EXECUTIVE SUMMARY
Compiled by Mike Mason
TOP STORY
Gov. Arnold Schwarzenegger signed the workers’ compensation reform law, which puts more restrictions on injured workers’ choice of doctors and changes the definitions of injuries in a bid to lower premiums businesses pay (see related story, page 1) … Irvine-based Broadcom Corp. said it plans to buy privately held Widcomm Inc. of San Diego for $49 million in stock. Widcomm makes Bluetooth wireless software used by chip, electronics and computer makers. The deal is expected to close by June 30. Meanwhile, the company said Chief Executive Alan “Lanny” Ross had heart bypass surgery a few weeks ago, but will return soon after more rest. Shares of the chipmaker rose 5% to 43 after it reported swinging to an operating profit of $52 million in the first quarter, versus a loss of $60 million a year earlier, on a 75% jump in sales to $573 million. Analysts raised earnings and sales expectations for the second quarter.
TECHNOLOGY
Poway-based Gateway Inc. could cut up to 2,000 more workers from its staff of about 4,000, according to a report by Cnet News.com. Gateway recently closed its retail stores, cutting about 2,500 workers in the move, under new chief executive, Wayne Inouye. He became chief of the computer seller after Gateway bought Irvine-based eMachines Inc., which Inouye headed. Gateway said it plans to move its headquarters to Orange County this summer.
HEALTHCARE
The Food and Drug Administration sent a warning letter to Irvine-based Cardiac Science Inc. for failure to keep proper records at its Minneapolis plant. The device maker said it was taking measures to comply with regulators’ requests.
REAL ESTATE
Mission Viejo considered a plan by Steadfast Properties and Development to build a 103-home, 108-apartment affordable housing development at Los Alisos Boulevard and Jeronimo Road. The city, which needs 154 more affordable housing units to meet state laws, is considering the project after Mission Viejo’s Planning Commission twice rejected similar plans … Los Angeles-based Maguire Properties Inc. closed its $260 million buy of the Park Place office complex in Irvine from the Blackstone Group LP … The Fullerton City Council approved a plan by the Olson Co. dubbed Transit Village, which includes 120 townhomes and retail space at Harbor Boulevard and Walnut Avenue.
FINANCE
Irvine-based New Century Financial Corp. filed with the Securities and Exchange Commission for a $750 million public stock offering. The sale is part of the company’s conversion to a real estate investment trust … Larry and Kristina Dodge said they’ll match up to $10 million in donations to St. Margaret’s Episcopal School in San Juan Capistrano. Larry Dodge is the founder of Irvine-based American Sterling Group. The Dodge family also has pledged $20 million to Chapman University’s film school, which will be named after them … Irvine-based Commercial Capital Bancorp signed a lease to open a bank branch in Crystal Cove Promenade on Pacific Coast Highway in Newport Beach.
GOVERNMENT
Dallas-based Daystar Television Network’s suit to prevent the sale of Huntington Beach-based KOCE-TV to the station’s foundation was dismissed in Orange County Superior Court. Daystar claimed owner Coast Community College District violated state law by nixing its $40 million bid for the station, higher than the KOCE Foundation’s winning $28 million offer for the PBS affiliate. Daystar plans to appeal the verdict … Scott Baugh was elected chairman of the Republican Party of Orange County. Baugh, a lobbyist and former state Assembly Republican Leader, replaced Tom Fuentes, who held the post for 20 years. Baugh is a partner with Mayer, Brown, Rowe & Maw … The University of California system said about 10,000 students who normally would be accepted to one of its schools instead will be offered later admission or a place in a new “guaranteed admission” program. A judge approved Irvine’s environmental impact report for its Great Park development at the former El Toro Marine base, though Irvine was told to submit plans to handle future issues that could arise from land that hasn’t been environmentally cleaned.
WHAT ELSE IS NEWS
A plan to buy out dissatisfied shareholders of Irvine-based Freedom Communications Inc. won preliminary approval from the Federal Communications Commission. Barring challenges to the deal, the buyout plan funded by private equity firms Blackstone Group and Providence Equity Partners Inc. is set to close May 18. Blackstone and Providence plan to put up about $580 million with the company borrowing another $1 billion to buy out shareholders … Foothill Ranch-based Wet Seal Inc. named Douglas Felderman chief financial officer. Felderman, former chief financial officer of Factory 2-U Stores Inc., which filed for bankruptcy protection in January, replaces William Langsdorf, who quit for in November.
ECONOMIC INDICATORS
Up: Orange County’s housing picture in March, with the median price of homes sold up 23% to $485,000, versus a year earlier, and the number of homes sold up 12.5% to 4,902, according to DataQuick Information Systems.
Up: OC’s average annual apartment rents, up 3.2% to $1,284 in the first quarter, versus a year earlier, according to Novato-based RealFacts.
