FOR IMMEDIATE RELEASE                                          AT
TUESDAY, JUNE 11, 1996                             (202) 616-2771
                                               TDD (202) 514-1888

    JUSTICE DEPARTMENT REQUIRES AMERICAN SKIING CO. TO DIVEST
                   TWO NEW ENGLAND SKI RESORTS

     WASHINGTON, D.C. -- The Department of Justice today said
that American Skiing Co., a major owner and operator of ski
resorts in New England, may go ahead with its $137 million
acquisition of S-K-I Ltd. as long as American Skiing sells its
New Hampshire ski resorts at Waterville Valley and Mount Cranmore
to preserve competition.
     The Department said that without the divestiture, American
Skiing would have controlled eight of the largest ski resorts
serving skiers residing in eastern portions of New England.  As
originally proposed, the deal would raise prices and eliminate
discounts to Maine residents for day skiing trips, and to
residents of Maine, eastern Massachusetts, eastern Connecticut
and Rhode Island for week-end excursions, the Department said.  
     In total, about $400 million was spent last year on skiing
in New England.
     The Department's Antitrust Division filed a civil suit in
U.S. District Court in Washington to block American Skiing's
original proposal to buy S-K-I.  At the same time, a proposed
settlement was filed that, if approved by the court, would settle
the suit.
     Anne K. Bingaman, Assistant Attorney General in charge of
the Department's Antitrust Division, said, "Competition has been
good for New England skiers.  We can't allow a merger to lessen
competition in the New England ski industry, which is so
important to the people of this region.  Without these
divestitures, this deal would have resulted in fewer discounts to
skiers living in Massachusetts, Connecticut, Maine and Rhode
Island."
     With Waterville Valley and Mount Cranmore in independent
hands, competition for these skiers will be preserved, without
impeding American Skiing's efforts to make New England slopes
more attractive to skiers around the world, Bingaman added.
     American Skiing Co., formerly LBO Resort Enterprises Corp.,
is headquartered in Newry, Maine, and owns the following ski
resorts:  Sunday River in Maine; Sugarbush in Vermont,
Attitash/Bear Mountain in New Hampshire; and Mount Cranmore,
which it has agreed to sell.  In 1995, American Skiing's revenues
at these resorts totaled about $58 million.  
     S-K-I, headquartered in West Lebanon, New Hampshire, owns
the following ski resorts:  Killington and Mount Snow/Haystack in
Vermont; a majority stake in Sugarloaf in Maine; and Waterville
Valley in New Hampshire.  In this transaction, all of these
resorts are being sold to American Skiing subject to its
commitment to divest the Waterville Valley and Mount Cranmore
resorts.  In 1995, S-K-I's revenues at these resorts totaled
about $110 million.
     As required by the Tunney Act, the proposed settlement
agreement will be published in the Federal Register, along with
the Department's competitive impact statement.  Any person may
submit comments concerning the proposed settlement agreement
during the 60-day comment period to Craig W. Conrath, Chief,
Merger Task Force, Antitrust Division, U.S. Department of
Justice, 1401 H Street, N.W., Washington, D.C. 20530.
     At the conclusion of the 60-day comment period, the court
may enter the consent decree upon finding that it serves the
public interest.
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96-268