ON THE BLOCK?: The new head of troubled insurance giant American International Group Inc. did not rule out selling two of its Los Angeles-based businesses as part of an effort to pay off its $85 billion government loan. Chief Executive Edward Liddy said during a conference call that selling any company except its U.S. property and casualty, and foreign general insurance businesses was up for consideration. That opens the possibility that its lucrative aircraft leasing business, International Lease Finance Corp., run by Los Angeles billionaire Steven Udvar-Hazy, and annuity-oriented retirement planning arm AIG SunAmerica could be put on the market.

DEMOTED: Tetra Tech Inc. said it demoted its president, Sam Box, to vice president of risk management after disclosures that Box had inflated his resume with a University of California engineering degree he hadn't earned. The Pasadena provider of consulting and technical services said it became aware of the problem after Box's name popped up in a test of new software at the Fraud Discovery Institute, a San Diego non-profit founded by former Los Angeles con man Barry Minkow. In separate news, Tetra Tech said it acquired for an undisclosed amount San Francisco-based DPK Consulting, which provides consulting services for the U.S. Agency for International Development and has been selected as one of five contractors to share a five-year, $500 million USAID contract.

PROXY BATTLE: Shareholders of International Rectifier Corp. were scheduled Oct. 10 to vote for directors and proposals related to a hostile $1.7 billion tender offer from Vishay Intertechnology Inc. Vishay was backing three alternative candidates to the board and said it would drop its $23-a-share tender offer if it did not win. The tender offer, launched last month, is scheduled to expire Oct. 27. Malvern, Pa.-based Vishay and the El Segundo power management chip maker have been waging a bitter proxy battle, with Vishay saying its offer maximizes shareholder value. International Rectifier contends that Vishay's funding is uncertain and that the offer itself undervalues the company's long-term growth prospects.

MERGER APPROVED: PeopleSupport Inc. said its shareholders have voted overwhelmingly in favor of the company's $250 million merger with Indian conglomerate Aegis BPO. Mumbai-based Aegis will pay shareholders $12.25 a share in cash for the Los Angeles company, which operates offshore call centers. PeopleSupport will become part of its Essar Services subsidiary. Essar said it plans to close the deal no later than Oct. 31.


For reprint and licensing requests for this article, CLICK HERE.