Sources: American, US Airways boards approve merger

The boards of AMR Corp and US Airways Group Inc each met on Wednesday to approve a merger that would create the world's largest airline with an expected market value of around $11 billion, people familiar with the matter said.

The all-stock merger, which is set to be announced early on Thursday, would finalize the consolidation of legacy U.S. air carriers that helped put the industry on a more solid financial footing.

AMR's bankruptcy creditors will own 72 percent of the combined airline, which will do business under the American Airlines brand and be based in Fort Worth, Texas, the people said. US Airways shareholders will own the rest.

The board approval came after AMR's unsecured creditors committee, which includes all three of AMR's major unions, met earlier on Wednesday to approve a proposed merger agreement, the people said.

The merged company will have a board of 12 members: four from US Airways including its chief executive Doug Parker, three from AMR including chief executive Tom Horton and five to be designated by the AMR creditors, two of the people said.

That will shrink to 11 members in 2014 after Horton steps down following the combined company's first annual meeting, the person added. Parker becomes chief executive of the new airline.

AMR's unsecured creditors are expected to be made whole on their claims in the form of stock in the merged company and also get accrued interest, the people said. AMR's shareholders will get a small equity stake as well, they added.

All the sources asked not to be named because the matter was not public. US Airways declined to comment while AMR representatives could not be immediately reached for comment.

The deal comes more than 14 months after the bankrupt parent of American Airlines filed for bankruptcy in November 2011, and would mark the last combination of legacy U.S. carriers, following the Delta-Northwest and United-Continental mergers.

A tie-up with US Airways would create the world's top airline by passenger traffic and help American and US Air better compete with United Continental Holdings and Delta Air Lines.

Some $11 billion valuation of the combined American-US Airways compares to the roughly $12.4 billion market capitalization for Delta, and $8.7 billion for United Continental.

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Dorner manhunt: Fate of fugitive ex-cop is unclear

ANGELUS OAKS, California (Reuters) - A gunman thought to be an ex-cop who led California authorities on a six-day manhunt barricaded himself inside a mountain cabin northeast of Los Angeles on Tuesday and traded gunfire with police, killing one before the cabin burned to the ground.

Hours after the cabin went up in flames, uncertainty surrounded the fate of the man who authorities said earlier they presumed to be fugitive former Los Angeles policeman Christopher Dorner, 33, suspected of a revenge-fueled killing spree in the region.

No body had yet been recovered from the smoldering ruins, despite several media reports to the contrary, because the site was still too hot for police to enter and search, authorities said.

San Bernardino County Sheriff's spokeswoman Cindy Bachman later told reporters in the nearby mountain town of Angelus Oaks, "We believe he was still inside" after the cabin caught fire.

The death of a sheriff's deputy in the shootout at the cabin, located in the snow-covered, wooded hills of the San Bernardino National Forest, brought to four the number of killings Dorner is suspected of committing. A second sheriff's deputy was wounded in Tuesday's gunfight.

An angry, rambling manifesto posted last week on Dorner's Facebook page claimed he had been wrongly terminated from the Los Angeles Police Department in 2008. He vowed to seek revenge by unleashing "unconventional and asymmetrical warfare" on police officers and their families.

Tuesday's climax to the saga, following several days in which Dorner eluded law enforcement, unfolded after police learned that a gunman they believed was him had broken into a home near the ski resort community of Big Bear Lake, tied up a couple and stole their vehicle, authorities said.

GAME WARDENS ENCOUNTER SUSPECT

State game wardens later spotted the stolen vehicle and gave chase. The suspect crashed the car in the course of his getaway attempt, then quickly commandeered a pickup truck at gunpoint from another motorist and continued to flee, said Lieutenant Patrick Foy of the state Fish and Wildlife Department.

As game wardens pursued him, the suspect fired at them from the window of the truck, and one of the game officers stopped his truck and fired back with a high-powered rifle, Foy said, adding that he did not know whether the suspect was hit.

Several bullets struck the warden's vehicle, but officers got close enough at one point to get a good look at his face and recognized him as Dorner, Foy said.

Bachman said the suspect ultimately abandoned the pickup and fled on foot into the woods to a cabin believed to be vacant, where he holed up inside and exchanged fire with sheriff's deputies who closed in on the building.

