Stricken cruise ship reported awash in raw sewage nears port

MOBILE, Alabama—

More than 4,200 people trapped aboard the crippled cruise ship Carnival Triumph, having endured days of overflowing toilets, should return to land when tugboats haul the vessel into Mobile, Alabama late on Thursday.

The 893-foot vessel, notorious for reports of sewage and food shortages, has been without propulsion and running on emergency generator power since Sunday, when an engine room fire left it adrift in the Gulf of Mexico.

Operated by Carnival Cruise Lines, the flagship brand of global cruise ship giant Carnival Corp, the ship left Galveston, Texas a week ago carrying 3,143 passengers and 1,086 crew. It was supposed to return there on Monday.

Carnival Corp spokesman Vance Gulliksen in Miami said the Triumph was expected to arrive in Mobile at between 8 p.m. and 11 p.m. CST on Thursday night.

"This is going to be a long day," Terry Thornton, a senior Carnival Cruise Lines vice president, told reporters at the port in Mobile.

He said the ship, which he described as "in excellent shape" after additional provisions were laid in on Wednesday, was near the sea buoy at the entrance to Mobile Bay late on Thursday morning. Getting from the buoy into port normally takes about three hours, Thornton said.

"There is no way we could actually speed up the process to get the ship alongside sooner," he said. "We're making every effort we can to get the ship alongside here in Mobile as quickly as possible."

A Coast Guard cutter has been escorting the Triumph on its long voyage into port since Monday, and a Coast Guard helicopter ferried about 3,000 pounds of equipment including a generator to the stricken ship late on Wednesday.

Earlier in the week, some passengers reported on the poor conditions on the Triumph when they contacted relatives and media before their cellphone batteries died.

They said people were getting sick and passengers had been told to use plastic "biohazard" bags as makeshift toilets.

MORE COMPENSATION

Carnival Cruise Lines President and Chief Executive Gerry Cahill said in a statement late on Wednesday that the company had decided to add further payment of $500 per person to help compensate passengers for "very challenging circumstances" aboard the ship.

"We are very sorry for what our guests have had to endure," Cahill said.

Mary Poret, who spoke to her 12-year-old daughter aboard the Triumph on Monday, rejected Cahill's apology out of hand in comments to CNN on Thursday, as she waited anxiously in Mobile with a friend for the Triumph's arrival.

"Seeing urine and feces sloshing in the halls, sleeping on the floor, nothing to eat, people fighting over food, $500? What's the emotional cost? You can't put money on that," Poret said.

The troubles on the Carnival Triumph occurred a little more than a year after 32 people were killed when the Costa Concordia, a luxury cruise ship operated by Carnival Corp's Costa Cruises brand, was grounded on rocks off the Tuscan island of Giglio in Italy.

Carnival Corp Chairman and CEO Micky Arison faced criticism in January last year for failing to travel to Italy and take personal charge of the Costa Concordia crisis, which unleashed numerous lawsuits against his company.

The cruise ship mogul has taken a low-key approach to the Triumph situation as well, even as it grabbed a growing share of the U.S. media spotlight. His only known public appearance since Sunday was courtside on Tuesday at a game played by his championship Miami Heat basketball team.

Carnival Corp shares were down $0.12 at $37.34 in early afternoon trading on Thursday on the New York Stock Exchange. The shares closed down 4 percent at $37.46 on Wednesday after the company said voyage disruptions and repair costs related to Carnival Triumph could shave up to 10 cents per share off its second-half earnings.

Carnival said it had initially planned to tow the Triumph into Progreso in Mexico, the closest port to its location early on Sunday when the engine room fire occurred. But the ship drifted about 90 nautical miles north, due to strong currents, before the towing got under way, and that left it stranded roughly midway between Progreso and Mobile.

Read More..

Big hedge funds fueled Apple's fourth-quarter share plunge

BOSTON (Reuters) - Some of the biggest hedge funds that helped make Apple Inc a stock market darling lost faith and dumped their stakes in the fourth quarter, fueling the massive drop in the iPhone maker's share price.

Noted stock pickers including Leon Cooperman and Thomas Steyer unloaded billions of dollars of Apple shares between September 30 and December 31, according to disclosure documents filed on Thursday.

