Also, fucking assholes.
A stockholder for Intrawest named Edward Hyden filed a lawsuit June 2 to challenge the acquisition of Intrawest Resort Holdings Inc. by affiliates KSL Capital Partners and of Aspen Skiing Co. (Skico).
Hyden’s suit alleged Intrawest investors weren’t given enough time and intel to properly vet whether an April 10 agreement to sell its holdings to a new company created by Skico and KSL for $1.5 billion was a good thing for the existing company and its shareholders.
Skico was not named as a defendant.
KSL, the suddenly juggernaut Denver-based private equity firm which also owns Squaw Valley USA and Alpine Meadows …and is in the process of finalizing an April 11 acquisition of Mammoth, could have been concerned the lawsuit would jeopardize the finalization of the Intrawest acquisition, slated to be complete by September.
Hyden voluntarily dropped the litigation Wednesday, June 7.
The law firm representing Hyden filed the notice of dismissal in U.S. District Court in Denver. “This notice of dismissal is being filed with the Court before service by defendants of either an answer or a motion for summary judgment,” read attorney Juan Monteverde’s motion.
The case was dismissed without prejudice, which leaves a window for it to be re-opened.
This case’s dismissal likely means one of two things: 1) Hyden’s attorneys told him his pockets would be picked clean by KSL’s attorneys. 2) Though no formal settlement was reached, Hyden could have been given a nice little chunk of shut-up-and-go-away money out of petty cash.
Scared off or paid off …or a lethal combination of both.
My guess is it’s more the prior than the latter and KSL started to lawyer up pretty damn quick.
Hyden refused to comment on the matter.
After the initial filing, Hyden asked the judge to declare the litigation a class-action lawsuit so other stockholders could climb aboard. He also wanted the judge to press Intrawest to release more information on its current financial state/projections and requested the transaction be suspended until after the information was released.
“The merger consideration appears inadequate in light of the company’s recent financial performance,” read an excerpt from the initial lawsuit.