San Diego Union-Tribune sold to hotel magnate Doug Manchester

The San Diego Union-Tribune is being sold to MLIM, owned by local hotel magnate Doug Manchester, said current owner Platinum Equity.

Terms of the deal weren’t disclosed by Los Angeles-based Platinum,  which bought the 143-year-old newspaper from Copley Press in 2009. The acquisition is expected to close by Dec. 15.

MLIM is headed by chief executive and longtime radio station owner John Lynch, who founded the Broadcast Co. of America and once worked for the Chicago Tribune. 

In its two and a half years of ownership, Platinum attempted to modernize the Union-Tribune’s print and online operations, the private equity investment firm said Thursday. The newspaper has an average circulation of 219,347, ranking it 25th on the list compiled by the Audit Bureau of Circulations.

“We came here at a difficult time for the newspaper industry and helped the Union-Tribune successfully transform its operations and reinvent itself,” said Louis Samson, a Platinum principal who led the 2009 acquisition effort. 

Readers were stunned by the announcement. “Chin hits floor,” tweeted Twitter user djduke. “Is this an early April Fool’s joke?” tweeted Whitney Benjamin. “Sad news folks,” tweeted Anne Cornetta.

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-- Tiffany Hsu

The San Diego Union-Tribune is being sold to MLIM, owned by local hotel magnate Doug Manchester, said current owner Platinum Equity.

Terms of the deal weren’t disclosed by Los Angeles-based Platinum,  which bought the 143-year-old newspaper from Copley Press in 2009. The acquisition is expected to close by Dec. 15.

MLIM is headed by chief executive and long-time radio station owner John Lynch, who founded the Broadcast Company of America and once worked for The Chicago Tribune.  

In its two and a half years of ownership, Platinum attempted to modernize the Union-Tribune’s print and online operations, the private equity investment firm said Thursday.

“We came here at a difficult time for the newspaper industry and helped the Union-Tribune successfully transofrm its operations and re-invent itself,” said Louis Samson, a Platinum principal who led the 2009 acquisition effort.  

Readers were stunned by the announcement. “Chin hits floor,” tweeted Twitter user djduke. “Is this an early April Fool’s joke?” tweeted Whitney Benjamin. “Sad news folks,” tweeted Anne Cornetta.

Consumer Confidential: Toy firm fined; Hertz goes it alone

Here's your throat-clearing Thursday roundup of consumer news from around the Web:

-- Federal regulators aren't kidding around when it comes to toy safety. The Consumer Product Safety Commission slapped a $1.3-million fine on a toy company that sold popular arts-and-crafts beads that were linked to a dangerous drug and sickened about a dozen children. The civil penalty marks the third largest toy-related fine issued by the agency. The Aqua Dots toy beads were imported by Spin Master in 2007 and recalled after tests showed they were coated with a chemical that, when ingested, can metabolize into the so-called "date-rape" drug gamma hydroxybutyrate (GHB). The compound can induce unconsciousness, seizures, drowsiness, coma and death.

-- Rental-car companies sure play hard to get. Hertz Global Holdings says it's withdrawing its offer for Dollar Thrifty, but is still interested in buying the rival rental car company. Hertz cited Dollar Thrifty Automotive Group's plan to buy back stock and current market conditions. This year, Hertz offered to buy Dollar Thrifty for $57.60 in cash and 0.8546 shares of Hertz stock for each Dollar Thrifty share. That was a sweetening of a previous offer made by the company last year and rejected by Dollar Thrifty shareholders. But Dollar Thrifty advised its shareholders against accepting Hertz's sweetened offer.

-- David Lazarus

 

Consumer Confidential: Thomas the Tank Engine bought, Harley recall

Here's your maybe-baby Monday roundup of consumer news from around the Web:

—Thomas the Tank Engine, meet Barbie. The company behind everyone's favorite talking train, Hit Entertainment, is being purchased by El Segundo's Mattel for $680 million in cash. Mattel already markets many Thomas & Friends die-cast and plastic toys under a license that extends until 2014. Global sales of those toys are more than $150 million. Mattel says the deal will help combine its own global marketing and distribution capabilities with Hit Entertainment's global programming and licensing expertise. For those without small ones at home, Thomas the Tank Engine is a popular British children's television series that has spawned a variety of tie-ins and toys.

—Wal-Mart has your number ... at least when it comes to prices. The world's largest retailer is announcing a new strategy that it hopes will pull in procrastinators early by giving them a big incentive: a guarantee that they'll get the lowest price no matter when they buy during the holiday season. Wal-Mart says it will be matching prices on many of its products. Shoppers who buy something at a Wal-Mart store between Nov. 1 and Dec. 25, but then find the identical product elsewhere for less, can get a gift card in the amount of the difference. The offer excludes merchandise bought on Wal-Mart's website and some other products, such as groceries.