Shares of Apple rose to an all-time high of $705.07 on September 21 but ended 2012 down more than 24 percent from that peak, as concerns about increasing competition and declining profit margins weighed.

The fourth-quarter sellers avoided even deeper losses. Apple's shares have lost 12 percent so far this year. The shares gained $1.95, or 0.4 percent, to $468.96 on the Nasdaq on Thursday.

Cooperman's Omega Advisors fund dumped its entire stake of more than 266,000 shares during the fourth quarter, according to its required quarterly disclosure form filed with the Securities and Exchange Commission.

Farallon Capital, the hedge fund founded by Steyer, sold 137,000 shares. Steyer, who once worked on the Goldman Sachs risk arbitrage desk, stepped down at the end of the year from the firm, which he founded in 1986.

Jana Partners, an activist fund run by Barry Rosenstein, also unloaded its entire Apple stake of more than 143,000 shares.

Despite Apple's stock price plunge, most of the managers likely exited their positions with substantial profits because they bought years earlier.

Rosenstein and Cooperman, for example, both started gathering their stakes in the middle 2010, at a time when Apple shares traded below $300.

At the time, the company's iPhone 4 was beset by alleged faulty reception, a problem that became known as "antennagate." Apple's then-chief executive, the late Steve Jobs, famously dismissed the issue, saying "we don't think we have a problem." But Apple offered customers a free bumper case that was supposed to minimize any issues.

Customers did not seem to care, snapping up millions of iPhones and sending Apple's share price up almost 50 percent over the next year.

Apple has come under further scrutiny, this time from prominent hedge fund manager David Einhorn, who said on February 7 that he was suing the company to get it to deploy its $137 billion cash pile more effectively and halt a 35 percent drop in its share price from the record high in September. Einhorn's fund, Greenlight Capital, has a stake in the company worth about $600 million. Greenlight's regulatory filings are to be released later today.

SOME TRIMMED

Not all well-known hedge fund fans of Apple cut ties in the fourth quarter. Some only trimmed their holdings.

Philippe Laffont, who worked under famed hedge fund manager Julian Robertson before striking out on his own at Coatue Management, sold about 18 percent of his Apple shares. Coatue ended the year with a still sizable 643,000 shares.

Robertson's own Tiger Management LLC fund trimmed its Apple stake by 28 percent to about 42,000 shares.

Large hedge funds are required to disclose their U.S. stock holdings within 45 days after the end of each quarter.

But the filings may not give a complete picture of each fund's moves, since only U.S.-listed shares and options must be revealed. Bonds, foreign shares and derivatives are not included, and short positions, or bets that a stock will fall in price, are not listed.

(The story corrects manager of Tiger Management LLC to Julian Robertson from Chase Coleman in 15th paragraph)

(Reporting by Aaron Pressman; Editing by Steve Orlofsky)

Read More..

Olympian Oscar Pistorius charged with murder

PRETORIA, South Africa (AP) — Paralympic superstar Oscar Pistorius was charged Thursday with the murder of his girlfriend who was shot inside his home in South Africa, a stunning development in the life of a national hero known as the Blade Runner for his high-tech artificial legs.

Reeva Steenkamp, a model who spoke out on Twitter against rape and abuse of women, was shot four times in the predawn hours in the house, in a gated community in the capital, Pretoria, police said.

Hours later after undergoing police questioning, Pistorius left a police station accompanied by officers. He looked down as photographers snapped pictures, the hood on his gray workout jacket pulled up, covering most of his face. His court hearing was originally scheduled for Thursday afternoon but has been postponed until Friday to give forensic investigators time to carry out their work, said Medupe Simasiku, a spokesman for the prosecution.

South Africans were shocked at the killing. But while Pistorius captured the nation's attention with his Olympic quest, police said there was a recent history of problems involving him. Police spokeswoman Brigadier Denise Beukes said the incidents included "allegations of a domestic nature."

"I'm not going to elaborate on it but there have been incidents (at Pistorius' home)," Beukes said. Police in South Africa do not name suspects in crimes until they have appeared in court but Beukes said that the 26-year-old Pistorius was at his home at the time of the death of Steenkamp and "there is no other suspect involved."

