July 2009

KKR preparing up to six companies for IPOs: report (Reuters)

LONDON (Reuters) –
Private equity firm Kohlberg Kravis Roberts & Co (KKR.UL) is preparing up to six companies for initial public offerings (IPOs) in the next year, the Financial Times reported in its Saturday edition.

The newspaper quoted a person familiar with KKR as saying the companies it was preparing to float included toy retailer Toys R Us (TOY.UL), hospital group HCA, credit card processor First Credit, Danish telecoms group TDC and discount retailer Dollar General.

The report cited a person familiar with KKR's plans as saying there were five to six companies in the portfolio that could be taken public in the next 12 months.

The recession hit the valuations of private equity firms' portfolios, their ability to raise money from the large pension funds that invest in their funds, and their ability to do leveraged deals.

The IPO market almost dried up, but there are signs that it may be picking up.

KKR has investments in 50 companies with a combined $200 billion of revenue.

The Wall Street Journal reported earlier this week that KKR was in the advanced planning stage for an initial public offering of stock in Dollar General Corp.

KKR-backed Avago Technologies Ltd, a Singapore developer of semiconductor devices, has filed for an IPO.

In June, KKR and Boston mutual fund Fidelity Investments struck a deal to sell shares of KKR initial public offerings to retail customers.

Also last month, KKR announced plans to merge into its Amsterdam-listed fund, a roundabout way of gaining a European listing, while holding the door open for a possible move to the New York Stock Exchange.

(Reporting by Adrian Croft)

House approves $2 billion "clunker" extension (Reuters)

WASHINGTON (Reuters) –
The U.S. House of Representatives approved on Friday a $2 billion extension of the "Cash-for-Clunkers" automobile sales incentive program.

The Democratic proposal would run through September 30, 2010, and tap funds from an Energy Department loan guarantee program included in the economic stimulus package enacted in February.

An initial $1 billion in funding approved this summer to boost stagnant industry sales has already been exhausted, officials said.

Consumers stormed dealers over the past month to take advantage of federally backed rebates of up to $4,500 on trade ins of gas guzzlers for more fuel efficient vehicles.

Unofficial government and industry estimates show that close to 250,000 vehicles were sold under the program.

The Senate is expected to act on the House bill.

Already a key senator, Energy Committee Chairman Jeff Bingaman, said he opposes using Energy Department funds for the auto program.

Another senator, auto industry ally Debbie Stabenow, said pushing the measure out of Congress would potentially take a lot of work compared to the extraordinarily swift action in the House.

The White House supports new funding for the program on grounds the initiative so far has provided a viable, national economic stimulus amid recession.

(Reporting by John Crawley and Rick Cowan; editing by Gunna Dickson)

WTO takes up China-US dispute over poultry (AFP)

GENEVA (AFP) –
The World Trade Organization decided on Friday to rule on China's complaint over the US handling of Chinese poultry exports, after Beijing accused Washington of "naked discriminative protectionism."The WTO's members automatically set up a panel to examine the complaint at a meeting of its Disputes Settlement Body here, a trade source said, 11 days after China first requested its global trade watchdog to intervene.

"The panel was established," the source said.

Beijing says Washington is breaching international trade rules through several measures including an appropriations bill which it says result in a complete ban on imports of Chinese poultry.

"These unilateral measures fundamentally violate relevant WTO rules, significantly impede the ordinary Sino-US trade in poultry products, and substantially impair the rights and benefits that Chinese enterprises deserve to enjoy," China said in a statement released by its mission to the WTO.

"These measures are naked discriminative protectionism measures, which are strongly opposed by the Chinese government and enterprises," it added.

China and the United States halted imports of each other's poultry in 2004 over fears about the spread of bird flu.

Imports of some US poultry products to China have since been resumed but Chinese officials have complained that the United States continues to hold up reciprocal imports of Chinese poultry.

The United States has rejected China's complaint, arguing that its position was based on "an objective, science-based consideration" of evidence permitted under WTO rules.

The decision by the WTO's member states came after both sides failed to resolve their dispute in talks.

A panel of experts is set up automatically on the plantiff's second request, in this instance after the United States vetoed China's first request for a WTO ruling on July 20.

More Kids Becoming Severely Obese (HealthDay)

FRIDAY, July 31 (HealthDay News) -- In the last 25 years, rates
of severe childhood obesity in the United States have tripled, putting
increasing numbers of children at risk for diabetes and heart disease,
says a new study.

Researchers looked at National Health and Nutrition Survey data on
12,384 youths, ages 2 to 19 years, and found that the prevalence of severe
obesity increased from 0.8 percent in the period from 1976 to 1980 to 3.8
percent in 1999 to 2004. Severe obesity correlates to a body mass index
that's equal to or greater than the 99th percentile for age and
gender.

