Air travel could be hit in sequestration budget cuts









U.S. airports and fliers around the country face widespread disruptions if automatic spending cuts take effect next week, Transportation Secretary Ray LaHood said Friday in an effort to pressure Congress to delay the cuts.

LaHood illustrated a bleak picture of delayed and canceled flights, shuttered airports and irritated air travelers if across-the-board spending cuts are allowed to take place under the process known as sequestration. Travelers could start to feel effects in April, he said.

LaHood told reporters at the White House that flights to major cities such as Chicago, New York and San Francisco could see delays of up to 90 minutes at peak travel times. Delays in Chicago or in major coastal airports tend to ripple across the country quickly because they're frequent flight transfer points. O'Hare was already the fifth-most delay plagued airport in the U.S. last year.

Security delays could also be significant. Homeland Security Department of Secretary Janet Napolitano said in Senate committee testimony last week that cuts could increase passenger wait times by as much as an hour at airport security checkpoints, leading many travelers to miss flights.

The potential cutbacks would be especially damaging to large airlines that cater to business travelers, who are the most sensitive to flight delays, said Henry Harteveldt, a travel industry analyst at Hudson Crossing LLC.

"They have the most flexibility, and they also have the least patience," he said. "Since airlines rely on business travelers for their profits, this could have a disproportionately negative impact on airline revenues, profits and earnings."

Potential delays could also discourage some vacationers from booking summer travel, he said.

Airline consultant Robert Mann said customers will blame the airlines for delays, even if they're the government's fault.

"When you look at how customers rate airlines, ratings go right to the bottom whenever delays are involved," Mann said. "And it doesn't matter what causes the delay. A delayed passenger is a ticked-off passenger, and that reflects on the airline."

The flight delays will be caused, LaHood said, by a number of behind-the-scenes cuts including employee furloughs and a reduction in equipment maintenance.

LaHood said the cuts will also mean the elimination of overnight shifts at 60 air traffic control towers across the country and the closure of more than 100 towers.

Under the plan, local airport towers that would see an end to overnight monitoring include Midway and two smaller airports, Dupage and Peoria International.

There are 48 Midway flights that operate between 10 p.m. and 7 a.m., a spokeswoman for the Chicago Department of Aviation said. Southwest Airlines, which has one of its biggest flight operations at Midway, said it’s too early to assess the potential effect on carriers and the airports they serve.


The closure list includes five Illinois airport towers: Central Illinois Regional Airport at Bloomington-Normal, Decatur Airport, Dupage in West Chicago, Southern Illinois Airport in Murphysboro and Marion County regional in Marion.

Some $85 billion in cuts are due to be applied across government programs on March 1 unless lawmakers act. The cuts were designed to be so onerous they would force a compromise over a broader deficit reduction package, but this has proven elusive.

President Obama has urged Congress to postpone the cuts for several months to let the White House and congressional Republicans hammer out a deficit-cutting deal. Republicans, who have argued that government overspending is a leading problem hurting the U.S. economy, have rebuffed the president's efforts. A number of Republican members of Congress have said that while the cuts may be painful, they could benefit the nation's finances in the long term.

LaHood said sequestration would lead to $1 billion in spending cuts at the Transportation Department, of which more than $600 million would be to the Federal Aviation Administration, which oversees U.S. air travel.

The "vast majority" the FAA's approximately 47,000 employees face furloughs of at least a day per pay period until the end of September, he said.

LaHood said the traveling public could start seeing delays just ahead of the busy summer travel season.

The National Air Traffic Controllers Association, the main union representing controllers in the U.S., said Friday's announcement of "draconian" cuts was worse than it anticipated.

"Once towers are closed, the airports they serve may be next," the union said in a statement. "We believe the delay estimates provided by the FAA are conservative, and the potential for disruptions could be much higher."


But the main trade association representing U.S. airlines urged lawmakers to work together to reach a deal, and warned that air transportation "should not be used as political football."

- Reuters and Tribune staff reporters Gregory Karp and Samantha Bomkamp contributed to this report.



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Drew Peterson: 'Until this happened, I thought I was a great guy'









Moments after screaming in court, "I did not kill Kathleen," Drew Peterson was sentenced to 38 years in prison for the 2004 murder of his third wife Kathleen Savio.

