Cedar Fair delays unitholder meeting for Apollo deal vote

Posted Tuesday, March 16, 2010 1:52 AM | Contributed by Jeff

[Ed. note: The following is part of an unedited press release. -J]

Cedar Fair, L.P. (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, today announced that, pursuant to the terms of the merger agreement with affiliates of Apollo Global Management, the special meeting of unitholders to consider and vote on the merger agreement, which had been scheduled for March 16, 2010, has been postponed. The special meeting of unitholders will now be held on April 8, 2010. Additional information regarding the meeting, including time and location, will be provided at a later date.

The special meeting has been postponed for the purpose of soliciting additional votes and proxies and giving unitholders additional time to consider and vote on the proposed acquisition. During this time, unitholders will continue to be able to vote their units, or to change their previously cast votes.

Cedar Fair unitholders are reminded that their vote is extremely important, no matter how many or how few units they own. Unitholders are advised that if they have any questions or need any assistance in voting their units, they should contact Cedar Fair’s proxy solicitor, Mackenzie Partners, Inc., toll-free, at 1-800-322-2885.

Read the entire press release from Cedar Fair.

Tuesday, March 16, 2010 1:54 AM

What a load of crap. Let it go, Dick. This is a losing battle for you.

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Tuesday, March 16, 2010 3:21 AM

I gotta think this sucks for those who might have already traveled for it. I mean that's pretty low to cancel the day before. If anyone has traveled a long distance, say maybe from Texas, they surely would have already made it there.

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Tuesday, March 16, 2010 3:56 AM

One financial site posted that there was a rumor that Apollo was going to make a better offer, and the unit price went up a couple of bucks.

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Tuesday, March 16, 2010 4:01 AM

Yeah I saw that on Pointbuzz. This whole thing has been interesting from the start. I certainly didn't think it would end up the way it has so far.

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Tuesday, March 16, 2010 8:02 AM

There is a story in this mornings Cleveland Plain Dealer that Apollo is in the process of securing an additional $100 million dollars of funding, indicating a price offer of $13.50 per share.

Q Funding is said in the story to support that price.

Last edited by Bozman, Tuesday, March 16, 2010 8:02 AM
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Tuesday, March 16, 2010 8:25 AM

Merger agreement contemplated adjourning the meeting if the votes were not there. Gives Apollo a chance to see if it wants to sweeten the deal rather than walking away. Presumably they wouldn't do that if they thought they had no shot in getting a deal. If there is an actual agreement to increase the offer to $13.50, CF will need to communicate that to unitholders. Unconfirmed reports from an investor web site won't be enough other than to drive the price of the shares up. If Q Funding would accept $13.50, that may be enough to make the difference.

CF also reported somewhat higher EBITDA for the most recently ended 12 month period yesterday which would support, on the same multiple basis, a somewhat higher offer price but not $2/unit higher.

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Tuesday, March 16, 2010 9:18 AM

How about this? I will take the 11.50 over the 13.50 with the caveat that Apollo guarantees a management change.

My father in law (also a unit holder) lives in Sandusky and drove over to the meeting location this morning not knowing that the meeting had been postponed. He said there were some folks milling around outside. One group urging a "no" vote and what seemed to be Cedar Fair officials giving out information about the rescheduled meeting.

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Tuesday, March 16, 2010 10:46 AM

The Q Funding moves make sense now (well they will if everything comes together the way the rumors are reporting). They're going to make a ton of money off of this possible increase.

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Tuesday, March 16, 2010 1:03 PM

Wahoo Skipper is so smart.....you should send Q Funding and Apollo your thoughts on what it will take to get you, and many others, to vote yes : )

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Tuesday, March 16, 2010 2:01 PM

jive2 said:
The Q Funding moves make sense now (well they will if everything comes together the way the rumors are reporting). They're going to make a ton of money off of this possible increase.

I agree if that is the way it plays out. Q Funding has never stated any intentions other than voting down the Apollo merger so at this point we don't know. But if Q Funding believed that the company was undervalued at $11.50, presumably the company was more undervalued during November when it was trading for $2 or $3 less per unit. But they were not buying CF stock then. Q Funding waited until after the merger was announced to buy the recent shares (after the price had risen to approach $11.50 and at higher prices because they bought the price up). Selling at $13.50 would provide to them a premium that, based on the short investment period, provides a good return.

Though at this point we do not actually know if Apollo will increase its price or if Q Funding would accept $13.50.

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Tuesday, March 16, 2010 4:32 PM

Well just like I said, people showed up anyway.

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Tuesday, April 6, 2010 9:37 AM

As of this morning the merger agreement has been terminated.

http://www.prnewswire.com/news-releases/cedar-fair-and-affiliates-o...89157.html

Last edited by Bozman, Tuesday, April 6, 2010 9:38 AM
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Tuesday, April 6, 2010 10:12 AM

I wonder what the fastest way to get Dick out of there is now. Great that he and his son no longer have their golden parachute. :)

Are unit-holders able to get him out prior to the next cote for board members? I hope so, before he makes more bad decision and causes further damage to the company.

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Tuesday, April 6, 2010 10:26 AM

Take the 6.5M out of Dick's bank account...what a dumbass.

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Tuesday, April 6, 2010 11:58 AM

At least now he can get back to focusing on running the parks.

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Tuesday, April 6, 2010 3:58 PM

I'm probably wrong here, but can't the unit holders vote him out?

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