Clues to why most survived China melamine scandal


WASHINGTON (AP) — Scientists wondering why some children and not others survived one of China's worst food safety scandals have uncovered a suspect: germs that live in the gut.


In 2008, at least six babies died and 300,000 became sick after being fed infant formula that had been deliberately and illegally tainted with the industrial chemical melamine. There were some lingering puzzles: How did it cause kidney failure, and why wasn't everyone equally at risk?


A team of researchers from the U.S. and China re-examined those questions in a series of studies in rats. In findings released Wednesday, they reported that certain intestinal bacteria play a crucial role in how the body handles melamine.


The intestines of all mammals teem with different species of bacteria that perform different jobs. To see if one of those activities involves processing melamine, researchers from the University of North Carolina at Greensboro and Shanghai Jiao Tong University gave lab rats antibiotics to kill off some of the germs — and then fed them melamine.


The antibiotic-treated rats excreted twice as much of the melamine as rats that didn't get antibiotics, and they experienced fewer kidney stones and other damage.


A closer look identified why: A particular intestinal germ — named Klebsiella terrigena — was metabolizing melamine to create a more toxic byproduct, the team reported in the journal Science Translational Medicine.


Previous studies have estimated that fewer than 1 percent of healthy people harbor that bacteria species. A similar fraction of melamine-exposed children in China got sick, the researchers wrote. But proving that link would require studying stool samples preserved from affected children, they cautioned.


Still, the research is pretty strong, said microbiologist Jack Gilbert of the University of Chicago and Argonne National Laboratory, who wasn't involved in the new study.


More importantly, "this paper adds to a growing body of evidence which suggests that microbes in the body play a significant role in our response to toxicity and in our health in general," Gilbert said.


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Wall Street pauses after rally to five-year high

NEW YORK (Reuters) - Stocks drifted in light volume on Wednesday, ending little changed, as investors remained cautious after the S&P 500 index briefly hit its highest intraday level since November 2007.


The S&P 500 was buoyed by General Electric after cable company Comcast Corp said it will buy from GE the the part of NBCUniversal it didn't already own for $16.7 billion.


Comcast's stock hit the highest since 1999 before closing up 3 percent at $40.13 and GE gained 3.6 percent to $23.39.


The S&P 500 is up 6.6 percent so far this year, partly due to stronger-than-expected corporate earnings and a better economic outlook. The Dow industrials is about 1 percent away from an all-time intraday high, reached in October 2007.


Volume has been weak in recent days with the S&P moving sideways around 1,520. The index is about 3 percent away from closing at a record high.


A scarcity of sellers after a consistent string of gains is a positive sign and shows the uptrend is intact, King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco, said.


"Last year we had double-digit returns in the first quarter. It's fairly possible we can move higher from here," he said.


The Dow Jones industrial average <.dji> fell 35.79 points or 0.26 percent, to 13,982.91, the S&P 500 <.spx> gained 0.9 point or 0.06 percent, to 1,520.33 and the Nasdaq Composite <.ixic> added 10.38 points or 0.33 percent, to 3,196.88.


The S&P gained 12 percent in the first three months of 2012.


Deere & Co , the world's largest farm equipment maker, forecast a modest increase in sales this year despite the prospect of the biggest corn crop in U.S. history. The forecast fell short of analysts' expectations, sending shares of Deere down 3.5 percent to $90.68.


In extended trading, shares of technology bellwether Cisco Systems fell 2 percent after it posted results.


Dr Pepper Snapple fell 5.8 percent to $42.69 after it forecast profit for the current year below analysts' estimates.


Cliffs Natural Resources lost a fifth of its market value a day after the miner reported a quarterly loss and slashed its dividend by 76 percent. Its shares fell 20 percent to 429.29.


According to the latest Thomson Reuters data, of the 364 companies in the S&P 500 that have reported results, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.


About 5.9 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average in February last year of 6.94 billion.


On the NYSE, roughly seven issues rose for every five that fell and on Nasdaq more than six rose for every five decliners.


(Editing by Kenneth Barry and Bernadette Baum)



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Ovation for Pope Benedict at final public mass


VATICAN CITY (Reuters) - A capacity crowd in St Peter's Basilica gave Pope Benedict a thunderous standing ovation on Wednesday at an emotional last public Mass before he resigns at the end of the month.


"Thank you. Now, let's return to prayer," the 85-year-old pontiff said, bringing an end to several minutes of applause that clearly moved him. In an unusual gesture, bishops took off their mitres in a sign of respect and a few of them wept.


One of the priests at the altar, which according to tradition rests above the tomb of St Peter, took out a handkerchief to dry his tears.


The Mass was moved to St Peter's from a venue in Rome so more people could attend. Hundreds of others waited outside.


Hours earlier in the Vatican's modern audience hall, a visibly moved Benedict tried to assure his worldwide flock, saying he was confident his decision to step down would not hurt the Church.


The Vatican, meanwhile, announced that a conclave to elect his successor would start sometime between March 15 and March 20, in keeping with Church rules about the timing of such gatherings after the papal see becomes vacant.


"Continue to pray for me, for the Church and for the future pope," he said in unscripted remarks at the start of his weekly general audience, his first public appearance since his shock decision on Monday that he will step down on February 28.


