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Regulators, Markets Challenge Manor Care Buyout

By Al Yoon and Jonathan Keehner, Rueters

NEW YORK, Dec 14 (Reuters) - Key funding for Carlyle Group's $6.3 billion leveraged buyout of U.S. nursing home giant Manor Care Inc. has been pushed to the first quarter of 2008, delayed from initial investor expectations amid sour markets and regulatory delays.

The deal has drawn organized protests from consumer and labor groups fearing that pressure for greater profits will worsen care for senior citizens and conditions for employees. In West Virginia, a state authority on Friday will reconsider its prior approval of the deal after a request from a union.

"The hope is that the Health Care Authority will reexamine the terms of this deal," said Sherri McKinney of the Service Employees International Union, which requested the review.

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