Local television news footage of the shootout showed several officers taking cover from a barrage of gunfire audible in the broadcast. Sheriff John McMahon later confirmed that one deputy was killed and another wounded in the ensuing shootout.

After a lull in the gunfire, the cabin suddenly caught fire, with smoke and flames seen engulfing the structure. Loud popping sounds could be heard from inside.

Bachman said a "smoke bomb" had been set off at the cabin before the fire started, but she was uncertain if it had been detonated by the gunman or by law enforcement authorities.

Los Angeles Police Chief Charlie Beck has called the search for Dorner the most extensive manhunt in the region's history.

ACCUSED OF AMBUSHING POLICE

Dorner's last confirmed encounter with authorities came early last Thursday, when police said he ambushed two policemen at a traffic light in Riverside, about 60 miles east of Los Angeles. One officer was killed and the other wounded.

Dorner, a former Navy officer, is also suspected of exchanging gunfire on Thursday with police and wounding one officer in nearby Corona.

Law enforcement later that day converged on the Big Bear area when a pickup truck identified as the one Dorner had been driving was found abandoned and burning in the snow, launching an intense search of the mountain as Dorner seemed to vanish.

He first came to public notice last Wednesday when police identified him as a suspect in the slayings of a campus security officer and his fiancee, the daughter of a retired Los Angeles police captain. In the manifesto posted on his Facebook page, Dorner blamed the captain for his dismissal from the LAPD.

The couple, Keith Lawrence, 27, and Monica Quan, 28, an assistant college basketball coach, were found shot dead on February 3 in their car on the top level of a parking structure in the city of Irvine, south of Los Angeles.

Quan's father, Randy Quan, had represented Dorner in disciplinary proceedings that led to his dismissal after a police inquiry found Dorner had made false statements accusing a superior officer of using excessive force, police said.

Riverside County prosecutors have formally charged Dorner with one count of first-degree murder and three counts of attempted murder in connection with Thursday's shootings of police officers.

Authorities posted a $1 million reward for information leading to Dorner's capture, an amount they said was the largest ever offered in a Southern California criminal investigation.

(Reporting by Brandon Lowrey; Additional reporting by Alex Dobuzinskis and Dana Feldman; Writing by Steve Gorman; Editing by Cynthia Johnston and Eric Beech)

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Helena Bonham follows Lindsay Lohan into Liz Taylor’s shoes with BBC biopic

LOS ANGELES (TheWrap.com) – Move over, Lindsay Lohan – another actress is taking a crack at playing Elizabeth Taylor, and just might have the chops to one-up you.

Helena Bonham Carter will play Taylor in an upcoming biopic “Burton and Taylor.” “The Wire” actor Dominic West will play Taylor’s on-again, off-again husband, Richard Burton, in the production, which will air on BBC Four.

“Burton and Taylor” will tell the story of the pair’s ” ill-fated appearance in a 1983 revival of Noel Coward‘s stage play, ‘Private Lives,’” according to the BBC.

William Ivory (“Women in Love”) is writing the BBC Drama Productions project, with Richard Laxton (“Effie”) directing.

Fans of guilty-pleasure television will recall that “Mean Girls” star Lohan tackled the role of Taylor last year in the Lifetime film “Liz & Dick,” with Grant Bowler playing Burton.

While “Liz & Dick” racked up a respectable 3.5 million total viewers with its November premiere, the film drew rancorous reaction across the Twitterverse.

Movies News Headlines – Yahoo! News

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Downtown condo market showing signs of life

Downtown Chicago's condo market is on the rebound after many moribund years, as sales volume and pricing improve in a market constrained by a lack of inventory.

It's a rare piece of good news for downtown condo owners as well as for developers pondering projects and trying to line up financing.

With a steady stream of apartment projects delivering in the next two years, the lack of new condo construction could signal opportunities for companies interested in pursuing smaller projects in key neighborhoods because the demand is there. Until those projects materialize, condo owners looking to sell face a better market than they have in several years.

Sales of existing downtown condos rose 31.2 percent last year, to 4,675 units sold, while the median sales price of $300,000 was a gain of about 2.6 percent from 2011, according to data from Appraisal Research Counselors.

Another piece of good news for current condo owners: Of the 65 downtown buildings studied by the firm, the average sales price per square foot of units sold during the second half of last year rose while the number of distressed condo sales in those buildings saw a substantial drop. Distressed sales, which accounted for  28 percent of sales since 2010, fell to 17 percent of sales during the second half of 2012.

