Magma Offices Will Close, Top 2 Executives to Leave

California Energy Co. completed its hard-fought takeover of San Diego-based Magma Power Co. on Tuesday by announcing that Magma’s two top executives have resigned and a much-reduced headquarters staff will be moved to California Energy’s main offices in Omaha.

The $950-million merger makes California Energy the world’s largest producer of geothermal energy--electricity derived from the Earth’s heat--with more than $400 million in projected annual revenue. California Energy relocated from San Francisco to Omaha in 1991 after 43% of the company was bought by Peter Kiewit Sons’ Inc., a big Nebraska-based construction firm.

As part of the merger agreement, Magma Chairman Paul M. Pankratz and Chief Executive Ralph W. Boeker have been replaced by David L. Sokol, chairman, president and chief executive of California Energy. Magma’s board has also been replaced by six nominees of California Energy--with the exception of Pankratz and Boeker, who will remain on the board subject to shareholder approval.

Magma’s San Diego offices will be closed by the end of April, though Magma’s California operating facilities--centered near Brawley in the Imperial Valley--will remain unaffected, Dale R. Schuster, California Energy vice president of administration, said Tuesday.

Of the 35-person headquarters staff, about a third has been terminated and another third has been asked to stay on for a transition of up to 90 days.