ONE CEO: Jakks Pacific Inc. said Jack Friedman, one of its founders and a co-chief executives, would step down April 1. Friedman will continue to serves as board chairman and consultant to the Malibu toymaker. His longtime partner, Stephen Berman, will become sole CEO and continue as president. Also, the company forecast a first quarter loss of between 20 cents and 25 cents a share, on sales of between $70 million and $74 million. Analysts have been expecting a per-share loss of 33 cents.
REPURCHASE: City National Corp. bought back the remaining $200 million in preferred shares it sold to the federal government during the height of the recession as part of the Troubled Asset Relief Program. The L.A. holding company of City National Bank, which received $400 million through the program in October 2008, began repurchasing its Tarp preferred securities in December. Tarp provided liquidity to banks after the mid-2008 credit crunch, when financial institutions refused to loan money to each other.
WARNING: The U.S. Food and Drug Administration sent 17 warning letters to food manufacturers, including the L.A. makers of Pom pomegranate juice, as part of an effort to crack down on misleading labels on food packages. The agency accused the companies of pumping up the nutritional claims of their products or masking contents like unhealthy fats. In the case of Pom pomegranate juice, the agency said that the company’s Web site, which is listed on its bottles, carried misleading claims that the juice could prevent or cure diseases such as hypertension, diabetes and cancer. Pom Wonderful LLC said that “all statements made in connection with Pom products are true” and supported by scientific research.
INVESTMENT: Teledyne Technologies Inc. said that a subsidiary has acquired a minority stake in Optical Alchemy Inc., which makes sensors for surveillance equipment. Teledyne, based in Thousand Oaks, did not disclose how much the Teledyne Scientific & Imaging division invested in the private Nashua, N.H., company. The deal includes an option to buy a controlling stake after three years, and the entire company after five years. Teledyne Technologies makes electronic systems, communications products, aerospace engines and power generation systems.
CONSIDERATION: Lions Gate Entertainment Corp. said it would review an earlier announced bid by Carl Icahn to increase his stake in the Santa Monica independent studio. Icahn had made an unsolicited tender offer to acquire up to 13.2 million common shares for $6 per share in cash. Adding to the stock he already owns, this would increase his stake to 30 percent of the outstanding common shares. Lions Gate, which produces and distributes films and TV shows, and owns the TV Guide cable channel, in the past has rebuffed the billionaire activist investor’s overtures. Its corporate headquarters are in Vancouver, B.C.
GIVING UP? Investor Ron Perelman is planning to hand over Panavision Inc. to his creditors. The well-known Hollywood camera rental company has suffered from a steep downturn in movie and TV production during the recession and competition from cheaper cameras. Perelman took control in 1998 in a deal that saddled the company with nearly $500 million in debt. MacAndrews & Forbes Holdings Inc., Perelman’s investment vehicle, has reached an agreement in principle with a group of creditors for the billionaire investor to give up his controlling stake, according to reports.
BURKLE OUT: KB Home on Thursday said that Ron Burkle will not run for re-election to the L.A. homebuilder’s board at its annual stockholders’ meeting next month so he can devote more time to other business interests. It’s the second outside corporate board that the billionaire has quit in as many months. The founder and managing partner of L.A.-based Yucaipa Cos. announced in February that he would leave the board of Internet company Yahoo Inc., giving the same reason as for his KB Home departure. Burkle has been engaged in a high-profile battle with the board of one of his investments, Barnes & Noble, to increase his stake in the national book retailer.
EARNINGS: Jakks Pacific Inc. reported a fourth quarter loss of $1.9 million, compared with net income of $16.9 million a year earlier. Net sales fell 26 percent to less than $199 million. … Crown Media Holdings Inc. reported fourth quarter net income of $373,000, 71 percent lower than a year earlier. Revenue rose 3 percent to $77.6 million. … Big 5 Sporting Goods Corp. reported fourth quarter net income of $6.4 million, 77 percent higher than a year earlier. Revenue rose 8 percent to more than $237 million. … Edison International reported fourth quarter net income of $212 million, 2 percent lower than a year earlier. Revenues fell 5.6 percent to $3.05 billion. … Superior Industries International Inc. reported a fourth quarter net loss of $3.9 million, 80 percent narrower than a year earlier. Net sales fell 4.5 percent to $145 million.
CORRECTIONS
An article in the March 1 issued headlined “Erin: Take 2” incorrectly identified drugs abused by Erin Brockovich’s daughter, Elizabeth. She never used heroin.
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An article in the Feb. 15 issue headlined “Team Effort Delivers Deals in West Los Angeles,” which was part of the Commercial Real Estate Awards Special Report, misidentified the broker who handled deals involving Pizza Rustica, Plushpod and several restaurants on Beverly Drive. The agent is Steve Anavim. Also, the article misstated the temporary location of Conroy Commercial. Its address is 5877 W. Third St., Los Angeles.
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An article in the March 1 issue headlined “Getting Organized” incorrectly identified Barbara Guggenheim as an heiress to the Guggenheim fortune.
