Higher offer could be on the way

Article Excerpt

CEDAR FAIR L.P. $13 (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 55.2 million; Market cap: $717.6 million; Price-to-sales ratio: 0.8; No dividends paid since November 2009; WSSF Rating: Average) owns 11 amusement parks and seven water parks, mostly in the midwestern and northeastern U.S. It recently accepted an $11.50-a-unit takeover offer from Apollo Global Management, a private-equity firm. However, another private-equity firm, Q Funding III LP, owns 10% of Cedar Fair and is opposed to the takeover. The possibility of a competing offer is why the stock is trading above $11.50. Cedar Fair is still a hold. hold…