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.
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.
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***
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.
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.
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
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?
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.