| FOR IMMEDIATE RELEASE
MONDAY, AUGUST 25, 1997
TDD (202) 514-1888
JUSTICE DEPARTMENT APPROVES DUNDEE REALTY USA AS BUYER
Competition for Skiers on the Front Range will be Maintained
WASHINGTON, D.C. After a thorough antitrust review, the Department of Justice today announced that it has approved the sale of Vail Resorts Inc.'s Arapahoe Basin ski area in Colorado to Avon, Colorado-based Dundee Realty USA Inc.
The sale arose as the result of a settlement the Department reached in January of this year with Vail Resorts and Ralston Resorts. That settlement required Vail Resorts to sell Arapahoe Basin to a third party in order go forward with its acquisition of Ralston.
After an evaluation of the proposed sale and in consultation with the State of Colorado, the Department's Antitrust Division concluded that Dundee can operate the ski area as a viable competitor on the Front Range. The Department also said that the sale of Arapahoe Basin to Dundee would fulfill the purpose of the January settlement--to maintain competition for skiers on the Front Range, the area east of the Rocky Mountains.
At the same time as the January settlement, the Justice Department and the State of Colorado jointly filed a complaint to prevent Vail Resorts' original deal to acquire Ralston Resorts from going forward. The complaint alleged that the acquisition of Ralston Resorts by Vail Resorts would likely result in higher prices and fewer discounts to skiers who live in Colorado's Front Range.
In July, the court approved the settlement. The settlement provides that the divestiture must be approved by the Department of Justice, with consultation from the Colorado Attorney General's Office.
With the sale of Arapahoe Basin, the Department's role in this matter is concluded. The deal is subject to U.S. Forest Service approval.
Dundee Realty USA is a wholly-owned subsidiary of Dundee Realty Corporation, a real estate company located in Toronto, Canada.