Six Flags Inc. being put up for sale in auction process.

[Chitown]

This isn't a joke either.

http://biz.yahoo.com/ap/050825/six_flags_sale.html?.v=1

[ihauntu2]

This is an intersesting strategy.

By announcing this, the stock price will jump up high enough to make Snyder's tenure offer mute (currently 7.26 vs 6.50). It will also increase the overall capital valuation of the company putting them in better position to refinace debt at lower rates.

Yet I doubt anyone would want to take on the inflated asking price for the company due to the massive debt load, so Keiran gets to keep the company with a better financial position.

This has got to really cheese Red Zone LLC.

[SixFlagsChick]

damn... thats some gutsy stuff

[ihauntu2]

Its takes a good set to pull a move like this. Its the first time I've actually had faith in these weasels at the top.

Of course Snyder could still screw them over by deciding to take the company at the inflated price debt load and all. Maybe even with a little help via redmond washington.

[w00dland]

I think this is one of those: "If you make one wrong move, your screwed kind of deal"

SFI is being real ballsey by doing this, but if they mess up in one way they could lose they company real easily. Remember Snyder was the one who proposed having Red Zone buy some of the company to avoid triggering the "poisen pill" in the first place.

[Sfagm-is-the-best]

I have 27 bucks.....

[SFaddiction84]

Six Flags, however, contends that the debt is not intended as a "poison pill" to deter buyers

YA RIGHT!!!! This must the thing i was asking a while ago, six flags said that it had a "poison Pill"Plan that would go into affect if someone bought it!!!! I think SYNDER should take over most of the shares. he sounds VERY promising

[Danhockey04]

I dont like Synder's plans, nor do I like SF either, personally, I would rather see CF or Universal take over the park and see what they could do. CF would make the park a resort destination and add a coaster as soon as they got it, and Universal would add so much theming to the park, it would be nice to see that. I am just not sure about those two either, I think they would ruin the GREAT AMERICA atmosphere.

[SFaddiction84]

CF would do good. but CF said they really dont wanna buy all 30 parks.

[ihauntu2]

YA RIGHT!!!! This must the thing i was asking a while ago, six flags said that it had a "poison Pill"Plan that would go into affect if someone bought it!!!! I think SYNDER should take over most of the shares. he sounds VERY promising

The "poison pill" floods the market with cheap SFI (PKS) stock if one shareholder owns a controling percentage in the company. This causes the price of the stock to fall, allowing others to purchase it more easily. Then the person who had a controlling percentage sees their power diluted, and they no longer have that controlling edge.

The reason why it is called "poison pill" is that it can be triggered several times in the bid for takeover. Each time the hostile(Snyder?) attempts controlling interest, more stock is issued. If he buys enough of the new stock to regain a controlling stake, another batch is issued. So on and so on.....

The end result is that the stock price dives each time the pill is triggered. If triggered enough times the stock becomes worthless, and the company is almost destroyed hence "poison pill".

Snyder was trying to gain a controlling interest by Proxy. He was purchasing enough stock to gain below the controlling percentage, but he would need another owner(s) to sign over voting authority to him, or agree to what he wants done until he had 51% of voting proxies. Then he could replace the directors with new ones who would then eliminate the "poison pill" by a vote. Then he could resume takeover.

The current action prevents all of this. Just look at my 1st post in this topic if you need more information.

[SixFlagsChick]

I'm not so sure that is what Poison pill refers to. From what I understand the poison pill triggers when the company is purchased/taken over, causing all the debts (loans) they have aquired to come to term. Basically it means they have to pay off whatever debts they have right then and there, or scramble and get them all refinanced. That ultimately would kill the company too, as many are specualting SF wouldnt be able to refinance all of their debts and they dont have the financial resources to pay off the outstanding balance.

[ihauntu2]

The updates to the (ominous music) "Poison Pill" as of 9/04

http://biz.yahoo.com/e/040915/pks8-k.html

Basically, the price of all remaining outstanding shares would become $.01. The company would purchase all of these shares hoping it would give them a majority vs. the hostile. It would also pretty much tank the stock price overall.

It also prevents the "poison pill" from being changed by a majority of proxy. The plan may only be changed by directors. Snyder would have to wait until the new election, propose and elect new directors that would eliminate the pill.

The new amendment also creates new election guidelines - more than likely designed to make it difficult to run new candidates for directorship.
The current directors were also granted indemnity, meaning they can tank the company and not get sued for it.

As for debt, Snyder claims the debtload of 2.x billion is the real poison pill (not the one referenced in articles) , but I cannot find anything showing that debtload due on takeover. Of course I don't have access to the by laws that are ammended by this filing either.

It would be assumed that the debt would be passed on to the new owner under the current financing terms as this is standard with most takeovers & mergers.

This ammendment combined with the current action show how ballsy the current directors are and how little disregard they actually have for the shareholders.

[SixFlagsChick]

god ur smart... lol. I like that.

In any case... i think both would be a poison pill in any takeover.... your prolly right and I am prolly right in some sense as well.

