Apollos understanding for Cedar Fair collapses

Megan Davies NEW YORK Tue Apr 6, 2010 1:11pm EDT Related News UPDATE 1-Ivanhoe adopts shareholder rights planTue, Apr 6 2010RPT-DEALTALK-Private equity investors enlarge cloutMon, Apr 5 2010Private equity investors enlarge cloutThu, Apr 1 2010DEALTALK-Private equity investors enlarge cloutThu, Apr 1 2010Poison pills dump to lowest turn in twenty yearsTue, March thirty 2010 Stocks & &

NEW YORK (Reuters) - Apollo Management"s $635 million takeover of thesis play ground user Cedar Fair (FUN.N) has collapsed due to miss of financier support, costing the association $6.5 million in fees, Cedar Fair pronounced on Tuesday.

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The $11.50-a-share offer, done in December, was important for being one of the couple of leveraged buyouts of last year but ran in to problems as shareholders vented about the price.

The deal, valued at $2.4 billion when together with refinancing the company"s superb debt, indispensable a two-thirds infancy of shareholder await to pass. But shareholders together with eighteen percent hilt Q Funding had pronounced they would not await the bid and urged others not to.

"The due buyout cost represents what we hold to be a "bargain basement" cost struck during one of the misfortune mercantile climates this nation has ever seen," Q Funding pronounced in a minute to alternative stockholders in February.

Ohio-based Cedar Fair, that owns eleven entertainment parks, pronounced the dual parties had jointly concluded to cancel the deal. Cedar Fair will compensate Apollo $6.5 million to repay Apollo APOLO.UL for losses incurred in tie with the deal, it said.

"The Board has listened from Cedar Fair unitholders and it is strong that the partnership contract does not have the compulsory turn of financier support," pronounced Dick Kinzel, Cedar Fair"s chairman, boss and arch executive.

Cedar Fair pronounced it will be evaluating subsequent stairs to residence the collateral make up and has adopted a unitholder rights plan, that would turn exercisable after a chairman or organisation owns twenty percent or some-more of the company"s units.

Otherwise well known as a "poison pill," such plans are a takeover invulnerability that creates it dear and formidable to take a association if any celebration acquires a sure commission of a corporation.

The rights will end on Apr 5, 2013, Cedar Fair said.

Cedar Fair"s shares were up 1.6 percent to $12.40 in early afternoon trade on the New York Stock Exchange.

(Reporting by Megan Davies; Editing by Tim Dobbyn)

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