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Understanding Takeunder Offers: Definition and Key Considerations
Discover what a takeunder is, why companies face them, and the key factors involved. Learn how financial distress impacts these unsolicited acquisition offers.
News SeaWorld Makes $3.4 Billion Takeover Bid for Cedar Fair
- Thread starter Seaworld History
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except those shares have surged since the take over bid was released. At tge time of the offer CF's stock was trading at bellow $49. 11 over the current price is low but not unreasonable.Understanding Takeunder Offers: Definition and Key Considerations
Discover what a takeunder is, why companies face them, and the key factors involved. Learn how financial distress impacts these unsolicited acquisition offers.www.investopedia.com
Which is exactly why a "takeunder" might not be a bad move for the board and shareholders, because the "true-value" of the stock probably isn't as high.
And I also stated that a major CF unit holder would like CF management to open this up to other bidders. (And based on that request, it comes across to me anyway, that investment company is not too thrilled with SEAS initial offer).
This opinion from the investment company might represent the majority of current CF unit holder's opinions, or maybe not. Maybe SEAS has made a counter-offer since that investor opinion came out. If they open the door wide open, we won't know how many potential offers could come in and if any of those offers could trigger a 67% percent unit holder vote in the positive to sell the park chain. Anything is possible at this time.
I don't see any decision being made by CF management until the 2021 4th quarter results and the 2021 yearly financial statement is released this Wednesday. Then unit holders and potential buyers can see the latest and greatest on the financial state of Cedar Fair.
CF management can then sit back and wait a spell to see if bigger fish might grab the bait. Again, it's the will of 67% of the unit holders will decide any potential deal. For the two buyout deals, since the CF purchase of the Paramount parks in 2006, one was rejected by CF management the other rejected by a CF unit holder vote.
From what I have read this isn't exactly true. Centerbridge Partners has bought up 5% of CF shares since the announcement. They did this because they feel that if a sale were to happen that there would be other parties interested and the overall price would go up. There is no evidence that they are using this as leverage to force a sale. Instead, they are betting that a sale will occur and that it will be higher than the current sale price.
Centerbridge Is Said to Build Stake in Buyout Target Cedar Fair
Centerbridge Partners has built a stake of more than 5% in Cedar Fair LP, the theme park operator facing takeover interest from rival SeaWorld Entertainment Inc., according to people familiar with the matter.
www.bloomberg.com
To me, the Bloomberg article was not clear if the 5% was purchased after the SEAS offer was made.From what I have read this isn't exactly true. Centerbridge Partners has bought up 5% of CF shares since the announcement. They did this because they feel that if a sale were to happen that there would be other parties interested and the overall price would go up. There is no evidence that they are using this as leverage to force a sale. Instead, they are betting that a sale will occur and that it will be higher than the current sale price.
Centerbridge Is Said to Build Stake in Buyout Target Cedar Fair
Centerbridge Partners has built a stake of more than 5% in Cedar Fair LP, the theme park operator facing takeover interest from rival SeaWorld Entertainment Inc., according to people familiar with the matter.
Plus, I am not sure if they could vote for the sale. Is there some sort of restriction stating only unit holders as of the date of the offer announcement can vote? I am not a business major and Cedar Fair is a limited partnership and not incorporated. CF trades in units not shares. I certainly don't the differences in the internal organization and rules that govern a limited partnership vs a corporation.
Typically, there is date by which you have to beat unit/shareholder in order to vote. That date varies but since CF hasn't communicated to their unitholders about the potential same, I think that anyone who currently buys shares would be able to view on it.
I still think the overall point still stands the they aren't pushing CF to put themselves up for sale. The Bloomberg article seems pretty clear to me that they believe if a sale happens that there will be several parties interested which will cause the price to go up. It's also worth noting that the 5% stake makes them the 4th largest unitholder, so if the other 3 larger ones want to go a different direction that's the way it would likely go.
I still think the overall point still stands the they aren't pushing CF to put themselves up for sale. The Bloomberg article seems pretty clear to me that they believe if a sale happens that there will be several parties interested which will cause the price to go up. It's also worth noting that the 5% stake makes them the 4th largest unitholder, so if the other 3 larger ones want to go a different direction that's the way it would likely go.
Without any other offers having been publicly announced, the behavior of CF's stock price really won't be much of an indication of what will or might happen -- any investor's guess is as good as yours or mine. That said, it might show us whether investors expect another offer to pop up.
I'll be interested to see if CF's stock prices remain higher than they were before the offer was made, of if they sink all the way down to the exact same level. Maybe SEAS' offer may have been an indication that FUN stock was undervalued?
Keep in mind the investor call/meeting for the 2021 4th quarter results and the 2021 year-end financial statements is tomorrow at 10 am. I bet there is a lot of interest for that call.
No but if the stock price drops relatively fast to near or below the pre offer price it could definitely be a sign to other parties that the unit holders are interested in selling and you potentially could see another group make a bid for purchase.
Let the Virginia coasters war continue.
Well managed or poorly managed, that is the question.
I don't see anything "poorly managed" at KD that stood out to me. Cedar Fair's directives was to have as much of the park chain operating; but, with limited operating hours/days to compensate for the labor market contraints and supply chain issues. And that was left up to each park based on those conditions in their region of the country.
SEAS wanted to maximize their park chain operating schedule. Leaving rides, attractions, restaurants, and shops closed or rotating open during operating hours as labor and supplies permit.
So the "We're Open" sign is hanging out front and people flood in expecting "normal" operations and not getting anything near that.
Neither of these operating philosophies are ideal. So, it is up to the park goers to face that this is the reality of this type of entertainment experience right now. You adapt or you choose to do something else.