Peterson had faced as much as 60 years, but Judge Edward Burmila said he gave Peterson some consideration for his years as a police officer and his service in the military. Peterson is 59.


The sentence was handed down after Peterson, who did not testify at his trial, made an emotional appeal to the judge, at times appearing to choke up as he argued that he was convicted by "rumors, gossip, outrageous lies and, most importantly, unreliable hearsay."


"I don't deserve this," he told Burmila. "I don't deserve this."








Peterson, a former Bolingbrook police sergeant, was convicted last fall of drowning Savio in her bathtub. Prosecutors have said they believe Peterson also killed his missing fourth wife Stacy and could seek charges in that case.


Peterson began his appeal to the judge today by telling him, "Good day, my name is Drew Peterson. I hope I don't aggravate the situation here, but I have a lot of things to be said." Then he screamed, "I did not kill Kathleen!"

"Yes, you did," a woman said.

"Ma'am, I'd like you to leave the courtroom," Burmila said. "And Mr. Peterson, don't make any outbursts that are designed to aggravate people."

"I'm sorry, your honor. I must have been woozy," Peterson said.


After the sentencing, State's Atty. James Glasgow dismissed the outburst as a "shrill, kind of feminine screech."


Peterson insisted to the judge he is the victim of an unjust and invasive police investigation that ignored or lost evidence that could have shown his innocence. He accused the state police of falsifying reports.

"What they did uncover was rumors, gossip, outrageous lies, and most importantly, unreliable hearsay. Hearsay that pierced three privileges that have stood for centuries," Peterson said.

Peterson bitterly complained that the Rev. Neil Schori betrayed his promise never to repeat anything that was said by Peterson or Stacy. Schori testified at trial that Stacy confided to him that she lied to state police about Peterson's alleged slaying of Savio.

"Out of the privileged information from Neil Schori, the state police was able to create" a case, he said. "I find it hard to believe that the state was able to take information that they obtained illegally and turn it to their benefit."

Kathleen Savio’s divorce attorney Harry Smith, who also testified at trial about a conversation he had with Stacy before she disappeared, "gave up privileged information from both Kathy and Stacy, like it was yesterday's garbage," Peterson said. "Ultimately, it led to my conviction.

"Hearsay is a scary thing. There's no proof. Anything can be said and nobody's accountable for the truth.

"In my experience, in divorce situations everybody lies, and everybody lies under the instruction of their attorneys.

"There was an incident where Kathleen exited the house ... and punched Stacy in the face. They went to trial, my 9- and 10-year-old sons were called to testify, and under oath they lied," Peterson said.

"On their next visit, I questioned them, 'Why’d you guys lie?' They said Harry Smith told them to. They didn’t want their mom to go to jail,” Peterson said, growing emotional as he spoke. “I couldn't be mad at them.”

"Stacy provided me an alibi for Kathleen's death. Then she later said she was lying about that. Seems like Stacy was lying all the time about everything. But the state's attorney picked and chose what they wanted to believe.

"Stacy clearly had a crush on the Rev. Schori, which I think was a factor in this.

"There was a constant and consistently illegal activity by the state’s attorneys, including the state’s attorney himself.

"So what did the state’s attorney do? They hire a skinny ... spokesperson (Stacy Peterson family spokeswoman Pam Bosco) to go out and say anything she wants. It buffered the state’s attorney’s office from anything the court might bring.

"And when it came time for a vote from the grand jury, only a handful of people were selected. Not the entire grand jury was brought in to do the vote. Pretty much guaranteed ... that I was indicted, which I was.

"There was a first investigation on this case, in which probably one of the most experienced investigators was the first one on the scene in this case, and he determined Kathleen's death was an accident.

"Dr. (Bryan) Mitchell looked at Kathy's body when it was in its freshest state. He determined her death was an accident."

So did the coroner's jury, Peterson said. "All this was done when the evidence was freshest."

Peterson then paused and asked for some water. He resumed by talking about his service in the military and lengthy law enforcement career.

"I was probably one of the highest-decorated officers in the Bolingbrook Police Department," he said.


"I always took my job seriously, I never violated the public trust," he said, his voice husky with emotions. "And I never beared false witness against anyone.

"I loved having a job that helped people," he said. "In my private life, I ran up to six companies at one time. I employed nearly 100 people.