The finding could mean that 2.7 million children in the United States
are severely obese, the researchers said.

Black and Mexican-American children had the largest increases in severe
obesity, along with children in families below the poverty level. For
example, the percentage of severely obese Mexican-American children rose
from 0.9 percent to 5.2 percent.

The researchers also found that a third of severely obese children had
metabolic syndrome, a group of risk factors for diabetes, stroke and heart
attack. The risk factors include high blood pressure, cholesterol and
insulin levels.

The study appears online in Academic Pediatrics.

"Children are not only becoming obese but becoming severely obese,
which impacts their overall health," Dr. Joseph Skelton, an obesity expert
at Brenner Children's Hospital, part of Wake Forest University Baptist
Medical Center in Winston-Salem, N.C., and lead author of the study, said
in a news release from the center.

"These findings reinforce the fact that medically based programs to
treat obesity are needed throughout the United States, and insurance
companies should be encouraged to cover this care," Skelton said.

More information

The U.S. Centers for Disease Control and Prevention offers tips to help children maintain a healthy weight.

Judge in Mass. download case rules for music cos. (AP)

BOSTON – A federal judge has ruled that a Boston University student violated copyright laws when he swapped music online, paving the way for a jury to begin considering damages Friday.
Joel Tenenbaum, 25, of Providence, R.I., admitted on the witness stand Thursday that he downloaded and shared hundreds of songs by Nirvana, Green Day, The Smashing Pumpkins and other artists.
"Tenenbaum's statement plainly admits liability on both downloading and distributing, does so in the very language of the statute ... and does so with respect to each and every sound recording at issue here," U.S. District Judge Nancy Gertner in Boston wrote in her ruling late Thursday.
Gertner said the only issue for the jury now is whether his infringement was willful, and how much in damage to award four recording labels that sued him over the illegal file-sharing.
The recording industry focused on only 30 songs in the case, the nation's second music-downloading lawsuit against an individual to go to trial.
Under federal law, the recording companies are entitled to $750 to $30,000 per infringement but the law allows the jury to raise that to as much as $150,000 per track if it finds the infringements were willful. That means a maximum penalty of $4.5 million.
Last month, a federal jury in Minneapolis ruled a Minnesota woman must pay $1.92 million, or $80,000 on each of 24 songs, after concluding Jammie Thomas-Rasset, 32, willfully violated the copyrights on those tunes.
The music industry has typically offered to settle such cases for about $5,000, though it has said that it stopped filing such lawsuits last August and is instead working with Internet service providers to fight the worst offenders. Cases already filed, however, are proceeding to trial.
If the jury awards the minimum of $750 per infringement, damages would come to $22,500, or more than four times the typical settlement.
Tenenbaum admitted on the witness stand Thursday that he had downloaded more than 800 songs from 1999 to 2007. He testified that he had lied in pretrial depositions when he said his two sisters, friends and others may have been responsible for downloading the songs to his computer.
Under questioning from his own lawyer, Harvard Law School professor Charles Nesson, Tenenbaum said he now takes responsibility for the illegal swapping.
"I used the computer. I uploaded, I downloaded music ... I did it," Tenenbaum said.
His testimony contrasted with the tactic used by Thomas-Rasset. Even after the jury's verdict, she declared, "There's no way they're ever going to get that."
In opening arguments Tuesday, Nesson said Tenenbaum "was a kid who did what kids do" and should not be harshly penalized for technological advances that he said recording companies have been slow to embrace.
But Tim Reynolds, one of the lawyers representing the recording industry, said then that song-swappers like Tenenbaum take a significant toll on the recording industry's revenues and on backup singers, sound engineers and other people who make a living in music.
The four recording labels involved in the Tenenbaum case are subsidiaries of Universal Music Group, Warner Music Group Corp. and Sony Corp.

Mariners deal Washburn to Detroit for 2 pitchers (AP)

SEATTLE – After days of debate, the Seattle Mariners have traded left-handed pitcher Jarrod Washburn to the Detroit Tigers in exchange for left-hander Luke French and minor-league prospect Mauricio Robles.
The Mariners announced the deal Friday morning, just hours before the non-waiver trade deadline arrived.
Washburn has turned around his career this season. After three lackluster years in Seattle, the left-hander is 8-6 with a 2.64 ERA this season.
Washburn will be a free agent this offseason, and the Mariners decided to maximize his trade value.
French has split the season between Detroit and Triple-A Toledo. He is 1-2 with a 3.38 ERA in five starts for the Tigers.

