Buyout firm the Carlyle Group, which is facing stiff scrutiny from the Service
Employees International Union over its acquisition of Manor Care Inc., issued
letters to state regulators pledging to provide adequate staffing to the
nursing-home chain. The SEIU has been staging protests in Washington and Manor
Care's hometown of Toledo, Ohio, over the proposed deal, contending it would
lead to inferior care for Manor Care patients. The union, which is attempting
to organize Manor Care's staff, dismissed the letters as a PR stunt. Despite
the controversy, Manor Care shareholders approved last week the $6.3 billion
leveraged buyout, which was
announced
in July. However, the SEIU efforts have been successful in garnering
political attention because late last week the Senate Finance Committee
opened
an inquiry into PE ownership of nursing homes. — Matthew Wurtzel
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story from The Washington Post
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story about Senate inquiry from TheDeal.com
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deal announcement story from TheDeal.com
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earlier protest story from TheDeal.com
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