It was the first time Benedict, 85, who will retire to a convent inside the Vatican, exchanging the splendor of his 16th century Apostolic Palace for a sober modern residence, had uttered the words "future pope" in public.


Church officials are still so stunned by the move that the Vatican experts have yet to decide what his title will be and whether he will continue to wear the white of a pope, the red of a cardinal or the black of an ordinary priest.


His voice sounded strong at the audience but he was clearly moved and his eyes appeared to be watering as he reacted to the thunderous applause in the Vatican's vast audience hall, packed with more than 8,000 people.


In brief remarks in Italian that mirrored those he read in Latin to stunned cardinals on Monday he appeared to try to calm Catholics' fears of the unknown.


He message was that God would continue to guide the Church.


EXAMINATION OF CONSCIENCE


"I took this decision in full freedom for the good of the Church after praying for a long time and examining my conscience before God," he said.


He said he was "well aware of the gravity of such an act," but also aware that he no longer had the strength required to run the 1.2 billion member Roman Catholic Church, which has been beset by a string of scandals both in Rome and round the world.


Benedict said he was sustained by the "certainty that the Church belongs to Christ, who will never stop guiding it and caring for it" and suggested that the faithful should also feel comforted by this.


He said that he had "felt almost physically" the affection and kindness he had received since he announced the decision.


When Benedict resigned on Monday, the Vatican spokesman said the pontiff did not fear schism in the Church after his resignation.


Some 115 cardinals under the age of 80 will be eligible to enter a secret conclave to elect his successor.


Cardinals around the world have already begun informal consultations by phone and email to construct a profile of the man they think would be best suited to lead the Church in a period of continuing crisis.


The conservative Benedict has appointed more than half of the cardinals who will elect his successor so it is unlikely the new man will tamper with any teachings such as the ban on artificial birth control or women priests.


But many in the Church have been calling for the election of someone who they say will be a better listener to other opinions in the Church.


The likelihood that the next pope would be a younger man and perhaps a non-Italian, was increasing, particularly because of the many mishaps caused by Benedict's mostly Italian top aides.


Benedict has been faulted for putting too much power in the hands of his friend, Secretary of State Cardinal Tarcisio Bertone. Critics of Bertone, effectively the Vatican's chief administrator, said he should have prevented some papal mishaps and bureaucratic blunders.


ILL-SERVED POPE


"These scandals, these miscommunications, in many cases were caused by Pope Benedict's own top aides and I think a lot of Catholics around the world think that he was perhaps ill-served by some of the cardinals here," said John Thavis, author of a new book, The Vatican Diaries.


Benedict's papacy was rocked by crises over sex abuse of children by priests in Europe and the United States, most of which preceded his time in office but came to light during it.


His reign also saw Muslim anger after he compared Islam with violence. Jews were upset over rehabilitation of a Holocaust denier. During a scandal over the Church's business dealings, his butler was accused of leaking his private papers.


"When cardinals arrive here for the conclave ... they are going to have this on their mind, they're going to take a good hard look at how Pope Benedict was served, and I think many of them feel that the burden of the papacy that finally weighed so heavy on Benedict was caused in part by some of this in-fighting (among his administration)," Thavis told Reuters.


Vatican spokesman Father Federico Lombardi urged the faithful to remain confident in the Church and its future.


"Those who may feel a bit disorientated or stunned by this, or have a hard time understanding the Holy Father's decision should look at it in the context of faith and the certainty that Christ will support his Church," Lombardi said.


Lombardi said that on his last day in office, Benedict would receive cardinals in a farewell meeting and after February 28 his ring of office, used to seal official documents, would be destroyed just as if he had died.


(Reporting by Philip Pullella; Editing by Giles Elgood)



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Stop blaming video games for America’s gun violence






Recently, America’s attention has been understandably focused on the potential causes of increased violence – especially gun violence – particularly among children and youth, and how to stop it. Alongside gun-control proposals, some of which President Obama is likely to highlight in his State of the Union address tonight, much of that attention has looked at the potential of violent video games to cause or exacerbate the tendencies of youth to engage in real, harmful violence.


While I applaud increased vigilance on the part of parents in supervising their children’s behaviors and pastimes, a child playing a violent video game does not necessarily increase the likelihood that he or she will engage in real violence at that age or later in life.






Various reports and commentaries have documented the fact that Sandy Hook shooter Adam Lanza’s video game playing included violent shooter games like Call of Duty, Counterstrike, and Starcraft. Some have cited that activity as a possible cause for his shooting massacre.


ANOTHER VIEW: Gabrielle Giffords and NRA are both right about one thing: US culture of violence


But if Lanza was playing Call of Duty 4, he was one of millions. On the Xbox 360 console alone, the game’s developer, Infinity Ward, has documented nearly 4.4 million online players, not counting players who use a PlayStation 3 or aren’t online. The statistics for Counterstrike are similar – an estimated 62,142 per day. And Starcraft is so popular in Korea, that it has professional leagues and an estimated online player population of around 50,000 each day.


Of those millions of players, few commit an act of violence, certainly not enough to say that, statistically, video game play is a principle cause – or even a significant cause – of real-world violent behavior.


