Austin, Texas, Developer Buys Resort Town.(Knight Ridder/Tribune Business News)

Knight Ridder/Tribune Business News | February 25, 2000| | Copyright

Feb. 25--LAJITAS, Texas--Stephen R. Smith, Austin developer, rancher and one of the founders of Excel Communications Inc., purchased the resort town of Lajitas in a dusty corner of Southwest Texas on Thursday for $4.25 million.

He arrived by helicopter at noon, two hours before the auction began for the 2,123-acre resort.

A gripping bidding war between Smith and San Francisco hotelier Manou Mobedshahi ended when a deflated Mobedshahi walked across the crowded Lajitas Saloon and shook Smith's hand shortly after 3 p.m. Thursday.

Smith, patiently ...

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