EXECUTIVE SUMMARY
Compiled by Roger Bloom
PacifiCare Health Systems Inc., Santa Ana, will eliminate 1,300 jobs, about 15% of its workforce, in the first quarter and will outsource its computer services to IBM Corp. and Keane Inc.; separately, PacifiCare selected Newport Beach-based Doner to handle its $20 million advertising account Capital Pacific Holdings Inc., Newport Beach, completed is acquisition of the 21,400-acre Banning-Lewis Ranch in Colorado Springs, Colo.; its master plan for the property includes up to 72,000 residential units and 70 million square feet of office, retail and industrial space Founding director Lap Shun “John” Hui completed his acquisition of eMachines Inc., Irvine, for $159 million Steelcase Inc., Grand Rapids, Mich., will sell its 985,000-square-foot Tustin plant and seek a smaller space elsewhere in Southern California.
TECHNOLOGY
SimpleTech Inc., Santa Ana, said it will exceed analysts’ earnings estimates for the fourth quarter and its shares rose 28% to 4.17 on the news SRS Labs Inc., Santa Ana, said it expects revenue to rise 20% to 25% in 2002 resulting in a “moderate” profit, and its shares rose 25% to 4.69 on the news Plantronics Inc. acquired Garden Grove-based Ameriphone Inc. for $10.4 million Epicor Software Corp., Irvine, said it will cut its worldwide workforce of 1,000 by nearly 15% and cut the salaries of senior managers by 5% Charles D. Dimick will retire as chairman of DDi Corp., Anaheim, and his managerial duties will be assumed by Chief Executive Bruce McMaster; meanwhile, DDi named David Blair president and chief executive of its European unit, replacing Martin Malone, who retired Micro Therapeutics Inc., Irvine, named James Corbett chairman, replacing co-founder George Wallace, who remains on the board Jim Harrer was named president and chief operating officer of Starbase Corp., Santa Ana; Starbase also cut 12% of its workforce, about 30 people, and suspended executive bonuses and director stipends Co-founder Marvin Winkler bought Bluetorch, Irvine, out of bankruptcy and said he intends to resume its business of producing extreme-sport TV shows incorporating interactive Web technology Former Huntington Beach businessman Richard Kelly Smyth pleaded guilty to illegally exporting nuclear triggers to Israel.
HEALTHCARE
ICN Pharmaceuticals Inc., Costa Mesa, modified its planned initial public offering of shares in its Ribapharm unit to increase the number of shares offered and the amount it expects to raise from $270 million to $300 million and switched the unit’s listing from Nasdaq to the New York Stock Exchange TriZetto Group Inc., Newport Beach, received a $32 million contract to provide software services to M Plan Inc., Indianapolis Ista Pharmaceuticals Inc., Irvine, adopted a poison pill but said it was not in response to an attempt to acquire the company (see related story on page 4) Suzanne Richards was named chief executive of Tustin Hospital and Medical Center.
GOVERNMENT
The Newport Coast was annexed to Newport Beach, adding 7,000 residents to the city and extending its southeastern boundary to Crystal Cove State Park Air travelers will begin paying fees of up to $10 per trip on Feb. 1 to help pay for increased security at airports State Senate President John Burton, D-San Francisco, proposed temporarily restoring two high-income tax brackets abolished in the 1980s to raise $2 billion to $3 billion a year to offset the projected state budget deficit Senate Majority Leader Tom Daschle, D-South Dakota, proposed a business tax credit for job creation.
REAL ESTATE
BRE Properties, San Francisco, acquired the 460-unit Ventanja at Rancho Niguel apartment complex for $64 million from an unnamed pension fund.
FINANCE
State Treasurer Phil Angelides proposed switching the state’s debt to variable-rate bonds, which currently carry lower interest rates than fixed-rate bonds, to ease the projected budget deficit for next year.
WHAT ELSE IS NEWS
Edison Mission Energy, Irvine, said Mirant Corp. is seeking to terminate it’s acquisition of the EcoElectrica LP project in Puerto Rico, but the OC company does not agree that Mirant has the right to back out of the July deal CKE Restaurants Inc., Anaheim, received commitments for a $100 million line of credit to replace a $120 million credit facility that will mature Feb. 1 Water Pik Technologies Inc., Newport Beach, borrowed $15 million from Bank of America using equipment as collateral and will use the funds to pay down the balance of a $60 million line of credit Freedom Communications Inc., Irvine, sold CRM, Field Force Automation and Knowledge Management magazines and their Web sites to Los Angeles-based Line56 Media Costa Mesa-based Trinity Broadcasting Network and its televangelist owners, Paul and Jan Crouch, settled for an undisclosed amount a plagiarism lawsuit filed by author Sylvia Fleener over the TBN-produced film “The Omega Code” Irvine-based Taco Bell Corp. selected Delphi Display Systems Inc., Costa Mesa, to provide drive-through order technology Theaters in Huntington Beach and Laguna Niguel operated by Edwards Theatres Circuit Inc., Newport Beach, have been taken over by original owner Mann Theatres Michael Kang, owner of Five Feet restaurant in Laguna Beach, will open another Five Feet in the former Le Colonial site in West Hollywood Quiksilver Inc., Huntington Beach, will introduce a young men’s shoe line in the fall; meanwhile, Quiksilver added Bernard Mariette, president of Quiksilver Europe, to its board.