So why are so many people blaming the video game industry?


It’s a phenomenon known as “cultural lag,” and it’s what causes us to be hesitant in adopting new technologies, trying new fads, and changing our social mores. Cultural lag can be a good thing – some new things are dangerous, come with high levels of risk, and can infinitely do more harm than good. But cultural lag also can inhibit the development of technologies and society because of irrational fears, which is what I’m seeing with recent criticism of the gaming industry.


Before video games, society blamed rock ‘n’ roll for violence and bad behavior among young people. Before rock ‘n’ roll, we blamed television. Before television, movies. Before movies, mystery novels, which were once known as “penny dreadfuls.” Before mystery novels, Shakespeare, who repeatedly was accused of producing violent, lecherous, and otherwise improper behavior in his audience.


In essence, as a society, we always will try to find out “why” bad things happen, but we aren’t actually very good at finding the answers. We look back at our past with rose-colored glasses and look forward into the future with trepidation.


We see our own childhoods as joyful and carefree, and when, as adults, we are exposed to the grim realities of our world, we wonder, “What happened?”. And then we try to explain the difference between the past that we remember and the present as we perceive it. When we do this, we very often look to technologies that did not exist 20, 30, or 40 years ago, and we think: That didn’t exist back then when things were “better,” therefore it must have some impact on why things have “gotten worse” now.


First of all, I am unconvinced that “things have gotten worse,” but even if we assume that they have, in blaming technologies like video games for real-life violence, we assume causation, where numerous studies show there is only correlation – at best. This is tantamount to assuming, as journalist Jeanine Celestin-Greer of Gamastura (a gaming journalism website) points out, that because Lanza drank Mountain Dew, Mountain Dew causes violent behavior.


In a recent article in The Chronicle of Higher Education, Christopher J. Ferguson, a psychologist at Texas A&M International University, claimed that the recent outcry against video games as the cause of “school shootings” in general is patently fallacious. He explains that among hundreds of studies on violence and video games, not a single one has proven conclusively a causal relationship between violent behaviors in the real world and violent video-game play. And yet, scholars and politicians who often have little to no experience playing video games themselves continue to suggest that this is the case.


Americans need to stop trying to blame something other than ourselves for the increase – if there is an increase – in violent behavior.


Video games, music, television, movies, novels, and Shakespeare don’t cause violence. Mental illness, psychological abuse, and physical abuse cause violence. Ideologies that reward and condone aggression, particularly in men, cause violence. Global genocide causes violence. The only conclusive evidence we do have is that it is real-life violence that causes real-life violence.


As long as we, as a society, condone violence in the name of nationalism, continue to minimize domestic violence and rape, and promote aggression as ideal masculinity, violence will continue to be a problem in our homes, on our streets, and in our schools. Critics will argue that the imagery and plots of video games do just that – and in turn, perpetuate those behaviors. Yes, video games reflect some of these highly problematic aspects of our society that contribute to a tolerance of violence. Just like movies and books. But they don’t cause it.


Remove video games from the equation and you will still have a commensurate level of violence.


And yes, video games can influence ideology, but they aren’t the only – or even the predominant – influence on society or an individual. In fact, video games can influence our ideologies in as many if not more positive ways than they do negative ones. Many recent games actually encourage players to play non-violently and reward players for humane treatment and good judgment.


So while video games are influencing us, and sometimes through violent images and play, many of them are pushing us to criticize the very violence that some people seem to believe they are causing.


OPINION: 6 reasons why President Obama will defeat the NRA and win universal background checks


The dialogue we need to have is about real violence, not virtual violence, and I sincerely hope that America’s leaders recognize this as we move forward in addressing the problem.


Kristin M.S. Bezio is an assistant professor at the University of Richmond’s Jepson School of Leadership Studies. Her research explores the intersection of literature and leadership, looking at influences ranging from Shakespeare to video gaming.


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Alec Baldwin Expecting a Baby with Wife

Newlyweds Alec and Hilaria Baldwin are ready to start a family.

RELATED: Most Memorable Celeb Weddings of 2012

A rep for the former 30 Rock star confirmed to People on Tuesday that the couple are expecting their first child together.

"We're so thrilled and we can't wait to meet our baby," Alec and Hilaria told People.

This will be the second child for Alec, 54, who fathered a daughter, Ireland, with his ex-wife Kim Basinger.

Alec and Hilaria wed at St. Patrick's Old Cathedral in New York on June 30, 2012, three months after announcing their engagement.

Coincidentally, Alec's former co-star, Tracy Morgan, is also expecting a baby. He made the announcement just hours before the 30 Rock series finale.

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Pope shows lifetime jobs aren't always for life


The world seems surprised that an 85-year-old globe-trotting pope who just started tweeting wants to resign, but should it be? Maybe what should be surprising is that more leaders his age do not, considering the toll aging takes on bodies and minds amid a culture of constant communication and change.


There may be more behind the story of why Pope Benedict XVI decided to leave a job normally held for life. But the pontiff made it about age. He said the job called for "both strength of mind and body" and said his was deteriorating. He spoke of "today's world, subject to so many rapid changes," implying a difficulty keeping up despite his recent debut on Twitter.


