CALIFORNIA : SOUTHLAND FOCUS : Protection One, Lifeline Cancel Merger

Protection One Inc. and Lifeline Systems Inc. said they have called off their proposed merger because of delays in winning regulatory approval. Culver City-based Protection One, the second-largest U.S. security-alarm company, agreed in October 1998 to buy Massachusetts-based medical-alert company Lifeline for $179 million in cash and stock. Both companies will take charges against their third-quarter earnings for merger costs. Protection One will write off about $2.2 million, or 2 cents a share, while Lifeline will take a charge of $500,000, or 5 cents. The news was announced after the close of U.S. markets. Protection One shares fell 6 cents to close at $3.44 on the NYSE. Lifeline Systems closed at $16, down $1.75, when it last traded Wednesday on Nasdaq.