Pistorius' father, Henke, declined to comment when contacted by The Associated Press, only saying "we all pray for guidance and strength for Oscar and the lady's parents."

Neither Pistorius' agent Peet van Zyl nor coach Ampie Louw could be reached while Pistorius' own cellphone went straight to voicemail.

Pistorius' former coach, Andrea Giannini, said he hopes it was "just a tragic accident." Giannini said he believed that Pistorius had been dating Steenkamp for "a few months."

"No matter how bad the situation was, Oscar always stayed calm and positive," Giannini told the AP in Italy. "Whenever he was tired or nervous he was still extremely nice to people. I never saw him violent."

Yet Pistorius had troubles in his personal life. In February 2009, he crashed a speed boat he was piloting on South Africa's Vaal River. Witnesses said he had been drinking before the crash and officers found alcoholic beverages in the wreckage, though they acknowledged at the time they hadn't conducted a blood test on the athlete. Pistorius broke his nose, jaw and several ribs in the crash, as well as damaged his eye socket and required some 180 stitches to his face.

In November, Pistorius also found himself in an altercation with a local coal mining millionaire over a woman, South African media reported. Eventually, the two men involved the South African Police Service's elite Hawks investigative unit before settling the matter.

Pistorius owned firearms and posted a photograph of himself at a shooting range in November 2011 to the social media website Twitter, bragging about his score.

"Had a 96% headshot over 300m from 50shots! Bam!" he tweeted.

Police said that earlier reports that Steenkamp may have been mistaken for a burglar by Pistorius did not come from the police. Several local media outlets initially reported that the shooting may have been accidental.

Capacity Relations, a talent management firm, earlier named model Steenkamp as the victim of the shooting. Police spokeswoman Lt. Col. Katlego Mogale told the AP that officers received a call around 3 a.m. after the shooting.

A 9 mm pistol was recovered and a murder case opened against Pistorius.

Pistorius enjoyed target shooting with his pistol and an online advertisement featuring him for Nike read: "I am a bullet in the chamber." An article in January 2012 in The New York Times Magazine described him talking about how he pulled a pistol to search his home when his alarm went off the night before an interview. At Pistorius' suggestion, he and the journalist went to a nearby target range where they fired at targets with a 9 mm pistol. At one point, Pistorius told the writer: "If you practiced, I think you could be pretty deadly."

Asked how often he went target shooting, Pistorius replied: "Just sometimes when I can't sleep."

Police have still not released the name of the woman, but the publicist for Steenkamp confirmed in a statement that the model was dead.

"We can confirm that Reeva Steenkamp has passed away," Steenkamp's publicist Sarit Tomlinson said. "Our thoughts and prayers go to the Steenkamp family, who have asked to have their privacy respected during this difficult time, everyone is simply devastated. She was the kindest, sweetest human being; an angel on earth and will be sorely missed."

Tomlinson said Steenkamp, known simply as Reeva, was one of FHM's (formerly For Him Magazine) 100 Sexiest Women in the World for two years running, appeared in countless international and national advertisements and was one of the celebrity contestants on the reality show "Tropika Island of Treasure," filmed in Jamaica.

She and Pistorius were first seen publicly together in November at an awards ceremony in Johannesburg. Later, she began mentioning the athlete in public messages on Twitter.

She also tweeted messages urging women to stand up against rape as well as her excitement about Valentine's Day. "What do you have up your sleeve for your love tomorrow?" she tweeted. "It should be a day of love for everyone."

Pistorius made history in London last year when he became the first double-amputee track athlete to compete in the Olympic Games, propelling him to the status of an athletics superstar.

Having had both his legs amputated below the knee before his first birthday because of a congenital condition, he campaigned for years to be allowed to compete against able-bodied athletes. Having initially been banned because of his carbon fiber blades — which critics said gave him an unfair advantage — he was cleared by sport's highest court in 2008 and allowed to run at the top events.

He competed in the 400 meters and on South Africa's 4x400 relay team at the London Games, making history when his selection for South Africa's team was confirmed at the very last minute. He also retained his Paralympic title in the 400 meters in London.

