Analyzing the mechanics and implications of Cedar Fair's delay to vote

Posted Tuesday, March 16, 2010 3:37 PM | Contributed by Jeff

The amusement park operator Cedar Fair announced on Monday night that it had postponed Tuesday morning’s meeting for unit holders to vote on the company’s acquisition by Apollo Management, saying it wanted to provide more time to solicit votes and proxies. For those unit holders who have already made the trip up to Sandusky, Ohio, for the meeting, they will have a relatively long wait. The meeting is postponed to April 8. Perhaps Cedar Fair will placate these unit holders with some free amusement park tickets in the interim.

Read more from The New York Times blogger Steven M. Davidoff.

Tuesday, March 16, 2010 6:29 PM

That's, er not so good for anyone.

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Tuesday, March 16, 2010 7:44 PM
LostKause's avatar

So inconsiderate, Cedar Fair. So inconsiderate. Shame, shame, shame. :(

They are afraid.


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Tuesday, March 16, 2010 9:54 PM

He seems to want to say that CF/Apollo are doing something wrong but he admits he can't under the terms of the merger agreement or Delaware law (at least looking at Delaware corporate law which he admits doesn't clearly apply to a Delaware limited partnership). Its like a roadmap to shareholders' rights attorneys who will turn each "may" into the worst absolute violations of human law since the dawn of time in court pleadings.

And he seems to be taunting Apollo into not raising their offer.

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Wednesday, March 17, 2010 10:44 AM
Pagoda Gift Shop's avatar

Do you think DK will move if he gets booted from power?

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Wednesday, March 17, 2010 11:45 AM
crazy horse's avatar

That was rotton of cedarfair to do that.


what you've just said is one of the most insanely idiotic things I have ever heard.
Everyone in this room is now dumber for having listened to it.
I award you no points, and may God have mercy on your soul.

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Wednesday, March 17, 2010 11:55 AM

Pagoda Gift Shop said:
Do you think DK will move if he gets booted from power?

I hope so. That way, I can buy his house & be wicked close to CP! ;)


Coaster Junkie from NH
I drive in & out of Boston, so I ride coasters to relax!

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Wednesday, March 17, 2010 1:19 PM

"Perhaps Cedar Fair will placate these unit holders with some free amusement park tickets in the interim."

I think that should be the least they get...


Great Lakes Brewery Patron...

-Mark

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Wednesday, March 17, 2010 2:15 PM

In fairness, was this the same analyst who made some comment about how there had better be doughnuts at the meeting?

There is another article out that offers some travel tips for unitholders who made the special trip to Sandusky and got stuck there with no meeting to attend and no Cedar Point to visit.

--Dave Althoff, Jr.


    /X\        _      *** Respect rides. They do not respect you. ***
/XXX\ /X\ /X\_ _ /X\__ _ _ _____
/XXXXX\ /XXX\ /XXXX\_ /X\ /XXXXX\ /X\ /X\ /XXXXX
_/XXXXXXX\__/XXXXX\/XXXXXXXX\_/XXX\_/XXXXXXX\__/XXX\_/XXX\_/\_/XXXXXX

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Wednesday, March 17, 2010 4:09 PM

^ Yes it was. In that same article he mentioned things he thought weren't right about CF's filings re: going private.

http://coasterbuzz.com/Forums/Thread/57008.aspx

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Wednesday, March 17, 2010 4:09 PM
ApolloAndy's avatar

Is the park open? Is it really useful to have free tickets to the closed park if you had to fly from Texas to get there?


Hobbes: "What's the point of attaching a number to everything you do?"
Calvin: "If your numbers go up, it means you're having more fun."

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Wednesday, March 17, 2010 6:46 PM

Q Funding sent a letter to CF's board yesterday indicating that (1) they are not interested in an increased offer from Apollo and want to participate in the long term equity of the company and (2) they believe delaying the meeting gives CF less time to deal with its existing bank debt.

http://www.sec.gov/Archives/edgar/data/811532/000134323810000011/cedarfair13da5.htm

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Thursday, March 18, 2010 8:01 AM

I haven't seen this anywhere yet, but an article in today's Toledo Blade mentions that the Knott family cast their 3.6% of shares as no votes.


And then one day you find ten years have got behind you
No one told you when to run, you missed the starting gun

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Thursday, March 18, 2010 9:38 AM

Interesting.

I'm curious...

Do you suppose there could be some personal connection between Geoffrey Raynor and the Knott family?

--Dave Althoff, Jr.


    /X\        _      *** Respect rides. They do not respect you. ***
/XXX\ /X\ /X\_ _ /X\__ _ _ _____
/XXXXX\ /XXX\ /XXXX\_ /X\ /XXXXX\ /X\ /X\ /XXXXX
_/XXXXXXX\__/XXXXX\/XXXXXXXX\_/XXX\_/XXXXXXX\__/XXX\_/XXX\_/\_/XXXXXX

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Thursday, March 18, 2010 1:13 PM

Okay, so that is 31.3% of the voting units guarenteed to vote no that we know of so far. I'd say that someone is really sweating bullets right now.

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Friday, March 19, 2010 11:59 PM

...or bribing the Knott family.

Dave, I don't know what connection there is. You could also question if Raynor has some kind of feud going with somebody associated with Apollo. But I'd tend to think people like Raynor don't make their fortunes by investing based on emotions and personal connections, whether good or bad.

I have to wonder why this guy with no apparent connection to CF, even when the price was in the $30s and paying a 6% dividend, suddenly steps up and invests nearly $10 million in the company to try to prevent its sale.

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Saturday, March 20, 2010 12:14 AM
rollergator's avatar

The phrase that comes to mind - "delaying the inevitable". Apollo is yesterday's news...but they got paid for their time and consideration, too.

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