Emeritus Backs Away From ARV Takeover
Emeritus Corp. said Friday that it has dropped its $313-million takeover bid for ARV Assisted Living Inc. in Costa Mesa after a California court rejected the Seattle company’s bid to overturn a series of transactions that gave ARV allies a large stake in the company. Emeritus, which said in October that it wanted to buy ARV, was offering $17.50 a share and assumption of debt for the assisted living services company. ARV had said it preferred an agreement with a group of investors led by Lazard Freres & Co. ARV sold Lazard $60 million in convertible notes in October and redeemed those notes for common stock. Emeritus, which originally bid $16.50 a share for ARV, filed suit requesting a preliminary injunction overturning the transactions. ARV has 49 assisted-living communities and dominates the California market, where Emeritus wants to expand.