South Africa's Sports Confederation and Olympic committee released a statement on Thursday saying they had been "inundated" with requests for comment but were not in a position to give out any details of the shooting. The International Paralympic Committee also said it wouldn't comment in detail apart from offering its condolences to the victim's family.

South Africa has some of the world's highest murder rates, with nearly 50 people killed each day in the nation of 50 million. It also has high rates of rape, other assaults, robbery and carjackings.

U.N. statistics show South Africa has the second highest rate of shooting deaths in the world, second only to Colombia.

"The question is: Why does this story make the news? Yes, because they are both celebrities, but this is happening on every single day in South Africa," said Adele Kirsten, a member of Gun Free South Africa. "We have thousands of people killed annually by gun violence in our country. So the anger is about that it is preventable."

___

Imray reported from Cape Town, South Africa. Associated Press writer Michelle Faul contributed to this report from Johannesburg.

Read More..

Study: Fish in drug-tainted water suffer reaction

BOSTON (AP) — What happens to fish that swim in waters tainted by traces of drugs that people take? When it's an anti-anxiety drug, they become hyper, anti-social and aggressive, a study found. They even get the munchies.

It may sound funny, but it could threaten the fish population and upset the delicate dynamics of the marine environment, scientists say.

The findings, published online Thursday in the journal Science, add to the mounting evidence that minuscule amounts of medicines in rivers and streams can alter the biology and behavior of fish and other marine animals.

"I think people are starting to understand that pharmaceuticals are environmental contaminants," said Dana Kolpin, a researcher for the U.S. Geological Survey who is familiar with the study.

Calling their results alarming, the Swedish researchers who did the study suspect the little drugged fish could become easier targets for bigger fish because they are more likely to venture alone into unfamiliar places.

"We know that in a predator-prey relation, increased boldness and activity combined with decreased sociality ... means you're going to be somebody's lunch quite soon," said Gregory Moller, a toxicologist at the University of Idaho and Washington State University. "It removes the natural balance."

Researchers around the world have been taking a close look at the effects of pharmaceuticals in extremely low concentrations, measured in parts per billion. Such drugs have turned up in waterways in Europe, the U.S. and elsewhere over the past decade.

They come mostly from humans and farm animals; the drugs pass through their bodies in unmetabolized form. These drug traces are then piped to water treatment plants, which are not designed to remove them from the cleaned water that flows back into streams and rivers.

The Associated Press first reported in 2008 that the drinking water of at least 51 million Americans carries low concentrations of many common drugs. The findings were based on questionnaires sent to water utilities, which reported the presence of antibiotics, sedatives, sex hormones and other drugs.

The news reports led to congressional hearings and legislation, more water testing and more public disclosure. To this day, though, there are no mandatory U.S. limits on pharmaceuticals in waterways.

The research team at Sweden's Umea University used minute concentrations of 2 parts per billion of the anti-anxiety drug oxazepam, similar to concentrations found in real waters. The drug belongs to a widely used class of medicines known as benzodiazepines that includes Valium and Librium.

The team put young wild European perch into an aquarium, exposed them to these highly diluted drugs and then carefully measured feeding, schooling, movement and hiding behavior. They found that drug-exposed fish moved more, fed more aggressively, hid less and tended to school less than unexposed fish. On average, the drugged fish were more than twice as active as the others, researcher Micael Jonsson said. The effects were more pronounced at higher drug concentrations.

"Our first thought is, this is like a person diagnosed with ADHD," said Jonsson, referring to attention deficit-hyperactivity disorder. "They become asocial and more active than they should be."

Tomas Brodin, another member of the research team, called the drug's environmental impact a global problem. "We find these concentrations or close to them all over the world, and it's quite possible or even probable that these behavioral effects are taking place as we speak," he said Thursday in Boston at the annual meeting of the American Association for the Advancement of Science.

Most previous research on trace drugs and marine life has focused on biological changes, such as male fish that take on female characteristics. However, a 2009 study found that tiny concentrations of antidepressants made fathead minnows more vulnerable to predators.

