EXECUTIVE SUMMARY
Compiled by Mike Mason
TOP STORY
Arnold Orville Beckman, founder of Fullerton-based medical device maker Beckman Coulter Inc., died at age 104 (see story, page 1) … Irvine-based Freedom Communications Inc. wrapped up a $2 billion deal allowing shareholders to sell their stakes in the media company to private equity investors Blackstone Group and Providence Equity Partners. About 58% of the shares held by descendents of Freedom founder R.C. Hoiles were sold. Blackstone and Providence were limited to buying 49.9% of the voting stock of Freedom, which owns the Orange County Register among other papers. Freedom’s board was remade, with Chairman R. David Threshie replaced by an interim chairman, Thomas Bassett. Other board members will include four outside directors, two each from Blackstone and Providence, and four fourth-generation family members in addition to Chief Executive Alan Bell.
Poway-based Gateway Inc. said it planned to cut short a seven-year, $400 million pact with Dallas-based Affiliated Computer Services Inc., which provides benefits, payroll and computer services. Gateway, which plans to move its headquarters to Irvine by the end of summer, also said its eMachines brand will be on its sub-$700 computers, with the Gateway name on higher-end PCs and electronics … Lufthansa Airlines started offering high-speed Internet connections on its Munich-Los Angeles route. The service was developed by Boeing Co.’s Connexion by Boeing unit in Irvine … Irvine-based Exult Inc. closed its $23 million buy of Pleasanton-based ReloAction, which provides moving, visa and immigration services. ReloAction had sales of $20 million for the 12 months through March 31 … Irvine-based Quantum Leaders Inc. opened an office in Fairfax, Va. The office will be run by management consultant Shimon Shmueli.
HEALTHCARE
The California Public Employees’ Retirement System dropped Hoag Memorial Hospital Presbyterian in Newport Beach from its Blue Shield health maintenance organization network. Hoag was among 38 hospitals cut by CalPERS, which cited high costs for the move.
REAL ESTATE
The French Park Neighborhood Associa-tion said it’s giving $10,000 to fight One Broadway Plaza, a 37-story office tower plan by developer Michael Harrah’s Caribou Industries Inc. in downtown Santa Ana. The association will give the funds to the Santa Ana Historical Preservation Society. Critics say the project will cause traffic congestion.
FINANCE
CalPERS said Newport Beach-based Pacific Investment Management Co. will continue to manage about $200 million of its pension money invested in a high-yield bond fund. Pimco has been accused by the New Jersey attorney general of allowing improper trades by an investor; the company disputes the allegations … Chicago-based CNA Financial Corp. said it plans to sell its Costa Mesa-based trust business to San Francisco-based UnionBanCal Corp. for an undisclosed amount. The deal is set to close before the end of the third quarter … Santa Ana-based First American Corp. said it plans to buy Media, Penn.-based T.A. Holdings Inc. for an undisclosed amount. Meanwhile, the title insurer said its board approved a $100 million stock buyback.
GOVERNMENT
Dallas-based religious broadcaster Daystar Television Network filed an objection with the Federal Communications Commission over the sale of KOCE-TV Channel 50 to its foundation. Daystar claims station owner Coast Community College District should have accepted its bid for the PBS affiliate. The objection to the transfer of the license could delay the sale for six months … John Wayne Airport said it would add four more security checkpoints than previously planned. The airport already had been building four new checkpoints with a $4 million grant from the Federal Aviation Administration. Comple-tion of the eight security gates, which doubles the airport’s checkpoints to 16, is expected early next month … California State University trustees and University of California regents approved a 14% increase in undergraduate fees. The state’s budget woes were cited for the increase.
WHAT ELSE IS NEWS
Aliso Viejo-based Fluor Corp.’s Mexico venture, ICA Fluor, won a $575 million contract from Iberdrola Energia, a unit of Spain’s Iberdrola SA, to provide engineering and construction work for an 1,180-megawatt electricity plant in the Mexican state of Tamaulipas … Costa Mesa-based Experian Information Solutions Inc., a unit of Britain’s GUS PLC, said it bought Casselberry, Fla.-based auto researcher AutoCountUSA for undisclosed terms … Foothill Ranch-based Wet Seal Inc. said its operating loss for the quarter ended May 1 more than doubled to $24.7 million, versus a year earlier, on a 17% decline in sales to $99.8 million. Wet Seal warned that its loss in the current quarter would be wider than analysts expect … Irvine-based Diedrich Coffee Inc. said it borrowed $5 million to grow its locations.
ECONOMIC INDICATORS
Up: Orange County’s jobs picture in April, with total nonfarm employment up 0.2% to 1,428,800, versus a year earlier, and the unemployment rate at 3.3%, compared to 3.8%.
Up: OC’s housing picture in April, with the median price of homes sold up 30.1% to $523,000, versus a year earlier, according to DataQuick Information Systems.
