REVIEW
June 27 – July 3
Cable Deal: Metro-Goldwyn-Mayer Inc. has agreed to sell its 20 percent stake in three cable channels to Cablevision Systems Corp. for $500 million, raising cash that may help finance a bid for Vivendi Universal SA’s U.S. media assets. The channels are American Movie Classics, the Independent Film Channel and WE: Women’s Entertainment.
Toy Story: Mattel Inc. has sued a California insurance group for reimbursement of $20 million that the El Segundo-based toy company paid to settle a shareholder suit. Mattel claims that the California Insurance Guarantee Association, which was created to administer claims when an insurer becomes insolvent, refuses to reimburse it more than $500,000.
Star Trek Suit: Activision Inc. sued Paramount Pictures owner Viacom Inc., accusing it of neglecting its “Star Trek” science-fiction movie and television franchise and hurting game sales. The Santa Monica-based company asked an L.A. Superior Court for millions of dollars in damages, contending that Viacom violated a 10-year licensing agreement signed in 1998. Paramount’s “Star Trek: Nemesis,” released in December, was the lowest-grossing of the 10 films in the series.
Binding News: KB Home is releasing its homebuyers from a binding-arbitration provision in their warranties and purchase agreements. The move comes as the Federal Trade Commission asks the Los Angles-based homebuilder about such clauses. KB said it has been in discussions with the FTC about differing interpretations of an earlier consent decree that didn’t allow for such arbitration.
Loud and Clear: The Los Angeles Philharmonic began rehearsing in the new Walt Disney Concert Hall to test out the acoustics. Under the direction of Esa-Pekka Salonen, the philharmonic performed several short selections. Skeptics warned that initial testing of a concert venue is sometimes suspect because the building materials have not yet settled.
Nursing Numbers: California has increased its proposed nurse-to-patient ratios for hospitals in 2008. The revised proposal would require that hospitals have one nurse for every three patients who have just been transferred out of intensive care units and a nurse for each four cancer patients and every four people that require 24-hour monitoring.
Global Ruling: Global Crossing Ltd. won a bankruptcy judge’s approval to sell a 61.5 percent stake to Singapore Technologies Telemedia Pte. Judge Robert Gerber overruled objections by Carl Icahn’s XO Communications Inc., which says it holds $790 million of Global Crossing’s bank debt, as well as lenders led by J.P. Morgan Chase & Co. and IDT Corp.
Earnings: CKE Restaurants Inc., owner of Carl’s Jr., reported a first quarter net loss of $5.8 million, compared with a net loss of $162.6 million for the like period a year ago. Revenue for the Santa Barbara-based restaurant chain fell 1 percent, to $419.6 million.
Shareholder Suit: Sports Club Co. has been sued by a shareholder who contends that a $54.6 million buyout plan is unfair and designed to mask accounting problems. The Los Angeles-based company, which went public in 1994, has lost money for the past three years. Sports Club Co-Chief Executive Rex Licklider said the suit, filed in Delaware Chancery Court, lacks merit. The company said it revised its financial statements for 2002.
Actors Vote: A bid to consolidate the two actors’ unions was defeated. The plan won majority votes from members of both the Screen Actors Guild and the American Federation of Television and Radio Artists but SAG barely missed the 60 percent level required for passage.
PREVIEW
July 7 – 13
Sports Beat: The Sparks are home on Monday (7th) against Cleveland, and the Galaxy is home on Wednesday (9th) against the Colorado Rapids. The Dodgers are on the road all week.
Economic Reports: Pretty slow week except for June’s producer price index data due out on Friday (11th). Also scheduled for release are California’s employment numbers for June. Also, it’s the very beginning of earnings season as second-quarter numbers start to get released and economists get a gauge on overall corporate performance.
Budget Crisis: No formal deadlines this week on the budget front, but there will likely be plenty of rhetoric and jawboning on each side of the debate.
Boogie Time: It’s disco-mania at this year’s Justice Ball, the legal service fundraiser for Bet Tzedek. Action gets started at 8:30 p.m. on Saturday (12th) at the Wiltern Theater. For information: 323-656-9069.
LAX Revision: The long-awaited environmental impact report for L.A. Mayor James Hahn’s $9 billion makeover of Los Angeles International Airport is set to be released on Wednesday (9th). This marks the first step in what’s expected to be a years-long approval process. Opposition is expected to crystallize to plans to put an airport parking complex in what is now a residential area 1.5 miles east of the airport terminals.
Lobbying Limits: A proposal is expected to come back to the L.A. City Council on Wednesday (9th) that would set disclosure requirements for lobbyists and also require elected and appointed city officials to recuse themselves from decisions on issues on which they have been lobbied. Opposition is expected on the issue of requiring the mayor to recuse himself from making decisions on ground that it would violate the new city charter.
Fraud Watch: The Los Angeles County Department of Consumer Affairs is holding a forum on Wednesday (9th) to help the elderly avoid financial fraud and learn estate planning. Topics include real estate and insurance fraud, telemarketing and identity theft. The two-hour program starts at 10 a.m. at the Roosevelt Senior Center. Information: (213) 893-2455.
Living Wage: Supporters of Santa Monica’s failed Living Wage Ordinance will present the results of an independent report that is critical of campaign tactics used by the measure’s opponents at the Santa Monica City Council meeting on Tuesday (8th). The committee consisted of clergy, politicians and legal scholars such as UCLA professor emeritus Ruth Roemer and USC law professor Erwin Chemerinsky.
