Divestiture

In less than 17 years of institutional life, as the Hammer Museum has grown from orphanhood into contemporary art stardom, director Ann Philbin has won a reputation as a remarkably successful turnaround artist. Since her arrival in 1999, the museum has grown into a cutting-edge art space from a vanity institution beset with troubles, beginning with the death of founder Armand Hammer 15 days after its November 1990 opening.

California insurance companies that own stock in some multinational companies that operate in Iran soon may have to sell their holdings or face penalties. In June, Insurance Commissioner Steve Poizner, a Republican running for governor next year, ordered 1,300 California-licensed insurers to give him information about indirect investments in Iran's nuclear, oil, defense and banking sectors. About 1,100 replied, and 200 didn't. Now, Poizner, at a news conference scheduled for this morning at Los Angeles' Museum of Tolerance, is expected to detail how the insurers would be required to divest themselves of stock that he estimates is worth at least $6 billion.

California insurance companies that own stock in some multinational companies that operate in Iran soon may have to sell their holdings or face penalties. In June, Insurance Commissioner Steve Poizner, a Republican running for governor next year, ordered 1,300 California-licensed insurers to give him information about indirect investments in Iran's nuclear, oil, defense and banking sectors. About 1,100 replied, and 200 didn't. Now, Poizner, at a news conference scheduled for this morning at Los Angeles' Museum of Tolerance, is expected to detail how the insurers would be required to divest themselves of stock that he estimates is worth at least $6 billion.

The British government announced Tuesday that it would break up parts of major financial institutions bailed out by taxpayers, highlighting a growing divide across the Atlantic over how to deal with the massive banks that were partially nationalized during the height of the financial crisis. The British government -- spurred on by European regulators -- is forcing Royal Bank of Scotland, Lloyds Banking Group and Northern Rock to sell off parts of their operations. The Europeans are calling for more and smaller banks to increase competition and eliminate the threat posed by banks so large that they must be rescued by taxpayers, no matter how they conducted their business, in order to avoid damaging the global financial system.

The first annual report of the UC Advisory Committee for Investor Responsibility reflects some substantial accomplishments in the struggle to respond constructively to the problems of South Africa. Gov. George Deukmejian and Mayor Tom Bradley of Los Angeles plan to suggest moving farther and faster when the report comes before the university regents today.

I have been a guest in South Africa several times and made friends both black and white and I find it interesting to see how young people now--as well as in the 1960s--are so easily manipulated. No one seems to pay any attention to the devastating effect of what divestiture would have on that country. The leader of the largest and strongest groups of blacks in South Africa, the Zulus, has been pleading for someone to listen, saying that there would be thousands and thousands of jobs lost--virtually all jobs filled by blacks--should such divestiture occur.

Computer Sciences Corp. must divest some of Mynd Corp.'s claims-assessment assets to win Federal Trade Commission approval for its $568-million proposed purchase of the financial-services and software company. The FTC said selling Mynd's claims-assessment software and other intellectual property would settle charges that Computer Sciences' acquisition will reduce competition. Shares of El Segundo-based Computer Sciences fell $3.50 to close at $66.19, while Blythewood, S.C.

The Beverly Hills City Council agreed Tuesday to review Mayor Jimmy Delshad's proposal that the city eliminate its pension fund investments in foreign companies operating in Iran. The proposal, designed primarily to back the state divestiture bill, AB 221, will be sent to a subcommittee to determine possible ramifications of its adoption, Delshad said.

Despite protests of "political arm-twisting," commissioners for the Los Angeles Fire and Police Pension System--the city's largest pension fund--edged closer Thursday toward adopting a plan to purge the $1.8-billion fund of investments in firms that do business with South Africa. However, the seven-member board delayed until next Thursday a vote on a proposal to phase out such investments over the next five years.

Local and state governments throughout the United States are facing new calls for tighter sanctions against companies operating in South Africa, after a recent flurry of well-publicized but partial corporate departures from the racially segregated nation.

