A new article from the Wall Street Journal, Battle Royal in Health-Care World, examines the fate of Sunrise Senior Living after a four year takeover move. According to the article, HCP Inc. recently sent a $102 million check to Ventas Inc., but Ventas now says it's seeking punitive damages, which Richard Anderson, an analyst at BMO Capital Markets, estimates could run as high as $300 million. An excerpt from the article:
Ventas's move opens a new chapter in a battle that has transfixed the typically collegial world of health-care real estate. It dates back to Ventas's C$1.8 billion (US$1.75 billion) acquisition of Sunrise Senior Living, a Canadian real-estate investment trust, in April 2007. Chicago-based Ventas successfully argued in federal court in Kentucky that HCP, sabotaged its deal with Sunrise after losing in the bidding process, forcing Ventas to pay a higher price.
The players know each other well. Ventas Chief Executive Debra Cafaro was a classmate of HCP Chief Executive Jay Flaherty at the University of Notre Dame.
Even if Ventas succeeds in collecting punitive damages, the financial pain won't be great for Long Beach, Calif.-based HCP, which has a market capitalization of $15 billion.
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