Manor Care says motion is delaying close of merger with Carlyle Group at a cost of $1 million per day

By Lisa Kerner

Charlotte, N.C., Dec. 17 - Manor Care, Inc. filed a motion with the West Virginia Heath Care Authority asking it to dissolve the stay issued to the Authority's previous decision to approve a certificate of need application in Manor Care's sale to the Carlyle Group.

In addition, Manor Care is requesting the Authority issue an immediate decision in the matter.

Each day this transaction is delayed results in a monetary loss of about $1 million for Manor Care shareholders nationwide, including West Virginia pension holders, according to a company news release.

The Authority held a reconsideration hearing on its approval of the certificate of need on Dec. 14 upon the request of the District 1199 of the Health Care and Social Services Union and the Service Employees International Union (SEIU).

The Authority initially approved Manor Care's certificate of need application on Oct. 19.

"Based on the failure of SEIU to raise any legitimate legal issues during the six-hour hearing on Friday, we believe there are no grounds to maintain the stay," executive vice president and chief operating officer Stephen L. Guillard said in the release.

It was previously reported that Manor Care stockholders have already approved the company's merger with an affiliate of the Carlyle Group in a $6.3 billion deal to take the company private.

The merger agreement gives Manor Care stockholders $67 cash per share, with the transaction slated to close in the fourth quarter.

Manor Care is a Toledo, Ohio-based provider of short-term post-acute and long-term health care.

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