Northeast blizzard: 4 dead, hundreds of thousands left without power

New York/Boston—

A record-breaking blizzard packing hurricane-force winds hammered the northeastern United States on Saturday, cutting power to 700,000 homes and businesses, shutting down travel and leaving at least four people dead.

The mammoth storm that stretched from the Great Lakes to the Atlantic dumped more than 3 feet of snow across the Northeast, the National Weather Service said. Coastal blizzard and flood warnings were in effect as the storm moved slowly eastward out to sea.

Stratford, Connecticut, Mayor John Harkins said he had never seen such a heavy snowfall, with rates reaching 6 inches an hour.

"Even the plows are getting stuck," Harkins told local WTNH television.

The storm centered its fury on Connecticut, Rhode Island and Massachusetts, with the most snowfall, 38 inches, in Milford, Connecticut.

Authorities ordered non-essential vehicles to stay off roads to allow snow plow crews to clear them. The ban left normally busy arteries such as Interstate 93 in Massachusetts nearly deserted.

About 2,200 flights were canceled on Saturday, according to FlightAware, which tracks airline delays. Boston's Logan International Airport and Bradley International Airport in Windsor Locks, Connecticut, were shut down.

Massachusetts Governor Deval Patrick told a Boston radio station he would re-evaluate a vehicle travel ban he introduced on Friday, but would lift it only "when it's safe to do so."

The storm dumped 29.3 inches of snow on Portland, Maine, breaking a 1979 record. Winds gusted to 83 miles an hour at Cuttyhunk, New York, and brought down trees across the region.

The storm contributed to three deaths in Connecticut, Governor Dannel Malloy told a news conference.

An 80-year-old woman was killed by a hit-and-run driver while clearing her driveway, and a 40-year-old man collapsed while shoveling snow. One man, 73, slipped outside his home and was found dead on Saturday, Malloy said.

In Poughkeepsie, New York, a man in his 70s was struck and killed on a snowy roadway, local media reported.

A 30-year-old motorist in Auburn, New Hampshire, also died when his car went off the road, but the man's health might have been a factor in the accident, state authorities said.

Police in New York's Suffolk County, some using snowmobiles, rescued hundreds of motorists stuck overnight on the Long Island Expressway, said police spokesman Rich Glanzer. Some spent the night in their cars.

POWER LINES DOWN

Utility companies reported about 700,000 customers without electricity across nine states as the wet, heavy snow brought down tree branches and power lines.

The Pilgrim Nuclear Power Plant in Plymouth, Massachusetts, lost power and shut down automatically late on Friday, but there was no threat to the public, the Nuclear Regulatory Commission said.

A storm surge combined with a high tide led to isolated coastal flooding. U.S. Route 1A was closed in New Hampshire because of debris and rocks that washed ashore, police said.

As the storm tapered off, streets in Cambridge, Massachusetts, were largely quiet except for snowblowers and shoveling. Kevin Tierney, 41, struggled with a snowblower to carve out a parking space in more than 2 feet of snow.

"I had this all planned out, and I don't know who said it, but everybody goes into a boxing match with a plan until they get punched in the mouth," said Tierney, an attorney.

Massachusetts, Rhode Island, Connecticut, New York and Maine declared a state of emergency before the storm. The U.S. Postal Service suspended mail delivery in the six New England states.

Although New York was hit by a foot of snow, Fashion Week went on unfazed as crowds arrived to watch the morning's shows by Ruffian and LaCoste.

Andrea Daney, a digital marketing senior manager for LaCoste, said she was trying to be discreet as she changed from snow boots to high-heeled crushed blue velvet ankle boots.

"I'm calling it the shoe storm of the century," she said. "You have to make adjustments to your outfit."

The snow delighted New England's ski industry. Greg Kwasnick, a spokesman for Loon Mountain in Lincoln, New Hampshire, said business was slightly slower than normal on Saturday but likely would pick up in coming days.

"Snow is what it's all about," he said.