—Heads up, hog riders: Harley-Davidson is recalling about 308,000 motorcycles to fix a switch problem that can cause failure of the brake lights and possibly even the rear brakes themselves. The company says in documents filed with the National Highway Traffic Safety Administration that brake light switches can be exposed to too much heat from the exhaust system. The heat can cause the brake lights to fail, and the problem also can cause fluid leaks and the loss of rear brakes. The problem affects Touring, CVO Touring and Trike motorcycles from the 2009 through 2012 model years.

— David Lazarus

Photo: Thomas the Tank Engine has a new daddy. Credit: BayBritt Allcroft

Consumer Confidential: Rental cars, JetBlue offer, Easy-Bake Oven

Here's your Wee-Willie-Winkie Wednesday roundup of consumer news from around the Web:

--Avis Budget Group says it's dropping its $1.55 billion bid to acquire rival Dollar Thrifty. Avis and Hertz Global Holdings, the two largest publicly traded U.S. auto-rental chains, have been seeking  Federal Trade Commission approval of their competing bids for Dollar Thrifty, the fourth-largest rental-car company in the U.S. market. Hertz says it will press ahead with its own merger plans. Dollar Thrifty told Avis and Hertz on Sept. 7 that it wanted final offers by Oct. 10. Dollar Thrifty shareholders so far haven't liked the offers they've received. That may change now that Avis is out of the picture.

--JetBlue doesn't want Hurricane Maria slamming passengers in the wallet. The airline says it will waive ticket-change fees for people who rebook flights to or from Bermuda on Thursday to avoid the storm. JetBlue says customers can reschedule for travel through Saturday by calling the airline before their scheduled departure time. Passengers whose flights are canceled and who bought their ticket on or before Tuesday can get a refund, the company says.

--This isn't your mother's Easy-Bake Oven. The latest version of the famous toy first marketed in 1963 is now all curves and purple and snazzy graphics. And it comes with a new instruction: No light bulb necessary. The compact fluorescents that are becoming the new standard for household use are so energy-efficient that they're useless for baking a brownie, or any other miniature treats. So now the Easy-Bake boasts an actual heating element much like that of a traditional oven. The Easy-Bake Ultimate Oven is clearly designed to fit on any kitchen counter, assuming a parent is willing to shell out $49.99 for the gadget. As for its performance, I await the verdict of a new generation of Easy Bakers.

-- David Lazarus

Photo: Avis says it'll drive solo, dropping its bid for Dollar Thrifty. Credit: Richard Derk / Los Angeles Times

First PacTrust to acquire Beach Business Bank of Manhattan Beach

First PacTrust Bancorp, the parent of Chula Vista's Pacific Trust Bank, has agreed to acquire Beach Business Bank, a Manhattan Beach community bank with a specialty sideline of lending to physicians across the country.

The deal, expected to close early next year, continues an expansion into Los Angeles and Orange counties for First PacTrust, which raised $28 million in fresh capital this summer by selling stock.

First PacTrust also is acquiring Gateway Business Bank, a three-branch bank based in Cerritos that operates home-lending offices across California, Oregon and Arizona through its Mission Hills Mortgage Bankers arm.

In a joint statement Wednesday morning, First PacTrust and Beach Business Bank said their boards had OK'd the deal, which also requires approval by Beach shareholders and regulators.

Assuming that goes as planned, Beach shareholders are to receive combinations of cash and stock or cash and stock warrants with a total value of $37.2 million, the statement said.

The deal adds up to $9.07 for each share of Beach Business Bank stock. The closely held shares had traded in the $16 range in late 2006 and early 2007, before the financial crisis struck.

They had been changing hands at about $6 in recent over-the-counter trading and shot up to $8.60 after the deal was announced, a 45% gain.

Besides its Manhattan Beach headquarters, Beach has full-service branches in Long Beach and Costa Mesa and a lending office in Torrance.

It is to continue operating under its own name, with its chief executive, Robert M. Franko, becoming president of First PacTrust Bancorp. Franko said the merger would "result in a stronger bank with the capital strength and scale to continue to expand into new markets."

U.S. Justice Department sues to stop AT&T merger with T-Mobile

 

 

 

 

 

 

 

 

 

 

 

The U.S. Justice Department is suing to block the $39-billion acquisition of cellular phone company T-Mobile by telecom giant AT&T.

Deputy Atty. Gen. James M. Cole said that the acquisition  "would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services."

The Obama administration called T-Mobile "an important source of competition among the national carriers." Currently, AT&T and T-Mobile now compete head to head in 97 of the nation's largest cellphone markets. That competition would be eliminated by the acquisition, which would create the nation's largest wireless communications company, the government said.

DOCUMENT: Read the antitrust lawsuit

AT&T currently is the second-biggest cellular provider, and T-Mobile is the fourth-biggest as measured by the number of subscribers, the Justice Department said.

AT&T did not immediately respond to the government's announcement.

Earlier in the day, AT&T announced that if the takeover of T-Mobile goes through, it would repatriate 5,000 call-center jobs -- which had been outsourced overseas -- to the United States.

