ARV Denies Stock Deal Broke Amex Rules

COSTA MESA — ARV Assisted Living Inc. said Emeritus Corp.’s claims that a recent ARV stock deal broke American Stock Exchange rules are “simply untrue” and “without merit.”

Emeritus earlier this week asked the exchange to investigate ARV’s agreement to allow an affiliate of Lazard Freres & Co. to increase its stake in ARV by redeeming $60 million in notes for ARV common stock. Emeritus, which is making a hostile bid for control of ARV, contended that the Lazard transaction violated an Amex rule requiring shareholder approval.

ARV Assisted said it provided the Amex a full briefing of the Lazard Freres agreement before ARV was listed on the exchange.