Stockholder drops lawsuit challenging Intrawest sale
A stockholder who filed a lawsuit June 2 to challenge the acquisition of Intrawest Resort Holdings Inc. by affiliates of Aspen Skiing Co. and KSL Capital Partners voluntarily dropped the litigation Wednesday.
A law firm for stockholder Edward Hyden filed a notice of dismissal in U.S. District Court in Denver. No explanation for the abrupt change of direction was provided.
“This notice of dismissal is being filed with the Court before service by defendants of either an answer or a motion for summary judgment,” said the motion by attorney Juan Monteverde.
The case was dismissed without prejudice, which means it can be filed again. That suggests no out-of-court settlement was reached.
Monteverde didn’t return a telephone message seeking an explanation. He said earlier in the week he doesn’t discuss cases.
Intrawest announced April 10 it reached an agreement to sell its holdings to a company created by Skico and KSL for $1.5 billion. The deal includes Steamboat ski area and Winter Park, which Intrawest holds in a long-term lease.
Hyden claimed the stockholders weren’t given sufficient information by Intrawest to judge if the proposed sale was in their best interests. The lawsuit was filed against members of the board of directors and senior management. While Skico wasn’t named as a defendant, the lawsuit could have potentially affected the timing of the acquisition, which is supposed to be completed in the third quarter of this year.
Hyden asked a judge to declare the litigation a class action lawsuit on the assumption that other stockholders would join.
He also asked a judge to force Intrawest to produce more information on Intrawest’s finances — specifically its financial projections and the value analysis performed by the company’s financial advisers. Hyden wanted the proposed transaction enjoined until after the information was made available.
“The merger consideration appears inadequate in light of the company’s recent financial performance,” the lawsuit said.
Aspen Skiing Co. previously said it had no comment about the litigation since it wasn’t one of the parties. Intrawest’s investor relations office did not returned repeated messages.