(Additional reporting by Scott Malone in Boston, Kevin Gray in Miami, Ellen Wulfhorst in New York, Ian Simpson in Washington, Jason McLure in Maine, Dan Burns in Connecticut, Dan Lovering in Cambridge; Editing by Vicki Allen and Gunna Dickson)

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Google's Schmidt to sell roughly 42 percent of stake

SAN FRANCISCO (Reuters) - Google Inc Executive Chairman Eric Schmidt is selling roughly 42 percent of his stake in the Internet search company, a move that could potentially net the former chief executive a $2.51 billion windfall.

Schmidt, 57, will sell 3.2 million shares of Class A common stock through a stock trading plan, Google said in a filing with the U.S. Securities and Exchange Commission on Friday.

The plan, which Google said would give Schmidt "individual asset diversification and liquidity," allows Schmidt to spread trades out over a period of one year to reduce the market impact.

Shares of Google were down $4.11 at $781.26 in after-hours trading on Friday.

A Google spokeswoman would not comment on why Schmidt is selling the shares at this time.

Wedbush Securities analyst James Dix said Schmidt's stock sales did not worry him or signal a loss of confidence in the company by Schmidt.

"I'd be more worried if the current CEO or CFO sold a lot of their stake," said Dix.

Schmidt, who served as Google's chief executive until 2011, currently owns roughly 7.6 million shares of Class A and Class B common stock. The shares represent 2.3 percent of Google's outstanding stock and roughly 8.2 percent of the voting power of Google's stock.

The fact that Schmidt will still own a significant amount of shares after the sales means he'll have a good deal of "skin in the Google game," said Needham & Co analyst Kerry Rice. But he said it could hint at Schmidt playing a less central role within the company going forward.

"My speculation is that Eric's relationship with Google is evolving," said Rice. "I would assume that as he decides he wants to diversify away from Google - both his career and financially - he's got ideas of what he would like to do with some of his funds."

Schmidt, who helped turn Google into the world's No.1 search engine during his decade as CEO, handed the reins to Google co-founder Larry Page in April 2011.

As executive chairman, Schmidt has been particularly involved in government relations, taking a leading role in the company's discussions with antitrust regulators in the United States and the European Union. The U.S. Federal Trade Commission ended its investigation into Google last month without any action. Google has offered to change some of its business practices to appease European competition regulators.

"As Google moves to maybe more tactical battles, as opposed to the strategic battles it's been waging with the government, once those are concluded, maybe his role can be lessened," said Needham & Co's Rice.

Schmidt has also made headlines apart from Google. In January, Schmidt traveled to North Korea with former New Mexico Governor Bill Richardson for a "personal" trip. The trip was criticized by the U.S. State Department as ill-timed - coming weeks after North Korea conducted a rocket launch in violation of U.N. Security Council sanctions.

Shares of Google are trading at all-time highs, finishing Friday's regular session at a record closing price of $785.37. At that price, Schmidt's share sales would be worth $2.51 billion.

Google said that Schmidt entered into the stock trading plan in November.

Schmidt was ranked 138 on the Forbes list of global billionaires with a net worth of $6.9 billion in March 2012.

Given Schmidt's changed role at the company and the amount of his wealth tied up in Google's stock, it was not unreasonable for him to diversify his holdings, said Wedbush Securities analyst Dix.

"As good as Google stock is, it isn't as good as cash if you actually want to buy something," he said.

(Reporting by Alexei Oreskovic; Editing by Tim Dobbyn and Lisa Shumaker)

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Wisconsin beats No. 3 Michigan 65-62 in OT

MADISON, Wis. (AP) — When Ben Brust tied the game at the end of regulation with a shot just from just inside midcourt, his teammate Mike Bruesewitz looked over at Wisconsin coach Bo Ryan and saw something unusual.

His coach had both his arms in the air.

"You know when he shows some emotion, you've done something pretty special," Bruesewitz said.

Brust hit a tie-breaking 3-pointer with less than 40 seconds left in overtime as Wisconsin beat No. 3 Michigan 65-62 on Saturday.

"It was awesome, something I'll remember forever, and I'm sure a lot of people will," Brust said of the game, which ended with students storming the court and Bruesewitz taking the public address announcer's microphone to thank the crowd as students celebrated around him.

The Wolverines became the third top three team to lose this week as No. 1 Indiana lost to Illinois and No. 2 Florida was beaten by Arkansas. This should be the sixth straight week with a different No. 1 in The Associated Press' Top 25.

