Vail sues over Canyons sale

The proposed sale of Utah's largest ski resort has brought a rival offer upping the purchase price $10 million, as well as a lawsuit from the same would-be purchaser.

In mid-July, Park City-based American Skiing Co. announced its plans to sell The Canyons to Talisker Canyons Finance Co. LLC for $100 million. Late last week, Vail Resorts Inc. sued both parties in a Denver court, claiming a "blatant conspiracy" to thwart its purported exclusive rights to purchase the 3,700-acre mountain resort.

The suit also names Peninsula Advisors, a real estate promoter that reportedly backed out of a deal with Vail Resorts to buy The Canyons and later entered into a separate arrangement with Talisker to purchase the resort.

In a Friday letter to the board chairman for American Skiing Co., Vail Chief Executive Officer Robert Katz extended a "superior offer" of $110 million for The Canyons, $10 million more than Talisker agreed to pay for the Park City property.

Katz's letter also was filed with the U.S. Securities and Exchange Commission on Friday, as an exhibit to a regulatory filing to notify shareholders of major events.

In his letter, Katz expressed "surprise and disappointment" at the proposed sale to Talisker Canyons, an affiliate of Canada-based Talisker Corp., a private real-estate developer and investment company whose assets include other Park City property.

The letter states that Vail was "on the brink of a deal" with American Skiing a week prior to the announcement of the Talisker sale. It then learned that Peninsula had threatened legal action if the deal with Vail went forward.

According to Utah court records, Peninsula did file a lawsuit on July 23 against Wolf Mountain Resorts, which owns a majority of the land on which The Canyons sits.

Chip Carey, American Skiing Co.'s senior vice president of marketing and sales, would not comment Monday beyond confirming the company's definitive agreement to sell The Canyons to Talisker.

A spokeswoman for Vail Resorts also declined further comment on the matter, citing the company's practice of not commenting on pending litigation.

The case is scheduled for a Wednesday afternoon hearing in Denver's 2nd Judicial District on Vail's request for a restraining order blocking the sale to Talisker.

In addition to its flagship resort, Vail Resorts operates three additional ski resorts in Colorado, one in California and Nevada, and another in Jackson Hole, Wyo.

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E-mail: awelling@desnews.com