BUSINESS NOTES; SAN DIEGO MAN TO RUN FOUNDATION.

The California Endowment on Tuesday appointed Dr. Robert K. Ross president and chief executive officer of the state's largest health foundation, effective July 17.

As San Diego County's health director, Ross oversaw the integration of the departments of Health Services; Social Services; Aging; Veterans; and the Commission on Children, Youth and Families under one umbrella agency.

In his new position, Ross will oversee the granting of approximately $200 million a year to projects geared toward improving the health of all 30 million Californians.

- Daily News

CANADIANS TO BUY TRIMARK HOLDINGS

Lions Gate Entertainment, an independent film producer based in Canada, will buy U.S.-based Trimark Holdings in a deal valued at $50 million.

Trimark is a video distribution company and low-budget movie producer whose recent releases include ``Beautiful People'' and ``The Last September.'' The company also distributes many NBC programs on home video, including episodes of ``Saturday Night Live.''

Lions Gate announced Tuesday it will swap up to $4.50 in cash and two shares of Lions Gate Entertainment for each share of Trimark stock.

- Associated Press

CBS PURGES STAFF IN ONLINE DIVISION

NEW YORK - CBS is shaking up its Internet division, laying off a quarter of its staff and bringing in new executives. Twenty-four of the approximately 100 employees in CBS Internet Group were let go last week, company spokesman Dana McClintock said Tuesday.

In an internal memo, employees were told that ``as with all transitions, there comes a time when an organization must endure a certain amount of upheaval.''

CBS, which was recently acquired by MTV owner Viacom Inc., has had little to say publicly about its Internet strategy since forming the online division in January. The unit consists mainly of stakes in Internet companies like MarketWatch.com that CBS acquired by bartering advertising time.

CBS lured Russ Pillar from a senior marketing post at Virgin to head up the division, and Lisa Simpson, former chief of Sony's online effort, will be the chief operating officer.

- Associated Press

SLOW HOLIDAY SALES DRAG RETAIL FIGURES

U.S. retailer sales through the first week of June were down 0.3 percent from May levels on a seasonally adjusted basis, according to the LJR Redbook Research weekly survey released Tuesday. That compares to Redbook's target for a 0.5 percent increase in June sales. Sales were ``below-plan'' at most stores.

On a year-over-year basis, sales were up 3.4 percent for the month.

Redbook said the period began with a disappointing Memorial Day and continued below expectations, though some retailers noted that momentum picked up over the course of the week.

Regionally, the East and West Coasts performed better, while unseasonable weather continued to hurt sales of spring and summer goods.

- Bridge News

FBI INVESTIGATING INTERNET AUCTIONS

The FBI has opened an inquiry into whether several eBay users, including the Sacramento lawyer who almost sold a colorful abstract painting for $135,805 after putting it up for sale for 25 cents, committed fraud by bidding up the prices of one another's online auction offerings.

Donald Vilfer, a supervisory special agent in the FBI's Sacramento office, said the bureau turned its attention to the case after reading a Friday article in The New York Times. That article outlined how Kenneth A. Walton, the Sacramento lawyer, and several other eBay users had engaged in cross-bidding on each other's items and offered glowing testimonials to each other on the eBay site. Walton has denied operating in concert with others.

- The New York Times