Red Zone's Consent Solicitation is Successful

ASHBURN, Va., Nov 22, 2005 (BUSINESS WIRE) -- Red Zone LLC announced today that it has received and delivered to the registered agent of Six Flags, Inc. (PKS) written consents representing more than 57% of Six Flags' outstanding common stock.

Following certification of the consents, Kieran Burke (CEO), James Dannhauser (CFO) and Stanley Shuman will be removed as directors and Daniel M. Snyder, Mark Shapiro and Dwight Schar will be appointed to the board.

"I want to thank Six Flags' stockholders for their confidence in Red Zone and my fellow nominees," Mr. Snyder said. "With the holders of more than 57% of the outstanding common stock consenting to our proposals, stockholders have sent a clear message that it is time for change at Six Flags."

Mr. Shapiro added, "We look forward to working hard and bringing new life to Six Flags while increasing shareholder value."

Although Red Zone has delivered sufficient consents for its proposals to be adopted, shareholders may continue to submit their WHITE consent cards until the consent solicitation period expires on or about December 24, 2005.

Red Zone LLC is a Virginia-based private investment group. Daniel M. Snyder, owner of the Washington Redskins NFL franchise, is managing member of the organization.

SOURCE: Red Zone LLC

I don't know whether or not I'm excited about Dan Snyder owning this company or not. I do know, I'm extremely happy that Kiernan Burke and Co. are gone.

Well, atleast there is still time for share holders to back out of the deal from Red zone. The real deadline is December 24, 2005. The funny thing was as soon as this news came about, the stock price went from $7.74 to $7.50 immediately.

Buy your 2006 Season Passes NOW. Make that yesterday!

Not saying I don't believe you, but is there a link for this report?

Here's one for Red Zone's press release...

Here's another for Six Flags' response.

*grabs popcorn*

-'Playa

*** Edited 11/22/2005 9:22:00 PM UTC by CoastaPlaya***

I just pulled it off my ameritrade account, you wouldn't be able to access it. Sorry, I can't help you there, but know this, I don't want Red Zone to have a controlling hand in Six Flags. *** Edited 11/22/2005 9:27:33 PM UTC by Magicmike***

The response was basically---"recount! We demand a recount!"

I doubt it will be as interesting as Florida 2000, though. A 7% margin is a pretty big number, and it looks like Burke might have some extra time to spend with family on Christmas morning.

I actually thought Six Flags was taking a turn for the better, and was going to change for 2006 once they realised the mess they created, but i guess it's too late now. And Mike i agree with you i don't want Red Zone LLC to have control of Six Flags either.

Well at least he wont be broke, that's for sure!

The drop isn't that surprising. The stock price presumably went up on speculation that the auction would complete the sale of the company---the market was estimating the sales price. Now that the auction isn't going to happen, that speculative bubble has burst.

However, if you look at the chart, the big run-up appears to be on Snyder's original announcement date (mid august), not the announcement of auction (late august). Even at 7.50, it's not far from it's 52-week high.

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The article said:
Although Red Zone has delivered sufficient consents for its proposals to be adopted, shareholders may continue to submit their WHITE consent cards until the consent solicitation period expires on or about December 24, 2005

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If they already have sufficient consent, what would be the point of people who haven't already responded filling out either the consent or no-consent?

And if Red Zone procured sufficient consent this early in the process...that doesn't bode well for a change in the results, does it?

-CO

I am a stock holder in six flags.

Listen to me this is no way final.

We as stock holders have till December 24 to hand in our revokation forms to the company. I will be sending in mine tommorrow.

IF 8 percent of those 57 percent mail in the revokation forms snyder will not have the votes needed.

I have received three of these revocation cards in the mail.

Six flags is serious about this.

Also it has been reported that cedar fair has some interest in some of the parks too.

so well see what happens. *** Edited 11/22/2005 9:47:05 PM UTC by majortom1981***

Because the deadline isn't over yet which gives more people to vote for the proposed plans by redzone with the white consent card in case others who have voted now vote against with the blue consent card from Six Flags. I know, it does sounds crazy but it gives Six Flags a fighting chance if Stock holders suddenly start overlooking RedZones hurry and vote tactic.

Problem is, that 50 percent or better shareholder vote can lay in the hands of fewer than two dozen people.

If they've decided thus and so, every individual shareholder--Tigris Group types inlcuded--can send in their blue cards and still lose.

-'Playa

majortom, just out of curiosity, am I right in assuming that you had previously mailed in consent, but now you're mailing in saying you're changing your mind?

If so, may I ask why/what changed your mind? (Just curious)

ISS's recommendation seems like it probably sealed the deal.

The package I've recieved last night from Six Flags stated if you have not given consent to Red Zone then you can still show your support by signing and dating the Blue consent card.

I have a more than the stated shares owned by tigris and I thought I had a little,but if i could do anything to help Six Flags I will. *** Edited 11/22/2005 10:18:08 PM UTC by Magicmike***

Tigris isn't a real player.

That was one guy with 4,000 shares and a word processor.

-'Playa