Premera goes to high court
Premera Blue Cross wants the Washington Supreme Court to review its plan to convert to a publicly traded, for-profit company, a plan rejected by the state’s insurance commissioner and a court of appeals.
“We recognize that a state appeals court has upheld the commissioner’s earlier decision,” said Yori Milo, Premera executive vice president and chief legal officer. “However, we believe this case meets the criteria for discretionary review by the state’s highest court.”
Insurance Commissioner Mike Kreidler denied Premera’s request for conversion in July 2004, and the company appealed. On April 4, the Division II Court of Appeals ruled that Kreidler did not err in rejecting the plan as not in the public interest.
On Monday, Premera filed a motion of reconsideration with the appeals court. Within 30 days of the court’s ruling on the motion, the company said it will file a petition with the Supreme Court.
Washington
SEC problems remain unsolved
Internal control weaknesses at the Securities and Exchange Commission have yet to be fixed, although the SEC has made some progress toward resolving them, the Government Accountability Office reported Monday.
The government watchdog agency found three material weaknesses in the SEC’s internal controls while auditing the SEC’s 2004 financial statement. The GAO said its audit of the SEC’s 2005 results showed those flaws remained in place and uncovered other, less important flaws.
In an update issued Monday, the GAO offered suggestions for the SEC to improve its accounting and financial reporting, including hiring more financial management experts.
The SEC underwent its first GAO audit in 2004, which identified problems with computer security, tracking of fines and penalties, and preparation of financial results.
Seattle
Washington Mutual grows
Washington Mutual Inc., the nation’s largest thrift bank, has agreed to buy Commercial Capital Bancorp Inc. for about $983 million in a deal designed to strengthen its position in making real estate loans in California.
Washington Mutual said Sunday it will acquire all the outstanding shares of Irvine, Calif.-based Commercial Capital for $16 per share in cash.
New York
Avon will fire 1,300 employees
Avon Products Inc. said Monday it will fire 1,300 workers by the end of the year and record $70 million in charges in the first quarter in connection with its previously announced restructuring.
In a filing Monday with the Securities and Exchange Commission, the New York-based direct seller of beauty products said that a board committee Friday approved terminating the positions of more than 1,300 workers to remove layers from the organization, and exit unprofitable operations.