Alterra gets a $3 billion infusion

[Benny Profane]

With the consolidation of multiple industries, DOJ hasn't enforced anti-trust legislation in decades.

Actually, the Biden WH has been threatening a lot of companies with anti trust actions, although I think it's a lot of empty hand waving, and won't last.

https://www.politico.com/news/2023/12/30/heres-how-biden-may-cement-his-antitrust-legacy-in-2024-00132756

 

[Benny Profane]

Maybe a corporate raider will buy Vail Resorts Inc and break it up so the DOJ doesn’t have to.
With MTN stock now <$175, the whole messy kit & caboodle is <$6.55B market cap.
Or just wait for MTN to go broke.

You're right. Vail Inc. is a prime target for a private equity firm to come in and break it all apart.

 

[MarzNC]

From what Alan Henceroth told Jason Blevins, doesn't sound like he expects the deal to fall through.

June 28, 2024

Department of Justice investigating antitrust issues with Alterra’s plan to buy Arapahoe Basin

The Justice Department is investigating Alterra Mountain Co.'s plan to acquire Arapahoe Basin by reviewing industry demographics, economics

coloradosun.com

" . . .

. . ."

 

[Milo Maltbie]

Vail Inc. is a prime target for a private equity firm to come in and break it all apart.

How does giving up Vail’s dominant market position increase the value of the individual parts?

mm

 

[Benny Profane]

How does giving up Vail’s dominant market position increase the value of the individual parts?

mm

One could argue that they have a "dominant market position". But PE guys don't care about that so much. If the stock gets cheap enough, they'll come in, buy the company,maybe with the help of Vail's board when they offer all the relevant actors a sweet buyout deal to lube the gears, so to speak, load the company up with debt, and start discarding the small areas in sketchy low snow places and far from population centers that are probably costing the company money. Like the small areas they gobbled up in the Peak deal. Can't imagine Whitetail or Big Boulder is making them money, or at least the money that supports their inflated salaries. I'll bet none of them could find Whitetail on a map if they had a gun to their heads.
Unfortunately, nobody is going to want to buy those little areas, unless the prices are fire sale cheap. May be a bunch of lost areas all at once.
That Peak deal was stupid. Alterra never did something so dumb.