Ascent Entertainment announced yesterday that it will
conduct a "new open auction" to sell the Nuggets, Avalanche
and Pepsi Center, according to Stephen Keating in a front-
page report in the DENVER POST. The deal "settles a group
of shareholder lawsuits, while leaving in limbo" Ascent's
$400M sale to Bill and Nancy Laurie. Regardless of the
outcome of the auction, it "appears" that Ascent CEO Charlie
Lyons "will not be a part of the sports business he had
nurtured throughout" the '90s. A source said that under
yesterday's settlement, Lyons "cannot be part of the auction
process, whether with the Lauries or representing Ascent."
In addition, Lyons will "take a leave of absence from
Ascent." The new auction "will resemble a playoff
situation, with a first-round 'bye' for the Lauries." New
bidders will make their offers for the assets and the top
bidder will go against the Lauries. It was "unclear"
whether the teams and arena will be sold as a package or
separately. Meanwhile, NY-investment bank Wasserstein,
Perella & Co. will work with Allen & Co. on the new bids
(DENVER POST, 6/22). The auction process "will be brief,
ending July 31." The Lauries will receive a break-up fee
"if they are not successful in acquiring the teams." The
break-up fee "will exceed their costs of putting together
the aborted first deal" (ROCKY MOUNTAIN NEWS, 6/22).
A "CORPORATE CAPITULATION": In Denver, John Accola
scores "one for lawsuit-waiving shareholders of Ascent."
The auction "is exactly what angry shareholders were
seeking" and legal experts "say the swift resolution
demonstrates the power of investor activism" (ROCKY MOUNTAIN
NEWS, 6/22). Also in Denver, Don Knox writes that Ascent's
decision "is a remarkable corporate capitulation." While
certain investors expressed a willingness to bid more than
the Lauries, "now it's time to put up." CO billionaire
Donald Sturm said he may bid $440M, but Knox writes it is
"murky" whether he "would be willing to part with a
requested" 1% of transaction equity -- as well as a five-
year management contract -- as a "finder's fee" for Bonham
Group President Dean Bonham (ROCKY MOUNTAIN NEWS, 6/22).
ELWAY A POSSIBLE BIDDER? In Denver, Al Lewis writes
that in addition to Sturm, other possible bidders for the
assets include CO business execs Bjorn Erik Borgen and
George Gillett and Ascent shareholder and Triarc Chair
Nelson Peltz. Meanwhile, Broncos Owner Pat Bowlen, former
QB John Elway and Ascent board member Peter Barton are also
possible bidders. The Bowlen group "is said to have made a
previous offer of about" $340M for the teams, "but lost out
to the Lauries' higher offer" (ROCKY MOUNTAIN NEWS, 6/22).
