TOP STORIES
Laguna Niguel-based Bitfone Corp. is being bought by Palo Alto-based Hewlett-Packard Co. Terms of the deal, expected to close in February, weren’t disclosed. The acquisition is part of HP’s strategy to grow its business related to wireless phones. Bitfone is set to join the handheld business unit of HP’s Personal Systems Group.
The University of California, Irvine, named David Bailey its vice chancellor for health affairs, effective April 1. Bailey now is interim vice chancellor for health sciences and interim dean of the University of California, San Diego School of Medicine. He will oversee UC Irvine’s medical school, UCI Medical Center, UC Irvine University Physicians and Surgeons and the College of Health Sciences. Bailey’s responsibilities will include selecting a permanent chief executive for UCI Medical Center, which was rocked by a liver transplant scandal that led to Ralph Cygan stepping down as the hospital’s chief executive.
Irvine-based chipmaker Broadcom Corp. said it has finished its look into backdated options and will restate nearly five years of earnings at an estimated cost of $1.5 billion. The company also said a formal investigation of its option grants is under way by the Securities and Exchange Commission. The company also said that its board will cancel unexercised options valued at more than $37 million awarded to three former executives who were involved in backdating. All three have left the company, some as a direct result of the investigation. They include former chief financial officer Bill Ruehle, who resigned amid the options probe.
The chief executive of Irvine-based memory products maker Netlist Inc. sold $3.7 million worth of stock just weeks after the company’s impressive initial public offering, according to a government filing. Chun K. Hong reported he sold 531,250 shares last week for $7 apiece. Hong founded Netlist and also serves as chairman. Netlist went public in late November and raised an estimated $34 million. The company makes circuit boards with memory chips for Dell Inc. and other computer makers.
Regulators in Singapore rejected Multi-Fineline Electronix Inc.’s bid to pull out of an acquisition of a sister company based there. The Singapore Securities Industry Council denied Multi-Fineline’s request to end its offer for MFS Technology Ltd. Both Multi-Fineline, known as M-Flex, and MFS are owned by Singapore-based WBL Corp. In March, M-Flex offered $500 million,about the same as its current market value,to buy MFS. Both companies make flexible circuit boards that go into wireless phones. Soon after the deal was announced, MFS posted a sales slowdown.
Shareholders of Israeli chipmaker PowerDsine Ltd. have approved a $245 million buyout by Irvine-based Microsemi Corp. An Israeli court still must approve the deal. Microsemi expects to close the buy in the first quarter.
Valeant Pharmaceutical International said new research released shows that its Cesamet drug, a synthetic version of marijuana’s active ingredient, helps relieve symptoms such as pain, anxiety and depression. Researchers looked at 139 cancer patients in the study. The project found that those who took Cesamet experienced less pain than those given with standard treatments.
Irvine-based New Century Financial Corp. said cofounder Robert Cole is retiring as executive chairman of the subprime mortgage lender. Cole will be succeeded by Fredric Forster, now the company’s lead independent director. Forster will take over as non-executive chairman of the board starting today. Cole is set to continue as a director. Brad Morrice replaced Cole as chief executive in July.
Wet Seal Inc.’s dramatic turnaround saw a hiccup as the Foothill Ranch-based retailer lowered its projected growth in December same-store sales. Wet Seal, which runs mall stores catered to teen girls and young women, said it now sees sales at stores open at least a year coming in 1% to 3% higher in December versus a year earlier. Earlier, Wet Seal projected a gain in the low to mid-single digits.
David Moore, cofounder of Corinthian Colleges Inc., said he’s stepping down as chairman of the Santa Ana-based operator of vocational colleges. Moore’s resignation is effective immediately. He’s set to continue as a director. Replacing him as chairman is Terry Hartshorn, a cofounder of Cypress-based PacifiCare Health Systems Inc., now part of UnitedHealth Group Inc. of Minnesota.
Anaheim’s Alliance Imaging Inc., a provider of medical scanning services, said its 2007 earnings would be hit by Medicare reimbursement changes. The company runs diagnostic imaging systems in hospitals and at healthcare centers. Alliance said it expected its earnings to be hurt by $14 million next year because of a reimbursement cut for imaging procedures that takes effect Jan. 1. The company said it expects earnings before interest, taxes, depreciation, amortization and other onetime charges of $148 million to $156 million next year on revenue of $431 million to $443 million.
