Compiled by Mike Mason
Cypress-based PacifiCare Health Systems Inc. is being bought by Minnetonka, Minn.-based rival UnitedHealth Group Inc. in what stands to be the largest acquisition yet of a local company. UnitedGroup is offering $2.2 billion in cash and 112 million shares for PacifiCare, making the deal worth $8.1 billion (see story, page 1) Irvine-based Broadcom Corp. filed a lawsuit against Qualcomm Inc., alleging its licensing and other practices related to wireless technology and products violate antitrust laws. Broadcom’s move to take legal action against Qualcomm has the San Diego chip designer weighing litigation of its own. Qualcomm rejected the charges, saying its “licensing practices are lawful, fair, reasonable and pro-competitive.”
Aliso Viejo-based Smith Micro Software Inc. said it’s buying Watsonville-based Allume Systems Inc. for $12.75 million. Smith Micro makes software for sending faxes, videoconferencing and for placing phone calls via the Internet. Allume makes software that compresses and archives data. Smith Micro is set to pay $11 million in cash and $1.75 million in stock to buy Allume.
HEALTHCARE
The owners of Brea Community Hospital offered to pay about $10 million to creditors of the bankrupt hospital in return for the buildings and 17 surrounding acres. Brea Community Hospital owes $13 million to doctors, suppliers and others. The bankruptcy judge is expected to review the plan July 25. If the deal is approved, Brea Community Hospital would be shuttered for good Costa Mesa-based Integrated Healthcare Holdings Inc. named James T. Ligon to the new position of executive vice president of mergers and acquisitions. Ligon, a founder of the company, has stepped down as chief financial officer. Steven R. Blake will become chief financial officer in addition to his position as chief accounting officer. Integrated Healthcare bought four OC hospitals from Tenet Healthcare Corp. earlier this year.
REAL ESTATE
Costa Mesa-based BKM Development Co. said it wrapped up its $42 million buy of the former West Coast headquarters for Panasonic Corp. of North America in Cypress. The deal includes the acquisition of two industrial buildings totaling 539,679 square feet on 22.4 acres … Newport Beach-based William Lyon Homes Inc. said it recorded a 2% rise in orders to 1,154 homes in the second quarter. The homebuilder’s orders rose 17% in California, but fell in Arizona. Overall, William Lyon Homes said it expects to finish 7% to 10% fewer homes this year Irvine subprime mortgage lender New Century Financial Corp. said its first-quarter loan production was $13.4 billion, up 9% versus a year earlier. New Century said it’s on target to reach its 2005 goal of at least $45 million in loans.
FINANCE
Irvine-based Commercial Capital Ban-corp said its Timcor Exchange Corp. unit opened a Midwest regional office in Chicago. Timcor handles commercial real estate deals based on Section 1031 of the tax code.
GOVERNMENT
Lawmakers passed a $117.5 million state budget for 2005-2006.
WHAT ELSE IS NEWS
Huntington Beach-based Quiksilver Inc. shuffled its management structure, naming Marty Samuels to head its Americas unit and Pierre Agnes to head Europe. They join Clive Fitts, president of Quiksilver Asia Pacific, as the surfwear maker’s senior global management team reporting to President Bernard Mariette. Meanwhile, Quiksilver said it bought the Canadian distributor of its DC Shoes unit for about $7 million Aliso Viejo-based Fluor Corp. named Irving, Texas, as the home of its new headquarters. The engineering services company,which until now had only said it plans to move to the Dallas/Fort Worth area,said it signed a letter of intent to develop a 26-acre site in Irving. The deal is expected to be signed by mid-July. The company plans to open the new headquarters in early April 2006 … The county’s two teen retailers posted June sales growth that bested what Wall Street was expecting. Anaheim-based teen retailer Pacific Sunwear of California Inc. said stores open at least a year saw sales grow 4.5% in June, beating analysts’ projection of 3.5% growth. Foothill Ranch-based Wet Seal Inc., another teen retailer, continued its rebound last month with a 59% rise in same-store sales. That also came in above the views of analysts, who expected 56% growth … Irvine-based Composite Technology Corp. said its Chinese partner, Jiangsu Far East Group Ltd., agreed to buy about 19 miles of cable, pending testing. The cable is used to carry electricity.
ECONOMIC INDICATORS
Up: Orange County’s hotel picture in May, with occupancy rising to 74%, up from 68% a year ago, and the average daily room rate up 6% to $120.18, according to PKF Consulting.
Mixed: OC housing affordability in May, unchanged at 11% versus April and May 2004, according to the California Association of Realtors.