"This seemed to me a very brave, courageous decision," especially because older people often don't recognize their own decline, said Dr. Seth Landefeld, an expert on aging and chairman of medicine at the University of Alabama at Birmingham.


Age has driven many leaders from jobs that used to be for life — Supreme Court justices, monarchs and other heads of state. As lifetimes expand, the woes of old age are catching up with more in seats of power. Some are choosing to step down rather than suffer long declines and disabilities as the pope's last predecessor did.


Since 1955, only one U.S. Supreme Court justice — Chief Justice William Rehnquist — has died in office. Twenty-one others chose to retire, the most recent being John Paul Stevens, who stepped down in 2010 at age 90.


When Thurgood Marshall stepped down in 1991 at the age of 82, citing health reasons, the Supreme Court justice's answer was blunt: "What's wrong with me? I'm old. I'm getting old and falling apart."


One in 5 U.S. senators is 70 or older, and some have retired rather than seek new terms, such as Hawaii's Daniel Akaka, who left office in January at age 88.


The Netherlands' Queen Beatrix, who just turned 75, recently said she will pass the crown to a son and put the country "in the hands of a new generation."


In Germany, where the pope was born, Chancellor Angela Merkel, who is 58, said the pope's decision that he was no longer fit for the job "earns my very highest respect."


"In our time of ever-lengthening life, many people will be able to understand how the pope as well has to deal with the burdens of aging," she told reporters in Berlin.


Experts on aging agreed.


"People's mental capacities in their 80s and 90s aren't what they were in their 40s and 50s. Their short-term memory is often not as good, their ability to think quickly on their feet, to execute decisions is often not as good," Landefeld said. Change is tougher to handle with age, and leaders like popes and presidents face "extraordinary demands that would tax anybody's physical and mental stamina."


Dr. Barbara Messinger-Rapport, geriatrics chief at the Cleveland Clinic, noted that half of people 85 and older in developed countries have some dementia, usually Alzheimer's. Even without such a disease, "it takes longer to make decisions, it takes longer to learn new things," she said.


But that's far from universal, said Dr. Thomas Perls, an expert on aging at Boston University and director of the New England Centenarians Study.


"Usually a man who is entirely healthy in his early 80s has demonstrated his survival prowess" and can live much longer, he said. People of privilege have better odds because they have access to good food and health care, and tend to lead clean lives.


"Even in the 1500s and 1600s there were popes in their 80s. It's remarkable. That would be today's centenarians," Perls said.


Arizona Sen. John McCain turned 71 while running for president in 2007. Had he won, he would have been the oldest person elected to a first term as president. Ronald Reagan was days away from turning 70 when he started his first term as president in 1981; he won re-election in 1984. Vice President Joe Biden just turned 70.


In the U.S. Senate, where seniority is rewarded and revered, South Carolina's Strom Thurmond didn't retire until age 100 in 2002. Sen. Robert Byrd of West Virginia was the longest-serving senator when he died in office at 92 in 2010.


Now the oldest U.S. senator is 89-year-old Frank Lautenberg of New Jersey. The oldest congressman is Ralph Hall of Texas who turns 90 in May.


The legendary Alan Greenspan was about to turn 80 when he retired as chairman of the Federal Reserve in 2006; he still works as a consultant.


Elsewhere around the world, Cuba's Fidel Castro — one of the world's longest serving heads of state — stepped down in 2006 at age 79 due to an intestinal illness that nearly killed him, handing power to his younger brother Raul. But the island is an example of aged leaders pushing on well into their dotage. Raul Castro now is 81 and his two top lieutenants are also octogenarians. Later this month, he is expected to be named to a new, five-year term as president.


Other leaders who are still working:


—England's Queen Elizabeth, 86.


—Abdullah bin Abd al-Aziz al-Saud, king of Saudi Arabia, 88.


—Sabah al-Ahmad al-Jaber al-Sabah, emir of Kuwait, 83.


—Ruth Bader Ginsburg, U.S. Supreme Court associate justice, 79.


__


Associated Press writers Paul Haven in Havana, Cuba; David Rising in Berlin; Seth Borenstein, Mark Sherman and Matt Yancey in Washington, and researcher Judy Ausuebel in New York contributed to this report.


___


Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP


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Dell to go private in landmark $24.4 billion deal


By Poornima Gupta and Nadia Damouni and Greg Roumeliotis


SAN FRANCISCO/NEW YORK (Reuters) - Michael Dell struck a deal to take Dell Inc private for $24.4 billion in the biggest leveraged buyout since the financial crisis, partnering with the Silver Lake private equity firm and Microsoft Corp to try to turn around the struggling computer company without Wall Street scrutiny.


The deal, which requires approval from a majority of shareholders excluding Dell himself, would end a 24-year run on public markets for a company that was conceived in a college dorm room and quickly rose to the top of the global personal computer business - only to be rendered an also-ran over the past decade as PC prices crumbled and customers moved to tablets and smartphones.


Dell executives said on Tuesday that the company will stick to a strategy of expanding its software and services offerings for large companies, with the goal of becoming a full-service provider of corporate computing services in the mold of the highly profitable IBM. They played down speculation that Dell might spin off the low-margin PC business on which it made its name.


