(Bloomberg) -- Cedar Fair LP, the amusement-park chain that owns Knott's Berry Farm and Dorney Park & Wildwater Kingdom, briefly rose the most in almost a decade on a report that Six Flags Entertainment Corp. approached the company about a takeover.
Six Flags, whose parks include Fiesta Texas and Magic Mountain, is considering a cash-and-stock offer for Cedar Fair, according to Reuters. It's not certain an agreement will be reached, the news service reported.
A deal would unite two of the biggest thrill-ride operators, creating a chain of amusement and water parks that spans the U.S. A takeover would follow a June transaction to take the owner of Legoland's theme parks private for $6.1 billion. Analysts said at the time that the purchase could turn companies like Cedar Fair into more attractive takeover targets.
Cedar Fair shares rose as much as 11% on Wednesday to $64.86 -- the biggest intraday rally since March 2010 --before settling down to a 3% gain. Six Flags slipped less than 1% to $51.22.
To contact the reporter on this story: Nick Turner in Los Angeles at nturner7@bloomberg.net
To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, John J. Edwards III
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