In addition, only 1,104 newly constructed condo units remain unsold downtown.

"When we see more transactions occurring, that's a really good indication of demand," said Gail Lissner, a vice president at the firm. "The look of the condo market has changed in terms of unsold inventory."

Lissner's remarks came Tuesday during a lunchtime briefing on the local housing market.

Most of the unsold inventory, more than 500 units, is in the South Loop and the bulk of it is in the newly named and repositioned 500-unit South Loop Luxury by Related.

The three buildings, once called One Museum Park West, 1600 Museum Park and Museum Park Place 2 were taken over by New York-based Related Cos. in July have been renamed the Grant, Adler Place and Harbor View, respectively.

Since December, 40 units there are under contract, according to Related Midwest, which officially launched sales in the project Tuesday.

Other new projects reporting positive sales trends are Park Monroe Phase II, a 48-unit adaptive reuse project with 16 sales and CA3, a 40-unit building with 18 sales.

"These are all great indicators of strong sales," Lissner said. "Price stabilization has occurred in the market. You don't hear people talking about bottoming out. That was so yesterday."

mepodmolik@tribune.com | Twitter @mepodmolik

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Hadiya's dad: 'Thanking God that these two guys are off the streets'

Two reputed gang members were out for revenge from a previous shooting when they opened fire on a group of students in a South Side park last month, killing 15-year-old Hadiya Pendleton in a heartbreaking case that has brought national attention to Chicago's rampant gun violence, police said.

Michael Ward, 18, and Kenneth Williams, 20, were each charged with first-degree murder, attempted murder and aggravated battery with a firearm in the Jan. 29 attack that also left two teens wounded.

Ward confessed to police that he and Williams mistook a Pendleton companion for rivals who had shot and wounded Williams last July, police Superintendent Garry McCarthy said at a news conference Monday night at the Area Central police headquarters.

Ward told police that he and Williams got out of their car, crept up on the group and opened fire in Harsh Park, McCarthy said. Williams then drove them from the scene, he said.

"The offenders had it all wrong. They thought the group they shot into included members of a rival gang. Instead it was a group of upstanding, determined kids who, like Hadiya, were repulsed by the gang lifestyle," said McCarthy, flanked by two dozen detectives and gang investigators who worked the case.

Detectives arrested the two Saturday night as the suspects were on their way to a suburban strip club to celebrate a friend's birthday, McCarthy said. Pendleton had been buried only hours earlier in a funeral attended by first lady Michelle Obama.

"I don't even know what to say about that," McCarthy said. "They were going out to celebrate at a strip club."

Williams did not confess and police have not recovered a weapon, McCarthy said. Both are due in bond court Tuesday.

Hadiya's father, Nathaniel Pendleton, said Monday night that news of the charges marked the first time since his daughter's slaying that he had a "legitimate" smile on his face.

"I'm ecstatic that they found the two guys," he told the Tribune during a brief telephone interview from Washington, D.C., where he and wife Cleopatra Cowley-Pendleton will attend the State of the Union address Tuesday as guests of President Barack Obama. "(I'm) thanking God that these two guys are off the streets, so that this doesn't happen to another innocent person."

Danetria Hutson, 15, who held Hadiya in her arms after she was shot, said she and others in the group have had nightmares since the shooting.

In addition to waking up in the middle of the night, Hutson, also a sophomore at King, said she and other in that group also haven't been able to bring themselves to hang out at parks since that day.

"A lot of us were actually paranoid because the guys were still out there," Hutson said in a telephone interview. "They knew where we went to school."

On Monday night, Hutson was a little frustrated because of the "ignorance" portrayed in social media, where some people are suggesting that Ward and Williams weren't involved in Hadiya's slaying. But Hutson felt a sigh of relief today when charges were announced against them.

"I just want to see how her family reacts," she said. "It gave me some closure, but I don't think (Hadiya's) family will get closure."

McCarthy said that two days before the killing, police had stopped Ward in his Nissan Sentra as part of a routine gang investigation. That information wound up being the starting point for detectives when witnesses in the shooting described seeing a similar car driving away from the shooting scene, he said.

