Mt. Bachelor Shareholders Revoting

BEND, OR-The Pape Group of Eugene received good news last week regarding its bid to become the controlling shareholder of Mt. Bachelor Inc., owner of the leasehold, buildings and ski lifts that comprise the Central Oregon ski resort. The resort’s board is now recommending the Pape Group’s tender offer over another offer from Utah-based Powdr Corp., which owns three other ski resorts.

The recommendation comes after a lawsuit by The Pape Group convinced the board to form a special committee and hire an independent third party to review the offers and make a recommendation to the board, which it would follow. The independent third party, the Colorado-based investment banking firm of Green, Manning & Bunch, determined that The Pape Group’s offer of up to $26,000 per share and no requirement to sell was better than Powdr Corp.’s $20,100 per share offer that requires shareholders to sell their shares but includes lifetime ski passes for shareholders.

James Petersen, Mt. Bachelor Inc.’s general counsel and secretary, tells GlobeSt that the Powdr Corp’s offer of lifetime ski passes was not considered in the recommendation because it couldn’t not be translated into a per share value. “It could not be done because while five people who owned one share of Mt. Bachelor would get five lifetime passes, one person who owned 100 shares would only get one lifetime pass,” says Petersen.