Dell did not give specifics on what it would do differently as a private entity, angering some shareholders who said they needed more information to determine whether the $13.65-a-share deal price - a 25 percent premium over Dell's stock price before buyout talks leaked in January - was adequate.


"This feels like the ultimate insider trade. Why weren't the plans and projections that Michael Dell has going forward been shared with me and other shareholders?" said Frederick "Shad" Rowe, general partner of Greenbrier Partners and a trustee of the $22 billion Texas Employees Retirement System. Rowe said he dumped about 400,000 shares of Dell on Tuesday, adding, "I was so irritated I didn't want to think about it anymore.


Dell spokesman David Frink said the board had conducted an extensive review of strategic options before agreeing to the buyout to ensure that the best interests of all stockholders were served.


Although Dell shares were trading at more than $18 a year ago, many analysts said they believed the majority of shareholders will accept the buyout because of pessimism over the growth prospects of the PC business.


"A private Dell is likely to more aggressively cut costs, in our view. But we think merely restructuring only postpones the inevitable, creating a value trap," said Discern Inc analyst Cindy Shaw. "Dell needs to do more than reduce its cost structure. It needs to innovate."


Dell was regarded as a model of innovation as recently as the early 2000s, pioneering online ordering of custom-configured PCs and working closely with Asian component suppliers and manufacturers to assure rock-bottom production costs. But it missed the big industry shift to tablet computers, smartphones and high-powered consumer electronics such as music players and gaming consoles.


As of 2012's fourth quarter, Dell's share of the global PC market had slipped to just above 10 percent from 12.5 percent a year earlier as its shipments dived 20 percent, according to research house IDC.


Some of Dell's rivals took pot shots at the deal, in unusually pointed comments that reflect how bitter the struggle is in a commoditized PC industry that has wrestled to reverse a decline in sales globally.


Hewlett-Packard Co, which itself has suffered years of turmoil in the face of challenges in the PC business, said in a statement that Dell's deal would "leave existing customers and innovation at the curb," and vowed to exploit the opportunity.


Lenovo, which consists largely of the former IBM PC unit, referred to the "distracting financial maneuvers and major strategic shifts" of its rival while emphasizing its own stability and strong financial position.


The deal will be financed with cash and equity from Michael Dell, $1 billion cash from private equity firm Silver Lake, a $2 billion loan from Microsoft Corp, and between $11 billion and $12 billion in debt financing from Bank of America Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets.


The company said Michael Dell will contribute his 16 percent stake in the company but did not say how much cash he would inject. The company will now conduct a 45-day "go-shop" process in which others might make higher offers.


"Though we were hoping for a higher price, we trust that the Dell board has properly done its job by conducting a process open to any third-party offers and reviewing all strategic options," said Bill Nygren, who manages the $7.3 billion Oakmark Fund and $3.2 billion Oakmark Select Fund, which have a $250 million position in Dell.


"Should we hear evidence to the contrary, we'll raise a ruckus."


Sources with knowledge of the matter said Dell's board, advised by the Boston Consulting Group, had considered everything from a leveraged recapitalization to a breakup of the company before agreeing to the LBO.


Although the deal will load Dell with more debt, some Wall Street analysts said that was relatively low compared to the cash the company generates.


Bernstein Research analyst Toni Sacconaghi said that if Dell were to use 40 percent of its annual cash flow of about $2.5 billion to $3 billion to pay down debt, a sale of the company in about five years could net Silver Lake, Mike Dell and other investors close to $10 billion, or 5 times free cash flow at the time.


Helped by acquisitions, Dell has been building a business selling servers, IT services and other products for corporate clients that - while still dwarfed by IBM's and HP's - is growing at a near-10 percent clip. Critics say it will not be easy for Dell to beat IBM and HP in this area, no matter what its corporate structure.


Sales of PCs still make up the majority of Dell's revenues. Dell said in a regulatory filing that no new job cuts were expected but it indicated more acquisitions down the road. The company has spent $13 billion since fiscal 2008 to acquire more than 20 companies including several large software and services companies as it seeks to reconfigure itself as a broad-based supplier of technology for big companies.


"We recognize this process will take more time," Chief Financial Officer Brian Gladden told Reuters. "We will have to make investments, and we will have to be patient to implement the strategy. And under a new private company structure, we will have time and flexibility to really pursue and realize the end-to-end solutions strategy."


Gladden said the company's strategy would "generally remain the same" after the deal closed, but "we won't have the scrutiny and limitations associated with operating as a public company."


Shares of Dell closed 1.1 percent higher at $13.42.


FALL FROM GRACE


Michael Dell returned to the company as CEO in 2007 after a brief hiatus but has been unable to engineer a turnaround thus far. Analysts said Dell could be more nimble as a private company, but it will still have to deal with the same difficult market conditions.


There is little history to suggest whether going private makes such a transition easier. IBM's famously successful transition from hardware vendor to corporate IT partner took place while it was trading on public markets.