Through surveillance and interviews — including several fruitful interviews with parolees in the neighborhood — detectives were able to home in on Ward and Williams, McCarthy said. On Saturday night, the decision was made to stop the two if they were spotted. Police watched as they departed in a caravan of cars headed to the strip club in Harvey. They were stopped near 67th Street and South King Drive and taken in for questioning.

McCarthy said Williams was shot July 11 at 39th Street and South Lake Park Avenue, and an arrest was made. But that gunman was let go after Williams refused to cooperate, McCarthy said.

McCarthy also noted that at the time of Hadiya's slaying, Ward was on probation for a weapons conviction. McCarthy said weak Illinois gun laws allowed Ward to avoid jail time because of the absence of mandatory minimum sentences.

"This incident did not have to occur," McCarthy said. "And if mandatory minimums existed in the state of Illinois, Michael Ward would not have been on the street to commit this heinous act."

In announcing the charges, McCarthy praised the "meticulous" detective work that led to the arrests, but he also expressed frustration that despite a $40,000 reward for information in the shooting, no one who had knowledge of the crime came forward.

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“Midnight Express” editor Gerry Hambling dead at 86

LOS ANGELES (TheWrap.com) – Gerry Hambling, the British film editor whose credits include “Midnight Express,” “Pink Floyd: The Wall” and “Mississippi Burning,” died February 5 in England. He was 86.

Hambling, who entered the film industry at 16 as an editor’s apprentice, was a longtime collaborator of director Alan Parker, editing 14 of his films.

“He was undoubtedly one of the finest film editors that the British film industry has produced,” Parker remembered.

John Grover, vice chairman of the Guild of British Film Editors, which Hambling helped found in 1966, remembered Hambling as a man of “warmth and understanding.”

“He was a hard working technician who loved loud music and fast action sequences; he was rather hard on equipment but never got used to editing electronically as he preferred to handle film, something he could ‘see and feel,’” Grover said. “He will be missed by friends and colleagues for his warmth and understanding. It was an honor to have known him.”

Hambling won three BAFTA Awards, and received the Career Achievement Award from the American Cinema Editors in 1998. He had also been nominated for six Oscars.

Hambling’s last editing job was on the 2003 Parker drama “The Life of David Gale,” starring Kate Winslet and Kevin Spacey.

Hambling died in Burwell, Cambridgeshire.

Celebrity News Headlines – Yahoo! News

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Bloomberg Lauds Companies for Cutting Salt Content

Mayor Michael R. Bloomberg, in the midst of a long-running campaign to change the eating habits of New Yorkers and consumers across the country, declared a victory against salt on Monday, as 21 companies, from Kraft and Goya to FreshDirect, said they had met the first stage in reductions in salt content in foods.

After focusing on reducing trans fats and smoking, Mr. Bloomberg turned his attention to salt in 2010, announcing that about 30 companies had signed up to reduce salt in foods by 25 percent within five years, as a way of lowering consumers’ blood pressure and saving lives lost to heart attack and stroke.

“These companies have a huge presence on our shelves and in our diets,” Mr. Bloomberg said at a news conference at City Hall as he announced the results, surrounded by a half-dozen executives of food companies.

The first stage focused on the low-hanging fruit — salsa, dips, bacon, ketchup, barbecue sauce, cold cuts, processed cheese, salad dressing, canned beans and pizza — foods whose salt content is so high that reducing it up to a point probably would not be noticed by many consumers.

Mr. Bloomberg called them “some of America’s most beloved and iconic foods,” suggesting that the cuts might have a disproportionately salutary effect. But Dr. Thomas A. Farley, the city’s health commissioner, said he did not know how much salt the results so far had removed from the average person’s diet.

One side effect of the salt reduction drive is that food companies are looking for salt substitutes to make food taste better.

The main way to do that is to add potassium chloride instead of sodium chloride, said Russ Moroz, vice president for research at Kraft Foods. But because potassium tends to have a bitter, mineral taste, other ingredients have to be added. He said these were proprietary secrets, and he declined to name them.

Potassium is good, Dr. Farley said, because it lowers blood pressure and most people do not get enough of it. It is removed from fruits and vegetable during processing, he said. Mr. Bloomberg said he thought fears of additives were overdone.

But a salt industry scientist said Monday that too much potassium could be bad for the kidneys, and that the “cocktail of chemical constituents” added to balance the bitterness and enhance the salty taste could present unknown risks, as those ingredients were undisclosed.

