Q Investments threatens second meeting if it doesn't get its way
Jan 14, 2011 at 11:44 AM
Q Investments said Thursday that it may call for another special meeting of Cedar Fair unitholders if a resolution to making paying cash distributions a higher priority fails to pass.
The Texas investment firm forced a special meeting on Tuesday to consider two proposals.
One proposal, to appoint a new chairman of the board with no prior ties to Cedar Fair, received so many votes that the current chairman, Dick Kinzel, announced that it appears to have passed.
The proposal on cash distributions is too close to call until all of the votes have been counted, Kinzel said. It may be several days until results are final.
In a letter sent Thursday to members of Cedar Fair's board by Federal Express, Q Investments said that most of the people who voted clearly favor higher cash distributions. The voting is close only because people who did not vote are being counted as "no" votes, the letter says.
According to the letter, the tally so far is 49.4 percent "yes."
If the board ignores the second proposal, "we will call yet another Special Meeting to vote on exactly the same resolution -- this time our simple goal will be getting the vote count from 49.4 percent to 50.1 percent," the letter says.
The letter argues that unitholders have the right to nominate directors for Cedar Fair.
It also insists that Geoffrey Raynor, who heads Q Investments, has met with Kinzel twice, and says that Raynor has a high regard for the amusement park business, even if Raynor has never visited a Cedar Fair park.
"Mr. Raynor personally grew up going to theme parks, and, with five children currently, has spent a great deal of time recently at various theme parks -- including a very recent visit to Six Flags, which he enjoyed immensely," it says.
The increasingly personal clash between Kinzel and Raynor has recently included Kinzel's repeated statements that Raynor has never visited a Cedar Fair park. According to Kinzel, Raynor said he visited Six Flags once and would never return.