"At a time when many Americans are struggling and our economy faces significant challenges, we're pleased that the T-Mobile merger allows us to bring 5,000 jobs back to the United States and significantly increase our investment here," said Randall Stephenson, AT&T chairman and chief executive.

Stephenson's statement was applauded by labor union leaders.

"Cuts in wages, benefits and jobs have become the new normal in America, so that when a company like AT&T takes action to bring back quality jobs, it's big news," said Larry Cohen, president of the Communications Workers of America union.

The proposed merger currently is being studied by the Federal Communications Commission. The California Public Utilities Commission also is investigating the pros and cons of the proposed deal.

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CoreLogic to move headquarters to Irvine

 

Property and credit data provider CoreLogic, whose stock surged 29% Tuesday, will move its headquarters from Santa Ana to Irvine and said it is considering a sale of the company, which triggered the stock rise.

CoreLogic will move to 40 Pacifica in the Irvine Spectrum in late summer 2012, landlord Irvine Co. said. CoreLogic will occupy 170,000 square feet –- about seven and a half floors –- and have prominent signs on the building.

Financial terms of the lease were not disclosed, but the Irvine Co. is asking $2.15 a square foot per month at 40 Pacifica, one of the highest rates in the Irvine Spectrum, according to brokerage Cushman & Wakefield.

CoreLogic emerged as an independent company in 2010 as part of a separation of Santa Ana-based First American Corp. into two publicly traded companies.

“Our new Irvine Spectrum headquarters location is befitting a growing business in the technology and information services industry,” President Anand Nallathambi said.

Shares of CoreLogic jumped after it said it hired Greenhill & Co. to explore a possible sale of the company. The stock closed at $11.35, up 29%.

-- Roger Vincent

Photo: The Pacifica office complex in Irvine.  Credit: Irvine Co.

 

Consumer Confidential: Back-to-school prices, telecom tie-ups

Here's your don't-you-forget-about-me Friday roundup of consumer news from around the Web:

-- It's back-to-school time, and it's going to cost you. But many stores would rather you didn't notice. Some are using less fabric for the clothing and calling it the new look. Others are adding cheap stitching and trumpeting it as a redesign. And the buttons on that blouse? Chances are you're not going to think it's worth paying several dollars more for the shirt just to have them. Retailers are raising prices on merchandise an average of 10% across the board this fall in an effort to offset their rising costs for materials and labor. The new strategies come as merchants' production and labor costs are expected to rise as much as 20% in the second half of the year after having remained low during most of the last two decades.

-- More consolidation may be ahead for telecom companies. Sprint Nextel is reportedly in talks with cable companies over a new round of investment that may lead to a full takeover of 4G partner Clearwire. Sprint is said to be in discussions with investors Comcast, Time Warner Cable and Bright House Networks. According to Bloomberg, Sprint may use the investment to fund acquisition of the remaining stake in Clearwire that it doesn't own. Such a scenario could provide relief to cash-strapped Clearwire, which is seeking funding to stay alive and expand its network with faster technology. The company needs $600 million for its network upgrade and additional money to keep its operations going. Sprint, with a 54% stake in Clearwire, is both its largest shareholder and customer.

-- David Lazarus

 

California Pizza Kitchen hires new CEO from Texas Roadhouse

When choosing its new chief executive, California Pizza Kitchen went for a taste of Texas-style steak by way of Kentucky.

The new boss of the Los Angeles-based casual dining company will be G.J. Hart – recently CEO of western-themed and Louisville-based chain Texas Roadhouse.

CPK said Thursday that Hart would replace co-founders Rick Rosenfield and Larry Flax. The two former federal prosecutors launched the chain’s first restaurant in Beverly Hills in 1985.

Last month, CPK was acquired by San Francisco-based private equity firm Golden Gate Capital for $470 million. The company sells its food at more than 250 California Pizza Kitchen restaurants as well as in stadiums and the frozen food aisles of grocery stores.

Hart, who had been with Texas Roadhouse for a decade, will be replaced there by W. Kent Taylor. Taylor will remain chairman of the company as well.

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-- Tiffany Hsu

Photo: California Pizza Kitchen at the Simi Valley Town Center. Credit: Al Seib / Los Angeles Times

Capital One to buy HSBC’s U.S. credit card unit

Capital One Financial Corp. said Wednesday that it would buy the U.S. credit card division of London-based HSBC Holdings for $32.7 billion as it attempts to expand its own credit card franchise.

HSBC, as part of a strategic narrowing of its retail business, will pass off more than $30 billion of credit card loans and store-branded credit cards to Capital One for a $2.6 billion premium.

The deal is expected to close in the second quarter of 2012. At least in the near future, HSBC customers should be able to use their cards as usual without any service changes.

HSBC has been in a shedding phase, recently selling 195 of its U.S. bank branches and planning to cut 30,000 employees worldwide over the next few years.

Meanwhile, Capital One is on a buying tear, saying in June that it would spend $9 billion snapping up Dutch company ING Group’s American online banking operations.

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-- Tiffany Hsu

Photo: Mark Lennihan / Associated Press