“They do it with one eye on the lab and the other eye on the label,” said Morton Satin, vice president for science and research at the Salt Institute, a trade association. “They make sure it’s below the level that the F.D.A. requires for it to be on the label.”

Mr. Satin said that the link between high blood pressure and salt was just “a theory,” and that reducing salt too much could have harmful effects, like iodine deficiency in children, a cause of mental retardation, and diabetes.

Some companies said reducing salt proved to be a popular marketing tool. Goya reported that it had reduced salt in its regular canned beans by 5 or 6 percent, without any drop in sales. “We tasted them, and you really wouldn’t notice the difference,” Joseph Perez, senior vice president of Goya Foods, said Monday.

Mr. Bloomberg said it might surprise many people to know that bread and rolls were the “biggest contributor” to salt in the diet. Eating a muffin, he said, could be worse than eating a small bag of Lays potato chips.

Bread makers are hard to spot on the list of companies that have pledged to reduce salt, perhaps, Mr. Satin said, because it is more difficult to make bread without salt. However, some companies, like Au Bon Pain, have reduced salt in some baked goods.

On an irreverent note, Mr. Bloomberg said that he loved Subway sandwiches and would eat his favorite, the Italian B.M.T. — it includes salami, pepperoni and ham — regardless of the salt content, but that he was glad that it now contained 27 percent less.

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Judge OKs auction of Hostess brands

Workers prepare Twinkies for packaging at a Schiller Park plant in 2005. The Twinkie, one of America's best-known snack treats, was created in Chicagoland by James Dewar in 1930. (Tim Boyle, Getty / April 20, 2005)

Reuters

6:01 p.m. CST, February 11, 2013

Hostess Brands Inc., the bankrupt maker of Twinkies snack cakes, received court permission on Monday to proceed with auctions for several of its brands, including Twinkies and Wonder Bread.

The U.S. Bankruptcy Court in White Plains, N.Y., cleared Hostess to sell off assets related to its Hostess and Dolly Madison Brands.

A hearing to approve the successful bidder is scheduled for March 19.

Private equity firms Apollo Global Management LLC and C. Dean Metropoulos & Co have set a baseline offer of $410 million to buy the company's snack cake brands including Hostess Twinkies and Dolly Madison, Hostess said last month.

The so-called stalking horse bid by the private equity firms, working together to buy the 82-year-old baker, would serve as the minimum offer for the business, which could still be topped by others.

Hostess was granted permission by a U.S. bankruptcy court judge in November to wind down its business and liquidate its assets after a strike by a baker's union crippled the company's operations.

The sale of assets, which range from Twinkies and Wonder Bread to real estate and baking equipment, is being run by Perella Weinberg Partners.

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Obama coming to Chicago to 'talk about the gun violence'

President Barack Obama will visit Chicago on Friday, when he will discuss gun violence as he focuses on his economic message from Tuesday's State of the Union address, according to the White House.

Obama will "talk about the gun violence that has tragically affected too many families in communities across Chicago and across the country," a White House official said in a statement.

The president's visit answers calls from Chicago anti-violence activists that Obama talk about the recent spate of gun violence in the city, several of the activists said.

"This is an important issue," said Cathy Cohen, founder of the Black Youth Project, which attracted about 45,000 signatures by Sunday night in an online petition that urges Obama to speak up. "We think of this as a victory for all of us."

The group posted the petition on change.org shortly after Hadiya Pendleton, 15, was shot to death last month at a South Side park. The King College Prep student was slain about a week after performing with her school band at Obama's inaugural festivities.

Since Hadiya was shot about a mile from the president's Kenwood neighborhood home Jan. 29, during the deadliest January for Chicago since 2002, pastors, parents and activists have demanded that more be done about the city's violence.

First lady Michelle Obama attended Hadiya's funeral Saturday. Hadiya's mother, Cleopatra Cowley-Pendleton, will also attend the president's State of the Union speech on Tuesday, family spokeswoman Shatira Wilks said late Sunday.

Hadiya's godmother, LaKeisha Stewart, said she hasn't heard whether the president will spend time with the Pendletons during his trip to Chicago.

Stewart said she's happy about Obama's plans. "Any awareness that can be brought to this issue that can prevent any family from ever feeling the pain that we as a family have felt … is awesome," she said. "This city is in pain right now."