"Until this happened, I thought I was a great guy," he said. "And in moments, the media turned me into a monster.

"As soon as I get a chance, I'm going to get a tattoo on my back, from shoulder to shoulder, that says, 'No good deed goes unpunished.' "

He said he loved Savio and called her a good wife and mother who did not deserve to die, but insited it was an accident. He then talked about Savio’s upbringing, calling it difficult and abusive.

"The most pathetic thing I’ve ever seen in my life was the night after our wedding, when I held Kathy and she cried because her father failed to show up and give her away on her wedding.

"At Kathy's wake, friends and family put money in cards and envelopes to help cover the cost of the funeral.

“I paid for the funeral."

"That's a lie right there," a man in court shouted.

"I paid for Kathy’s funeral at the request of her sister, who's sitting right there," Peterson said.

He then attacked State's Atty. James Glasgow.

"Mr. Glasgow, all aspects of my life have been destroyed. Everything from my personal life to my professional life to my social life -- all aspects have been destroyed. And I tell you this to give you greater cause for celebration, when you celebrate the fact that you perpetrated the largest railroad job in the history of this country.

"Since I've been incarcerated, I've had nine family members who have died, six of which were cousins," Peterson said. None of them made it past the age of 60, he said.

“And in telling you this, I'm not looking for any sympathy, but anything you sentence me to, you're sentencing me to the Department of Corrections to die!" Peterson said.

Peterson said he believes his constitutional rights have been violated.

"And I think the only thing left to make this case run true to form would be a cruel and unusual punishment. And I don't think anybody would care because nobody cares. I can't believe I spent 32 years defending a constitution that allowed this to happen to me. I can't believe people fought and died in wars protecting a constitution that allowed this to happen to me.”

America should be outraged, but nobody cares, he said.

"I take full responsibility for my relationship with the media," Peterson continued. "I just wanted them away from my home because they were scaring my kids. They hounded me. I agreed to go on TV and tell my story and ask for legal help.

"Everybody from busy bodies like Nancy Grace ... to that ridiculous movie that played repeatedly before and during my trial.

"It pretty much guaranteed that I would not get a fair trial. It's pretty clear that the state took part in that movie because things I remember saying only to the state police appeared in that movie," Peterson said, apparently referring to a Lifetime TV movie starring Rob Lowe as Peterson.

"I'm an obnoxious man by nature, truly. And after 30 years as a police officer, as is normal with a police officer, my defense mechanism is comedy. The media took that and capitalized on that, and my obnoxious nature showed through. But I want to ensure the court that at no time did I want to portray any insensitivity about Kathy's death. That was not my intention.

“I hope Mr. Glasgow looks me in the eye right now. Never forget my face! Never forget what you’ve done. 

“Originally I had some cute and funny things to say. But now in closing, it's time to be sentenced to a life of hardship and abuse in prison. I don't deserve this, I don't deserve this.

“Thank you.”


Earlier in the afternoon, Savio’s sister Anna Marie Savio-Doman told the judge that "my loss of my baby sister is beyond words. There will be no more birthday parties, backyard gatherings, holiday celebrations or other family activities to share. The laughter, hugs, guidance, advice, sense of security and those opportunities to say ‘I love you’ are forever gone.

“One of the hardest things for me is knowing the pain and fear that Kathleen must have suffered at the time of her murder. The horror and betrayal she must have felt when she realized that someone she had trusted and loved more than anything was actually killing her. I wonder if she could feel her heart breaking when she thought about leaving her two boys forever. The helplessness she must have felt knowing she was going to die.

“I have to say it hurts a lot. I hope it gets better, but I am not confident it will get better. I still talk to her. I hope she can hear me.”

Susan Doman described her sister as a “rock” and told the court she looked up to Savio, even though Savio was younger. She also expressed her anger toward Peterson.

“He showed no remorse,” she said. “For years I watched Peterson parade on TV, radio, photo shoots, and (that) radio promotion to win a date with him. That was a big joke to him. And he loved all the attention.

“Your honor, the defendant shows no remorse to this day for the horrible crime that he did to my sister Kathleen. This senseless action is inexcusable. I am placing my trust that you will give Kathleen justice once and for all.”

The judge also read a statement from Savio’s father, but not aloud.

