TOP STORIES
Newport Beach-based TriZetto Group Inc. agreed to be acquired by Westport, Conn.-based IMS Health Inc. in a stock swap valued at $8.1 billion when it was announced, but that was reduced to about $4.6 billion after investors dumped both stocks, dropping their prices 42% and 23%, respectively, and endangering the deal; the combined company would retain TriZetto’s name and be headquartered in Newport Beach, but would be 88% owned by current IMS shareholders and IMS’s chairman and CEO would retain those positions … Ogden Corp. said it will sell its concession and venue management operations to Aramark Corp. for $225 million; the operations include food and beverage concessions at Edison International Field and the Arrowhead Pond … Edwin Lewis resigned as CEO of Mossimo Inc., Irvine, and the 100-employee company said it will make “a significant number” of layoffs; the firm announced a licensing and distribution deal with Target Stores and said it is seeking interim financing; the company’s shares fell 50% on the news … Prandium Inc. Irvine, said it will sell its El Torito restaurant chain and the Las Brisas restaurant in Laguna Beach for $130 million to a unit of New York-based Bruckmann, Rosser, Sherill & Co. that owns the Acapulco chain.
DEALS
Irvine-based 2TheMart.com will be acquired by GoToWorld, a unit of Orange-based LanguageForce Inc. that will be spun off when the deal is completed; meanwhile, 2TheMart’s top execs, Dominic Magliarditi and Steven Rebeil, quit after its outside auditor, Grant Thornton LLP, resigned, saying it could not “rely on management’s representations” … Triple Net LLC, Santa Ana, said it will acquire seven factory-outlet properties from Horizon Group Properties Inc. for $93.5 million … Broadband Digital Group, Newport Beach, said it signed a deal with Conexant Systems Inc., Newport Beach, for Conexant to supply high-speed modems to be bundled with BDG FreeDSL service (related story, page 1) … Western Pacific Housing, El Segundo, acquired 45 lots in Coto de Caza from Lennar Communities … NetGuru Inc., Yorba Linda, said it will acquire Allegria Software for $1.9 million … First American Financial Corp., Santa Ana, said it will provide title insurance on 705 properties being sold as a condition of the regulatory approval of the ExxonMobil Corp. merger … Atomic Burrito Inc., Oklahoma City, said it will acquire Irvine-based Unhatched.com Inc.
WHAT’S NEW
Broadcom Corp., Irvine, and Next Level Communications Inc., Rohnert Park, partnered to develop chips for set-top boxes that will allow phone companies to offer voice, data and video services at prices comparable to those charged by cable networks … Aliso Viejo-based Buy.com Inc. launched a U.K. division and web site … AMDL Inc., Tustin, was relisted on the OTC market … Mazda North American Operations, Irvine, recalled 30,000 MPV minivans to fix a powertrain control module and recommended that 20,000 owners of the model-year 2000 minivans take them to their dealers for bumper reinforcement … Uniloc PC Preload Inc., Huntington Beach, changed its name to Uniloc.com … Cortex Pharmaceuticals Inc., Irvine, applied for relisting on the Nasdaq market … San Clemente Hospital and Medical Center said it will close its maternity unit.
FINANCIAL
Nexgenix Inc., Irvine, said it hopes to raise $57.5 million in an IPO … ZLand.com, Aliso Viejo, said it hopes to raise $50 million in an IPO … Pacific Mercantile Bancorp, Newport Beach, said it hopes to raise $45 million in an IPO … Consumer Portfolio Services Inc., Irvine, restructured its privately held debt, adding $16 million in new financing … AlphaServ.com, Santa Ana, said it raised $14.6 million in a private placement of restricted shares … Shares of Costa Mesa-based Emulex Corp. fell 26% after a downgrade from an analyst Powerwave Technologies Inc., Irvine, said it will ask shareholders to approve a 3-for-1 stock split … CAM Data, Fountain Valley, received $8 million from private investors … Shares of Nexell Therapeutics Inc., Irvine, fell 37% on widened fourth-quarter losses; the company said it plans a 1-for-4 reverse split … Oakley Inc., Foothill Ranch, said it had repurchased $8.3 million worth of shares since December and reauthorized buying back $11.7 million more Impac Mortgage Holdings Inc., Newport Beach, warned it expected to take a loss in the first quarter as it increases its loan-loss reserve.
LITIGATION, INVESTIGATION
Costa Mesa-based Tickets.com won a round against Ticketmaster as a federal judge ruled that it is not illegal for online companies to provide links to rival websites Epicor Software Corp., Irvine, agreed to pay $1.8 million to settle a suit by Irvine-based Alyn Corp. against a firm later acquired by Epicor … A former employee of the Newport Beach office of the Automobile Club of Southern California was awarded $1 million in a sexual-harassment suit; the club said it will appeal … Raymond G. Kolts, formerly with Trimedyne Inc., Irvine, agreed to pay $67,000 to settle SEC insider-trading charges … FBI agents raided the homes of two former executives of Irvine-based DFJ Italia, which last month filed for bankruptcy amid fraud allegations.
PERSONNEL
UCI Medical Center named Dr. Ralph Cygan interim director to replace Mark Laret, who is leaving to become CEO of the UC San Francisco Medical Center; a search committee was formed to find permanent director … Collectors Universe Inc., Newport Beach, said Louis M. Crain stepped down as CEO and president but remains a director and consultant; Chairman David G. Hall added the CEO post, CFO Gary N. Patten became president … Eldorado Bancshares Inc., Laguna Hills, named Romolo “Ron” Santarosa senior VP and CFO … Dr. Peter G. Spitzer was named chief technology officer of Aspeon Inc., Irvine … QLogic Inc.’s H.K. Desai joined the board of Microsemi Corp., Santa Ana … John F. Levy joined the board of IPNet Solutions Inc., Newport Beach.
IN CONCLUSION
Economists at UCLA’s Anderson School said they expect continued economic growth in the state and U.S. this year, but cited increased inflationary pressures and high market valuations in warning that an “economic misfire” is possible after that (see Comment, page 43) … James Vallema, chairman and CEO of Newport Beach-based MPTV Inc., died … A Superior Court judge denied a request from Festival of the Arts members to immediately bar the Festival board from moving the event to San Clemente, and set a full hearing on the matter for April 14 The Southern California Association of Governments said it is conducting a $500,000 study on extending the 91 Express Lanes eastward … Live toll takers were replaced by automated systems on the Eastern Toll Road … Labor unions opened a drive to organize janitors in OC … OCTA abandoned a $1.8 million plan to erect six “Welcome to OC” monuments along incoming freeways after state and federal officials objected … Walt Disney Co. said it will relax personal-appearance rules to allow male employees at its theme parks to have “neatly trimmed” moustaches.