Freescale, formerly the semiconductor division of Motorola, was taken private in 2006 for $17.6 billion by a group of private equity firms including Blackstone Group LP, Carlyle Group and TPG Capital LP. Analysts say the resulting debt load hurt its ability to compete in the capital-intensive chip business. Freescale cut just under 5 percent of its work force last year as it continued to restructure.


Microsoft's involvement in the Dell deal piqued much speculation about a renewed strategic partnership, but the software company is providing only debt financing and Dell said there were no specific business terms attached to the transaction. Dell has long been loyal to Microsoft's Windows operating system, which has been at the heart of its PC business since its inception.


Microsoft's loan will take the form of a 10-year subordinated note with roughly 7 percent to 8 percent interest, a source close to the matter told Reuters.


The Dell deal would be the biggest private equity-backed leveraged buyout since Blackstone Group LP's takeout of the Hilton Hotels Group in July 2007 for more than $20 billion and is the 11th-largest on record.


The parties expect the transaction to close before the end of Dell's 2014 second quarter, which ends in July. News of the talks first emerged on January 14, although they reportedly started in the latter part of 2012. Michael Dell had previously acknowledged thinking about going private as far back as 2010.


J.P. Morgan and Evercore Partners were financial advisers, and Debevoise & Plimpton LLP was the legal adviser to the special committee of Dell's board. Goldman Sachs was financial adviser, and Hogan Lovells was legal adviser to Dell.


Wachtell, Lipton, Rosen & Katz was legal adviser to Michael Dell. BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets were financial advisers to Silver Lake, and Simpson Thacher & Bartlett LLP was its legal adviser. Lazard Ltd advised Microsoft.


(Additional reporting by Aaron Pressman in Boston; Writing by Ben Berkowitz and Edwin Chan; Editing by Tiffany Wu, Leslie Gevirtz and Cynthia Osterman)



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North Korean nuclear test draws anger, including from China


SEOUL (Reuters) - North Korea conducted its third nuclear test on Tuesday in defiance of U.N. resolutions, drawing condemnation from around the world, including from its only major ally, China, which summoned the North Korean ambassador to protest.


Pyongyang said the test was an act of self-defense against "U.S. hostility" and threatened stronger steps if necessary.


The test puts pressure on U.S. President Barack Obama on the day of his State of the Union speech and also puts China in a tight spot, since it comes in defiance of Beijing's admonishments to North Korea to avoid escalating tensions.


The U.N. Security Council held an emergency meeting at which its members, including China, "strongly condemned" the test and vowed to start work on appropriate measures in response, the president of the council said.


North Korean leader Kim Jong-un, the third of his line to rule the country, has presided over two long-range rocket launches and a nuclear test during his first year in power, pursuing policies that have propelled his impoverished and malnourished country closer to becoming a nuclear weapons power.


North Korea said the test had "greater explosive force" than those it conducted in 2006 and 2009. Its KCNA news agency said it had used a "miniaturized" and lighter nuclear device, indicating it had again used plutonium, which is suitable for use as a missile warhead.


China, which has shown signs of increasing exasperation with the recent bellicose tone of its reclusive neighbor, summoned the North Korean ambassador in Beijing and protested sternly, the Foreign Ministry said.


Foreign Minister Yang Jiechi said China was "strongly dissatisfied and resolutely opposed" to the test and urged North Korea to "stop any rhetoric or acts that could worsen situations and return to the right course of dialogue and consultation as soon as possible".


Analysts said the test was a major embarrassment to China, which is a permanent member of the Security Council and North Korea's sole major economic and diplomatic ally.


Obama called the test a "highly provocative act" that hurt regional stability.


"The danger posed by North Korea's threatening activities warrants further swift and credible action by the international community. The United States will also continue to take steps necessary to defend ourselves and our allies," Obama said.


U.S. Ambassador to the United Nations Susan Rice said Washington and its allies intended to "augment the sanctions regime" already in place due to Pyongyang's previous atomic tests. North Korea is already one of the most heavily sanctioned states in the world and has few external economic links that can be targeted.


Japanese Prime Minister Shinzo Abe said the test was a "grave threat" that could not be tolerated.


Russian Foreign Minister Sergei Lavrov urged North Korea to abandon its nuclear arms program and return to talks. NATO condemned the test as an "irresponsible act."


South Korea, still technically at war with North Korea after a 1950-53 civil war ended in a mere truce, also denounced the test. Obama spoke to South Korean President Lee Myung-bak on Tuesday and told him the United States "remains steadfast in its defense commitments" to Korea, the White House said.


MAXIMUM RESTRAINT


North Korea's Foreign Ministry said the test was "only the first response we took with maximum restraint".


"If the United States continues to come out with hostility and complicates the situation, we will be forced to take stronger, second and third responses in consecutive steps," it said in a statement carried by the official KCNA news agency.


North Korea often threatens the United States and its "puppet", South Korea, with destruction in colorful terms.


North Korea told the U.N. disarmament forum in Geneva that it would never bow to resolutions on its nuclear program and that prospects were "gloomy" for the denuclearization of the divided Korean peninsula because of a "hostile" U.S. policy.


Suzanne DiMaggio, an analyst at the Asia Society in New York, said North Korea had embarrassed China with the test. "China's inability to dissuade North Korea from carrying through with this third nuclear test reveals Beijing's limited influence over Pyongyang's actions in unusually stark terms," she said.


