A federal judge this morning was scheduled to consider whether to stop a Utah corporation from taking control of Mount Bachelor Inc.

Pape Group Inc., Mount Bachelor’s largest shareholder, filed a lawsuit Thursday in U.S. District Court in Eugene requesting the judge issue a restraining order to prevent Powdr Corp. from taking control of Mount Bachelor’s stock.

In the lawsuit filed against Mount Bachelor’s board of directors and Powdr Corp, Pape Group says the board breached its fiduciary duties by waiving a state anti-hostile takeover law. The waiver forces shareholders to sell their stock to Powdr at a lower price than Pape was offering.

The lawsuit also accuses the board and Powdr of fraudulent misrepresentation because Powdr’s offer does not treat shareholders equally. Along with the restraining order, the lawsuit seeks a jury trial.

Mount Bachelor’s board of directors voted 4-2 Monday to waive protection from the Oregon Control Share Act, which is designed to protect Oregon companies from hostile takeovers. The waiver allowed Powdr Corp. to have voting control of a majority of Mount Bachelor’s shares of stock, which it would buy for $22,100 per share. Powdr Corp’s tender offer to individual shareholders is scheduled to expire today.

The move by the Mount Bachelor board of directors earlier this week came after a fierce bidding competition between Powdr Corp. and Pape Group, owned by Randy Pape, a member of the board and former president of Mount Bachelor.

Pape Group had offered to pay $22,100 for shares of Mount Bachelor sold this year, and up to $25,000 for shares sold by the end of 2005.

Pape abstained from voting in Monday’s meeting of the board of directors, and is not a defendant in the lawsuit.

Pape said earlier this week he was disappointed the board of directors had chosen to accept an offer for less money than his company was offering.

Neither Pape nor John Cumming, president of Powdr Corp, could be reached for comment.