Compiled by Julie Leupold
TOP STORY
Directors at Irvine’s Epicor Software Corp., a maker of business software, rejected a $556 million buyout bid by New York hedge fund Elliott Associates LP, prompting Elliott to take the offer directly to shareholders. Elliott sent an unsolicited letter on Oct. 1 to Epicor’s board saying it was prepared to pay about 20% more than what the company’s shares were trading at before the offer. Epicor urged shareholders to await word from the company before selling shares to Elliott, which already owns about 10% of the company.
TECHNOLOGY
Samsung Group and LG Group won an appeals court ruling lifting a ban on U.S. imports of their newest phones, according to Bloomberg. The phones include chips from San Diego’s Qualcomm Inc. that were found to infringe on a patent of Irvine’s Broadcom Corp. for a battery-saving feature. Last year, the U.S. International Trade Commission, a federal trade watchdog, ordered the ban.
In other Broadcom news, cofounder and former chairman Henry Samueli is appealing a judge’s rejection of a plea deal that would spare him prison time for his role in backdated stock options. Samueli is sticking to his guilty plea in a deal where he would pay $12 million to the federal government, a $250,000 fine and get three to five years of probation.
Irvine chipmaker Microsemi Corp. said it bought La Mirada-based Babcock Inc., a maker of power controllers and sensors for the military, for $20 million in cash. Microsemi also reaffirmed its profit outlook for the September quarter of $28 million to $29 million on sales of $133 million to $136 million, in line with Wall Street’s expectations.
HEALTHCARE
Irvine-based heart valve maker Edwards Lifesciences Corp. reported positive results from two studies of a new type of valve that doesn’t require major surgery. One European study found a 94% survival rate at 30 days after receiving Edwards’ Sapien valve, which is inserted via a catheter. A second European study showed a 92% survival rate at 30 days and 90% at six months. A U.S. clinical trial continues with potential approval by 2011.
In other Edwards news, a court found that Irvine-based CoreValve Inc. didn’t infringe on Edwards’ German patent for a less-invasive heart valve. Edwards, in a statement, said it “remains convinced” that CoreValve infringes on its patent and will appeal.
Endologix Inc., an Irvine medical device maker, received an unsolicited $98 million buyout offer from New York hedge fund operator Elliott Associates, which also is making a hostile bid for Irvine software maker Epicor. Endologix, in a statement, said it received Elliott’s offer, which was 18% higher than its stock price at the time of the offer. The device maker said it would review the proposal.
ICU Medical Inc., a San Clemente device maker, posted third-quarter results that beat Wall Street expectations and upped its full-year outlook. ICU earned $7.6 million for the quarter, up 62% from a year earlier. Analysts expected ICU to make $5.9 million. For the full year, ICU said it expected to make $21.1 million to $21.9 million, up from an earlier forecast of $19.3 million to $20.7 million.
REAL ESTATE
The Fullerton City Council approved a $10.5 million settlement of a lawsuit that threatened to use eminent domain for 2.8 acres of land housing a former juice plant. The deal with Lake Wales, Fla.-based Citrus World Inc. allows for a parking structure to be built near the city’s downtown train station. The Orange County Transportation Authority and state had set aside $43 million in funding for the 35-foot structure. Some $7.35 million from a state grant and $3.5 million from OCTA were used for the purchase. No city money was used.
FINANCE
Newport Beach-based bond manager Pacific Investment Management Co. is set to handle money for the Federal Reserve’s program to shore up corporate bonds. Pimco will manage a fund that will buy bonds to help companies with short-term financing. The Federal Reserve also appointed Boston-based State Street Corp. to serve as its administrator.
Downey Financial Corp. is closing a department that does business with mortgage brokers and will reduce its retail loan operations. The Newport Beach-based company said the changes will affect about 200 people.
OTHER NEWS
Santa Ana-based TV station KDOC said it is
stopping production of “Daybreak OC,” a morning news program focused on Orange County. The move comes a year after KDOC launched “Daybreak OC” to compete with similar shows produced in Los Angeles. A lack of advertising led to the show’s demise, according to Bert Ellis, owner of KDOC-TV.
Motorola Inc. is selling an Anaheim-based unit to France’s Safran for undisclosed terms. The Anaheim unit makes computer fingerprint identification systems. The sale is expected to close by the first quarter after regulatory approvals.
Seal Beach-based Clean Energy Fuels Corp., a provider of natural gas for fleets that’s backed by T. Boone Pickens, called off its plan to buy a Canadian maker of natural gas refueling equipment for $17 million. Clean Energy said last month it planned to buy Toronto’s FuelMaker Corp. from the U.S. arm of Honda Motor Co. Late last week, Clean Energy said it “mutually” agreed with Honda to halt the deal.