Brust's shot at the end of regulation was a dramatic turn of events for Wisconsin (17-7, 8-3 Big Ten) and a soul crusher for Michigan (21-3, 8-3).

Just moments earlier, Tim Hardaway Jr. hit a contested 3-pointer to put the Wolverines up 65-52 with less than 3 seconds left in regulation.

Following a timeout, Bruesewitz passed up his first option in the inbounds play and hit Brust in stride. The guard took one dribble across halfcourt and launched the shot, which hit nothing but net.

Ryan said the play was drawn up to see how Michigan defended the first cutter, Brust read the defense and reacted.

"The best thing was Mike's pass on the dime on the run, didn't have to reach back for it, able to catch it all in one motion," Ryan said.

Michigan still had fouls to give before the shot, and coach John Beilein said the order coming out of the timeout was to foul. He also put Caris LeVert on Brust to bolster the defense.

"We were definitely fouling, wanted to keep everyone in front of us and (Brust) turned the corner on (LeVert) just enough that he couldn't foul him," Beilein said. "I thought we had them once they couldn't get their initial guy.

"With Caris' quickness, we thought he could get there, but he didn't."

For all the fireworks in the final 3 seconds, the teams only managed seven points in overtime, including Brust's winning 3-pointer.

Following Brust's shot, Hardaway couldn't connect on his drive to the hoop on the next Michigan possession, and Glenn Robinson III fouled Jared Berggren on the rebound.

The Wolverines went to a full-court press with two more fouls to give. But the Badgers broke the press, and Michigan had to foul twice more to finally put Ryan Evans on the free throw line.

Evans, who shoots less than 43 percent from the line, missed the front end of a 1-and-1, and Burke couldn't connect in a rushed final possession for the Wolverines.

It was another grinding win for the Badgers keyed by their defense. Michigan came in as one of the top scoring teams in the country at almost 78 points per game. But Wisconsin held Michigan to less than 40 percent shooting from the field, including 5 of 18 from beyond the 3-point line.

Michigan was 1 for 7 from the field in overtime, and the offensive futility was highlighted by one sequence in which Mitch McGary stole the ball outside the 3-point line and drove the other way only to miss the layup with Berggren defending the rim.

Beilein said the Wolverines missed out on 14 points thanks to missed layups.

"I'm not talking about when they're really contesting," Beilein said. "I'm talking about we had the ball, the basket and us, and it didn't go in."

Brust scored 14 points for the Badgers, while Berggren added 13 and eight rebounds. Sam Dekker scored 12 points, while Evans finished with 11 points and nine rebounds.

Burke scored 19 points to lead Michigan, but needed 21 shots to do it. Hardaway added 18, and McGary had 12 points and eight rebounds.

It was the second straight game for both teams to go past regulation after the Badgers beat Iowa 74-70 in double overtime on Wednesday and Michigan downed Ohio State 76-74 in overtime on Tuesday.

Several Wisconsin players said consecutive overtime games exemplified their will to win even as critics contend they're not talented enough, not fast enough and, as Bruesewitz said he's seen on Twitter, not good-looking enough.

"We have a group of guys in that locker room that believe and is going to fight until the end until you tell us we can't play any more basketball," Berggren said. "We just find a way to get it done."

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After early start, worst of flu season may be over

NEW YORK (AP) — The worst of the flu season appears to be over.

The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.

The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.

"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.

But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.

For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.

Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.

"There's no question that we're seeing a decline," she said.

In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.

Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications

But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.

So far, the season has been labeled moderately severe.

Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.

The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says

On average, about 24,000 Americans die each flu season, according to the CDC.

According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.

Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.

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Online:

CDC: http://www.cdc.gov/flu/

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Stars salute MusiCares honoree Bruce Springsteen

LOS ANGELES (AP) — Be it concert or charity auction, Bruce Springsteen can bring any event to a crescendo.

Springsteen briefly took over auctioneering duties before being honored as MusiCares person of the year Friday night, exhorting the crowd to bid on a signed Fender electric guitar by amping up the deal. The 63-year-old rock 'n' roll star moved the bid north from $60,000 by offering a series of sweeteners.

