ARV Rejects Buyout Offer From Emeritus

ARV Assisted Living Inc. said it has rejected a buyout bid from Seattle-based Emeritus Corp., preferring instead a previous offer from a major Wall Street investor to buy half the Costa Mesa-based company. ARV said its board decided the unsolicited offer was “unattractive” because of ARV’s current stock price and the debt that Emeritus would be saddled with if it completed the deal. Emeritus made an unsolicited bid Monday to buy ARV for $210 million and would have assumed $91 million in ARV debt. Both companies provide living facilities that help the elderly with daily activities. Emeritus President Raymond Brandstrom said the company is not planning to sweeten its bid of $16.50 a share. “We think we have made a very fair offer that provides liquidity for the shareholders,” he said. “And we’re just not inclined to bid against ourselves at this time.” In July, an affiliate of Lazard Freres Real Estate Investors announced plans to buy up to 49.9% of ARV’s common stock for $14 per share. According to regulatory filings, Lazard has already bought a third of that amount.