Nathaniel Pendleton, Hadiya's father, said his family didn't know much about the president's Chicago trip, but "if he decided to speak with us, we'll be more than happy."

The Rev. Jesse Jackson said the president's remarks in Chicago will play a different role than Michelle Obama's attendance at Hadiya's funeral. The first lady didn't speak publicly about the events surrounding the teenager's death.

"Her being there is very important since it was her neighborhood," Jackson said. "I think the president's coming is important because she did not deal with the politics. … She dealt with the calming concern for a broken-hearted family," he said.

Jackson made a public appeal this month for the president to speak to the bloodshed in Chicago.

Because of the upcoming visit, parents of children who have been shot to death in the city will finally feel heard by Obama, said Annette Nance-Holt, who lost her son Blair Holt in 2007 after he was shot on a crowded CTA bus.

"This sends a message to the parents here that their kids are important too," Holt said. "It may not have been a big shooting with an assault rifle. But to see (Obama) come and hopefully rally some support here means a lot."

The White House said the president's visits to Asheville, N.C., Atlanta and Chicago this week will also press issues that he will raise in his State of the Union speech Tuesday.

"The president will travel to Chicago for an event amplifying some of the policy proposals included in the State of the Union that focus on strengthening the economy for the middle class and the Americans striving to get there," a White House official said in a statement.

Clergy on Sunday praised Obama's decision to speak in Chicago, arguing his speech could bring greater attention to the killings plaguing communities here.

"Hopefully and prayerfully, his coming will make a real impact," said the Rev. Kenneth Giles of Second Mount Olive Missionary Baptist Church in the South Austin neighborhood. "Now that the nation is focused on (gun violence), maybe they will hear his voice and hear what he has to say."

The Rev. Michael Pfleger, senior pastor of the South Side's St. Sabina Catholic Church, said he's grateful the president is "zooming in" on the issue.

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Stars show skin, but adhere to Grammy dress code

LOS ANGELES (Reuters) – There were no “wardrobe malfunctions” but stars at the 55th Grammy Awards were not covering up either, despite being asked to dress “appropriately.”

Presenter Jennifer Lopez, wearing a black off-the-shoulder Anthony Vaccarello gown slit up her thigh on one side, joked about her attire.

“As you can see, I read the memo,” said the diva who caused a stir a few years ago when she appeared at the Grammys in a Versace gown with a neckline that dropped below her navel.

“You inspired the memo!” said her co-presenter Pitbull, getting a big laugh from the audience.

Broadcaster CBS last week issued a memo asking that Grammy performers and presenters keep their breasts, buttocks and genitals covered up.

“I thought about the dress code. And thought about it again. And that’s about it. I respect it. See, I wore clothes,” Destiny’s Child singer Kelly Rowland told reporters backstage of her black Georges Chakra gown that featured several strategically placed cutouts.

Singer Kimbra, who recorded “Somebody That I Used to Know” with Gotye, and won Record of the Year, wore a sheer, sparkly dress with a skin-colored layer beneath, giving the illusion she was covered by strategically placed baubles. “I’m fine with the dress code,” she said on the red carpet.

Katy Perry bared her cleavage in a green gown, but Beyonce covered up in a black pantsuit for the red carpet and Rihanna chose an elegant red gown.

Redfoo, the flamboyant 37-year-old LMFAO singer, had some fun and showed off his legs on the red carpet, sporting knee length pants to go with his suit.

“I couldn’t wear no Speedo … so I got my suit on,” he told Reuters on the red carpet.

Singer Adele’s look was a little too conservative for some people’s tastes. Her red and pink, flowered-covered frock featured a high neck.

As usual, there were some kooky outfits on display. Al Walser, who was nominated for Best Dance Recording for his single, “I Can’t Live Without You,” donned an astronaut’s space suit.

Born in Switzerland to a mother from Lichtenstein and an African father, Walser explained that being from Lichtenstein was like being from another planet because it is so small.

Blues singer Dr. John wore a Mardi Gras-inspired feathered headdress for his performance with the Preservation Hall Jazz Band.

(Reporting By Nichola Groom and Susan Zeidler; Editing by Jill Serjeant and Stacey Joyce)

Music News Headlines – Yahoo! News

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