Mark Fitzpatrick of the International Institute for Strategic Studies think tank, said: "The test is hugely insulting to China, which now can be expected to follow through with threats to impose sanctions."


The magnitude of the explosion was roughly twice that of the 2009 test, according to the Vienna-based Comprehensive Nuclear-Test Ban Treaty Organization. The U.S. Geological Survey said that a seismic event measuring 5.1 magnitude had occurred.


U.S. intelligence agencies were analyzing the event and found that North Korea probably conducted an underground nuclear explosion with a yield of "approximately several kilotons", the Office of the Director of National Intelligence said.


Nuclear experts have described Pyongyang's previous two tests as puny by international standards. The yield of the 2006 test has been estimated at less than 1 kiloton (1,000 tons of TNT equivalent) and the second at some 2-7 kilotons, compared with 20 kilotons for a Nagasaki-type bomb.


North Korea trumpeted the announcement on its state television channel to patriotic music against a backdrop of its national flag.


"It was confirmed that the nuclear test that was carried out at a high level in a safe and perfect manner using a miniaturized and lighter nuclear device with greater explosive force than previously did not pose any negative impact on the surrounding ecological environment," KCNA said.


North Korea linked the test to its technical prowess in launching a long-range rocket in December, a move that triggered the U.N. sanctions, backed by China, that Pyongyang said prompted it to take Tuesday's action.


The North's ultimate aim, Washington believes, is to design an intercontinental ballistic missile capable of carrying a nuclear warhead that could hit the United States. North Korea says the program is aimed at putting satellites in space.


Despite its three nuclear tests and long-range rocket tests, North Korea is not believed to be close to manufacturing a nuclear missile capable of hitting the United States.


It used plutonium in previous nuclear tests and before Tuesday there had been speculation that it would use highly enriched uranium so as to conserve its plutonium stocks, as testing eats into its limited supply of materials to construct a nuclear bomb.


"VICIOUS CYCLE"


When Kim Jong-un, who is 30, took power after his father's death in December 2011, there were hopes that he would bring reforms and end Kim Jong-il's "military first" policies.


Instead, North Korea, whose economy is smaller than it was 20 years ago and where a third of children are believed to be malnourished, appears to be trapped in a cycle of sanctions followed by further provocations.


"The more North Korea shoots missiles, launches satellites or conducts nuclear tests, the more the U.N. Security Council will impose new and more severe sanctions," said Shen Dingli, a professor at Shanghai's Fudan University. "It is an endless, vicious cycle."


Options for the international community appear to be in short supply. Diplomats at the United Nations said negotiations on new sanctions could take weeks since China is likely to resist tough new measures for fear they could lead to further retaliation by the North Korean leadership.


Beijing has also been concerned that tougher sanctions could further weaken North Korea's economy and prompt a flood of refugees into China.


Tuesday's action appeared to have been timed for the run-up to February 16 anniversary celebrations of Kim Jong-il's birthday, as well as to achieve maximum international attention.


Significantly, the test comes at a time of political transition in China, Japan and South Korea, and as Obama begins his second term. The U.S. president will likely have to tweak his State of the Union address due to be given on Tuesday.


Japanese Prime Minister Shinzo Abe is bedding down a new government and South Korea's new president, Park Geun-hye, is preparing to take office on February 25.


China too is in the midst of a once-in-a-decade leadership transition to Xi Jinping, who takes office in March. Both Abe and Xi are staunch nationalists.


The longer-term game plan from Pyongyang may be to restart international talks aimed at winning food and financial aid. China urged it to return to the stalled "six-party" talks on its nuclear program, hosted by China and including the two Koreas, the United States, Japan and Russia.


Its puny economy and small diplomatic reach mean that North Korea struggles to win attention on the global stage - other than through nuclear tests and attacks on South Korea, the last of which was made in 2010.


"Now the next step for North Korea will be to offer talks... - any form to start up discussion again to bring things to their advantage," predicted Jeung Young-tae, senior research fellow at the Korea Institute for National Unification in Seoul.


(Additional reporting by Jack Kim, Christine Kim and Jumin Park in SEOUL; Linda Sieg in TOKYO; Louis Charbonneau and Michelle Nichols at the UNITED NATIONS; Fredrik Dahl in VIENNA; Michael Martina and Chen Aizhu in BEIJING; Mette Fraende in COPENHAGEN; Adrian Croft, Charlie Dunmore and Justyna Pawlak in BRUSSELS; Paul Eckert, Roberta Rampton, Tabassum Zakaria and Jeff Mason in WASHINGTON; Editing by Nick Macfie, Claudia Parsons and David Brunnstrom)



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NH bills: Bosses can’t seek social media passwords






CONCORD, N.H. (AP) — New Hampshire is considering joining a handful of states that bar employers from asking job applicants and employees for their social media user names and passwords.


The House’s labor committee is holding a hearing on two similar bills Tuesday that would prohibit an employer from requiring the disclosure. Maryland, California, Delaware, Michigan, New Jersey and Illinois have similar laws and two dozen besides New Hampshire are considering legislation, according to the National Conference of State Legislatures.