It is not clear exactly how long-term drug exposure, beyond the seven days in this study, would affect real fish in real rivers and streams. The Swedish researchers argue that the drug-induced changes could jeopardize populations of this sport and commercial fish, which lives in both fresh and brackish water.

Water toxins specialist Anne McElroy of Stony Brook University in New York agreed: "These lower chronic exposures that may alter things like animals' mating behavior or its ability to catch food or its ability to avoid being eaten — over time, that could really affect a population."

Another possibility, the researchers said, is that more aggressive feeding by the perch on zooplankton could reduce the numbers of these tiny creatures. Since zooplankton feed on algae, a drop in their numbers could allow algae to grow unchecked. That, in turn, could choke other marine life.

The Swedish team said it is highly unlikely people would be harmed by eating such drug-exposed fish. Jonsson said a person would have to eat 4 tons of perch to consume the equivalent of a single pill.

Researchers said more work is needed to develop better ways of removing drugs from water at treatment plants. They also said unused drugs should be brought to take-back programs where they exist, instead of being flushed down the toilet. And they called on pharmaceutical companies to work on "greener" drugs that degrade more easily.

Sandoz, one of three companies approved to sell oxazepam in the U.S., "shares society's desire to protect the environment and takes steps to minimize the environmental impact of its products over their life cycle," spokeswoman Julie Masow said in an emailed statement. She provided no details.

___

Online:

Overview of the drug: http://www.nlm.nih.gov/medlineplus/druginfo/meds/a682050.html

Read More..

Miss America heads back to Atlantic City, NJ

ATLANTIC CITY, N.J. (AP) — Miss America, Atlantic City's prodigal pageant, is coming home, and the spectacle that became synonymous with the New Jersey seaside resort is being assured all is forgiven after a six-year fling in Las Vegas.

The pageant will be back where it started 93 years ago and where it was fixture until 2006, when organizers moved to Nevada in the hopes of attracting a younger TV audience.

"It was always my dream that this would return here," said Art McMaster, president and CEO of the Miss America organization. "Sadly, this organization went west for a while. That sadness is over. We are back to the city where the Miss America pageant began, where the Miss America pageant was raised, and where the Miss America pageant belongs."

Atlantic County Executive Dennis Levinson, who worked with Gov. Chris Christie's office to entice the pageant, said having Miss America anywhere but Atlantic City just felt wrong.

"Can anyone separate the Mummer's Parade from Philadelphia, or the Rose Bowl from Pasadena?" he asked. "Miss America is Atlantic City, and she's coming home."

New Jersey's lieutenant governor, Kim Guadagno, made the official announcement Thursday morning inside Boardwalk Hall, the historic arena in which the pageant will take place during yet-undetermined dates in September. She said Atlantic City and the pageant have a handshake agreement to move back here for at least three years, but said final details have yet to be ironed out.

One thing is for sure, though: the contestants will don elaborate footwear and participate in the traditional pre-pageant Boardwalk parade, in which spectators yell out "Show us your shoes!"

Guadagno said no taxpayer money was part of the incentives offered to lure the pageant back to New Jersey. Liza Cartmell, president of the Atlantic City Alliance, said her casino-funded group is among those providing financial incentives, but would not say how much it might contribute. She said individual casinos are contributing as well, and the Casino Reinvestment Development Authority could use some of the funds casinos are obligated to pay to it for Miss America-related purposes.

Guadagno and Cartmell said the return of the pageant is expected to generate at least $30 million in economic activity for Atlantic City and the surrounding region. But the psychological boost, and the free publicity of having the national broadcast set in Atlantic City, is priceless, they added. Cartmell said 6,000 to 7,000 people associated with the pageant will need hotel rooms, meals and other expenditures during their time in Atlantic City.

"We will be showcasing all the attractions we have in Atlantic City," Cartmell said. The pageant contestants "will be climbing the lighthouse, they'll go to Gardner's Basin, they may go dolphin-watching — all the fun things people do when they come to Atlantic City. The amount of free media for us is great."

The Miss America pageant left Atlantic City in 2006 after deciding it was just too expensive to stage its production there. It went to Las Vegas, where the current Miss America, Mallory Hagan, was crowned last month at the Planet Hollywood Resort & Casino. Hagan will have her reign cut short when the pageant is broadcast in September, but will be paid for the full year, pageant officials said.

