The largest shareholder of Cedar Fair LP has sent out letters to its fellow shareholders that urge them to vote against a planned $2.4 billion purchase of the amusement park chain by private equity fund Apollo Global Management LLC.
Q Funding III and Q4 Funding — a pair of Texas hedge funds controlled by investor Geoffrey Raynor — called the $11.50-a-share purchase price by Apollo a 'bargain basement' offer. Shareholders are to vote March 16 on the sale.
The hedge funds, which control 18.1 percent of Cedar Fair's 55.2 million shares, said, 'In our opinion, this is the exact wrong time to sell the company.'
Cedar Fair did not respond to the letter by Apollo. It had said previously that it had had no contact with the managers of the hedge funds.