Resort company Intrawest Corp. agrees to US$2.8B takeover by investment group: Knowledge Driven Revolution

Resort company Intrawest Corp. (TSX:ITW) is embracing a $2.8-billion-US takeover offer announced Friday by Fortress Investment Group LLC.

Fortress has agreed to pay $35 US a share in cash and assume Intrawest debt, Vancouver-based Intrawest said.

"We are pleased with this outcome. It's been a lot of hard work," Joe Houssian, Intrawest's chairman and chief executive, said on a conference call with analysts.

"It was an extremely thorough process and we're very clear that this is the best outcome for our shareholders and for all of our constituencies."

Shares in Intrawest soared $8.55, 28.7 per cent, to $38.34 Cdn in morning trading on the Toronto Stock Exchange.

More than 100 interested parties from around the world came forward after Intrawest announced it was considering selling itself in February and after serious negotiations with about 15 of them, Fortress emerged as the most attractive bid, said lead director Gordon MacDougall.

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Intrawest's board has unanimously recommended that shareholders approve the deal.

The process "involved a careful and thorough examination by the company and its advisers of many different financial and business structures available to the company," including business combinations, asset sales, strategic partnerships joint ventures, continuing on a stand-alone basis and the sale of the company.

The deal, which includes a $60-million breakup fee, requires approval by the applicable court and by 662/3 per cent of the votes cast by holders of Intrawest shares. Shareholders will likely meet in October to vote on the deal, Houssian said.

Fortress is a global investment and asset management firm with about $23 billion in equity capital under management.

Intrawest owns resorts all over North America, including the Whistler/Blackcomb ski resort in British Columbia. The company owns interests in nine other mountain resorts and also owns Canadian Mountain Holidays, the largest heli-skiing operation in the world, as well as an interest in Abercrombie & Kent, the world leader in luxury adventure travel.

The Intrawest network also includes Sandestin Golf and Beach Resort in Florida and Club Intrawest, a private resort club with nine locations in North America.

Whether new ownership under Fortress would involve changes at the successful resort chain was not immediately known.

"We have not had detailed discussions with Fortress about their more detailed strategic objectives other than they liked what they saw at Intrawest obviously and they're wanting us to grow the business," Houssian said.

Fortress said the transaction represents a 20 per cent premium over Intrawest's closing price on Feb. 27, the last trading day before the company announced its intention to review its strategic options, and a 32 per cent premium over the closing price prior to the announcement of the offer.

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HOME V for Vendetta - R for Reality Canadian Bird Flu Pandemic Looming ? Shill of the Week: Stephan Harper Aspartame: The Sweetest Killer Chicken Little Terrorist of the Week: Creating Fake Terrorists Shill of the Week: Paul Martin The Number 1 Reason YOU became a Slave	Resort company Intrawest Corp. agrees to US$2.8B takeover by investment group CP August 15, 2006 Resort company Intrawest Corp. (TSX:ITW) is embracing a $2.8-billion-US takeover offer announced Friday by Fortress Investment Group LLC. Fortress has agreed to pay $35 US a share in cash and assume Intrawest debt, Vancouver-based Intrawest said. "We are pleased with this outcome. It's been a lot of hard work," Joe Houssian, Intrawest's chairman and chief executive, said on a conference call with analysts. "It was an extremely thorough process and we're very clear that this is the best outcome for our shareholders and for all of our constituencies." Shares in Intrawest soared $8.55, 28.7 per cent, to $38.34 Cdn in morning trading on the Toronto Stock Exchange. More than 100 interested parties from around the world came forward after Intrawest announced it was considering selling itself in February and after serious negotiations with about 15 of them, Fortress emerged as the most attractive bid, said lead director Gordon MacDougall. Read the full article here Article Continued... Intrawest's board has unanimously recommended that shareholders approve the deal. The process "involved a careful and thorough examination by the company and its advisers of many different financial and business structures available to the company," including business combinations, asset sales, strategic partnerships joint ventures, continuing on a stand-alone basis and the sale of the company. The deal, which includes a $60-million breakup fee, requires approval by the applicable court and by 662/3 per cent of the votes cast by holders of Intrawest shares. Shareholders will likely meet in October to vote on the deal, Houssian said. Fortress is a global investment and asset management firm with about $23 billion in equity capital under management. Intrawest owns resorts all over North America, including the Whistler/Blackcomb ski resort in British Columbia. The company owns interests in nine other mountain resorts and also owns Canadian Mountain Holidays, the largest heli-skiing operation in the world, as well as an interest in Abercrombie & Kent, the world leader in luxury adventure travel. The Intrawest network also includes Sandestin Golf and Beach Resort in Florida and Club Intrawest, a private resort club with nine locations in North America. Whether new ownership under Fortress would involve changes at the successful resort chain was not immediately known. "We have not had detailed discussions with Fortress about their more detailed strategic objectives other than they liked what they saw at Intrawest obviously and they're wanting us to grow the business," Houssian said. Fortress said the transaction represents a 20 per cent premium over Intrawest's closing price on Feb. 27, the last trading day before the company announced its intention to review its strategic options, and a 32 per cent premium over the closing price prior to the announcement of the offer. Broken Link? If the link to the original article is broken or has been altered you can view the article by clicking the "Expand/Collapse" button below. About KDR \| \| Home \| \| Weekly Features Archive	Weekly Features Archive
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