The move to Las Vegas came amid sliding TV ratings for the pageant, as it tried to interest a younger demographic and incorporating elements of reality television programming.

McMaster said the content of the show is still being worked on, adding he expects a mixture of modern television elements and traditional pageant staples such as evening wear and swimsuit competitions, and talent competitions. The format is being jointly developed with the ABC television network, which will broadcast the pageant for the next three years, he said.

The Miss America pageant started as little more than a bathing suit revue. It broke viewership records in its heyday and bills itself as one of the world's largest scholarship programs for women. But, like other pageants, it has struggled to stay relevant as national attitudes regarding women's rights have changed.

The contest originated in 1920 as the Fall Frolic, which became the Inter-City Beauty Contest the following year. In 1921, a high school junior named Margaret Gorman was one of approximately 1,000 entrants in a photo contest held by the Washington Herald. She was chosen as the first Miss Washington, D.C., and her prize was a trip to Atlantic City, where she won the top prize: the Golden Mermaid Trophy.

The next year, Gorman was expected to defend her title. But when the Washington Herald selected a new Miss Washington, D.C., Atlantic City pageant officials didn't know what new title to award Gorman. Since both titles she won in 1921 — Inter-City Beauty, Amateur and The Most Beautiful Bathing Girl in America — were considered somewhat awkward, it was decided to call her Miss America.

The pageant was conceived by the Businessmen's League of Atlantic City as a way to extend the summer tourism season in Atlantic City for another week, being held the weekend after Labor Day weekend, when temperatures were generally still warm.

___

Wayne Parry can be reached at http://twitter.com/WayneParryAC

Read More..

Buffet, 3G to buy Heinz for $23B

Warren Buffett's Berkshire Hathaway and private equity firm 3G Capital will buy ketchup and baby food maker H.J. Heinz Co for $23.2 billion in cash, a deal that combines 3G's ambitions in the food industry with Buffett's hunt for growth.

Including debt assumption, Heinz valued the transaction, which it called the largest in its industry's history, at $28 billion. Berkshire and 3G will pay $72.50 per share, a 19 percent premium to the stock's previous all-time high. Heinz shares actually rose slightly above the offer price, although Buffett cautioned he had no intention of raising his bid.

Analysts said the deal could be the first step in a broader wave of mergers for the food and beverage industry.

"Maybe for the consumer staples group in general this may start some talk about consolidation. Even corporate entities are flush with cash, interest rates are low, it would seemingly make sense," Edward Jones analyst Jack Russo said.

Companies like General Mills and Campbell Soup - itself long seen as a potential Heinz merge partner - rose on the news.

BUFFETT HUNTING GROWTH

The surprise purchase satisfies, at least in part, Buffett's hunt for growth through acquisition. He was frustrated in 2012 by the collapse of at least two deals in excess of $20 billion and said he might have to do a $30 billion deal this year to help fuel Berkshire's growth engine. In this case, Berkshire is putting up about $12 billion to $13 billion cash, Buffett told CNBC, leaving it ample room for another major transaction.

Berkshire Hathaway already has a variety of food assets, including the Dairy Queen ice cream chain, chocolatier See's Candies and the food distributor McLane. Buffett, famed for a love of cheeseburgers, joked he was well acquainted with Heinz's products already and that this was "my kind of deal."

It does represent an unusual teaming of Berkshire with private equity, though; historically, Buffett's purchases have been outright his own. He and 3G founder Jorge Paulo Lemann have known each other for years, and Buffett said Lemann approached him with the Heinz idea in December. One Berkshire investor said he had mixed feelings about the deal because of the limited growth prospects domestically.

"We're a little hesitant on the staple companies because they don't have any leverage in the United States," said Bill Smead, chief investment officer of Smead Capital Management in Seattle. But at the same time, he said, Buffett was likely willing to accept a bond-like steady return even if it was not necessarily a "home run."