"That's right, a one-hour guitar lesson with me," Springsteen shouted. "And a ride in my Harley Davidson sidecar. So dig in, one-percenters."

That moved the needle past $150,000. He added eight concert tickets and backstage passes with a bonus tour conducted by Springsteen himself. That pushed it to $200,000, but he wasn't done.

"And a lasagna made by my mother!" he shouted as an in-house camera at the Los Angeles Convention Center cut to his 87-year-old mother Adele Ann Springsteen.

And with an extra $250,000 in the musicians charity's coffers, Springsteen sat down and spent most of the evening in the unusual role of spectator as a string of stars that included Elton John, Neil Young, Sting, Kenny Chesney, John Legend, Faith Hill and Tim McGraw, Patti Smith, Jackson Browne took the stage two nights before the Grammy Awards.

"Here's a little secret about Bruce Springsteen: He loves this," host Jon Stewart joked. "There's nothing he'd rather do than come to Los Angeles, put on a suit ... and then have people talking about him like he's dead."

Alabama Shakes kicked things off with "Adam Raised A Cain" and over the course of the evening there were several interesting takes on Springsteen's voluminous 40-year catalog of hits. Natalie Manes, Ben Harper and Charlie Musselwhite played a stripped down "Atlantic City." Mavis Staples and Zac Brown put a gospel spin on "My City of Ruins." John added a funky backbeat to "Streets of Philadelphia." Kenny Chesney offered an acoustic version of "One Step Up."

Jim James and Tom Morello burned through a scorching version of "The Ghost of Tom Joad" that brought the crowd out of their seats as Morello finished the song with a fiery guitar solo. And Mumford & Sons took it the opposite way, playing a quiet, acoustic version of "I'm On Fire" in the round that had the crowd leaning in.

Legend offered a somber piano version of "Dancing in the Dark" and Young shut down the pre-Springsteen portion of the evening with a "Born in the USA" that included two sign-language interpreters dressed as cheerleaders signing along to the lyrics.

"John Legend made me sound like Gershwin," Springsteen said. "I love that. Neil Young made me sound like the Sex Pistols. I love that. What an evening."

Springsteen spoke of the "miracle of music," the importance of musicians in human culture and making sure everyone is cared for. And he joked that he somehow ended up being honored by MusiCares, a charity that offers financial assistance to musicians in need run by The Recording Academy, after his manager called up Grammys producer Ken Ehrlich to seek a performance slot on the show in a "mercenary publicity move."

In the end, though, he was moved by the evening.

"It's kind of a freaky experience, the whole thing," Springsteen said. "This is the huge Italian wedding Patti (Scialfa) and I never had. It's a huge Bar Mitzvah. I owe each and every one of you. You made me feel like the person of the year. Now give me that damn guitar."

He asked the several thousand attendees to move toward the stage — "Come on, it's only rock 'n' roll" — and kicked off his five-song set with his Grammy nominated song "We Take Care Of Our Own." At the end of the night he brought everyone on stage for "Glory Days."

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Online:

http://grammy.com

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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.

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Rosenthal: Chevrolet restores style to Impala name

Because a brand embedded in our subconsciousness can find a space in our garage, the Impala endures.

About 16 million Chevys named for an African antelope have hit the road since 1958. And even though the one you recently returned to the airport rental lot bore little resemblance the one whose "giddy-up" the Beach Boys sang of a half-century ago, General Motors is betting the bloodline still can claim hearts.

A revamped 10th-generation 2014 model is now on display at the just-opened 105th Chicago Auto Show as a prelude to its dealership debut in a few weeks, a bid to re-establish its good name.

"It's always been a great brand name," Russ Clark, director of Chevrolet marketing, said alongside one of the made-over Impalas on the Auto Show floor at McCormick Place. "In fact, when we did research on the name, we found Impala is one of the strongest in terms of consideration and favorable opinion of any name in the industry. A lot of that is heritage. A lot of it is the fact that people say, 'I know people who have had them, and everybody loved them.'"

