(Removes line saying a Vail representative was not immediately available for comment)
By Svea Herbst-Bayliss
NEW YORK, Nov 2 (Reuters) – Oasis Management has cut by half its number of director candidates for election at Vail Resorts as the activist investor pushes the mountain resort operator to make changes to boost its share price, according to a regulatory filing made late on Friday.
The hedge fund, Vail’s fourth-largest investor with a 9.6% stake, is now urging investors to elect two executives to the company’s board next month after having initially nominated four candidates in September.
The revision comes before a board vote next month in which Vail’s largest investor, Baron Capital — which owns about 18% of the company — said last week it would back Vail’s nine nominees.
Oasis plans to write to other shareholders on Monday, saying it does not want to break up the company, according to a letter seen by Reuters.
Oasis is sticking with former Walt Disney Chief Executive Officer Bob Chapek and Ashton Hudson, who has served on various boards, but dropped former Olympic ski champion Picabo Street and venture capitalist Bryce Roberts from its slate.
Vail said that dropping two director candidates changed nothing. “The remaining Oasis nominees, Bob Chapek and Ashton Hudson, do not have the right experience, understanding of the company or track record on governance to be on the Vail Resorts Board,” it said in a statement.
The Oasis filing also says that the hedge fund and the company signed a confidentiality agreement last week to “facilitate discussions regarding a potential settlement” to end their proxy fight.
NO PLAN TO MOVE TO ‘ASSET-LIGHT MODEL’
Oasis has for months criticized Vail’s operations and share price, which has climbed 13% since January but tumbled nearly 60% in the last five years, leaving the company with a market value of $5.4 billion.
In its letter to other shareholders, Oasis says it is not pushing to break up the company. “Our plan for improving Vail Resorts’ performance does not include moving to an asset-light model,” the letter says, adding: “In fact we regard the company’s integrated resort network as one of its greatest competitive strengths.”
Vail, which owns mountain resorts and ski areas including in Utah, Colorado and the northeastern United States, says its multiyear transformation strategy will pay off. It has already made changes like upgrading its quick-service menu items, improving ticket purchasing and offering advance purchase discounts. It has also upgraded its ski school and lessons.
(Reporting by Svea Herbst-Bayliss; Editing by Emelia Sithole-Matarise)
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