Emeritus Corp. Ups Its Offer to Buy ARV

In an ongoing battle for control of ARV Assisted Living Inc., a Seattle-based company upped its hostile takeover bid Friday by $1 a share. Emeritus Corp. said it is offering $17.50 a share for control of the Orange County retirement home operator. Emeritus’ offer totals about $313.2 million, including assumed debt. The higher offer “is a reflection of our confidence in the long-term value that would be created by combining these two companies,” Emeritus spokesman Roy Winnick said. Earlier, ARV rejected Emeritus’ unsolicited bid of $286 million, or $16.50 a share, for ARV shares. Emeritus already holds an 8% stake in the company, which has 49 assisted-living communities and dominates the California market, where Emeritus wants to expand. Emeritus has 115 communities in 19 states, and the combined company would be the nation’s largest assisted-living company, analysts said. Emeritus also has gone to court to challenge a recent stock deal giving ARV’s ally, a unit of Lazard Freres & Co., a 39% stake in ARV.