Utah Company Gains Control of Mt. Bachelor

BEND, OR-Having received commitments for better than 58% of the 1,382 outstanding shares, Utah-based Powdr Corp. will be the controlling owner of Central Oregon’s Mt. Bachelor ski resort. The owner of four ski resorts in Utah and California saw its $20,100 per share offer accepted by the owners of more than 800 shares, and expects to close on their purchase by the end of the week and own Mt. Bachelor as a subsidiary by the end of April.

Although Powdr Corp. obtained about 58% of the outstanding shares, it was really a more impressive feat, because its competitor, The Pape Group of Eugene, already owned 23% of the company, or about 318 shares. So in gaining its majority, Powdr Corp. received commitments from the owners of 75% of the shares not owned by The Pape Group, which had offered between $1,000 and $5,000 more per share with the goal of keeping ownership in the hands of Oregonians. Last week, The Pape Group upped its offer by another $1,000 on each end in a last ditch effort to retain control, but it was apparently too late to change the minds of the board members, who own a preponderence of the shares that will give Powdr its victory. That being the case, it’s apparent that Randy Pape, the former president and CEO of the resort until he resigned in Mid-February to focus on the buyout, didn’t have too many allies within the company.

A Powdr Corp. official could not be reahced for comment Tuesday morning. Says Tim Clevenger, director of business development for The Pape Group, “Four directors made a decision that will cost all shareholders a lot of money.”Mt. Bachelor’s secretary and general counsel Jim Petersen tells GlobeSt that Powdr will now have complete control over the board and its makeup, which means it will be able to approve the merger and force all shareholders–not just those that have already committed–to tender their shares. The only recourse for The Pape Group and other shareholders who didn’t accept Powdr’s offer is to dissent or vote no against the merger. Such an action won’t prevent them from having to sell, but would force the courts to decide how much Powdr should be paid for their shares, says Petersen.