Manor Care and Carlyle to contest temporary halt

By Jonathan Keehner

NEW YORK (Reuters) - Manor Care Inc HCR.N and private equity firm Carlyle Group CYL.UL will contest a temporary halt on their $4.9 billion merger imposed by a Michigan court, Manor Care said on Thursday.

The temporary restraining order (TRO) was issued earlier on Thursday by the Ingham County Circuit Court.

A hearing in Michigan state court is set for Friday to consider a motion to have the order lifted.

Manor Care said in a statement earlier on Thursday that Carlyle had completed regulatory approval and was closing the transaction, valued at $6.3 billion, including debt.

The buyout has drawn protest from the Service Employees International Union, a labor group concerned the deal would worsen care for senior citizens and conditions for employees.

A spokeswoman for SEIU, which represents nursing home workers, said on Thursday that state officials in Florida, Maryland, Oklahoma, Kansas, Virginia, Michigan and Illinois have yet to issue licenses for the Carlyle takeover. Those states have about 110 Manor Care nursing homes, according to

SEIU.

"This action by the SEIU represents a desperate attempt to subvert the legitimate regulatory process for political gain," Manor Care said in a statement. "Manor Care believes the claims filed in support of the TRO are completely without merit."

It added: "Failure to complete the closing process will cause the company irreparable harm."

Manor Care agreed in July to be acquired by Carlyle for $67 per share. The company's shares closed up 1.3 percent on Thursday at $66.70 each on the New York Stock Exchange.

(Additional reporting by Nick Zieminski; editing by Valerie Lee)