EXECUTIVE SUMMARY
Compiled by Mike Mason
TOP STORY
The board of Irvine-based Freedom Communications Inc. agreed to a deal that allows some shareholders to sell their stakes to N.Y.-based Blackstone Group and Providence, R.I.-based Providence Equity Partners, while keeping the rest of the shares in family hands. The deal, which still needs to be OK’d by shareholders in a vote expected by January, values Freedom at about $1.7 billion plus $350 million in debt. The Blackstone deal beat out a higher joint bid by Gannett Co. and MediaNews Group Inc. As part of the deal, Blackstone and Providence will share the same number of board seats as Freedom’s family heirs, with others going to outside directors. Freedom counts the Orange County Register among its 65 newspapers and eight TV stations (see related story, page 1) … The strike against Vons, Albertsons and Ralphs supermarkets continued with some 71,000 United Food and Commercial Workers union members in Southern California on strike or locked out from their jobs. Workers want unchanged pension benefits and full employer-sponsored healthcare coverage, while the supermarket chains want employees to contribute to their health plans … Irvine-based Allergan Inc. said it plans to buy Sunnyvale-based Oculex Pharmaceuticals Inc. in a cash deal worth about $230 million. The deal for privately held Oculex, which makes drugs to treat eye diseases, is set to close in November.
TECHNOLOGY
Irvine-based Broadcom Corp. said it swung to a third-quarter pro forma operating profit of $53.3 million, versus a loss of $14.4 million a year ago, on a 47% gain in sales to $425.6 million … Newport Beach-based Jazz Semiconductor Inc. is expected to announce it will team with a Chinese company to make chips in China. The company, which has 700 workers at its chip-making plant in OC, didn’t say if any workers would be affected here (see related item, page 68) … Newport Beach-based InXile Entertainment Inc. said France’s Vivendi Universal SA would distribute its first game, “The Bard’s Tale,” which is set for release next year. InXile is the latest venture of Brian Fargo, who founded Interplay Entertainment Inc. in Irvine.
HEALTHCARE
Costa Mesa-based ICN Pharmaceuticals Inc. said it plans to sell eight plants worldwide and cut its manufacturing workforce to about 1,400 employees. The move is expected to save ICN $200 million in the next few years and could result in 1,600 layoffs. ICN said it will keep five plants in Mexico, Puerto Rico, Poland, Switzerland and China … South County’s Mission Hospital got a $1 million donation from Rancho Mission Viejo LLC to fund a doubling of the hospital’s emergency room size. Mission Hospital closed its emergency room to ambulances for about one week of every month in the past year because of high volume.
REAL ESTATE
RSM Properties said it wants to build 203 homes above Trabuco Canyon on 89 acres of unincorporated land next to the Robinson Ranch. The developer must complete an environmental impact report before the county considers the project … Costa Mesa’s City Council nixed a plan to add 434 acres for redevelopment. The move would have tripled the city’s redevelopment area, but residents feared Costa Mesa would use eminent domain to push them out … The Orange City Council narrowly approved Newport Beach-based Fieldstone Communities Inc.’s 183-home development on 110 acres of the former Sully-Miller Contracting Co.’s sand and gravel site. Opponents of the project began collecting signatures in hopes of forcing a citywide referendum.
FINANCE
Costa Mesa-based Pacific Premier Bancorp said it sold 3.4 million shares at $6.75 each in a public offering. The bank also said it won approval to start trading on the Nasdaq National Market. It formerly traded on the Nasdaq SmallCap Market.
GOVERNMENT
The Coast Community College District voted to begin negotiations to sell Huntington Beach-based PBS affiliate KOCE-TV to the KOCE Foundation for $32 million. The sale would keep the station in public hands. Other bidders pleaded with the board to reconsider their bids, including a $35 million offer from Los Angeles-based religious broadcaster Almavision Hispanic Network. The sale to the KOCE Foundation is expected to close in December … Los Angeles-based Marshall & Stevens Inc. valued the San Joaquin Hills (73) and Foothill/Eastern (241/261/133) toll roads at $4.9 billion. The Transportation Corridor Agencies is studying whether to merge the struggling 73 with the other toll roads, which together have $3.8 billion in unpaid debt.
WHAT ELSE IS NEWS
Cynthia Harriss cited personal reasons for stepping down as president of Disneyland Resort, which includes Anaheim’s Disneyland park, California Adventure, three hotels and Downtown Disney. Matt Ouimet, president of Disney’s cruise line unit, was named to Harriss’ position. Disney’s struggling theme park operation has been hurt by a slow economy and dropoff in travel in the wake of the Sept. 11, 2001 terrorist attacks … Foothill Ranch-based Wet Seal Inc. said its chief administrative officer, Walter Parks, resigned. The teen retailer doesn’t plan to fill the vacated position and will split the duties between its chief financial officer and executive vice president of central planning and allocation. Parks joined Wet Seal in 2001 as chief financial officer before being promoted to his most recent position.
ECONOMIC INDICATORS
Mixed: Orange County’s job picture in September, with the county’s unemployment rate down 70 basis points to 3.6%, versus a year ago, but nonfarm payroll off 0.1% to 1,403,100.
Down: Housing affordability in OC, with the number of households that can afford to buy a median-priced home in August at 18%, down from 23% last year, according to the California Association of Realtors.