The brand has been ubiquitous for decades, even if you don't remember the Beach Boys immortalizing the vintage growl of a "four-speed dual-quad Posi-Traction 409" or how Robert Blake's 1970s TV tough guy Baretta drove a rusted-out Impala from '66, the era when Chevrolet could move about 1 million Impala sedans and station wagons a year. My own first car was a four-door V-8 '72 Impala, a powerful and roomy hand-me-down whose weather-beaten body — like the brand's identity — clearly had seen better days by the late '70s and early '80s.

More recent Impalas have hardly been the stuff of song, and it's hard to imagine them inspiring nostalgia. They've been too dully utilitarian to be iconic.

Nonetheless, although sales have slowed, it has been the overall best-seller among big sedans. Three-quarters of those sales have been as fleet vehicles for corporate salespeople, government agencies and rental companies. That means the premium has been on space, reliability and keeping costs down rather than the kind of panache and extras that might foster pride of ownership.

The goal of this Impala overhaul in both four- and six-cylinder iterations — drafting on similar nameplate revivals for models such as Ford's Taurus, Dodge's Charger and Chrysler's 300 — is to flip that 75-25 ratio of fleet sales to retail on its head.

"It makes perfectly good sense on General Motors' part to finally put some style back in the Impala," auto industry analyst Art Spinella, president of CNW Research, explained. "If you have a great brand name, to almost toss it off, treat it as an orphan and send it off to the fleet sales department with bland styling and cheap interiors, that's a disgrace. What they've done is kind of salvage themselves with this.

"It's finally dawned on General Motors that you can sell a consumer car to fleets, but you can't sell a fleet car to consumers. You always keep fleet cars (looking) relatively obscure and you keep the price way down, and that's what General Motors had been doing for years to keep the (Impala sales) volume up. Now they're taking another look. I don't think they've necessarily gone far enough, but it's a step in the right direction."

To wander through the vast Auto Show, which runs through Feb. 18, is to be reminded of how deeply many of us connect to vehicles, starting as children playing with toy trucks and cars. There's a teenage rite of passage when car keys and a license expand the world. Certain makes and models mesh with what played on their radios, the places traveled in them, the stage of life they marked.

That emotional bond doesn't form so easily with a mere box with wheels.

"What was it that made us fall in love with cars in the first place?" Henrik Fisker, executive chairman and co-founder of high-end hybrid carmaker Fisker Automotive, asked the crowd at Thursday's Economic Club of Chicago luncheon. "It struck me that most of us, when we really start to get our heart pumping about cars, it's usually not the cars of today. It's usually the cars of the '50s and '60s."

Road salt, slush and rain were my old '72 Impala's kryptonite. In time, its front bench seat reclined like a La-Z-Boy whenever I hit the gas because the floor beneath had rusted through. Whatever my affection for the vehicle, I could see the road we were on — literally and figuratively — both looking ahead and glancing down.

Thirty years after I traded it in for a sporty red Pontiac with seats that reclined only how and when I wanted, I would not have expected my old flame to generate much heat.

Carmakers, like most marketers, know that even when a brand is disconnected from what it once represented, it still can resonate. The new Impala is neither the muscular car of old nor the generic conveyance of late. Yet Impala means something to would-be buyers, and good or bad, it gives them something to measure this latest version against.

"They have equity in the name and you never get rid of a brand that has a good reputation," Spinella said. "Some people will buy it because it's an Impala. Some people won't. But they'll look at it because it's an Impala and they remember the Impala. It's easier to reintroduce a name than to introduce a name nobody knows."

I can still remember driving around with my friends with no particular place to go, a song on the radio about a horse with no name. If there was a tune about a nameless car, I don't recall it.

philrosenthal@tribune.com

Twitter @phil_rosenthal

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City dropping red-light camera firm as investigation heats up

Chicago Tribune reporter David Kidwell discusses the recent changes at Redflex Holdings Ltd., the Australian company responsible for Chicago's red-light program. (Posted on: Feb. 8, 2013)

Mayor Rahm Emanuel announced today he will axe the city’s embattled red-light camera vendor when its contract expires in July, citing new investigative findings that the company gave thousands of dollars in free trips to the former city official who oversaw the decade-long program.

