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Ventas Wins More Than $101M In Damages From HCP

The Associated Press

CHICAGO (AP) — Ventas Inc. said Friday a jury has awarded it more than $101 million in damages in its case against HCP Inc., which was accused of driving up what Ventas paid to buy the Sunrise Senior Living real estate investment trust.

Ventas accused HCP of damaging shareholders by driving up the Sunrise acquisition price with a rogue competing bid for Sunrise. Ventas went public in January 2007 with its bid to buy Sunrise, and HCP submitted a competing bid even though it did not have an agreement with Sunrise to do so.

"The damages awarded by the jury, at least in part, will help compensate Ventas for the injury caused by HCP," CEO Debra Cafaro said in a statement. The case was decided in U.S. District Court in the Western District of Kentucky.

HCP, a REIT based in Long Beach, Calif., said in a statement that it would appeal the decision.

Chicago-based Ventas is a health care real estate investment trust and owns senior living communities, nursing homes and medical buildings. It closed the Sunrise deal in April 2007.

Ventas shares rose 26 cents to $36.87 in afternoon trading, while HCP lost 20 cents to trade at $26.42.