In arguing for a maximum sentence, Glasgow reminded the judge about the damage done to his young children with Stacy. Prosecutors have said they believe Peterson killed Stacy and could seek charges in that case.

"Not only is their mother gone, but also their father is gone, as he sits before you," Glasgow said.

Glasgow said Peterson also should not get a break for living a law- abiding life because of his attacks on his second wife, when he threatened to kill her.

"There's a recurring them here with Mr. Peterson. He’s a police officer, and there's a number of occurrences with the victims here being afraid to call the police department.

"These are obviously very dangerous situation, and in this case, led to the demise of two young women."

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Living With Cancer: Arrivals and Departures

After being nursed and handed over, the baby’s wails rise to a tremolo, but I am determined to give my exhausted daughter and son-in-law a respite on this wintry evening. Commiserating with the little guy’s discomfort — gas, indigestion, colic, ontological insecurity — I swaddle, burp, bink, then cradle him in my arms. I begin walking around the house, swinging and swaying while cooing in soothing cadences: “Yes, darling boy, another one bites the dust, another one bites the dust.”

I kid you not! How could such grim phrases spring from my lips into the newborn’s ears? Where did they come from?

I blame his mother and her best friend. They sang along as this song was played repeatedly at the skating rink to which I took them every other Saturday in their tweens. Why would an infatuated grandma croon a mordant lullaby, even if the adorable one happily can’t understand a single word? He’s still whimpering, twisting away from me, and understandably so.

Previously that day, I had called a woman in my cancer support group. I believe that she is dying. I do not know her very well. She has attended only two or three of our get-togethers where she described herself as a widow and a Christian.

On the phone, I did not want to violate the sanctity of her end time, but I did want her to know that she need not be alone, that I and other members of our group can “be there” for her. Her dying seems a rehearsal of my own. We have the same disease.

“How are you doing, Kim?” I asked.

“I’m tired. I sleep all the time,” she sighed, “and I can’t keep anything down.”

“Can you drink … water?” I asked.

“A little, but I tried a smoothie and it wouldn’t set right,” she said.

“I hope you are not in pain.”

“Oh no, but I’m sleeping all the time. And I can’t keep anything down.”

“Would you like a visit? Is there something I can do or bring?” I asked.

“Oh, I don’t think so, no thanks.”

“Well,” I paused before saying goodbye, “be well.”

Be well? I didn’t even add something like, “Be as well as you can be.” I was tongue-tied. This was the failure that troubles me tonight.

Why couldn’t I say that we will miss her, that I am sorry she is dying, that she has coped so well for so long, and that I hope she will now find peace? I could inform an infant in my arms of our inexorable mortality, but I could not speak or even intimate the “D” word to someone on her deathbed.

Although I have tried to communicate to my family how I feel about end-of-life care, can we always know what we will want? Perhaps at the end of my life I will not welcome visitors, either. For departing may require as much concentration as arriving. As I look down at the vulnerable bundle I am holding, I marvel that each and every one of us has managed to come in and will also have to manage to go out. The baby nestles, pursing his mouth around the pacifier. He gazes intently at my face with a sly gaze that drifts toward a lamp, turning speculative before lids lower in tremulous increments.

Slowing my jiggling to his faint sucking, I think that the philosopher Jacques Derrida’s meditation on death pertains to birth as well. Each of these events “names the very irreplaceability of absolute singularity.” Just as “no one can die in my place or in the place of the other,” no one can be born in this particular infant’s place. He embodies his irreplaceable and absolute singularity.

Perhaps we should gestate during endings, as we do during beginnings. Like hatchings, the dispatchings caused by cancer give people like Kim and me a final trimester, more or less, in which we can labor to forgive and be forgiven, to speak and hear vows of devotion from our intimates, to visit or not be visited by acquaintances.

Maybe we need a doula for dying, I reflect as melodious words surface, telling me what I have to do with the life left to be lived: “To love that well, which thou must leave ere long.”

“Oh little baby,” I then whisper: “Though I cannot tell who you will become and where I will be — you, dear heart, deliver me.”


Susan Gubar is a distinguished emerita professor of English at Indiana University and the author of “Memoir of a Debulked Woman,” which explores her experience with ovarian cancer.

