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ASC Weighs Possible Sale Of Steamboat

By J.D. O'Connor
July 14, 2006

"We felt it was prudent at this time that we take a look at Steamboat," Chip Carey, ASC's Senior Vice President of Marketing and Sales, said Friday. "It is fairly plain to see that Steamboat has seen a tremendous increase in its value and we need to take a look at that. We're looking at all options."

Carey said "there are no buyers at the door" but that ASC's Board of Directors have retained investment advisors to initiate a "strategic review of business options" for the resort - including its sale.

"ASC is coming off its second straight record year which has created a number of opportunities for us to pursue," BJ Fair, ASC's CEO and President, said in a prepared release. "Given current positive market conditions and Steamboat's outstanding performance, the board has decided to review potential alternatives with respect to Steamboat and engage financial advisors to assist in that process. Our intent is to drive the maximum value for the company's stakeholders."

ASC has retained investment banking firm Bear Stearns & Company to conduct the review.

ASC is also currently engaged in a court battle with Wolf Mountain Resort, from whom ASC leases much of the terrain that makes up The Canyons, Utah, over who will control the resort. Lawyers for Wolf have alleged that ASC defaulted on its lease and that Wolf is therefore entitled to repossess the resort.

A judge issued a preliminary injunction preventinng Wolf from reclaiming The Canyons, but a final legal resolution has yet to be hammered out.

Friday's announcement fueled speculation that a potential buyer or buyers has expressed interest in Steamboat. Tim and Diane Mueller offered to buy the resort in 2002 with an offer topping $91 million but ASC cancelled the sale.

A breach of contract suit filed by the couple was resolved in July 2004 with ASC paying the Muellers $5 million and granting them 30 days in which to negotiate a new contract to buy the resort if ASC decided to move forward with a sale within three years.

Carey said Friday's announcement was not the result of interest from the Muellers or any other potential buyer.

"This is a win-win for us," he said. "We don't have to sell."

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Comments

	If ASC is in such good shape and Steamboat is a cash cow, why would they ever consider selling it unless they need cash? We locals don't trust 'em...
	Posted by: Jon | July 14, 2006 03:23 PM

	This would be great for Steamboat, if I was an exec at Steamboat, I'd be doing anything possible to make this happen. Bring on Vail, bring on Intrawest, bring on the Mueller's, anything should be better for Steamboat than ASC.
	Posted by: SkiPig | July 14, 2006 04:02 PM

	More Snow - LESS (ASC) Otten! Will never forget how arrogant those SOB's from the New England "Golden Tower" were when they bought Steamboat and Heavenly. Thank God they sold Heavenly to Vail and now may sell Steamboat to maybe some oil money from Texas and Denver.
	Posted by: Shelly | July 14, 2006 04:47 PM

Shelly, Skipig and Jon: We and many others in the snow sports business have worked closely with ASC for many, many years. They are a fine organization trying to do the best they can to run a business in a very tough environment. Whenever new management takes over changes are made -just like there probably will be when and if Steamboat sells. Thanks for posting and reading the IR. We will keep our editorial eyes wide open for you.

Posted by: Rob Brown | July 14, 2006 04:54 PM