Emanuel announced the action against Redflex Traffic Systems Inc. following the Chicago Tribune’s report today that the chairman of Redflex’s Australian parent company resigned this week and trading in the company's stock was suspended amid an intensifying investigation into allegations of corruption in its Chicago contract.

Redflex Holdings Ltd. announced the extraordinary actions just days after board members were briefed by an outside legal team hired to examine ties between the company's U.S. subsidiary and the city official who oversaw its contract, a relationship first disclosed in October by the Tribune. The company also revealed for the first time that it is sharing information with law enforcement authorities.

The internal probe found that company executives systematically courted former city transportation official John Bills with thousands of dollars in free trips to the Super Bowl and other sporting events, sources familiar with the investigation told the Tribune. The company also hid the extent of the improper relationship from City Hall after the newspaper's reporting last year forced Redflex to partially reveal its ties to Bills, sources said.

Emanuel, who inherited the red-light contract when he took office in 2011, had already disqualified Redflex from bidding on his new speed camera initiative after the October disclosures. The new announcement means Redflex will lose what it has described as its largest North American contract. The mayor’s office gave the company a six-month extension last month while it opened the contract to bids, but at that time did not announce whether Redflex could compete to keep the business.

“Given these more serious allegations, we are declaring Redflex not responsible to bid on the new red light RFP when it is issued,” Emanuel spokeswoman Sarah Hamilton said in an email to the Tribune.

“The City is also engaging an independent firm immediately to audit the Redflex contract for all past and ongoing activities to ensure Chicago taxpayers are not cheated in any way.  If there are any findings of illegal conduct or improprieties that show Chicago taxpayers were defrauded, the City will seek penalties to the fullest extent of the law.”

The Redflex internal probe and a parallel investigation by city Inspector General Joseph Ferguson are also raising more questions about the company's hiring of a longtime Bills friend who received more than $570,000 in company commissions as a customer service representative in Chicago, the sources said.

Bills did not return calls, but has adamantly denied any wrongdoing. "I would never have intentionally accepted a dime from Redflex, I wouldn't do that," he told the Tribune in October.

The latest developments run counter to the company's previous contentions that a whistle-blower concocted widespread accusations of internal wrongdoing and that a single company executive had mistakenly violated procedures by paying a one-time hotel tab for Bills. The reversal was acknowledged in a statement to the newspaper Thursday from the Australian company's CEO, who took over in September.

"Although the investigation is not over, we learned that some Redflex employees did not meet our own code of conduct and the standards that the people of the city of Chicago deserve," said Robert DeVincenzi, CEO of Redflex Holdings, the parent company of Phoenix-based Redflex Traffic Systems Inc.

"We are sharing information with law enforcement authorities, will take corrective action and I will do everything in my power to regain the trust of the Chicago community," DeVincenzi said.

Until the allegations were published by the Tribune, Redflex was positioned as a leading contender for Emanuel's new program to sprinkle the city with automatic cameras to tag speeders in school and park "safety zones." Emanuel's administration accused the company of covering up the wrongdoing allegations and disqualified it from bidding on the speed camera contract. Now the company faces the potential loss of its long-standing red-light program in Chicago, which has generated about $100 million for the company and more than $300 million in ticket revenue for the city.

The internal allegations were first made by a former Redflex vice president who wrote of the company's close relationship to Bills in a five-page internal memo emailed in 2010 to the Australian board of directors and obtained by the Tribune. In addition to making allegations about commissions to Bills' friend, the executive complained of "nonreported lavish hotel accommodations" for Bills.

The memo was addressed to Redflex Holdings board Chairman Max Findlay and sent overseas via email. Findlay and another board director, Ian Davis, were atop the list of recipients of the 2010 email.

The company announced both men's resignations in filings Wednesday to the Australian Securities Exchange, where Redflex is publicly traded.

Redflex did not indicate why the men were resigning. But on Thursday the company asked for and was granted by the exchange a four-day suspension of trading "until the earlier of 10 a.m. on Monday 11 February 2013 or an announcement being made."

"The trading halt relates to an update regarding financial aspects and the ongoing investigation in the USA," wrote company secretary Marilyn Stephens. The company did not elaborate on the trading action.

