Is a Deal for Cedar Fair Still Possible?
Cedar Fair (NYSE: FUN) is alone again. Naturally. SeaWorld Entertainment (NYSE: SEAS) put out the briefest of statements after Tuesday's market close, confirming that its $3.4 billion offer to buy the regional amusement park operator had been rebuffed. "In response to inquiries from various stakeholders, we confirm that our offer to acquire Cedar Fair was rejected," the company said. "Unfortunately, we do not see a path to a transaction."
Cedar Fair shooting down the unsolicited offer isn't a surprise. Financial analysts were generally pleased with the proposed pairing, but they also felt that SeaWorld would have to raise its offer to get it done. Both stocks started moving higher when the deal was announced -- including sending Cedar Fair north of the $60 buyout price -- suggesting that the market would be fine with SeaWorld sweetening its bid. Both stocks opening lower on Wednesday as a result of SeaWorld presumably giving up on a deal also speaks volumes. With SeaWorld no longer seeing a "path to a transaction" investors are left to wonder if SeaWorld never had an intention of making a second offer or if Cedar Fair is making it clear that it will require a lot more than SeaWorld is willing to pay to make it happen.
Image source: Getty Images.
Source Fool.com
