Vail Resorts Pumps Up The Canyons Offer

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Publish Date

09/12/2007

SAM Magazine-The Canyons, Ut., Sept. 12, 2007-In the latest twist to The Canyons saga, Vail Resorts (VR) has sweetened its offer offer for The Canyons. VR offered an additional 30 percent of the net cash flow that VR makes off any real estate it would get in the deal. According to VR CEO Rob Katz, this could result in earnings of up to $650 million through 2020 for American Skiing Company (ASC) or its successors.

ASC rejected a $95 million bid by VR for The Canyons on July 16, in part because ASC believed that Vail had reached an agreement with a third party regarding the potential purchase of the Canyons without disclosing that agreement to ASC. Such an agreement would have been in violation of a confidentiality agreement signed by VR.

Currently, ASC is attempting to finalize the sale of The Canyons to Talisker Corp. for $100 million. The sale is currently on hold due to a lawsuit filed by VR. A Colorado court is expected to rule on the merits of the suit by October 1. VR claims ASC failed to consider the merits of the VR's initial offer. Vail then also upped its bid to $110 million. ASC replied that no sale agreement ever existed with VR.

The latest offer by VR suggests that Katz and other VR executives are determined to gain control of The Canyons and the highly lucrative real estate surrounding the Utah ski resort. According to sources, Katz is arguing that Talisker has "has never operated a ski resort" and that Vail is the "premier mountain resort operator in the world."

Comments

Talisker Resort Operator?

I wasn't aware that the Talisker Club was a ski resort. I thought it was a real estate development. How much experience do they have with mountain operations?

"Talisker never operated a ski resort" ???

Talisker has never operated a ski resort? maybe the VR execs need to take a tour of the talisker club, and then they will know what the term "premier" means. If you can play ball at deer valley, I am sure you can operate the canyons. With pockets twice as deep as VR, Talisker is the perfect canidate for owning the canyons.

Bob

Vail for sure. As a 20 yr vet of the ski industry and a real estate guy. You want a ski compnay running a ski hill. With experience in both I volunteer for the top dog job, for a quarter of what the last guy was making. I don\\'t waste me time patting myself on the back. I get the job done, while respecting those that really make things happen.

Absolutey!

I'll second that!

What does Talisker know about running a ski area? Let them stick with real estate.

Deer Valley as Manager

Deer Valley is a great indermediate/beginner resort; however, it is beginning to feel like you are skiing in the midst of a real estate development--not a ski area. Vail, on the other hand, knows where to place real estate, and it's not mid-mountain.

they have the cash

Talisker may not have the experience, but they do indeed have the cash to run a good ski area. could you get any better than hiring deer valley to run your resort. Watch out PCMR.

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Rumors

The rumor around Park City is that IF Talisker bought The Canyons; they were hiring Deer Valley to run it. How's that for one more twist!

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