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United takes Dreamliner off schedule until June
















All Nippon Dreamliner 787


The All Nippon Airways Dreamliner 787 arrives at Mineta San Jose International Airport.
(Gary Reyes/San Jose Mercury News/MCT / January 22, 2013)



























































The parent company of United Airlines says it is taking the Boeing 787 off its schedule through June 5 for all but one of its routes.


United Continental Holdings Inc. said it still plans to use the 787 on its flights between Denver and Tokyo's Narita airport starting May 12. It had aimed to start that route on March 31.


United, currently world's largest airline and the only U.S. customer for the 787, said the timing of that reinstatement will depend on resolution of the Dreamliner's current issues.





The 50 Dreamliners in commercial service were grounded worldwide last month after a series of battery-related incidents including a fire on board a parked plane in the United States and an in-flight problem on another jet in Japan. United had only been flying the plance since November.


Sources told Reuters earlier this week that Boeing Co. has found a way to fix the battery problems that involves increasing the space between the lithium ion battery cells.









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Source: 2 bodies found at house after fire might have been stabbed









Firefighters found the bodies of two women at a South Side residence this afternoon while putting out a fire at the home, according to authorities, and police confirmed foul play is suspected.


The bodies were found about 4 p.m. as firefighters were extinguishing a fire in the 8100 block of South Maryland Avenue, according to Larry Langford, a Chicago Fire Department spokesman.

The victims are a 24-year-old woman and a 43-year-old woman, according to the Cook County medical examiner’s office.






Both women were pronounced dead on the scene at 5:35 p.m., according to the medical examiner’s office. Their names and home addresses were not being released immediately pending notification of next of kin.


An arson and homicide investigation is under way, said Police News Affairs Sgt. Antoinette Ursitti.

No one is in custody Wednesday night, she said.


Preliminary reports indicate that at least one of the victims was found stabbed to death, and the residence may have been set ablaze to conceal their deaths, a source said.


The bodies were found in a bathroom, according to a source.


Chicago police officers sealed off the three-story multi-unit building near the southwest corner of East 81st Street and South Maryland Avenue with yellow and red crime tape. Several onlookers gazed at the building in the fire's aftermath.


Investigators could be seen inside the first-floor apartment unit where the fire erupted, its rear window broken and covered by a tarp. Several men working for two different board-up companies also stood in the alley while police conducted their investigation.


Brittany Pullum was inside her apartment across the alley when she saw black smoke coming from the first-floor unit. She said she then ran outside and saw about 15 to 20 people who evacuated from the fire building.


Pullum said a lady who evacuated told her she called 911.


"It's crazy. It's crazy," Pullum said, still appearing somewhat shocked at the news of the two deaths. "It's scary. Very scary."


One of the fire building's tenants, Alexander Brown, said his wife was home during the fire, but their unit wasn't damaged.


He said their unit, where he's lived for about five years, is next-door to the burned apartment. Brown was outside of the building after the blaze and said he was eager to find shelter because of the frigid temperatures.


Brown didn't know the occupants of the burned unit too well, but he said he's seen two women coming and going from there, periodically.


Police said the two victims were females. Although an autopsy Thursday will determine the official cause of their deaths, police said at least one of the deaths might be a domestic-related homicide.


Police said the fire was confined to the one unit, which appeared badly damaged.


Langford said the investigation has been turned over to the Chicago Police.


chicagobreaking@tribune.com






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Mike Tyson sues Live Nation over embezzlement






LOS ANGELES (AP) — Mike Tyson is suing a financial services firm affiliated with Live Nation, claiming it cost him more than $ 5 million due to a former employee’s embezzlement and mismanagement.


The lawsuit filed Wednesday in Los Angeles claims an adviser from SFX Financial Advisory Management Enterprises embezzled more than $ 300,000 from the former heavyweight boxing champ. The suit claims the losses hindered Tyson and his wife from emerging from bankruptcy.






SFX is a subsidiary of Live Nation Entertainment Inc.


The case claims Tyson and his wife lost millions more by having to hire new attorneys and advisers to handle their financial affairs, and they had to turn down lucrative contracts.


Messages left for a Live Nation spokeswoman and at the Washington, D.C., offices of SFX were not immediately returned.


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Well: Caffeine Linked to Lower Birth Weight Babies

New research suggests that drinking caffeinated drinks during pregnancy raises the risk of having a low birth weight baby.

