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Cedar Fair: Sale? Re-Finance? What Next?


KIBOB
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Yes, it is an interesting Q. Q has quite a few equity options on the stock already. They could be part of it. That being said, it is a good question too!

I really think that anyone who knows explicitly how to negotiate a "put option" on FUN right now, IS. Especially technical traders. Those guys reading graphs right now other than the 50-day moving average have got to be wearing out the mouse submitting short sells and negotiating put options!

Even the fundamentalists for that matter have had a field day taking advantage of that supremely high debt load!

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Beware the ides of March. Good old Shakespeare! I remember reading Julius Caesar in 10th grade. We had to memorize a passage from that play for English class that year.

"Friends, Romans, countrymen, lend me your ear. I come to bury Caesar not to praise him. The evil men do lives after them, the good is oft interred with their bones; so let it be with Caeser." Alas, this is not a forum dedicated to Shakespeare.

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Cedar Fair LITIGATION Hearing Postponed As Shareholders Near Settlement:

http://www.morningjo...s/mj2412590.txt

This one deserves reading in full. *A* relevant quote:

...Both sides are working out a possible settlement agreement that has been drafted in a memorandum of understanding, but is not complete yet, Rengel said.

Under the settlement, Cedar Fair could file an amended statement with the federal Securities and Exchange Commission, including more financial information and details about deal evaluations performed by financial consultants, Rengel said. He declined to say if the settlement would include additional voting rights or payments to shareholders.

On Thursday, Cedar Fair filed a supplemental statement with the SEC that included disclosure information about the deal, but it noted "there can be no assurance" that they will settle the case, according to the statement....

Some things:

* This could, if it happens, but may not delay 031610.

* And now we know why that investor presentation was filed with the SEC.

* Yet again, not a peep from the crack staff at the Sandusky Register.

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Cedar Fair Weighed Auction:

http://toledoblade.com/article/20100309/BUSINESS03/100309723/-1/business05

This article deserves a full reading, but ends with this rather ominous paragraph:

...Egan-Jones said that alternatives to the sale were less favorable and a defeat risks a harmful effect on the company’s operations and its relationships with customers and suppliers.

Again, where is the crack Sandusky Register? Since they seem to publish only when Ms. Frole sends them something or asks them to, their silence speaks volumes!

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Three Leading Proxy Advisory Firms All Recommend Shareholders Vote Against Cedar Fair's Proposed Acquisition by Apollo

FORT WORTH, Texas, Mar 09, 2010 (BUSINESS WIRE) -- Q Funding III, L.P. and Q4 Funding, L.P., the holders of approximately 18% of Cedar Fair, L.P.'s outstanding units, today announced that three leading independent proxy advisory firms, RiskMetrics Group, Inc., Proxy Governance, Inc. and Glass Lewis & Co. LLC, have advised their clients to vote "AGAINST" Cedar Fair's proposed acquisition by Apollo Global Management and "AGAINST" adjournment of the meeting....

http://www.marketwat...nk=MW_news_stmp

or

http://www.businessw...152&newsLang=en

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The Wall Street Journal, in an article which requires a subscription, is claiming that Six Flags creditors suspect Six Flags senior management and Avenue Capital have a plan to merge with Cedar Fair post bankruptcy, and that Apollo Management would be a source of financing....A Cedar Fair spokesperson declined to comment, as has Avenue Capital, Six Flags' senior management's financial backer...

A short quote, which can be considered "fair use":

...Creditors of Six Flags speculate differently. They suspect investors led by Avenue plan to merge Six Flags with Cedar Fair once they gain control of the company in bankruptcy. Besides Avenue's pilgrimage to Sandusky, Ohio, they point to an email that indicated Six Flags' backers were eyeing Apollo Management LP as a potential source of investment....

A link cannot be provided, but if you are a subscriber, you can easily locate this article.

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If Apollo is serious about merging Cedar Fair with Six Flags, they need to have their heads' examined. If ever there were a reason to vote NO on the merger proposal at Cedar Fair, this would be it. The timing for this Six Flags bankruptcy exit hearing could not be worse for one Richard Kinzel. I wonder if Avenue Capital met with Mr. Kinzel at Fridays, too? It's a two week trial for Six Flags, and it likely won't be over by 031610.

Less than one week until the vote, and this comes out...

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we go from 2 big rich companies making moves one inside one outside to 2 broke companies merging. this is such a bad idea its kinda like sears buying kmart just to have their land and product. to echo the man covering this 031610 is the day baby everything else is just smoke and mirrors

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The third spoken of is the Cedar Fair-Apollo proposed 'merger':

At least three other companies that recently drew PE [private equity] interest traded above their deal prices for some time, but not at this minute. Two of three were sweetened – the third is sour, in the opinion of certain stakeholders....

-Cedar Fair. Apollo Management LP’s deal for the amusement park operator offered a 28% premium. The units traded above the $11.50 offer price for most of January, but closed today at $11.11. The biggest stakeholder, hedge fund firm Q Investments LP, has said the deal undervalues the company. Neuberger Berman also opposes the buyout. On Tuesday, Q Investments said RiskMetrics, Proxy Governance and Glass Lewis have all given the deal a thumbs-down....

(bracketed language added by this poster for clarity)

http://blogs.wsj.com/privateequity/2010/03/09/different-fast-food-chain-so-we-cant-use-the-word-arby-trage/

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