IPO DELAY: Agricultural biotech company Ceres Inc. delayed plans for an $85 million initial public offering. The Thousand Oaks company had been expected to sell shares and start trading on the Nasdaq on Feb. 9. Biofuels Digest reported that Ceres delayed pricing the IPO for at least a week, but did not cite sources. The company itself did not provide an explanation. On Feb. 8, Ceres reduced the estimated price of the 5 million shares to a range of $16 to $17. Ceres, which is developing seeds for crops used to make biofuels, earlier expected to price shares at $21 to $23 and net about $98 million. Market volatility may have played a role, as other tech companies also have delayed or tempered expectations on their offerings.
KODAK EXIT: A U.S. bankruptcy judge in New York has agreed that Eastman Kodak Co. can get out of its $72 million naming deal for Hollywood’s Kodak Theatre. Bankruptcy Judge Allan Gropper approved a request by the troubled Rochester, N.Y. company to be allowed to abandon the agreement in order to save money as it reorganizes. Eastman Kodak, which has been hurt by the transition from film to digital technology, filed for Chapter 11 last month. The naming-rights agreement dates from 2000 and calls for Kodak to pay $3.6 million annually. The company still owes $38 million on the 20-year contract. Gropper did not rule on whether signage and other Kodak branding should be removed from the 3,400-seat theater at the Hollywood & Highland Center prior to Sunday’s Academy Awards.
DISPUTE ENDS: A Monrovia owner of property deemed essential for a Gold Line maintenance yard has settled his legal fight against the light-rail line for $24 million. As part of the settlement, George Brokate will drop his six lawsuits and sell his 4.5-acre industrial property to the Gold Line Construction Authority, which is building an extension of the rail line to Azusa. Gold Line officials had previously offered Brokate $5.6 million, compared with a $57 million offer to Monrovia’s redevelopment agency for its neighboring 12.5-acre property – nearly four times more per acre. The deal with Monrovia is now in limbo due to the elimination of redevelopment agencies by Gov. Jerry Brown.
TRASH TALK: Brushing aside concerns of private trash haulers, the Los Angeles Board of Public Works unanimously approved a plan to convert the city’s open competition system for trash collection from commercial and apartment properties to an exclusive franchise system. The union-backed plan would set up 11 franchise zones, with a single franchise hauler for each zone. Currently, four major waste haulers dominate the $220 million market for trash collection from commercial and apartment properties, with dozens of niche operators – mostly family-owned businesses – competing for work across the city. The proposal next goes to the City Council.
SLOW RETURN: Los Angeles County’s economy will continue its slow climb from the recession this year, with the unemployment rate dropping to 11.5 percent, according to a forecast by the Los Angeles County Economic Development Corp. But the pace of the recovery is expected to quicken next year. This year’s gains in health services, international trade, entertainment, tourism and private education will lead the county in a gradually accelerating recovery, according to last week’s forecast. But the economy should gather more steam next year, with the unemployment rate dropping below 11 percent.
LUGGAGE MERGER: Ricardo Beverly Hills, one of the nation’s largest luggage companies, has acquired the assets of Skyway Luggage, a brand name that was put into receivership last year. Ricardo Beverly Hills, which was founded in 1978 and is based in La Mirada, did not say how much it paid for family-owned Skyway, which was placed into receivership in June as an alternative to bankruptcy. Skyway was founded in 1910 as Seattle Suitcase Trunk and Bag Manufacturing. At the time of the receivership, it products were being made in China under contract and sold under brands that include Eddie Bauer, Sigma3 and Vector.
U.K. DEAL: J2 Global Inc. has acquired Zimo Communications Ltd., a United Kingdom provider of Internet cloud voice services under the Numberstore brand. The Hollywood provider of e-mail, messaging and online data backup services said that the deal, terms of which were not disclosed, brings the company additional voice customers in Europe. It’s the company’s third acquisition this year. Zimo is based in the Manchester suburb of Cheshire.
PORT NUMBERS: The Port of Los Angeles reported gains in January and the Port of Long Beach was again down slightly year over year. At the L.A. port, imports increased 5.3 percent and exports were up 5.9 percent. Total container volume, including empties and all loaded containers, rose 5.8 percent to 698,715 containers. In Long Beach, imports dropped 5.5 percent and exports fell 8.2 percent. Total container volume was down 3.9 percent to 456,424 containers.
MERGER OK: L.A. peer-to-peer lender WikiLoan Inc. has signed the final merger agreement to acquire WikiPay Inc. and two overseas subsidiaries in a preferred stock deal. WikiPay is an L.A. cash-based mobile payment and marketing platform that offers low or no transaction fees to businesses and their customers, as well as allowing individuals to transfer money between each other. WikiLoan, which operates as a website that provides tools for person-to-person borrowing and lending, will pay WikiPay shareholders more than 7.9 million shares of WikiLoan series A preferred stock for the parent company, WikiPay Ltd. of the United Kingdom and WikiPay SA of Mexico.
BEACH BUILD: Construction was scheduled to begin last week on a $350 million residential and retail development on Ocean Avenue in Santa Monica. The complex, Village at Santa Monica, mixes luxury condominiums and affordable apartments. The project has been planned for six years and will be built by New York developer Related Cos. on a 3-acre site once owned by think tank Rand Corp.
EARNINGS: On Assignment Inc. reported fourth quarter net income of $7.5 million, compared with a loss of $13.7 million in the same period a year earlier. Revenue jumped 34 percent to nearly $162 million. … Activision Blizzard Inc. reported fourth quarter net income of $99 million, compared with a net loss of $233 million in the same period a year earlier. Revenue fell 1 percent to $1.41 billion. … J2 Global Inc. reported fourth quarter net income of $29.8 million, compared with $26.9 million in the same period a year earlier. Revenue rose nearly 20 percent to $85.1 million. … Lions Gate Entertainment Corp. reported a loss of $1.7 million in the quarter ended Dec. 31, compared with a loss of $6 million in the same period a year earlier. Revenue fell 24 percent to $323 million.
