Emeritus Reduces Its Holdings in ARV

Emeritus Corp. said Thursday that it cut its holdings in ARV Assisted Living Inc. to less than 5% from 6.8% after losing its bid to take over the Costa Mesa operator of housing facilities for the elderly.

Seattle-based Emeritus, which also operates assisted-living facilities, in January withdrew its $313-million offer, which amounted to $17.50 a share plus assumed debt.

Emeritus’ effort was stymied when ARV lined up with a group of investors led by Lazard Freres & Co., selling the group $60 million in convertible notes and then redeeming them for common stock in the company.

Emeritus didn’t say how many shares it sold. In a filing with the Securities and Exchange Commission, the company disclosed only that it sold enough shares that its ownership stake in ARV fell below 5% as of March 18. Emeritus had previously reported holding 1.08 million ARV common shares.