3G EXPANDS

For 3G, a little-known firm with Brazilian roots, the purchase is something of a natural complement to its investment in fast-food chain Burger King, which it acquired in late 2010 and in which it still holds a major stake. Lemann, a globe-trotting financier with Swiss roots, made his money in banking and gained notoriety for helping to pull together the deals that ultimately formed the beer brewing giant AB InBev.

3G's Alex Behring runs the fund out of New York. He appeared at a Pittsburgh news conference on Thursday with Heinz management to discuss the deal - and to reassure anxious local crowds that the company will remain based there and will continue to support local philanthropy.

But at the same time, Behring said it was too soon to talk about cost cuts at the company. Unlike Berkshire, which is a hands-off operator, 3G is known for aggressively controlling costs at its operations.

PITTSBURGH ROOTS Also to be determined is whether CEO Bill Johnson would stay on. Only the fifth chairman in the company's history, Johnson is widely credited with Heinz's recent strong growth.

"I am way too young to retire," he told the news conference, adding that discussions had not yet started with 3G over the details of Heinz's future management.

The company, known for its iconic ketchup bottles, Heinz 57 sauces as well as other brands including Ore-Ida frozen potatoes, has increased net sales for the last eight fiscal years in a row.

Heinz said the transaction would be financed with cash from Berkshire and 3G, debt rollover and debt financing from J.P. Morgan and Wells Fargo. Buffett told CNBC that Berkshire and 3G would be equal equity partners.

Heinz shares soared 19.9 percent, or $12.06, to $72.54 on the New York Stock Exchange. A week ago the stock hit a long-term high of $61 a share - near records it set in 1998 - having risen almost 5 percent this year and nearly 12 percent since the beginning of 2012.

The deal is also a potential boon for new U.S. Secretary of State John Kerry, whose wife Teresa is the widow of H.J. Heinz Co heir John Heinz.

Kerry's most recent financial disclosures from his time in the U.S. Senate show a position in Heinz shares of more than $1 million, although the precise size is unclear.

Centerview Partners and BofA Merrill Lynch were financial advisers to Heinz, with Davis Polk & Wardwell LLP the legal adviser. Moelis & Company was financial adviser to the transaction committee of Heinz's board and Wachtell, Lipton, Rosen & Katz served as its legal adviser. Lazard served as lead financial adviser. J.P. Morgan and Wells Fargo also served as financial advisers to the investment consortium. Kirkland & Ellis LLP was legal adviser to 3G Capital, and Munger, Tolles & Olson LLP was legal adviser to Berkshire Hathaway.

Read More..

Obama to visit Hyde Park Academy during trip to Chicago

WASHINGTON — President Barack Obama will visit Hyde Park Academy High School on Chicago’s South Side on Friday when he travels to the city as part of a three-state tour following his State of the Union speech.

The academy is at 6220 S. Stony Island Ave. The White House has distributed an invitation to the event instructing people to arrive no later than 1 p.m. on Friday and to expect “airport-like security.”
It was not immediately known what time Obama will speak.

Tickets are available only to invited guests, who were instructed to pick up their tickets at a specific location on Thursday afternoon, the invitation said.

His visit comes in the wake of the slaying of Hadiya Pendleton, a 15-year-old honor student whose parents were guests Tuesday of the president and first lady at the State of the Union speech.

Pendleton was shot and killed on Jan. 29 a mile from Obama's residence in the Kenwood neighborhood.

She and the King College Prep band and drill team had performed in Washington on Jan. 21, the day of Obama’s public swearing-in, at an inauguration-viewing reception hosted by Rep. Danny Davis in the House Ways and Means Committee Room, according to Yul Edwards, chief of staff to Davis, a Chicago Democrat.

Earlier, the band and drill team took part in a competition in Severn, Md., in the Washington suburbs, on Jan. 19. That competition, called the Presidential Inauguration Heritage Music Festival, was timed for the inaugural weekend but was not an officially sanctioned inaugural event.

kskiba@tribune.com

Read More..

Europol breaks up multi-million euro Internet fraud gang

MADRID (Reuters) - A network of online fraudsters who masqueraded as European crime-fighting agency Europol and collected millions of euros in fake fines has been broken up - by Europol.

