At Deadline

ULLICO reached a settlement with Robert Georgine, former chairman, president and CEO, to resolve allegations that he breached his fiduciary duties to the company and shareholders, according to a letter to shareholders from current Chairman and CEO Terence M. O'Sullivan. ULLICO sued Mr. Georgine in 2003 following an internal investigation.

The settlement calls for Mr. Georgine to repay about $2.6 million in profits he received from the sale of ULLICO stock. He'll also forfeit roughly $10 million in compensation, among other things. Company officials believe "the total economic value of the settlement is in excess of $17 million," the letter said. The settlement was signed Nov. 10, and took effect immediately.

The Montana Legislature is considering two draft bills that would address the state pension plans' unfunded liability, said state Sen. Bill Tash, chairman of the committee reviewing the drafts. The proposals call for using roughly $112 million from the state's projected budget surplus. The committee will vote Nov. 30 on the drafts.

State officials have estimated the plans, with combined assets of $6.2 billion, are underfunded by about $1.4 billion, although some now believe that figure could be lower.

ABRY Partners, a buyout firm, is suing private equity firm Providence Equity Partners in Delaware Chancery Court in a rare legal dispute between private equity players. ABRY is charging that Providence allegedly artificially inflated revenue of F&W Publications, a company ABRY bought from Providence for $500 million in August, according to court documents.

"Providence Equity categorically denies any wrongdoing related to the transaction. Because the lawsuit is pending, Providence cannot comment on any of ABRY's allegations, other than to say that Providence will vigorously defend the suit in the proper legal forum," a Providence spokesman said.

The pension deficit among major U.S. companies is expected to reach $129 billion by the end of the year, up 65% from last year, unless contributions increase or market conditions improve, an Aon Consulting report said.

In comparison, the deficit held by 200 of the largest U.K. companies is expected to remain unchanged at just less than £70 billion ($122.2 billion), according to the report.

Factors contributing to the increase in the U.S. include a 9-basis-point drop in the discount rate, which increased pension liabilities by 1.5%; lower-than-expected investment returns from stocks and bonds; and reduced corporate contributions.

Motorola contributed $62 million to its pension plans in the third quarter, $53 million of which went to its U.S. plans, according to the company's quarterly report filed with the SEC. The company contributed $90 million and $26 million to its U.S. and non-U.S. pension plans, respectively, in the first nine months of 2005. Motorola officials previously estimated they'd make about $150 million in 2005 contributions to U.S. pension plans. That amount could increase because of potential "favorable regulations" under pending U.S. pension legislation, according to the quarterly report. Total expected 2005 contributions to non-U.S. plans remain unchanged at $45 million. Motorola's pension plans had total assets of about $4.3 billion at the end of 2004 and about $6.2 billion in liabilities, according to the company's annual report.

Also, Wyeth expects to contribute about $4.2 million to its $3.9 billion pension plans by the end of the year, bringing its total 2005 contributions to roughly $202 million, according to its quarterly 10-Q filing. As of Sept. 30, Wyeth had contributed $197.8 million this year. Spokesman Douglas Petkus said the company does not break out whether the contributions were made to U.S. or non-U.S. plans. Its projected benefit obligation was $4.66 billion as of Dec. 31, according to the company's annual report.

The Western Pennsylvania Electrical Employees Pension Fund filed a complaint in U.S. District Court in Nashville, Tenn., against HCA and three company executives, alleging violations of securities laws and the Securities Exchange Act of 1934, according to court papers. The suit claims HCA Chairman and CEO Jack O. Bovender Jr., President and COO Richard M. Bracken and CFO Robert Milton Johnson issued false statements about the company's performance from Jan. 12 through July 12 that caused "HCA's shares to trade at artificially inflated levels." The filing also notes defendants had access to "adverse undisclosed information about HCA's business, financial condition and prospects" at the time they made "materially false and misleading" representations.

The complaint seeks class-action status.

HCA officials confirmed the suit in a filing Nov. 9 with the SEC, saying the company "intends to vigorously defend this matter and any similar suits that may be filed."

The pension fund, which covers Electrical Workers, IBEW, Local 5, Pittsburgh, purchased a total of $10,800 HCA shares during the class period and is seeking unspecified damages as well as reimbursement of costs associated with the litigation, according to the filing. The union had about $138.5 million in pension assets as of December 2002, according to Money Market Directory.

Value-added and opportunity real estate funds raised a record $17.5 billion by 30 funds in 2004 and are on target to raise $18 billion by 23 new funds in 2005, according to a new survey by Ernst & Young.

The previous record, $16.8 billion, was raised in 2001 by 28 funds.

Public pension funds were the largest investors, committing 26% of the capital raised in 2004. Corporate pension plans were the next largest at14.5%.

The survey was of 60 U.S.-based real estate money managers, representing more than 175 funds with reported gross returns of more than 20%.

Most respondents stated they sold more properties in 2004 than in previous years, and half expect to sell even more this year. The majority think investors will reduce their return expectations for opportunity investing in the next few years.