In their effort to vet job applicants, some companies and government agencies have started asking for passwords to log into a prospective employee’s accounts on social media sites, such as Facebook and Twitter. Critics call it an invasion of privacy akin to handing over the keys to the person’s house.


State Sen. Donna Soucy, a co-sponsor on both New Hampshire bills, said Monday that employers can gain access to information about an employee or job applicant through social media accounts like Facebook that they otherwise could not legally obtain. She said people post personal information about themselves on Facebook or others post on the person’s page that should be protected.


She said she has not heard of any New Hampshire employers demanding the information.


“I think the issue is something we need to consider a lot more seriously than we used to” with the growth of social media accounts, she said. “At the very least, I would hope we would have a study.”


Soucy, D-Manchester, said employers can use information on social media accounts to discriminate. For example, the applicant might be obese but the person’s weight would not be required on the application. The employer might not know until seeing a picture on Facebook, she said.


“Would they interview them if they saw their picture on Facebook?” she said.


Soucy said other people can post information on the person’s page that the person might not delete before a prospective employer saw it.


“As responsible as somebody might trying to be, it is still a reflection on them,” she said.


Allowing employers access to social media accounts also gives them access to others linked to the account at the infringement on their privacy, she said.


Social Media News Headlines – Yahoo! News





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Perks of Being A Wallflower Deleted Scene Logan Lerman Interview

When I sat down with Nina Dobrev last September to talk about her role in Perks of Being a Wallflower, she lamented that the storyline that initially attracted her to the role of Candace ended up on the cutting-room floor.

The film was easily one of 2012's best movies, so while it didn't suffer for the loss, fans of the book will get to see many of those excised scenes now that the sensational coming-of-age film is coming to DVD on February 12! Included on the Special Edition DVD is Dobrev's favorite, which sees Candace and her brother, Charlie, return home after she secretly has an abortion.

In addition to exclusively scoring that deleted scene, ETonline sat down with star Logan Lerman, who delivers a painfully powerful performance in the film, to talk about Perks' impact, his favorite scene and what's next for this rapidly rising star.


ETonline: Perks really struck a chord with audiences -- what kinds of reactions have you been getting?


Logan Lerman: I had been kind of isolated working [on Darren Aronofsky's Noah] for the last few months, but when I got back to L.A., the number one place I heard the most feedback was while visiting friends at college. Students seemed to connect with the film in a way I didn't expect. It's heartwarming and has been so nice to see.


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ETonline: Did you have to imagine you had a strong connection with the script when you first read it?


Lerman: Yeah, it was just one of those reads where, and I don't think this has ever happened to me, after I read it, I just knew it was f*cking amazing. I gave it to my whole family to read because it was that good. They agreed it was amazing. It was the kind of script I wanted to read over and over again. I just loved that material. Then research mode kicked in and it became a different kind of reading.


ETonline: What kind of preparation did you do?


Lerman: I just read a lot of different things, but it was really nice to have Stephen [Chbosky, writer/director] around because he knew every detail about the project and every character. I could rely on him for all my answers; he was almost like my little actorly cheat sheet.


VIDEO - Nina Dobrev Geeked Out Meeting Emma Watson


ETonline: Was Charlie a hard character to step out of at the end of the day?


Lerman: I didn't really segue out of him during the shoot. I stayed within who he was for that period of time. It wasn't difficult to stay in him, but it wasn't comfortable either. It was awkward; it was like going back to being 15 years old, and I didn't want to relive that, I was so awkward back then too.


ETonline: Do you have a favorite scene?


Lerman: The whole movie was fun to make, but I loved when all the young cast was together [so] personally, my favorite is the Truth or Dare sequence. I love that scene. I love that awkward tension.


ETonline: You went from filming this very intimate movie to making two very large films -- The Percy Jackson sequel and Noah -- do you have a preference in terms of experience?


Lerman: I definitely want to stay away from doing the same thing twice. With Noah, it was really just my attraction to the director. I wanted to work with him so bad and it just happened to be this big, epic movie. There's a lot more bitching on a big film. A lot of hurry up and wait on a big movie like that. It's a much different process of making a movie.


VIDEO - Emma Watson Talks Perks of Being A Wallflower


ETonline: Would you make a movie you didn't necessarily love to work with a director you do love?


Lerman: I guess so. Deep down if there was a great filmmaker making a movie with a character I didn't like, I'd probably still do it to work with that filmmaker. It really comes down to the collaboration at the end of the day. With Perks, it was a great character and a great script, but had a director I had no frame of reference for. But as soon as you sit down to talk about the movie with Steve, his passion comes through loudly, so I felt comfortable investing my career and trust in his hands.


ETonline: Stephen's mentioned the idea of a possible sequel -- to see where the kids end up later in life. Would you trust him to go back and play Charlie again?


Lerman: No [laughs]. I don't know if that's what I'm supposed to say -- I don't know if people want to hear me say that, but I can't imagine a sequel to this. What the f*ck could come out of Perks of Being a Wallflower 2? Now they're older but happily ever after doesn't really exist for the wallflower. No. I don't want to imagine that.


Perks of Being A Wallflower
hits DVD on February 12, click here to pre-order.

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