Friday, August 11, 2006

Large Intrawest (IDR) Holder Pirate Capital Declares Victory Following Sale

In a 13D filing Friday afternoon on Intrawest Corporation (NYSE: IDR), 18.2% holder Pirate Capital announced its support for the $35 per share takeover of the company by Fortress Investment GroupLLC. Pirate Capital also commends the Board for "conducting the broad and thorough strategic review that resulted in the sale."

The investment firm disclosed that it paid $239,239,012 to acquire its 8,928,570 shares in Intrawest. At $35 each, those shares are now worth $312,499,950.

Pirate Capital made its original 13D filing in June 2005 indicating its 'activist stance' and in March of 2006 they sent a letter to the company urging Intrawest to initiate a sale of the entire company. In the letter, Pirate placed a value of $42-$45 per share on Intrawest.

After hitting a peak of $37.69 in May of 2006, shares of Intrawest drifted lower to close at $26.51 per share on Thursday, the day before the news that Fortress Investment Group would buy the company for $35 per share or $2.8 billion.


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