Knott’s owner to seek buyer

Shares of Cedar Fair rose the most in 20 months after a report said the third-largest U.S. theme-park operator and owner of Knott’s Berry Farm in Buena Park had hired Bear Stearns Cos. to seek a buyer that would keep the management team.

Shares of Sandusky, Ohio-based Cedar Fair rose 96 cents, or 3.3%, to $29.80, their biggest jump since November 2005. The company, which has a $1.62 billion market value, may fetch $3.3 billion, or about 10 times its annual cash flow, the New York Post said.

Apollo Management and Thomas H. Lee Partners have been contacted by Bear Stearns about the acquisition, the Post said, citing two unidentified people familiar with the plan. Others contacted were Providence Equity Partners Inc., TPG Inc., Carlyle Group and Blackstone Group.

The company, which last year bought Paramount Parks Inc. from CBS Corp. for $1.24 billion, has 12 amusement parks, six water parks and six hotels.