The Canyons update: The plot thickens
http://www.summitdaily.com/article/2...NEWS/109110071
VAIL - Envisioning billions in real-estate profits, Vail Resorts has upped its offer for The Canyons, the Utah ski resort it wants to buy.
In a letter filed with the Securities and Exchange Commission on Monday, Vail Resorts Chief Executive Officer Rob Katz offered the promise of more cash to the American Skiing Company, the current owner of The Canyons.
Katz said Vail Resorts would chip in 30 percent of the net cash flow that VR makes off the real estate it would get in the deal. That could mean $650 million through 2020 for American Skiing Company, Katz said.
In the letter, Katz said Vail Resorts can make $2 billion to $2.5 billion in real estate through 2020 at The Canyons.
The 3,700-acre Canyons, in Park City, is the biggest ski mountain in Utah, with 17 lifts and 152 trails. In comparison, Vail Mountain has 5,289 acres within its boundaries, with 32 lifts and 193 trails.
Getting the most profit out of the real estate at The Canyons will require upgrades in snowmaking, lifts and other "mountain infrastructure," Katz said.
Vail Resorts has already offered $110 million to American Skiing Company for the resort. That offer follows an agreement between American Skiing Company and Toronto-based Talisker Corp. for the sale of The Canyons, in which Talisker offered $100 million.
Vail Resorts is suing Talisker, American Skiing Company and another company, Peninsula Advisors, which Vail Resorts had planned to partner with in The Canyons sale, to stop the sale of The Canyons.
In July, Katz said Vail Resorts and American Skiing Company were on the brink of a deal when it fell apart.
Katz's latest letter casts doubt on whether Talisker would get the needed approval from Wolf Mountain Resorts, the company that owns most of the Canyons land and leases it to the ski operator.
"Talisker has never operated a ski resort," Katz wrote, adding that Vail is the "premier mountain resort operator in the world."
Meanwhile, American Skiing Company has sued Wolf Mountain Resorts, saying it shouldn't be allowed to block the sale of The Canyons to Talisker Corp, the Park Record of Park City reported Friday.
Cash-strapped American Skiing Company has been selling off its resorts to satisfy debts. It has recently sold Steamboat, Killington, Pico, Mount Snow, Attitash, Sunday River and Sugarloaf/USA. The company has begun the process of dissolving.
Its shares were trading for 4.5 cents each on Tuesday.
Broomfield-based Vail Resorts owns Vail, Beaver Creek, Breckenridge, Keystone and Heavenly, which it bought from American Skiing Company in 2002.
http://cbs4denver.com/business/local...255070908.html
Vail Resorts Ups Bid For The Canyons
(AP) BROOMFIELD, Colo. Vail Resorts Inc. has boosted its offer for The Canyons ski resort in Utah.
Broomfield-based Vail Resorts sent a letter Monday to the board chairman of American Skiing Co., which owns The Canyons, supplementing its previous $110 million cash offer, according to a document filed with the Securities and Exchange Commission.
The ski resort company said it also would offer a 30 percent interest in net cash flow arising from owning and developing real estate development rights that would be transferred in the sale. Vail Resorts estimated the stake could produce up to $650 million for American Skiing Co. through 2020.
No one at American Skiing Co. was available to comment on the offer late Tuesday.
In July, American Skiing Co, said it was selling The Canyons for $100 million to an affiliate of Toronto-based Talisker Corp.
Vail Resorts has said it was nearing its own deal to buy the 3,700-acre Park City, Utah, resort before the sale to the Talisker affiliate was announced.
On 9/19, a Judge in Denver heard closing arguments by the attorneys for Vail, Talisker and AMC, as to whether an injuction should be issued enjoining and restraining the sale of the Canyons from AMC to Talisker.
I'm on Vail's side. Afterall, Talisker has already determined to keep a bunch of AMC's management team in place, should the sale go thru. It seems that AMC and Talisker are two sides to the same coin, and AMC has a lot more than $100mil. at stake by selling to Talisker.
