EXECUTIVE SUMMARY
Compiled by Mike Mason
TOP STORY
New Jersey’s attorney general dropped Newport Beach-based Pacific Investment Management Co. from a civil suit alleging improper market-timing trading at affiliates of its Germany-based parent, Allianz AG. The attorney general had charged Allianz and stock fund affiliate, PEA Capital LLC, with allowing Canary Capital Partners LLC to profit from alleged improper trades. Allianz, PEA Capital and other affiliates agreed to pay $18 million in fines and costs related to the civil suit. The companies also will separate their mutual fund selling arms from their money management units … Irvine-based Newport Corp. said it plans to buy the optical technology arm of Waltham, Mass.-based Thermo Electron Corp. for about $300 million. Newport’s buy of Thermo Electron’s Spectra-Physics unit includes $200 million in cash, $50 million in stock and a $50 million note that pays 5% interest and matures in 2009.
TECHNOLOGY
Poway-based Gateway Inc. postponed its June analyst meeting as the struggling computer seller continues to work on its turnaround strategy. Gateway, which plans to move to Irvine by the end of summer, rescheduled the meeting for September … Garden Grove-based DPAC Technologies Corp. said it cut its memory stacking unit by 12 workers, including Chief Operating Officer John Sprint. Thirteen workers remain with the memory stacking business to meet DPAC’s future orders … Newport Beach-based Internet security company PivX Solutions LLC said it bought Tustin-based Threat Focus Inc. for undisclosed terms. The acquisition gives PivX 30 workers, including five from Threat Focus.
HEALTHCARE
Irvine-based Cardiac Science Inc. signed a distribution deal with Bethesda, Md.-based Chindex International Inc. to sell Cardiac Science’s Powerheart defibrillators to hospitals and medical suppliers in China … Irvine-based Edwards Lifesciences Corp. said John T. Cardis has been elected to its board. Cardis, who recently retired as a partner of Deloitte & Touche, also will join Edwards’ audit and public policy committee … Fullerton-based Beckman Coulter Inc. said it will license profiling technology from San Diego-based Althea Technologies Inc. for its genetic analysis devices. Beckman expects new devices using the licensed technology to produce about $100 million in sales in the next five years.
REAL ESTATE
Newport Beach-based Makar Properties LLC filed a notice of closure for the 91-space mobile home park at Del Obispo Street and Pacific Coast Highway in Dana Point. Makar, which developed the St. Regis Monarch Beach Resort & Spa in Dana Point, paid $17.6 million for the 8.5-acre property earlier this year. The developer hasn’t detailed its plans for the site … Arlington, Va.-based MeriStar Hospitality Corp. said it plans to buy the Irvine Marriott for $92.5 million from a partnership that includes Philadelphia-based Cigna Corp. The deal is expected to close within a month. Hotel manager Marriott International Inc. will continue to run the hotel. MeriStar said it would spend $7 million renovating the hotel.
GOVERNMENT
The University of California, Irvine, said it would name its computer school the Donald Bren School of Information and Computer Science after Donald Bren, chairman of Newport Beach-based The Irvine Company. Bren gave $20 million to the school six months ago to grow the $50.6 million school, which is set to break ground this week … State Insurance Commissioner John Garamendi recommended that insurers cut their workers’ compensation rates 21% this year. Insurance companies aren’t bound to follow Garamendi’s guidance. The industry’s Workers’ Compen-sation Insurance Rating Bureau recommended a 17.8% cut in May, though some insurance companies have filed rates with the Department of Insurance that represent smaller cuts than those recommended.
WHAT ELSE IS NEWS
Foothill Ranch-based Wet Seal Inc. said it signed a line of credit with Bank of America Corp. that expires in 2007. The teen retailer also said it hired an unnamed financial adviser to make sure it has enough money to fund its turnaround. Meanwhile, shares of Wet Seal rose 4% to 6 after reporting a same-store sales decline of 7.8% in May, less than Wall Street expected … Shares of Anaheim-based Pacific Sunwear of California Inc. fell 6% to 20 after the retailer said same-store sales in May grew 7.8%, short of Wall Street expectations … Irvine-based Quantum Fuel Systems Technologies Worldwide Inc. said it won a $1.4 million deal to develop a hydrogen fuel-delivery system for an unnamed automaker … Knott’s Berry Farm closed its 2-year-old Xcelerator roller coaster to examine the safety of the T-bar restraint system. The coaster was made by Switzerland’s Intamin AG, which also made the Six Flags New England Superman ride that had a fatal accident last month.