Clinton "deplores" any abuse of prisoners in Iran (Reuters)

WASHINGTON (Reuters) –
U.S. Secretary of State Hillary Clinton on Wednesday "deplored" the alleged abuse of political prisoners in Iran following the election and urged their immediate release.

"We believe that it is imperative for (Iran) ... to release political prisoners and treat them appropriately and humanely," said Clinton, adding that the continued detention and alleged abuse of prisoners suggested the political situation inside of Iran had not been resolved.

(Reporting by Sue Pleming, Editing by Sandra Maler)

Car bomb injures 46 at Spain barracks; ETA blamed (Reuters)

MADRID (Reuters) –
A car bomb exploded outside a Civil Guard barracks in the northern Spanish city of Burgos on Wednesday, injuring 46 people, including children, in an attack authorities blamed on Basque separatist rebels ETA.

The blast at around 4 a.m. ripped away most of the outer wall of the multi-storey barracks in of the biggest attacks for some time by ETA, whose ranks have been decimated by arrests.

"They're murderous, savage and crazy, which does not make them stronger but doubtlessly makes them more dangerous," Interior Minister Alfredo Perez Rubalcaba told a news conference in Burgos after visiting the ruined barracks.

ETA is held responsible for killing more than 800 people in the past 40 years in a campaign to carve out an independent Basque homeland in northern Spain and southern France. It typically uses shootings and car bombs, often targeted at police and army barracks.

Most of the injured, who included children, suffered cuts and bruises and although no one was in serious condition, 38 had been transferred to hospital in the historic cathedral town, the spokesman said.

The car packed with explosives had been parked outside the barracks, home to members of Spain's paramilitary police force and their families.

"There were almost 120 people asleep in their apartments that night, including 41 children," Rubalcaba said.

"This was a horrendous attack which wasn't aimed just at the Civil Guard ... but at their families, which makes it especially wicked," he said.

Authorities say ETA is under pressure to show it can still mount attacks despite having been weakened by a series of arrests including that of its suspected top commander, Jurdan Martitegi, in April. His capture brought to four the number of commanders caught in less than a year.

Polls indicate most Basques in Spain would favor some sort of independence, although support for ETA violence is confined to a diminishing minority.

The most recent killing blamed on the group was on June 19, when a police inspector died in a booby-trapped car in the northern city of Bilbao.

Socialist Prime Minister Jose Luis Rodriguez Zapatero's Socialist government broke off peace talks with ETA after the rebels killed two people with a car bomb at Madrid airport in December 2006.

Eighteen more suspected ETA members were captured in a three-week period in June and July.

Live Food

Mealworms are typically used as a food source for reptile and avian pets. They are also provided to wild birds in bird feeders, particularly during the nesting season when birds are raising their young and appreciate a ready food supply. Mealworms are high in protein, which makes them especially useful as a food source. They are also commonly used for fishing bait.

Mealworm beetles (darkling beetles) are prolific breeders. Mating is a three step process: 1) The male gives chase until the female relents. 2) The male then mounts the female and curls his genitals (aedagus) underneath himself and inserts it into her genital tract. 3) The male then injects a packet of semen into the female. Dependent on incubation temperature, just days after mating the female will burrow into soft ground and lays about 500 eggs.

Live Food

Powell: Harvard scholar might have reacted quickly (AP)

WASHINGTON – Former Secretary of State Colin Powell was mildly critical Tuesday of Harvard professor Henry Louis Gates Jr., whose angry response to a Cambridge, Mass., police officer touched off a national debate involving President Barack Obama.
Powell, interviewed by CNN's Larry King, criticized the way Gates dealt with Sgt. James Crowley, a white officer who responded to reports of a possible break-in by arresting the black professor at his home on a charge of disorderly conduct. The charge was soon dropped.
Gates "might have waited a while, come outside, talked to the officer, and that might have been the end of it," said Powell, one of the nation's most prominent African Americans.
"I think he should have reflected on whether or not this was the time to make that big a deal," he said.
But, Powell said, Gates was just home from China and New York and "all he wanted to do was get to bed."
When asked about the incident at a news conference, Obama said the police acted stupidly. The president subsequently toned down his criticism but not his denunciation of racial profiling generally.
Powell said he was the target of racial profiling many times and he sometimes got mad.
On one such occasion, he said, he tried to meet someone at Reagan National Airport "and nobody thought I could be the national security adviser to the president. I was just a black guy."
Asked how he dealt with the situation, Powell said "You just suck it up. What are you going to do?"
"There is no African American in this country who has not been exposed to this kind of situation," Powell said.
But, he said, "when you are faced with an officer trying to do his job and get to the bottom of something, this is not the time to get in an argument with him. I was taught that as a child.
"You don't argue with a police officer," Powell said.