Investor sues to stop Hunter sale
Sep 09, 2019 12:30 pm
Rick Karlin is reporting in the Times Union Colorado-based Vail Resorts' plan to purchase Hunter Mountain, Mount Snow in Vermont and other ski centers hit a legal roadblock, after a stockholder in Peak Resorts, the holding company that owns the two resorts, took legal action in federal court to stop the sale, arguing the deal gives unfair benefits to insiders. Peak’s board of directors would be “the primary beneficiaries of the proposed transaction, not the company’s public stockholders,” according to the complaint, filed in federal court in Missouri by stockholder John Field. Peak Resorts is based in Missouri. The complaint notes that Peak has had a record year. By their fourth fiscal quarter this year they reported revenue of $85.5 million compared to $56 million in 2018. On July 22, Vail Resorts announced it would acquire Hunter's owner. According to a press release, Vail would purchase 100 percent of Peak's outstanding stock at a purchase price of $11.00 per share for a total of more than $260 million. Read the full story in the Times Union.