[punkbunny24242]

I know in most cases I try to stay away from topics like this because he just blows me away with his wording. I must sound like a redneck hick in comparison to him

[SixFlagsChick]

i <3 smart guys. To me that is the most attractive thing.... then the butt ok so thats off topic sorry

[RBull4life]

Well, if CF decided to buy only certain parks,yeah I know, all parks come with the price, but, I am sure they would be more than happy to get their hands on Great America.

Just think of the name changes that would have to be to the coasters.

Batman = (paint it green) Baby Raptor
Superman = zzzzzzzzz

[SixFlagsChick]

why would CF have to change all the names?

[haydawg149]

i think Six Flags has copy Rights on some of their rides . . . so its just like what Guega Lake had to do, they had to change all of Wild Adventures prvious names . . .

[greatamerica2003]

The licensing agreement is with Six Flags Inc, not with each induvidual park.

I dont like Synder's plans, nor do I like SF either, personally, I would rather see CF or Universal take over the park and see what they could do. CF would make the park a resort destination and add a coaster as soon as they got it, and Universal would add so much theming to the park, it would be nice to see that. I am just not sure about those two either, I think they would ruin the GREAT AMERICA atmosphere.

This could possibly happen. If a firm decided to buy the company at a possibly bargain-basement price, then they could sell off each park one at a time and make a BOATLOAD of money. Viacom is'nt on the business of being a theme-park operator. I think they want to get out of it personally. I don't see Cedar Fair buying the whole works, but if a park like Great America were offered, they would jump. Universal, Busch, and Disney really don't want to get this involved either. But again, if a certain property were offered for sale, anything could happen.

I think the most certain thing to happen is that the whole SFI is purchased, smaller parks are sold off, and then this new company is able to concentrate on the core larger properties.

Just my $.02

[RBull4life]

I think the most certain thing to happen is that the whole SFI is purchased, smaller parks are sold off, and then this new company is able to concentrate on the core larger properties.

You are probably right, but the sad fact of the matter is, who would buy the smaller parks? What we might see if that were to happen, is smaller SF parks slowly closing one by one, and the parks property sold off. It may be good for the big three, Magic Mountain, Great AMerica, and Great Adventure, but parks like SFNO, for example, could be in trouble.

[Coaster Alex0805]

I hope that just one company buys Six Flags! I really like Six Flags Great America they way it is!!! And if they someone takes over just are park we are going to lose everything that makes Six Flags Great America basically Six Flags Great America. All roller coasters will have new names... Loney Toons would leave..and Camp Cartoon Net Work...Or be re themed? Great America would suck withouts Six Flags!!!! And I cant even think how badly Huricane Harbor will be rethemed!!! There wouldnt be a new coaster if there is a new company but you will see them working hard to change just about everything in the park!!!I dont understand the whole thing of whats gonig on so someone explain it to me on my sn!

[[jonrev]]

Would the name no longer be Six Flags Great America?

[SF Critic]

Would the name no longer be Six Flags Great America?

If the park is bought from another company and not under Six Flags it will just be called Great America.

As Coaster Alex0805 said,

Only SF themed coasters will be renamed... V2, Deja Vu, Batman, Superman, etc. (Anything owned by Warner Bros.) Looney Tunes and Cartoon Network will say bye bye and be rethemed to something else. Hurricane Harbor will be rethemed. SF theming will be rethemed (well what SF owns). Six Flags Fright Fest will be no more either. Of course no more Mr. Six. Almost everything I listed is owned by Six Flags Inc.

RBull4Life, SFNO has been in trouble from the start before SF even took the park. SF doesn't own SFNO neither SFMW, but are leased. If Six Flags is bought by a company, those parks might not be included in the purchase because they are not actually owned.

If Snyder does still intend to take hold of Six Flags, he already mentioned that he wants to sell SFMW to Busch Gardens as a optional buyer.

[RBull4life]

Would the name no longer be Six Flags Great America?

Depends on who buys the chain. If an outsider other than CF, Viacom, Universal, etc, etc buys the chain, then I would think that it would remain Six Flags. If Cedar Fair buys it, or any of the other big companies, then no, it would probably be just Great America.
Personally, if any group chain would buy Six Flags, I would prefer it to be CF. There is not alot wrong with Great America, and the only things that would have to change would be renaming some coasters, and re-doing the kids sections.

SF doesn't own SFNO neither SFMW, but are leased.

Thanks about that info. I never knew that. I guess you learn something new everyday.

[SF Critic]

Personally, if any group chain would buy Six Flags, I would prefer it to be CF.

What I read from the Washington Post, it never mentioned anything about Cedar Fair to buy out the Six Flags chain. It did say it could be a potential buyer for underperforming parks. SFGAm is not a underperforming park.

Quote from Washington Post; "Six Flags, the world's second biggest theme park operator after The Walt Disney Co., said Thursday it would invite dissident shareholder RedZone LLC - an investment firm controlled by Snyder - to participate in the auction."

"Analysts Kathy Styponias and Aaron Bearce of Prudential Equity Group wrote in a report Thursday that they didn't see any likely bidders besides Snyder in the market."

Red Zone LLC is the only company really interested in Six Flags Inc. In my opinion, I don't see that many companies participating at the auction. The company just has a massive boat load of debt on their hands right now. This is just to test Snyder, and is their last attempt to keep the company away from him.