Business briefs for June 8, 2001

Friday, June 8, 2001 | 11:32 a.m.

Defects alleged at LV condos

Pacific Legends East Condominium Association and five homeowners sued Pacific Homes, alleging defects in its 218-unit condominium development at 1405 S. Nellis Blvd.

Pacific Homes officials could not be reached for comment on the allegation.

Twenty Pacific Century branches sold

MINNEAPOLIS -- U.S. Bancorp will purchase 20 branches of Pacific Century Bank in Southern California. Terms of the cash transaction were not disclosed.

The deal, subject to regulatory approval, is expected to close by the end of September and will immediately add to U.S. Bancorp earnings, the Minneapolis-based company said.

The acquisition includes approximately $640 million in deposits, $570 million in loans and 300 employees.

Following completion of the acquisition, U.S. Bank, the lead bank of U.S. Bancorp, will have 164 full-service branches in California.

DuPont drug unit sold

NEW YORK -- Bristol-Myers Squibb Co. believes its $7.8 billion cash offer for drug business of DuPont will give it a promising pipeline of drugs under development, and analysts say Bristol-Myers could use the help.

Last year, Bristol-Myers' patent expired on Taxol, a breast cancer drug with $1.5 billion in sales, opening the door to competition from companies producing generic versions. And this year, the company's second best-selling drug -- Gluothag, for treatment of diabetes -- goes off patent.

The company last month sold its Clairol hair coloring business to Proctor & Gamble for $4.9 billion. The deal with DuPont announced Thursday gives "credibility to Bristol's statements that it would concentrate on the pharmaceutical business," said analyst Bob Kirby of Edward Jones.

Merger delayed

NEW YORK -- PepsiCo Inc.'s planned $14 billion purchase of Quaker Oats Co. has been delayed because of ongoing discussions with federal regulators about the deal, the company said today.

PepsiCo, the nation's No. 2 soft drink company, had predicted the stock deal would be approved by the Federal Trade Commission by the end of June.

Company spokesman Tod MacKenzie declined comment on what issues prompted the delay, but said PepsiCo anticipates the acquisition will be approved sometime in the third quarter that ends in September.

"Our discussions we've had with the FTC have been very constructive," he said.

The deal, announced in December, would give Purchase, N.Y.-based PepsiCo the maker of Gatorade and Cap'n Crunch cereal.

PepsiCo already owns the soft drink brands Pepsi, Mountain Dew and Tropicana juices, and trails only Coca-Cola Co. in the soft drink business.

Merger talks delayed

BRUSSELS, Belgium -- A planned face-to-face meeting between General Electric Co. Chief Executive Jack Welch and the European Union's antitrust chief was postponed today in a sign of possible trouble for GE's $41 billion purchase of Honeywell International.

"A Friday meeting that had been planned between Mr. Welch and Commissioner (Mario) Monti has been deferred," GE spokeswoman Louise Binns said, declining to elaborate.

She said the GE-Honeywell team, led by GE Vice Chairman Dennis Dammerman, "is in continuous meetings with merger task force as they exchange views and work to narrow the issues."