Caffeine has long been linked to adverse effects in pregnant women, prompting many expectant mothers to give up coffee and tea. But for those who cannot do without their morning coffee, health officials over the years have offered conflicting guidelines on safe amounts during pregnancy.

The World Health Organization recommends a limit of 300 milligrams of caffeine a day, equivalent to about three eight-ounce cups of regular brewed coffee. The American College of Obstetricians and Gynecologists stated in 2010 that pregnant women could consume up to 200 milligrams a day without increasing their risk of miscarriage or preterm birth.

In the latest study, published in the journal BMC Medicine, researchers collected data on almost 60,000 pregnancies over a 10-year period. After excluding women with potentially problematic medical conditions, they found no link between caffeine consumption – from food or drinks – and the risk of preterm birth. But there was an association with low birth weight.

For a child expected to weigh about eight pounds at birth, the child lost between three-quarters of an ounce to an ounce in birth weight for each 100 milligrams of average daily caffeine intake from all sources by the mother. Even after the researchers excluded from their analysis smokers, a group that is at higher risk for complications and also includes many coffee drinkers, the link remained.

One study author, Dr. Verena Sengpiel of the Sahlgrenska University Hospital in Sweden, said the findings were not definitive because the study was observational, and correlation does not equal causation. But they do suggest that women might put their caffeine consumption “on pause” while pregnant, she said, or at least stay below two cups of coffee per day.


This post has been revised to reflect the following correction:

Correction: February 20, 2013

An earlier version of this article described incorrectly the relationship between the amount of caffeine a pregnant woman drank and birth weight. For a child expected to weigh about eight pounds at birth, the child lost between three-quarters of an ounce to an ounce in birth weight for each 100 milligrams of average daily caffeine intake by the mother, not for each day that she consumed 100 milligrams of caffeine.

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Office Depot to buy OfficeMax

Office Depot to buy Office Max as an attempt to compete with Staples.









Office Depot Inc. and Office Max Inc. have agreed to merge in a $1.17 billion stock transfer, the companies announced Wednesday, ending nearly two hours of confusion about whether a deal had been reached.


Officials at Naperville-based OfficeMax and Office Depot declined to say who would lead the combined company nor where it would be located when the "merger of equals" is completed, likely by the end of the year.

After some confusion early Wednesday, when a draft press release was posted prematurely on the website of Boca Raton, Fla.-based Office Depot's, both companies issued a joint statement at around 8:30 a.m. CT announcing the planned merger. 


The combined entity's name, headquarters and CEO are all undecided, creating an unusual level of uncertainty that points to the integration challenge the companies face.








"During the appropriated times ... our board will make the right decision,"  OfficeMax President and CEO Ravi Saligram said of the location and leadership of the combined firm. "Now we're independent companies and we've got to go through lots of processes," he said.

On a conference call with analysts, Office Depot CEO Neil Austrian apologized for the announcement mishap on Wednesday morning.  "Our webcast provider inadvertently released our earnings in advance of schedule," he said.  We regret any inconvenience that this may have caused." 

Saligram and Austrian emphasized that the combination, which will create a company that will do roughly $18 billion in revenue, is a merger of equals.

"This [merger] will create a stronger, more global, more efficient competitor able to meet the growing challenges a rapidly changing industry," said Saligram. 


While Office Depot insisted the deal was a merger of equals and not an acquisition, its shareholders will get the larger part of the combined company. CEOs of both companies and outside candidates are being considered for the top job.

When combined, OfficeMax and Office Depot, the world's second and third largest office products companies by revenue, will still not eclipse the segment's largest business, Staples Inc.

The pair had combined revenue of about $18.5 billion in the last fiscal year. They expect to save about $400 million to $600 million per year within three years through layoffs, streamlining of back-office functions and combined advertising. They didn't provide details on how many workers would lose their jobs or the fate of OfficeMax's Naperville headquarters.

After days of speculation that a deal was close, a draft of a press release announcing the news was posted prematurely on Office Depot's website early Wednesday morning. More than an hour after it came out, there was still no mention of the merger on either company's website nor on the SEC or other investor websites. Sources cited by the New York Times Wednesday morning said negotiations were ongoing.

Thomson Reuters Corporate Services, which operates various investor relations websites including Office Depot's, took responsibility for the early publication.


