WSB Financial Group stock rises 13.3% in first-day trading

Pacific Northwest

The parent company of Bremerton-based Westsound Bank made a reasonably strong debut on the public-equity markets Thursday, with the stock climbing 13.3 percent.

Shares of WSB Financial Group, which priced Wednesday at $16.50 apiece, closed their first day of trading at $18.70.

The stock (symbol: WSFG) peaked at $21 just after trading in the shares began on the Nasdaq. But the stock quickly fell back and drifted mostly lower throughout the day; it bottomed at $18.50 before rebounding just before the close.

WSB grossed nearly $38 million in the IPO, in which it sold 2.3 million new shares. After expenses and fees related to the offering, the company likely will net about $35 million.

WSB says it plans to use the proceeds to expand the bank's loan portfolio, open new branches and loan offices and perhaps to fund acquisitions.

Boeing

Judge halves fees paid to attorneys

A Chicago judge slashed the lawyers' fees awarded in the settlement of a shareholder lawsuit against Boeing from $12 million to $6 million.

The suit concerned a series of major defense scandals, including the theft of Lockheed Martin documents and an illegal job offer to an Air Force procurement officer. Boeing settled those cases with the government in June, paying a $615 million fine.

The lawsuit, on behalf of individual shareholders, alleged that management's negligent lack of oversight had depressed the stock.

Judge Nancy Arnold of the Circuit Court of Cook County said the attorney hours billed were "excessive and unrealistic" and expressed concern that some plaintiffs had barely spoken with their attorneys, The Wall Street Journal reported.

The judge wrote in her ruling that the case raised the question "whether this litigation has been prosecuted in large part by attorneys for attorneys?"

enterpriseSeattle

Two picked to lead business group

EnterpriseSeattle, the organization formerly known as the Economic Development Council of Seattle and King County, has chosen two people to replace departing President John Powers.

Tom Flavin, who has worked for enterpriseSeattle since March 2005 — most recently in charge of its $10 million fundraising campaign — will become the group's president and chief executive, effective Jan. 1. Flavin has headed economic-development organizations in Los Angeles County and Denver, and is a former mayor of Burbank, Calif.

Jeff Marcell will be the group's executive vice president and chief operating officer, a newly created position. He joined enterpriseSeattle in July 2004 from Angelou Economics of Austin, Texas.

Powers, who has led enterpriseSeattle since March 2004, is leaving to become senior managing partner for Washington state at real-estate firm Colliers International.

Nation/world

Dell

SEC probe delays accounting report

Dell, the world's second-largest personal-computer maker, delayed filing its quarterly report for the second time this year, citing an accounting probe by government regulators.

A report for the quarter ended Nov. 3 will be filed as soon as possible, Dell said Thursday in a Securities and Exchange Commission (SEC) filing. The company also hasn't submitted a report for the second quarter ended Aug. 4.

Chief Executive Officer Kevin Rollins said in August the SEC has been reviewing the company's revenue recognition and other financial reporting for a year. Dell disclosed last month the SEC had stepped up the probe into a formal investigation. The U.S. Justice Department is also reviewing the company's accounting.

Federal scrutiny comes as Rollins works to boost sales and profit after losing U.S. customers alienated by Dell's poor customer service. Hewlett-Packard recaptured the PC market lead last quarter after trailing Dell for three years.

Shares of Dell rose 80 cents $26.87 Thursday. They have lost 10 percent this year.

Trade

China grumbles over currency push

U.S. Treasury Secretary Henry Paulson pushed China on Thursday to ease currency controls, appealing for help in shoring up American support for free trade. But a top Beijing official said change already was coming and complained that Americans fail to understand China.

The exchanges at the start of a two-day gathering billed as a long-range "strategic economic dialogue" highlighted the challenge facing Paulson if he wants to mollify U.S. business groups and Democrats in Congress who are demanding changes to rein in China's soaring trade surpluses.

Paulson and others in his high-profile delegation, including Fed Chairman Ben Bernanke, argued that a more flexible currency, more open markets and other changes are in China's interest and crucial to maintaining free trade.

Ford

In shift of focus, managers realigned

Ford said Thursday it is realigning its management structure in a bid to focus more on the automaker's worldwide business, while better leveraging its global assets and capabilities.

Ford's three automotive business-unit leaders will report directly to Chief Executive Alan Mulally under the new structure: Mark Fields, of Ford of the Americas; Lewis Booth, of Ford of Europe and the Premier Automotive Group; and John Parker, of Ford of Asia Pacific and Africa, and Mazda.

Derrick Kuzak, group vice president of product development for the Americas, will lead global product development and report to Mulally. He also will continue to be responsible for Americas product development.

Equity Office

Billionaire may get $660 million in sale

Billionaire Sam Zell may receive $660.6 million from the $20 billion sale of Equity Office Properties Trust to Blackstone Group.

Zell will receive $48.50 a share for about 13.6 million shares as part of the purchase, according to a Securities and Exchange Commission filing Thursday.

Blackstone's purchase is the biggest takeover of a real-estate company and will give it 580 office buildings. Zell built Chicago-based Equity Office into the largest U.S. office landlord by making $17 billion in acquisitions over three decades.

The $660.6 million total doesn't include stock options held by Zell that vest when the purchase closes. Zell also has the option to convert the units into preferred shares, according to the filing. Blackstone agreed to buy Equity Office on Nov. 20.

Shares of Equity Office rose 10 cents to $47.89 Thursday.

Compiled from Bloomberg News , The Associated Press and Seattle Times staff