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Friday, August 11, 2006

Intrawest Being Acquired on the Cheap by Private Equity Group Fortress

Intrawest (IDR) has reportedly accepted a $35 buyout offer from private equity group Fortress. The deal is valued at $2.8 billion. While this is a 32% premium to the closing price of $26.51, this is actually under the 52-week highs on the stock. The company now claims this is the best option for shareholders.

This owns high-end travel outfitters like Abercrombie & Kent and the Whistler Blackcomb ski resort. It also operates Blue Mountain in Ontario; Tremblant in Quebec; Stratton in Vermont; Snowshoe in West Virginia; Copper and Winter Park in Colorado; Mountain Creek in New Jersey; and Mammoth in California. The company also operated 18 golf courses and managed 17 other courses. It also owns and operates the 50-store chain of Breeze/Max sport retailer.

Since most shareholders will make money off this deal, it is not that likely to be challenged with any force. That is too bad. After looking at many metrics, this looks like it is being acquired on the cheap.

Jon C. Ogg
August 11. 2006

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