A jury ordered real estate investment trust HCP Inc. (HCP) to
pay Ventas Inc. (VTR) about $101 million in compensatory damages in
a verdict that the company interfered with Ventas' initial attempt
to acquire Sunrise Senior Living REIT.
Ventas had originally sought $300 million in compensatory
damages as well as punitive damages, according to HCP.
HCP plans to appeal the verdict.
In a separate statement, Ventas said it was pleased with the
jury's recognition of HCP's "significantly wrongful actions."
"The damages awarded by the jury, at least in part, will help
compensate Ventas for the injury caused by HCP," said Ventas
Chairman, President and Chief Executive Debra Cafaro.
Ventas, a REIT that owns acute-care hospitals and personal-care
facilities, in July said a U.S. District Court in Kentucky ruled
that it could present its case against HPC in a trial that
commenced in August. At the time, the court denied a summary
judgment motion by HCP, which requested the court toss Ventas'
claim.
Ventas and Sunrise agreed to an amended merger in April 2007 for
$1.97 billion, which included a 10% price increase from an earlier
agreement in January of that year. Ventas entered the Canadian
senior housing market with the acquisition.
Ventas filed a complaint in 2007 alleging that HCP interfered
with its purchase agreement by making misleading statements related
to the bid.
A representative from HCP declined to provide additional
comments.
HCP's shares were down 0.7% to $26.44 in recent trading, while
Ventas' stock rose 0.6% to $36.82.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com