U.S. theme park operator Cedar Fair LP rejected Six Flags Entertainment Corp.'s merger offer, saying that the latter's $4 billion cash-and-stock offer was too low, Reuters reported, citing people familiar with the matter.
Texas-based rival Six Flags offered to acquire Cedar Fair for about $70 per share, higher than Cedar Fair's share price of $58 right before the merger offer was first reported by Reuters.
Cedar Fair said the existing offer did not adequately compensate its shareholders on the loss of publicly traded partnership status, which allows it to pay earnings to shareholders before paying U.S. federal or state income taxes.
Six Flags also reportedly offered Cedar Fair executives management roles for the combined company.
The sources said there is "no indication" that Six Flags will put a new offer forward.
