing a possible sale of the company. However, unlike when the previous news story about a possible take over went public, this time Cedar Fair and Kinzel acted quickly to try and stomp out the rumor. It will certainly be an interesting conference call tomorrow, as I`m sure some of the analysts will be calling in inquiring about the reports of a possible sale. It will also be interesting to see Cedar Fair`s quarterly numbers, with this being the first full quarter of the peak season with all the former Paramount Parks under their control. The one question I have, is that $500 to $800 million number does not have a time frame attached to it. That could have a big impact on how far that money goes. If it is five years as opposed to ten or fifteen, makes a big difference! Also, if Cedar Fair is bought by a private company such as Destiny, then the days of getting a glimpse of the park`s performance will be over. Granted, Cedar Fair has become more secretive with the individual park attendance numbers since the acquisition, they are still very open about the total attendance for the entire chain. Quote Link to comment Share on other sites More sharing options...
WooferBearATL Posted July 30, 2007 Share Posted July 30, 2007 Dick says NO!- http://biz.yahoo.com/prnews/070730/clm052.html?.v=95 "We have received numerous inquiries and questions regarding stories that have appeared in the press concerning a possible sale of the company," said Dick Kinzel, Cedar Fair chairman, president and chief executive officer. "Although as a matter of policy we do not normally comment on market rumors, an article today reports a claim by an organization referred to as "Destiny Capital" that constructive negotiations with the company have been undertaken. We are not currently in discussions with that organization or any other party for the sale of the company. Of course, the board continuously challenges management to find the best strategic alternatives available to increase value to our unitholders, and I do receive inquiries from time to time about a particular park or group of parks, whether it is to sell or to even buy additional parks. Consistent with our policy, I do not intend to comment on any of these discussions on an ongoing basis." As I read - the following lyrics come to mind: Ooh I love to dance a little sidestep, now they see me now they don't- I've come and gone and, ooh I love to sweep around the wide step, cut a little swathe and lead the people on. Ooh I love to dance a little sidestep... And, ooh I love to sweep around the wide step... Cut a little swathe and lead the people on. Quote Link to comment Share on other sites More sharing options...
jzarley Posted July 30, 2007 Share Posted July 30, 2007 The same denial press release is also now on CF's web site... This is fun! It should be a really good conference call tomorrow...usually, CF's are so boring compared to SF's Quote Link to comment Share on other sites More sharing options...
ragerunner Posted July 30, 2007 Share Posted July 30, 2007 I think the real issue is still on the table, they are up to their eyeballs in debt and they were banking on everything going perfect in the aquisition and performance of the parks to make it work. Which appears not to be playing out in a perfect manner. Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted July 30, 2007 Share Posted July 30, 2007 Here is the denial as reported by KICentral's corperate affialte, Cox Ohio Publishing: Cedar Point owner denies it's talking sale SANDUSKY, Ohio — The owner of the Cedar Point and Kings Island amusement parks is denying a report that the company is in talks toward a possible sale. On its Web site, the New York Post today is reporting that Sandusky-based Cedar Fair is negotiating with investment firm Destiny Capital Solutions about a proposed $4.1 billion buyout. In a statement, Cedar Fair C-E-O Dick Kinzel says his company is not currently discussing a sale with Destiny or any other party. But he acknowledges that Cedar Fair's board has instructed management to look for ways to boost value to shareholders. Cedar Fair's Ohio properties also include Geauga Lake and Wildwater Kingdom. Quote Link to comment Share on other sites More sharing options...
raptor Posted July 30, 2007 Share Posted July 30, 2007 I find it funny that the only major paper to post these articles are the ny post, I would think if there was anything to these rumors other papers would be talking. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted July 30, 2007 Author Share Posted July 30, 2007 For what it is worth, The New York Post is standing by its story: http://today.reuters.com/news/articleinves...NY-UPDATE-3.XML (this is a two page article, do not miss the second page) Quote Link to comment Share on other sites More sharing options...
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