Sunrise, Manor Care face shareholders this week
Two major long-term care providers struggling with financial and labor union challenges will hold annual shareholder meetings this week.Sunrise Senior Living Inc., which has been battling accusations of accounting problems and insider trading, will offer a company update to its stockholders today. Recently, an independent committee appointed by the company's board of directors said it found no evidence of misconduct with respect to stock sales or the timing of stock options grants. The Securities & Exchange Commission, however, is looking into these activities as well as the company's historical accounting practices. The company plans to restate three years of earnings.
Meanwhile, shareholders will convene in Toledo on Wednesday for Manor Care Inc.'s annual meeting. The pending acquisition of the largest nursing home chain in the country by the private equity firm Carlyle Group has met with resistance from the Service Employees International Union. The union opposes the merger, arguing that the takeover will result in staff cuts and an emphasis on profits over resident care. Neither staffing reductions nor operational changes are expected to occur after the Carlyle Group takes over, according to a Manor Care spokesman.