"Unfortunately, Thomson Reuters incorrectly posted this morning's announcement of Office Depot's intention to merge with Office Max prior to its intended release," Lemuel Brewster, PR director - investors at Thomson Reuters, said Wednesday afternoon in an email response to an inquiry. "We regret this error and are taking all steps necessary to enhance our processes and controls to ensure this does not happen again."


Office Depot will issue 2.69 new shares of common stock for each outstanding common share of OfficeMax. At Tuesday's closing prices, the deal is valued at $13.50 per share, or $1.17 billion, based on 86.7 million shares outstanding as of Oct. 26.

After the merger is completed, Office Depot's board will consist of an equal number of directors chosen by that company and OfficeMax.

Although the actual announcement didn’t go as planned, the deal has been rumored for years as the struggling office supply sector deals with fickle consumers and businesses that are conserving costs and doing more online.

Analysts say they expect far less pushback from antitrust authorities for this deal than what Office Depot faced in the 1990s, when it tried to merge with Staples, given the changes in the office supply market since then.

Underscoring how tough that business has become, Office Depot reported a fourth-quarter net loss, hurt by a 6 percent decrease in comparable sales at its North American stores and a revenue drop at its unit that serves North American businesses.

Office supply retailers, which are often seen as reflecting overall economic health, have suffered as demand for their products fell in the years after the last U.S. recession led companies to cut spending.

They also face strong competition from the likes of Amazon and Wal-Mart Stores Inc in selling everything from pens and notebooks to furniture and break room supplies to government, businesses and individuals.

SMALL PREMIUM

The offer represented a premium of just under 4 percent to OfficeMax's $13 close. It was not immediately clear if that was enough to satisfy one of the company's largest shareholders, Neuberger Berman, which said earlier this week it would support a deal depending on the terms.

OfficeMax shares rose 9.2 percent to $14.20 in premarket trading. Office Depot was up 10 percent at $5.52, meaning that OfficeMax was still trading below the value of the bid.

The deal, considered long overdue by many on Wall Street, will also give Office Depot and OfficeMax a chance to save hundreds of millions of dollars by closing stores, cutting advertising costs and streamlining their supply chain.

Industry experts have long hoped Office Depot would join hands with OfficeMax to take on Staples, which boosted its international business and clout with suppliers by buying Dutch rival Corporate Express in 2008.

BB&T Capital Markets analyst Anthony Chukumba said the Office Depot-OfficeMax combination would help Staples, however.

"Clearly, you can't make this deal work unless you close a bunch of stores," he said. "Store rationalization is long overdue, and Staples will clearly benefit from just having fewer stores to compete with."

Staples has 39.9 percent of the U.S. office supply market, Office Depot 19.2 percent and OfficeMax holds 15.7 percent, according to Euromonitor International.

Tribune reporter Samantha Bomkamp and Reuters contributed.

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Jacksons set for plea hearings in D.C. on Wednesday









WASHINGTON — Former Rep. Jesse Jackson Jr., and his wife, former Chicago Ald. Sandi Jackson, are expected to plead guilty to federal charges Wednesday, when more details may emerge about an alleged crime spree in which he is accused of spending more than $750,000 in campaign cash to buy luxury items, memorabilia and other goods.


Attorneys familiar with public corruption investigations said the amount of campaign cash allegedly converted to personal use in this case is the largest of any that they can remember.


Jackson Jr., who has been largely out of the public eye for eight months, is to appear in court at 9:30 a.m. Chicago time. His wife is to appear at 1:30 p.m. Chicago time. Both Jacksons will stand before U.S. District Court Judge Robert Wilkins.





Sentencing is not expected for several weeks. Jackson Jr. faces up to five years in prison, while she faces up to three years, according to the U.S. Attorney’s Office for the District of Columbia.


Jackson Jr., 47, was in the House of Representatives for 17 years until he resigned last November. Sandi Jackson, 49, was a Chicago alderman from 2007 until she stepped down in January.


He is charged with conspiracy in a case involving a $43,350 men’s Rolex watch, nearly $9,600 in children’s furniture and $5,150 in cashmere clothing and furs, court papers show. She is charged with filing false tax returns for six years, most recently calendar year 2011.


When separate felony charges were filed against them Friday, their attorneys said the two would plead guilty.


