American International Group has sold Stowe Mountain Resort in Vermont to a spinoff company of the financially troubled insurance giant bailed out by U.S. taxpayers. It was sold, kind of, to one of its spinoffs – Chartis, which deals with AIG’s property-casualty and general insurance businesses, according to the Burlington Free Press.
AIG owned the mountain through a subsidiary called Mt. Mansfield Co. Inc., which last year paid the town of Stowe about $2.5 million in taxes.
Chartis, though officially separated from AIG, remains 100 percent owned by AIG.
“We believe this investment is beneficial to the resort’s employees and the Stowe community at large, as it provides stability and clarity on the ownership of one of the finest resorts in the U.S.,” Chartis said in a prepared statement, referring to the ski resort as “an attractive investment.”
Stowe Mountain Resort spokesman Michael Colbourn told the Associated Press Thursday that skiers, riders and other customers won’t see any difference under the new ownership. But the sale brought relief to many people, he said. “In the 18 to 20 months since there were the issues with parent company AIG, there has been speculation and rumor in regard to ‘Is the resort being sold?’” he said. “To have closure, from that perspective, is a relief if only from shutting down the rumor mill.”
The transfer includes the ski operations, two golf courses and an upscale lodge. Financial terms were not released.
AIG’s connection to the ski resort started when AIG founder C.V. Starr 
first skied Stowe in the 1940s. He later bought out the other mountain investors and began making improvements to lifts and building the resort’s first hotel.
Stowe, long called the Ski Capital of the East, is one of the most fabled ski areas in the U.S. Its first ski trails were cut by the Civilian Conservation Corps in 1933. A few years later trainloads of skiers flocked to Stowe, staying in farm houses and the few inns in town.
Today it has 119 trails over two mountain areas, one below 4,393-foot Mount Mansfield (Vermont’s highest peak) and the other at Spruce Peak. It’s vertical drop is 2,1o0 feet with no runouts.
It’s at Spruce where the big changes have happened to transform Stowe into a high-end destination resort and corporate playground for AIG execs. A $400 million upgrade included new lifts (one connecting Mansfield and Spruce), a new base lodge and hotel. 
And there are a number of multi-million dollar homes, seen right, alongside Spruce’s trails.
Stowe also has the distinction of having the highest priced lift tickets in the East – $89 for a single day.
Away from the expensive lifestyles, Stowe has some simply challenging skiing terrain including the Front Four trails of Starr (guess who that’s named after?), Goat, National and Liftline. There’s also some nice blue cruisers on Mount Mansfield including Perry Merrill and Gondolier. Over at Spruce it’s mainly gentle blues and mellow greens.
The area is also a mecca for nordic skiing with miles of trails, including those at the famed Trapp Family Lodge.
Despite its pricey, often well-deserved reputation, there are some affordable properties to stay within the Village of Stowe from motels, to bed and breakfasts to quaint inns. One of the best places to find them is the the Stowe Lodging Association.
If your a New England skier or snowboarder who hasn’t been to Stowe, you are missing a classic experience. Just plan on spending a few days there to soak up the atmosphere. It’s a good five-hour drive from southern Connecticut.
I still say that as a matter of gratitude for the $183 billion federal bailout, Stowe should give any U.S. taxpayer who wants to ski or ride there … one free lift ticket.
Here’s the full story on the sale from the Burlington Free Press.
Is a Piece of AIG on Hank Greenberg’s Shopping List?
By Ed Leefeldt | Nov 30, 2009
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A lot of water has flowed under the bridge between former American International Group CEO Hank Greenberg and the company he once ruled. But it could be time to float the idea that Greenberg might want to buy a piece of the ailing insurer.
Looking back a few years that idea would have seemed far-fetched. Greenberg was ousted from the job he held for more than 30-years by an angry board after a battle with New York Attorney General Eliot Spitzer, who filed civil charges against him. He faced lawsuits from AIG, which wanted the 12 percent of its shares that he controlled. He testified before the Securities and Exchange Commission, which was somewhat dissatisfied with his answers. Criminal charges were pending against one of his former executives, as well as others who were involved in a spurious deal regarding an insurance contract that made AIG’s earnings look better than they were.
But things are better now. Greenberg bested AIG in court and still owns 12 percent through companies he controls. While the former executive who worked for him was found guilty, and may serve time, no one has pointed the finger directly at Hank. And Greenberg settled with the SEC for a mere $15 million.
Best of all, it appears that AIG has put out the welcome mat. Greenberg has met with CEO Robert Benmosche and the two have nothing but good things to say about one another. And according to the New York Times, one of Greenberg’s companies might sell some of AIG’s property casualty insurance.
AIG’s property casualty unit is hanging on by a thread. It changed its name to Chartis to distance itself from AIG’s reputation. Revenue is declining, people are defecting – in part due to salary caps – and just today AIG’s price target was cut nearly in half by Wall Street research firm Sanford C. Bernstein because of an $11 billion shortfall in reserves to pay property casualty claims. “AIG would likely have to take some kind of a reserve charge” before selling AIG/Chartis, says analyst Todd Bault in a Bloomberg story.
And if AIG were to sell this unit, would Greenberg have the money to buy it? Greenberg controls private companies, so the amount of available cash to do a deal is unclear, but probably substantial. He previously indicated that he wants to make multimillion investments. Since he owns 12 percent of AIG’s shares, they could theoretically be swapped for control of an AIG business. But would he want Chartis? Probably, if he could get it for the right price.
Greenberg launched an unsuccessful proxy fight for AIG two years ago. Many would like to see him come back. And with taxpayer backing of $182 billion to pay that reserve charge, it might be a match made, if not in heaven, then on Wall Street. Ironically, most, if not all, of those who ousted Greenberg are gone, casualties of the 2008 collapse of this once giant insurer. Spitzer, himself disgraced by scandal, is a blogger.
Imagine Greenberg’s triumphant return to his former company captured on camera. Hank probably has it already scripted.
Tags: American International Group Inc., Insurance, Business Operations, Corporate Insurance, Ed Leefeldt
Ed Leefeldt is an award-winning investigative and business journalist who has worked for Reuters, Bloomberg and Dow Jones, and is the author of The Woman Who Rode the Wind, a novel about early flight.
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Comment by carol — January 9th, 2010 @ 11:01 pm
I’ve spent many New Years in Stowe (Trapp Family Guest Houses).
I’s beautiful taht time of year.
But i hate the mountain, don’t ski it much anymore.
{A Stowe Host told me two days ago to pray for snow! Place is turning into an ice pit!}
I ski the best mountain east of the Mississippi- Sugarloaf Maine.
They got 29 inches over New Years weekend!
Did you all know that Stowe’s 58 trails went to 117 by dividing a lot of trails into Upper, Middle, and Lower trails Look at a trail map.
They needed to compete with Killington’s 110 trails.
What a way to run a ski area!
Comment by Joe Tatarczuk — January 14th, 2010 @ 11:44 am