An investigation on behalf of current investors Cedar Fair, L.P. (Public, NYSE:FUN), who purchased the FUN shares before December 16, 2009, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price was announced.

The investigation by a law firm focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Cedar Fair, L.P. arising out of their attempt to sell Cedar Fair, L.P. (Public, NYSE:FUN) to an affiliate of Apollo Global Management.

On December 16, 2009 Cedar Fair, L.P. announced that it has entered into a definitive merger agreement to be acquired by an affiliate of Apollo Global Management. The transaction is valued at approximately $2.4 billion, including the refinancing of the Company’s outstanding indebtedness. Under the terms of the agreement, Cedar Fair unit-holders will receive $11.50 in cash for each Cedar Fair limited partnership unit that they hold. According to Cedar Fair, L.P the offer represents a 43% premium over Cedar Fair’s volume weighted average closing unit price over the past 30 days and a 28% premium over the closing unit price on December 15, 2009 and the board of directors of Cedar Fair has unanimously approved the merger agreement.

But according to an investigation by a law firm “the transaction appears to be unfair” to current investors of Cedar Fair, L.P. (Public, NYSE:FUN) because the “offer to purchase Cedar Fair, L.P. (FUN) appears opportunistically timed to take advantage of the current economic downturn” and is “grossly unfair, inadequate, and substantially below the fair or inherent value of FUN given that the Company's shares traded at $12.00 per share as recently as August 3, 2009 and at least one analyst set a price target for Cedar Fair stock at $15.00 per share.

Shares of Cedar Fair, L.P. (FUN) traded at $11.21 per share after the announcement and at $9 per share the day before the announcement. Cedar Fair, L.P. unites (FUN) were down from its 52weekHigh of $14.10 per share, $23 per share in September ’08, and almost $30 per share in 2007.

The investigation “concerns whether the Cedar Fair, L.P. Board of Directors breach their fiduciary duties to Cedar Fair, L.P. (FUN) shareholders by agreeing to sell Cedar Fair at an unfair price thereby harming Cedar Fair, L.P. and its shareholders”, “whether the directors of Cedar Fair, L.P. may have breached their fiduciary duties by not acting in Cedar Fair shareholders' best interests”, and “the Company may not have adequately shopped itself around before entering into this transaction and, pursuant to this proposed transaction, the affiliate of Apollo Global Management may be underpaying for Cedar Fair, L.P. , thus unlawfully harming FUN shareholders”.

Cedar Fair, L.P., Sandusky, Ohio, together with its affiliated companies is a limited partnership formed and managed by Cedar Fair Management, Inc. The Partnership is engaged in operating regional amusement park operations. During the year ended December 31, 2008, the Partnership owns 11 amusement parks, six outdoor water parks, one indoor water park and five hotels. Cedar Fair, L.P. reported in 2007 Total Revenue of $986.97million with a Net Loss of $4.49million and in 2008 Total Revenue of $905.61million with a Net Income of $5.71million.