Redflex lawyers told the Tribune in October that a previous company-sponsored investigation by an outside law firm in 2010 found no wrongdoing but for a single hotel stay one top executive paid for Bills. Redflex Traffic Systems sent the executive vice president in question to "anti-bribery" training and revamped its expense accounting system, according to General Counsel Andrejs Bunkse.

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Dell's largest investor opposes buyout as too low

(Reuters) - Dell Inc's largest independent shareholder, Southeastern Asset Management, on Friday vowed to fight a $24.4 billion buyout of the No. 3 PC maker led by CEO Michael Dell, cementing opposition to what would be the largest buyout since the start of the financial crisis.

Southeastern's opposition to the deal, which Reuters first reported late on Thursday, sets up a potential battle with billionaire founder Dell and private equity firm Silver Lake, who are pushing a deal to take the company private at $13.65 a share.

Southeastern, run by activist investor Mason Hawkins and owner of 8.5 percent of Dell, including options, argues that the company is worth $24 a share if its financial services division, recent acquisitions and other assets were factored in.

With Southeastern's objection, shareholders representing 11 percent of the Dell shares not held by Michael Dell have now said they will vote against the deal, according to news reports. Billionaire Dell, who created the computer maker out of his college dorm room in 1984, holds a roughly 16 percent stake.

Dell shares reversed course and climbed into positive territory on Friday after the announcement, and closed up 0.74 percent at $13.63.

"We are writing to express our extreme disappointment regarding the proposed go-private transaction, which we believe grossly undervalues the Company," Hawkins and Chief Investment Officer Staley Cates wrote in a letter.

"We retain and intend to avail ourselves of all options at our disposal to oppose the proposed transaction, including but not limited to a proxy fight, litigation claims and any available Delaware statutory appraisal rights."

Representatives of Dell and Silver Lake declined to comment on Southeastern's statement.

Sanford Bernstein analyst Toni Sacconaghi estimates Hawkins' asset management house paid an average of more $20 a share for its stake, meaning a loss of at least $825 million at the current $13.65 offer price.

A LOOMING BATTLE

Under the buyout's terms, a majority of shares not held by Michael Dell must be voted in favor of the deal for it to proceed.

Memphis, Tennessee-based Southeastern believes the Dell board had several alternatives that would have produced a far better outcome for public shareholders, including breaking up the company and selling the units separately.

"Selling multiple business units to strategic buyers could easily exceed $13.65 per share," the letter read.

Dell was regarded as a model of innovation as recently as the early 2000s, pioneering online ordering of custom PCs and working closely with Asian 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.

Michael Dell struck a deal early this week to take Dell private for $24.4 billion in the biggest leveraged buyout since the financial crisis, partnering with Silver Lake and Microsoft Corp. The aim is to facilitate Dell's difficult transition from a commodity maker of computers into a provider of services to enterprises as a private company, away from Wall Street's scrutiny.

But Southeastern, the most prominent of a clutch of investors, including the Alpine Capital Research and Schneider Capital funds, which have voiced opposition to the buyout, on Friday argued that the company had the capability to pay a $12 special dividend to shareholders, realizing much more value while still retaining significant cash-flow.

It also suggested a Dutch auction or some other structure that would involve a public tender of shares.

Dell has now gone into a go-shop process, during which it can solicit better offers. But Hawkins and Cates argue that Michael Dell's involvement may affect that procedure.

"We are concerned that given the participation of Michael Dell in this transaction, that a traditional go shop process is not sufficient to ensure that the Company receives superior offers," they wrote.

Morningstar analyst Carr Lanphie said it is not a surprise that some investors do not like the offer price, but said the stock would fall sharply if the deal does not go through.

"The point being that if this doesn't go through, you are going to swallow a 35-40 percent decline in share price," Lanphie said. "Then, your chairman just had his attempted buyout rejected.

"Given the management they have lost in the last couple of months, will they be able to continue to grow the company? That is something the investors will need to consider," he added.

(Reporting by Poornima Gupta; Editing by Steve Orlofsky, Gary Hill and Dan Grebler)

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AP Source: Hernandez on verge of new deal with M's

SEATTLE (AP) — Felix Hernandez and the Seattle Mariners are working on a $175 million, seven-year contract that would make him the highest-paid pitcher in baseball, according to a person with knowledge of the deal's details.

