Compiled by Pat Maio
TOP STORIES
Struggling computer maker Gateway Inc. turned down a $450 million buyout offer for its retail operations from eMachines Inc. founder Lap Shun “John” Hui. Gateway said its board “after careful consideration and in consultation with its financial and legal advisers” decided the offer from Hui “is not in the best interest of shareholders.”
A judge dismissed Irvine-based Broadcom Corp.’s antitrust lawsuit against San Diego-based Qualcomm Inc., handing Broadcom a big loss in its fierce legal battles with the rival chipmaker. A U.S. District Court judge in New Jersey said Qualcomm’s “alleged conduct does not support claims for monopolization or attempted monopolization.” Broadcom may appeal.
Costa Mesa-based Emulex Corp. plans to buy Roseville-based Sierra Logic Inc. for about $180 million in cash, assumed debt and employee stock programs. The deal, which expands Emulex’s business selling switches for data networks, is set to close at the end of September.
Santa Ana-based Ingram Micro Inc. reassured investors about the current quarter’s performance, saying it expects to meet its prior guidance. The company, the largest technology products distributor, said it expects third-quarter sales of $7.3 billion to $7.5 billion. Net income is expected at $49 million to $56 million.
Santa Ana-based memory products maker SimpleTech Inc. plans to spend $28 million to build a plant in Malaysia in a bid to lower costs. SimpleTech, which makes memory boards and cards for computers and consumer electronics, said the plant will be 200,000 square feet and should be operating by early 2008.
Meade Instruments Corp., the Irvine-based maker of telescopes and other optical products, says its financial statements for nearly five years no longer are reliable because of accounting errors related to its stock-option grants. An evaluation by the board’s audit committee pointed to reports for four years ending in February 2005 as well as for three quarters last year.
Irvine-based nursing home operator Sun Healthcare Group Inc. is selling its home healthcare unit for $19.3 million to Irvine’s AccentCare Inc. The sale is expected to close in the fourth quarter. Sun also said it’s buying Preferred Hospice of Oklahoma Inc. and plans to buy out management contracts for hospice programs at facilities it owns in Oklahoma, Colorado and New Mexico.
The mortgage banking division of American Sterling Bank plans to buy the wholesale and retail mortgage division of Milwaukee-based Universal Savings Bank. American Sterling Bank is a unit of Foothill Ranch-based American Sterling Corp.
Shareholders approved British retailer GUS PLC’s plans to spin off Costa Mesa-based Experian Group, a credit reporting company, on Oct. 10. The “demerger” will split Experian and Britain’s Argos Retail Group. Experian’s headquarters is set to shift from Costa Mesa to London.
Ford Motor Co. said it’s looking at options for its Aston Martin unit, which has its U.S. base in Irvine. Ford is looking to sell all or part of Aston Martin as part of its bid to free up money to invest in its other brands. Aston Martin is part of Irvine-based Premier Automotive Group, which also includes U.S. operations of Jaguar, Land Rover and Volvo. In recent weeks, two potential bidders have recently lined up to possibly buy all or part of Ford’s luxury auto brands.
Struggling retailer Pacific Sunwear of California Inc. of Anaheim posted a 9.4% drop in same-store sales for August, nearly twice as bad as Wall Street had expected. Foothill Ranch-based Wet Seal Inc., Orange County’s other mall retailer, saw an 8.7% rise in sales at stores open at least a year in August, helped by back-to-school shoppers.
