ASC Reviews Strategic Options For Steamboat

231 view(s)

Publish Date

07/14/2006

SAM Magazine-Park City, Utah, July 14, 2006-The board of directors of American Skiing Company (ASC) has retained investment advisors to initiate a strategic review of business options for the Steamboat Ski and Resort Corporation, including the potential sale of the resort.

"Steamboat's status as a world-renowned destination resort, combined with the financial performance generated by its tremendous management team and dedicated staff, have positioned the resort for success well into the future," said BJ Fair, ASC's CEO and president. "American Skiing Company is coming off its second straight record year which has created a number of opportunities for us to pursue. … Our intent is to drive the maximum value for the company's stakeholders," Fair continued.

ASC's decision opens the door for Tim and Diane Mueller to once again make a bid on Steamboat. The Muellers had planned to purchase Steamboat in early 2002 for $91.4 million, but ASC cancelled the sale at the last minute. The Muellers sued for breach of contract, and under the terms of an agreement completed in July 2004, ASC paid the Muellers $5 million-and granted them 30 days to negotiate to buy Steamboat if ASC decided to sell to a third party within three years.

At the time of that agreement two years ago, Mueller told the Steamboat Pilot that a future deal was "not out of the question." But ASC spokesman Dave Hirasawa called the provision "highly theoretical," claiming it required only that ASC offer a negotiation period.

Comments

Managing Partner

Did B.J. say, "...tremendous management team.?" He must be kidding if Chris Diamond is still running Steamboat. In the late 90's Diamond couldn't even manage Mount Snow properly.

In terms of ASC, keep in mind that problems still exist with the land owners at the Canyons.

Stock Watcher

You'll never find anyone foolish enough to think of buying five old run-down resorts.
Sell the money makers - Heavenly, Steamboat and then the Canyons. That's the ticket to success!
Then with the profits we can keep dumping money into our precious eastern resorts.

Why Not ?

Why not sell Steamboat, it's one of ASC's two resorts that actually made money. Better to hold onto all those resorts back east that haven't turned a profit in the last few years.

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image.