Stories in this week’s Orange County Business Journal
TOP STORIES
A three-month run of employment growth in Orange County paused in May with a decline of 1,100 jobs from April, according to the state’s Economic Development Department. May saw an increase of 1,900 jobs from a year earlier, keeping total employment flat at about 1.36 million nonfarm jobs. The unemployment rate fell to 8.5% from a revised 8.6% in April and 9.2% a year earlier. The decline in the rate despite the loss of jobs from the month prior likely reflects some unemployed persons dropping out of the market. Professional and business services led the May loss, shedding 4,700 workers. Construction reversed a long slog of losses by adding 1,800 jobs in May from a month earlier and 200 from a year earlier. The leisure and hospitality segment added 1,600 for the month, and was up nearly 10,000 from a year earlier. The state report followed a forecast from Chapman University in Orange, where economists lowered their outlook for gains this year to 20,000 jobs from 23,000 in an earlier forecast. Chapman said it expects job growth to pick up later this year and through 2012 for a total gain of 50,000.
Danaher Corp.’s proposed $6.8 billion buy of Brea medical testing company Beckman Coulter Inc. received European regulatory clearance. The Washington, D.C.-based conglomerate said Europe was the last market where regulatory approval was needed on the acquisition of Beckman, a maker of medical testing instruments and supplies. Danaher had earlier said it would sell 17.5 million shares of common stock to raise net proceeds of $877.4 million to help pay for Beckman. The acquisition is expected to close later this month.
ECONOMIC INDICATOR
FINANCE
Newport Beach-based Pacific Investment Management Co. started a new exchange-traded fund that follows a major index and invests a portion in fixed-income assets. The fund will invest about 80% of its holdings in the securities of the BofAMerrill Lynch 0-5 Year US High Yield Constrained IndexSM. The remainder of the fund will be invested in other assets, including bonds, debt securities and derivatives such as options, futures contracts or swap agreements, according to the prospectus. The fund will be managed by Vineer Bhansali, a managing director in Newport Beach. Pimco manages $1.2 trillion in investments for pension funds, insurers, corporations and others.
REAL ESTATE
A plan for three hotels that will take the place of several homes and businesses in Garden Grove was unanimously approved by the City Council. The approval came over the objections of some residents who stand to be relocated for the hotels, including a 19-story, 400-room resort with large conference areas, restaurants, and stores. Land Design Inc., the project’s developer, has offered $497,000 in relocation expenses for residents and businesses.
HEALTHCARE
Orange Coast College in Costa Mesa started a healthcare information technology and electronic medical records program for working professionals and students. The six-month course is funded by a $700,000 grant from the federal government, which is promoting electronic medical records and other information technology as ways to cuts costs as part of its healthcare reform program.
TRANSPORTATION
Moody’s Corp. downgraded its rating on $2.1 billion worth of bonds that helped finance the San Joaquin Hills (73) Toll Road. The move came after the public body that oversees the toll road extended its term for six years to 2042. The Transportation Corridor Agencies opened the toll road in 1996 under a plan that would use tolls to pay for bonds raised for its construction. The initial plan called for it to revert to a free public thoroughfare in 2036. Revenue from the toll road continues to fall short of initial projections. Toll road officials said the downgrade will have no effect because there are no plans to borrow more money.
OTHER NEWS
The University of California, Irvine, signed a deal to have ticketing and marketing company Paciolan sell tickets for all events on campus, including sports events, concerts and shows at the Bren Events Center, and events staged by the Department of Fine Arts. Irvine-based Paciolan is a subsidiary of Comcast Corp. in Philadelphia.
The Fountain Valley man accused of stealing the identity—and a $1.4 million tax refund—of Irvine Company Chairman Donald Bren has pleaded guilty to one count of bank fraud. Moundir Kamil, dubbed the “Give Me More Bandit” for his part in a series of 2003 local bank robberies. Sentencing is scheduled for Dec. 19.
