Compiled by Alisha Gomez
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Lake Forest-based disk drive maker Western Digital Corp. is paying $1 billion for Komag Inc. in its biggest deal yet. San Jose-based Komag makes thin-film metal disks, the part of a drive that stores data. The move gives Western Digital the ability to make just about an entire drive on its own, without relying on suppliers. The integration of Komag is set to improve profits within a year and make the company more efficient, Western Digital Chief Executive John Coyne said in a statement. The deal is expected to close in the fall, the company said.
Anaheim’s Multi-Fineline Electronix Inc., a maker of flexible printed circuit boards used in flip phones and other devices, is off the hook for an unwanted deal to buy sister company MFS Technology Inc. A drawn-out battle with Singapore parent WBL Corp. came to a close last week when WBL shareholders voted not to combine Multi-Fineline with Singapore circuit board maker MFS Technology Inc. WBL owns a majority of both companies (see story page 3).
San Diego-based Qualcomm Inc. last week rejected an offer from rival Irvine-based Broadcom Corp. to settle a patent dispute, saying it would cost as much as $2 billion. Broadcom is seeking $6 for every handset sold with a Qualcomm chip that was found to infringe a patent for a battery-saving feature, a Broadcom spokesman said. Qualcomm rejected the offer and instead offered to pay $100 million and agree that the companies would give each other royalty-free access to patents.
Newport Beach-based chipmaker Conexant Systems Inc. last week said it hired a chief executive to replace retiring Dwight Decker. Daniel Artusi, who now is chief executive of privately held ColdWatt Inc. of Austin, Texas, is set to start at Conexant on July 9. Decker, is set to continue as non-executive chairman.
Anaheim-based DDi Corp., a maker of printed circuit boards, said it’s set to climb out of the red with better-than-expected results for the second quarter. In an earnings preview, DDi said sales could come in at $48 million to $49 million, up 11% to 13% from the first quarter. Earnings before interest, taxes and other items are expected to be $6 million to $7 million, up 33% to 42% from the prior quarter, the company said.
Irvine-based Quantum Fuel Systems Technologies Worldwide Inc., a maker of fuel system parts for hydrogen vehicles, has hired an adviser to look at possibly selling its Tecstar Automotive Group unit. Quantum said it hired Merriman Curhan Ford to look at finding an investor for Tecstar or to sell it. Tecstar builds custom vehicles for General Motors Corp. and other automakers. The company said it doesn’t have a timetable for a possible sale or investment.
Shares of Huntington Beach-based Quiksilver Inc. rose on news it bought out minority investors in Roger Cleveland Golf Co. Quiksilver bought the remaining 36.4% stake in Cleveland Golf, according to a Securities and Exchange Commission filing. Analysts speculate that having full control of Cleveland Golf opens the door to a sale of the business.
The publisher named to take over the Orange County Register last month has pulled out of the job after questions about her resume, the Register reported last week. Marti Buscaglia, publisher of the Duluth News Tribune in Minnesota for the past five years, was set to join the Register on July 9. She won’t be taking the job now because she falsely claimed to have a degree from Lima University in her native Peru, according to the Register.
Costa Mesa-based Ceradyne Inc. is paying $69 million for a maker of isotopes used to contain nuclear waste as part of a diversification bid. Ceradyne is buying Oklahoma’s EaglePicher Boron LLC, which has yearly sales of about $25 million. EaglePicher makes chemicals used to monitor nuclear waste and radiation at power plants. It also makes an isotope used in the production of semiconductors. Ceradyne’s main business is making ceramic armor for soldiers and military vehicles.
The 376-room Laguna Cliffs Marriott Resort has been put up for sale for an expected $200 million. Prudential Real Estate Investors, part of New Jersey’s Prudential Financial Inc., owns the hotel. It bought the 20-year-old hotel for $84 million in 2004 from Cigna Hotels. Back then, Prudential paid $242,775 per room. Now the hotel is expected to sell for roughly $531,915 per room.
ECONOMIC INDICATORS
Down:
The price of an existing Orange County detached home took a 4.4% hit from April to May, while sales here remained slow, the California Association of Realtors said. The median price for an existing home sold here in May was $714,130, a $33,130 drop from a month ago, and a 1.4% drop from a year ago. Sales declined 21.1% from a year ago, though May’s totals were about 20% higher than in April. The association excludes condominiums and new homes from its figures.
