Ventas: Court prevents Sunrise Senior Living from considering Health Care Partners' offers

By Lisa Kerner

Charlotte, N.C., March 6 - Ventas, Inc. said the Ontario Superior Court of Justice ruled that Sunrise Senior Living REIT is obligated to comply with covenants in the Jan. 14 purchase agreement with Ventas.

Sunrise conceded that the successful enforcement of the Health Care Property Investors, Inc. standstill obligations would prevent the company from proceeding with its offers to buy Sunrise.

The Health Care Property confidentiality and standstill agreement prohibits it from making any proposal to acquire any assets of Sunrise through May 2008.

Applications filed by Sunrise and Sunrise Senior Living Inc. seeking clarification from the Court regarding their rights to negotiate with Health Care Partners were dismissed by the court.

Sunrise rescheduled its special meeting of unit holders to consider the proposed transaction with Ventas to March 30, 2007. The record date for the meeting remains Feb. 19.

Ventas, a Louisville, Ky., health care real estate investment trust, previously said that its fully funded transaction with Sunrise offers its unit holders a 45% premium over the volume-weighted average trading price of their units on the Toronto Stock Exchange during the 20 trading days before the announced transaction.

Toronto-based Sunrise was formed to indirectly acquire and own senior living communities

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