The group, which worked across 30 countries over the past two years, paralyzed computers with a virus and left messages purporting to be from organizations like Europol and the police, saying users could only regain access to their machines if they paid a fine.

"It's impossible to know for sure how many citizens were affected by this, but we estimate hundreds of thousands of Europeans were," Europol Director Rob Wainwright said at a news conference in Madrid on Wednesday.

"If we take into account that the average fine was 100 euros ($130) and 3 percent...paid it, then the estimated damage is millions of euros," he said. Wainwright added his own name had been used to trick Internet users.

The virus was known as "Ransomware" and had up to 48 different mutations to overcome anti-virus software.

The leader of the fraud network, a 27-year-old Russian citizen, was arrested in December in the United Arab Emirates, Spain's secretary of state for security, Francisco Martinez, said at the news conference.

Spanish police arrested 10 members of the group last week on the country's southern Costa del Sol, a popular tourist destination, Martinez said.

Six of the detainees were Russians, two were Ukrainian and two from Georgia. These members mostly took care of money laundering and sending cash electronically to Russia, while the head of the group was responsible for developing the virus. ($1 = 0.7442 euros)

(Reporting by Cristina Fuentes-Cantillana; Writing by Clare Kane; Editing by Pravin Char)

Read More..

Barry Bonds seeks dismissal of felony conviction

SAN FRANCISCO (AP) — A lawyer for Barry Bonds has urged a federal appeals court to toss out the slugger's obstruction of justice conviction.

Dennis Riordan (REAR-den) argued Wednesday before the 9th U.S. Circuit Court of Appeals that Bonds' was never specifically charged with the crime he was convicted of. A jury in April 2011 found Bonds guilty of obstruction for saying he was a "celebrity child" when asked about injecting steroids.

That particular exchange wasn't included in the indictment.

Assistant U.S. Attorney Merry Chan argued that the indictment charged Bonds generally with obstruction and allowed jurors to convict him if they determined any of his testimony was designed to mislead.

The three-judge panel was not expected to rule Wednesday.

Read More..

Report: Tracking system needed to fight fake drugs

WASHINGTON (AP) — Fighting the problem of fake drugs will require putting medications through a chain of custody like U.S. courts require for evidence in a trial, the Institute of Medicine reported Wednesday.

The call for a national drug tracking system comes a week after the Food and Drug Administration warned doctors, for the third time in about a year, that it discovered a counterfeit batch of the cancer drug Avastin that lacked the real tumor-killing ingredient.

Fake and substandard drugs have become an increasing concern as U.S. pharmaceutical companies move more of their manufacturing overseas. The risk made headlines in 2008 when U.S. patients died from a contaminated blood thinner imported from China.

The Institute of Medicine report made clear that this is a global problem that requires an international response, with developing countries especially at risk from phony medications. Drug-resistant tuberculosis, for example, is fueled in part by watered-down medications sold in many poor countries.

"There can be nothing worse than for a patient to take a medication that either doesn't work or poisons the patient," said Lawrence O. Gostin, a professor of health law at Georgetown University who led the IOM committee that studied how to combat the growing problem.

A mandatory drug-tracking system could use some form of barcodes or electronic tags to verify that a medication and the ingredients used to make it are authentic at every step, from the manufacturing of the active ingredient all the way to the pharmacy, he said. His committee examined fakes so sophisticated that health experts couldn't tell the difference between the packaging of the FDA-approved product and the look-alike.

"It's unreliable unless you know where it's been and can secure each point in the supply chain," Gostin said.

Patient safety advocates have pushed for that kind of tracking system for years, but attempts to include it in FDA drug-safety legislation last summer failed.

The report also concluded that:

—The World Health Organization should develop an international code of practice that sets guidelines for monitoring, regulation and law enforcement to crack down on fake drugs.

—States should beef up licensing requirements for the wholesalers and distributors who get a drug from its manufacturer to the pharmacy, hospital or doctor's office.

__Internet pharmacies are a particularly weak link, because fraudulent sites can mimic legitimate ones. The report urged wider promotion of the National Association of Boards of Pharmacy's online accreditation program as a tool to help consumers spot trustworthy sites.

The Institute of Medicine is an independent organization that advises the government on health matters.

Read More..