The person spoke to The Associated Press Thursday on condition of anonymity because the agreement has not been completed. USA Today first reported the deal.

Seattle would add $134.5 million of guaranteed money over five years to the contract of the 2010 AL Cy Young Award winner, whose current agreement calls for him to receive $40.5 million over the next two seasons.

Hernandez's total dollars would top CC Sabathia's original $161 million, seven-year contract with the New York Yankees and his $25 million average would surpass Zack Greinke's $24.5 million under his new contract with the Los Angeles Dodgers and tie him for the second-highest in baseball with Josh Hamilton and Ryan Howard behind Alex Rodriguez ($27.5 million). Hernandez's new money would average $26.9 million over five years.

Hernandez agreed to a $78 million, five-year contract in January 2010 and has earned an additional $2.5 million in escalators and $300,000 in bonuses. He is due $20 million this year and $20.5 million in 2014, which would be superseded by the new deal.

Seattle general manager Jack Zduriencik said he could not comment when reached on Thursday, and Hernandez's representatives didn't immediately return messages.

If the deal is finalized, it would leave Detroit's Justin Verlander and the Dodgers' Clayton Kershaw as the most attractive pitchers eligible for free agency after the 2014 season. Tampa Bay's David Price is eligible after the 2015 season.

Hernandez has become the face of Seattle's struggling franchise, transforming from a curly haired 19-year-old who wore his hat crooked to one of the most dominant and exciting pitchers in baseball. Known as "King Felix," he became the first Seattle pitcher to throw a perfect game in a 1-0 win over Tampa Bay last August.

His fiery enthusiasm on the mound and his willingness to first sign a long-term deal in 2010 have endeared him to fans in the Pacific Northwest who have gone more than a decade without seeing postseason baseball.

Hernandez, who will turn 27 on April 8, is 98-76 with a 3.22 ERA in eight seasons with the Mariners. He won a career-high 19 games in 2009 when he finished second in the Cy Young voting then won the award a year later when he went just 13-12 but had a 2.27 ERA and 232 strikeouts.

Hernandez appeared to be making another Cy Young push last year before going 0-4 in his last six starts, which left him at 13-9 with 223 strikeouts.

His career record would be even better if he didn't play with one of baseball's worst offenses. Seattle had the lowest batting average in the major leagues in each of the last three seasons. Hernandez has taken 10 losses during that span when he's given up two earned runs or less.

For his career, Hernandez has allowed two earned runs or less in 141 of 238 starts, but the team is only 99-42 in those games due to the offensive problems.

Locking up Hernandez long-term won't solve all of the problems that have left Seattle looking up at Texas, Oakland and the Los Angeles Angles in the AL West for most of the last 10 years. The Mariners have tried to address some of those issues this offseason by trading for Kendrys Morales and Michael Morse to provide more punch to go along with young prospects Dustin Ackley, Kyle Seager and Jesus Montero, who have all shown flashes early in their careers.

But should the deal be finalized, the Mariners at least have the security of knowing who'll be at the top of their rotation for most of this decade.

___

AP Sports Writer Ronald Blum contributed to this report.

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Health officials: Worst of flu season may be over

NEW YORK (AP) — The worst of the flu season appears to be over.

The number of states reporting intense or widespread flu dropped again last week, U.S. health officials said Friday.

The season started earlier than normal, spiking first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths have been dropping for two weeks, the Centers for Disease Control and Prevention reported.

"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said in an email.

It's been nine years since a conventional flu season started like this one. That was the winter of 2003-04 — one of the deadliest in the past 35 years, with more than 48,000 deaths. Like this year, that season had the same dominant flu strain, one that tends to make people sicker.

But back then, the flu vaccine didn't protect against that bug, and fewer people got flu shots. The vaccine is reformulated each year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed this year's version is about 60 percent effective.

So far, the season has been labeled moderately severe.

The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 such deaths in children. The most — nine — were in Texas, where flu activity was still high last week.

On average, about 24,000 Americans die each flu season, according to the CDC.

Flu vaccinations are recommended for everyone 6 months or older.

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