Is Vail for Sale
SAM Magazine--Vail, Colo., July 9, 2004--Vail Resorts has been actively seeking a buyer for some or all of its assets, according to reports in the Denver Post and the Vail Daily, based on several unofficial sources in Vail valley. Speculation about a possible sale has also been fueled by a recent runup in the price of Vail stock (currently about $19 a share) amid rising trading volume.
VR officials decline to comment on a possible sale. But the Post reports that sources claim VR has hired an investment banking firm to facilitate a sale. Locals identify the leading candidate as former Vail chief Mike Shannon, who ran Vail under the George Gillett regime in the late Ì80s and early Ì90s and who has expressed interest since then in purchasing VR. But several other investment groups are also said to be looking at the company.
There are conflicting reports about just what VR might be selling. Some suggest it could simply be the hospitality division, which has been "a disaster," one source told SAM--VR has invested $280 million in the division, which has produced no cash flow. Other sources believe the entire company is for sale.