December 1, 2009
"The stock, range-bound around its IPO price of roughly $17 for most of the early Naughties, began to take off along with the market in 2005. By 2006, large shareholder Pirate Capital was agitating for Intrawest to put itself up for sale (aw, remember the heady days of activist hedge funds?) because “public markets could not adequately value Intrawest’s landholdings, or fully appreciate its complex joint ventures.” Stupid public markets! And lo, in swooped Fortress Investment Group LLC with an offer to envelop Intrawest into its dark velvet private cloaks for a cool $2.8 billion, or $35 per share, a 32% premium over the stock’s then-current price. Fortress no doubt baked in that hefty extra not because it expected a small explosion in the number of gapers shredding gnar but moreso because it expected a huge explosion in the value of Intrawest’s portfolio of… all together now… real estate."

— —Iced Out, with Katie Baker: Hockey Meat, the Disaster of Whistler Blackcomb and Next Year in Vancouver

11:21am  |   URL: http://choiresicha.com/post/265028403/the-stock-range-bound-around-its-ipo-price-of
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