A year after it looked like Sumner Redstone's media empire might collapse under a mountain of debt, the 86-year-old mogul found a way to keep his grip on Viacom Inc., CBS Corp. and other prized assets. On Wednesday, Redstone's privately held National Amusements Inc., the controlling shareholder of Viacom and CBS, said it would sell nearly $1 billion in stock in those companies to help retire $1.46 billion in debt. Redstone plans to sell all of his nonvoting shares in the two entertainment giants -- which could yield as much as $600 million from Viacom and as much as $345 million from CBS. The proceeds would allow Redstone to more than cover a $500-million debt payment due this month.

Hines Horticulture Inc., an Irvine operator of commercial nurseries, won Bankruptcy Court approval to sell nearly all its assets to a unit of Black Diamond Capital Management. Black Diamond offered about $58 million in cash and an agreement to take on as much as $45.9 million in liabilities, court documents said.

Media mogul Sumner Redstone has proposed selling part of his family holding company's movie theater circuit to pare down its debt, according to people close to the situation. A restructuring plan submitted to bankers this week by Redstone's private holding company, National Amusements Inc., also proposed shedding stakes in the video game company Midway Games Inc. and slot machine maker WMS Industries Inc.

Lehman Brothers Holdings Inc. said it planned to sell about $8 million of artworks warehoused in New York and Paris to help pay creditors. Lehman, which filed the biggest U.S. bankruptcy Sept. 15 with liabilities of $613 billion, said in a court filing it had a "desire to monetize the art collection through sales, for the benefit of" creditors. It asked the court to allow it to pay $20,000 in overdue bills to art-handlers who would move artworks to and from the warehouses and display them to prospective purchasers.

Negotiations between Tribune Co. and an Illinois state agency that wants to buy Wrigley Field have again broken down over how to finance the deal, officials from both sides said Monday. The problem is devising a transaction that would not involve taxpayer money and thus could gain approval from city and state officials, said former Gov. Jim Thompson, executive director of the Illinois Sports Facilities Authority. Outside experts believe that a package that includes Wrigley Field, the second-oldest park in the major leagues, together with the Chicago Cubs could fetch as much as $1 billion for the cash-crunched media conglomerate, parent of the Los Angeles Times.

Dish Network Corp., the second- largest U.S. satellite-television company, said first-quarter profit rose 65% after the January spinoff of its equipment business. Net income increased to $258.6 million, or 57 cents a share, from $157.1 million, or 35 cents, a year earlier, the Englewood, Colo.-based company said. Sales rose 75% to $2.84 billion. Shares of Dish Network gained 6 cents to $30.45.

Responding to a Los Angeles Department of Water and Power pension board's refusal last week to enact a divestiture policy, representatives of a DWP black employees group and the electrical workers union told a City Council committee Wednesday that the board's act went against many of their members' wishes.

A research group on Monday alleged that BankAmerica Corp.'s planned divestitures to satisfy antitrust concerns arising from its pending acquisition of Security Pacific Corp. will not satisfy federal rules in Washington state. In its report, the Charlotte, N.C.-based Southern Finance Project called the San Francisco bank's divestiture plans "a public relations gesture, not a serious effort to comply with antitrust standards."

CBS Corp. on Tuesday posted a 14.6% decline in fourth-quarter earnings -- another wrinkle in an already tough season as the company's flagship CBS broadcast network seeks to reverse a prime-time ratings slide. CBS reported net income of $286.2 million, or 42 cents a share, for the quarter ended Dec. 31. That was a drop from $335 million, or 43 cents a share, during the same period in 2006. Revenue fell 3% to $3.76 billion from $3.88 billion.

Altria Group Inc. will spin off its overseas unit March 28, bowing to U.S. investors demanding higher dividends and stock buybacks. Shareholders will get one Philip Morris International share for each Altria share, the New York company said. Altria Chief Executive Louis C. Camilleri will become CEO of the Lausanne, Switzerland-based overseas division and work to accelerate growth into emerging markets as smoking bans spread in Western Europe.