In response to the rise of oil prices Virgin America has announced fuel surcharges in all of its markets, effective immediately.

The fuel surcharges to its existing Virgin fare structure is $10 in short-haul markets such as San Francisco to Los Angeles, San Diego, Las Vegas, or Seattle, and $25 on long-haul flights such as San Francisco to New York,or Washington.

Biotech

South San Francisco-based Genentech Inc. said it has settled a patent dispute with MedImmune Inc., acquired last year by AstraZeneca Plc, over a patent.

The settlement concerns what is known as the Cabilly Patent and resolves litigation filed in April 2003, a case that went to the U.S. Supreme Court, Genentech said Wednesday in a statement distributed by Business Wire. Financial terms weren't disclosed.

Insurance

State Insurance Commissioner Steve Poizner will grant rate reductions sought by Mercury Insurance for its homeowners and renters insurance policyholders. Mercury is seeking a 33 percent rate cut for renters insurance and a 10 percent reduction for homeowners insurance. Mercury provides about 20,000 renters insurance policies in the state. About 14,000 of them are carried in Southern California. In addition, Poizner said he has approved a rate reduction of 3 percent sought for Mercury's auto insurance policyholders. It is expected that the three rate cuts

Retail

Hayward-based Mervyns and a developer are negotiating a deal that would bring the department store to an Oakland site near McAfee Coliseum and Oracle Arena, according to a city councilman.

The retailer would become a primary anchor for the proposed Coliseum Towne Center retail complex on Hegenberger Road on the ballpark side of Interstate 880. The property owner and Mervyns are in the final stages of putting together a deal, City Councilman Larry Reid said.

A few days ago, the project developer submitted a proposal to the city for a 167,000-square-foot retail complex at that site, said city urban economic analyst Jay Musante. That development included a site for an 80,000-square-foot department store.

Compiled from staff and wire reports. Got Bay Area business news? Reach Drew Voros at 925-943-8099 or dvoros@bayareanewsgroup.com.

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Business Editor

Drew Voros

925-943-8099

avoros@ bayareanewsgroup.com

Assistant Business Editor

Chris Campos

925-945-4744

chris.campos@ bayareanewsgroup.com