Prosecutors also are seeking a $750,000 judgment against Jackson Jr. and the forfeiture of thousands of dollars of goods he purchased, including cashmere clothing, furs and an array of memorabilia from celebrities including Michael Jackson, Bruce Lee and civil rights leader Martin Luther King Jr.


Jackson Jr. began a mysterious medical leave of absence last June for what was eventually described as bipolar disorder. Though he did not campaign for re-election, he won another term last Nov. 6 while being treated at the Mayo Clinic in Minnesota. He left office two weeks later, saying he was cooperating with federal investigators.


Married for more than 20 years, the Jacksons have a 12-year-old daughter and a 9-year-old son. The family has homes in Washington and on Chicago’s South Side.


Washington defense attorney Stan Brand, the former general counsel of the House of Representatives, said Tuesday that Jackson Jr.’s case involved the largest sum of money he’s seen in a case involving personal use of campaign money. “Historically, there have been members of Congress who either inadvertently or maybe purposefully, but not to this magnitude, used campaign funds inappropriately,” he said.


Brand said that when the dollar figure involved is low, a lawmaker may be fined and ordered to reimburse the money. “This is so large, the Department of Justice decided to make his case criminal,” he said.


Other attorneys said they could not remember a bigger case of its kind. Washington attorney Ken Gross, a former lawyer for the Federal Election Commission, said: “Directly dipping into your campaign coffers, and spending money on personal items, I can’t recall a case where it involved this much money.”


Brand once represented another disgraced Illinois Democratic congressman, Rep. Dan Rostenkowski, who in 1996 pleaded guilty to two counts of mail fraud. Rostenkowski was represented by attorney Dan Webb, who is Sandi Jackson’s counsel.


Rostenkowski, who died in 2010, entered his pleas and received his punishment in the U.S. District Court for the District of Columbia — the same venue on the Jacksons’ calendars on Wednesday.


kskiba@tribune.com




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Singer Sande in line for big prize at BRIT awards






LONDON (Reuters) – Scottish singer Emeli Sande is favorite to win the coveted British album of the year honor later on Wednesday when the BRIT Awards are handed out in London.


Sande, whose profile received a major boost when she took part in the opening and closing ceremonies at the London Olympics last year, has been nominated for three prizes on British pop’s biggest night.






She was shortlisted for best British female, which she is expected by bookmakers to win, and best British single for “Next to Me”. Sande also features on another contender for the single prize, Labrinth’s “Beneath Your Beautiful”.


Arguably the biggest category is British album, where Sande’s “Our Version of Events” is up against other acts who each picked up three nominations – Mumford & Sons for “Babel” and Alt-J for “An Awesome Wave”.


Sande, who had Britain’s best-selling album in 2012, has hit back at critics who have questioned whether she had been over-exposed in the last 12 months.


“I feel like it’s a bit unfair,” she told the Sun tabloid. “I actually haven’t done that much, but it’s just what I have done have been huge events.


“Everyone is entitled to their own opinion, but I worked so hard to get any exposure at all, so I don’t see that as a negative.”


Adele looks set to add to her groaning trophy cabinet with the best single award for James Bond theme “Skyfall”, while U.S. acts Lana Del Rey and Frank Ocean are bookmaker Ladbrokes’ favorites for best international female and male respectively.


“There’s a nailed on favorite in every category and it’s hard to see any last minute upsets at this stage,” said Ladbrokes spokeswoman Jessica Bridge.


It may be that the big surprises this year at the BRITs, which have a reputation of rewarding commercial success over musical originality, came at the nominations stage.


Last month eyebrows were raised when Amy Winehouse was nominated in the British female solo category some 18 months after her death for a chart-topping album of unreleased songs and demos called “Lioness: Hidden Treasures”.


And veteran rockers the Rolling Stones were shortlisted for best live act after they returned to the stage for a short, sellout tour of London and the United States at the end of 2012 to mark 50 years in the business.


The last time the group was nominated for a BRIT was in 1996, and the Rolling Stones are the only act to be nominated both at this year’s ceremony at the O2 Arena and at the first BRIT Awards staged in 1977.


Performing at the awards ceremony will be Taylor Swift, Justin Timberlake, Muse, Robbie Williams, Sande, Mumford & Sons, Ben Howard and One Direction.


(Reporting by Mike Collett-White, editing by Paul Casciato)


Music News Headlines – Yahoo! News





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