Why Cedar Fair Units Rose as Much as 22% This Week
Shares of Cedar Fair (NYSE: FUN), which owns and operates regional amusement parks, rose as much as 22% this week, according to data from S&P Global Market Intelligence. That dramatic increase had little to do with the master limited partnership (MLP), which last reported any news on Jan. 19. And that was to announce that it would release earnings on Feb. 16. Well, that's not quite true, Cedar Fair did comment on something peer Seaworld Entertainment (NYSE: SEAS) did on Feb. 1.
Basically, Seaworld Entertainment made an offer to buy Cedar Fair, which resulted in Cedar Fair putting out a news release that it was looking at the offer. Cedar Fair did not mention anything about the specifics of the offer, however, so there's really just rumors to go on here as far as price. Bloomberg, citing people with "knowledge of the matter," stated that it is an all-cash deal valued at $3.4 billion, or about $60 per unit. Given that news, it's not shocking that Cedar Fair's units rose up toward that price level. There's still a slight discount here, but that's normal for an acquisition since there's always a chance that a deal doesn't pan out.
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Source Fool.com
