Billionaire Sears CEO reveals lower Gap stake

Sears CEO Edward Lampert has upped his stake in Gap Inc. (Spencer Platt / Getty Images)

By Corilyn Shropshire




Tribune reporter

5:20 p.m. CST, February 15, 2013

Sears Chairman and CEO Edward Lampert has reduced his stake in The Gap Inc., according to security filings.

Lampert shed roughly 4 percent of his shares in the San Francisco-based retailer by Dec. 31, 2012, according to documents filed Thursday with the Securities and Exchange Commission.  He currently holds 25.3 million shares, personally and through his investment groups, ESL Partners, RBS Partners, LP and ESL Investments.

In 2012, Lampert reported that he held a 9.3 percent stake or 45.2 million shares.

Lampert is the billionaire hedge fund manager who engineered the merger of Sears and Kmart in 2005.  Since then, Sears has struggled to maintain its place with years of declining sales and executive changeover.  The company has focused on building loyalty rewards program and online business which officials said grew by 20 percent last year. 

Shares of The Gap, which also operates brands Banana Republic, Old Navy, Piperlime and Athleta closed up nearly 5 percent at $32.87 on Friday, in part due to news about Lampert’s boosted interested in the retailer and on speculation that Uniqlo-owner and Japan-based Fast Retailing, Ltd.  is also interested in the retailer.

The Gap has been on an upswing beating analysts estimates with holiday and January sales.  The retailer said sales in stores open at least were up 8 percent to $1.13 billion in January. 

Lampert, who has several retail holdings including Columbus, Oh-based Big Lots Inc., also decreased his interest Fort Lauderdale-based AutoNation, Inc. by about $13.5 million to $34.5 million and purchased 844, 926 shares of Pleasanton, Calif-based Safeway Inc. 

crshropshire@tribune.com | Twitter: @corilyns

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Stricken cruise ship docks

MOBILE, Alabama—

A crippled cruise ship that lost power for more than four days in the Gulf of Mexico was pulled into a port in Mobile, Alabama, late on Thursday as passengers cheered the end of a "hellish" voyage marked by overflowing toilets and stinking cabins.

Tugboats pulled the Carnival Triumph into port in a drama that played out live on U.S. cable news stations, creating another public relations nightmare for cruise giant Carnival Corp. Last year, its Costa Concordia luxury ship grounded off the coast of Italy, killing 32 people.

Exhausted passengers lined the ship's decks, waving towels and flashlights and cheering as it pulled into dock, while hundreds of people watched from the shore.

Carnival officials said it could take up to five hours for the more than 4,200 people on board to disembark the ship, which has only one working elevator.

Once on solid ground, many passengers still had a lengthy journey ahead. More than 100 buses were lined up waiting to carry passengers on a seven-hour bus ride to Galveston, Texas, while others had elected to stay overnight in hotels in Mobile before flying home, Carnival said.

An engine fire on Sunday knocked out power and plumbing across most of the 893-foot vessel and left it adrift in the Gulf of Mexico. The ship, which went into service in 1999, was on a four-day cruise and on its way back from a stop in Cozumel, Mexico.

Over the last four days, passengers described an overpowering stench on parts of the ship and complained to relatives and media by cellphone that toilets and drainpipes overflowed, soaking many cabins and interior passages in sewage and turning the vessel into what some have described as a giant Petri dish.

"The thing I'm looking forward to most is having a working toilet and not having to breathe in the smell of fecal matter," said Jacob Combs, an Austin, Texas-based sales executive with a healthcare and hospice company.

Combs, 30, who said he had been traveling with friends and family on the Triumph, had nothing but praise for its crew members, saying they had gone through "hell" cleaning up after some of the passengers on the sea cruise.

"Just imagine the filth," Combs told Reuters. "People were doing crazy things and going to the bathroom in sinks and showers. It was inhuman. The stewards would go in and clean it all up. They were constantly cleaning," he said.

Officials greeted passengers with warm food and blankets and cell phones. Carnival Cruise Lines Chief Executive Gerry Cahill told reporters he planned to board the ship and personally apologize to passengers for their ordeal.

"I know the conditions on board were very poor," he said. "I know it was difficult. I want to apologize for subjecting our guests to that," he said.

"We pride ourselves with providing our guests with a great vacation experience and clearly we failed in this particular case."

Operated by Carnival Cruise Lines, the flagship brand of Carnival Corp, the ship left Galveston a week ago carrying 3,143 passengers and 1,086 crew. It was supposed to return there on Monday.

A Coast Guard cutter escorted the Triumph on its long voyage into port since Monday, and a Coast Guard helicopter ferried about 3,000 lbs of equipment including a generator to the stricken ship late on Wednesday.

Earlier in the week, some passengers reported on the poor conditions on the Triumph. They said people were getting sick and passengers had been told to use plastic "biohazard" bags as makeshift toilets.

Smoke from the engine fire was so thick that passengers on the lower decks in the rear of the ship had to be permanently evacuated and slept the rest of the voyage on the decks under sheets, passengers said.

'VERY CHALLENGING CIRCUMSTANCES'

Cahill has issued several apologies and Carnival, the world's largest cruise company, says passengers will receive a full credit for the cruise plus transportation expenses, a future cruise credit equal to the amount paid for this voyage, plus a payment of $500 a person to help compensate for the "very challenging circumstances" aboard the ship.

Mary Poret, who spoke to her 12-year-old daughter aboard the Triumph on Monday, rejected Cahill's apology in comments to CNN on Thursday, as she waited anxiously in Mobile with a friend for the Triumph's arrival.

"Seeing urine and feces sloshing in the halls, sleeping on the floor, nothing to eat, people fighting over food, $500? What's the emotional cost? You can't put money on that," Poret said.

Some passengers said conditions onboard improved on Thursday after the generator was delivered to the ship, providing power for a grill to cook hot food.

Carnival Corp Chairman and CEO Micky Arison faced criticism in January 2012 for failing to travel to Italy and take personal charge of the Costa Concordia crisis after the luxury cruise ship operated by Carnival's Costa Cruises brand grounded on rocks off the Tuscan island of Giglio. The tragedy unleashed numerous lawsuits against his company.

The cruise ship mogul has taken a low-key approach to the Triumph situation as well, even as it grabbed a growing share of the U.S. media spotlight. His only known public appearance since Sunday was courtside on Tuesday at a game played by his Miami Heat championship professional basketball team.

"I think they really are trying to do the right thing, but I don't think they have been able to communicate it effectively," said Marcia Horowitz, an executive who handles crisis management at Rubenstein Associates, a New York-based public relations firm.

"Most of all, you really need a face for Carnival," she added. "You can do all the right things. But unless you communicate it effectively, it will not see the light of day."

Carnival Corp shares closed down 11 cents at $37.35 in trading on Thursday on the New York Stock Exchange. The shares closed down 4 percent at $37.46 on Wednesday after the company said voyage disruptions and repair costs related to Carnival Triumph could shave up to 10 cents a share off its second-half earnings.

The Triumph is a Bahamian-flagged vessel and the Bahamas Maritime Authority will be the primary agency investigating the cause of its engine room fire.

Earlier this month, Carnival repaired an electrical issue on one of the Triumph's alternators. The company said there was no evidence of any connection between the repair and the fire.

For all the passengers' grievances, they will likely find it difficult to sue the cruise operator for any damages, legal sources said. Over the years, the cruise industry has put in place a legal structure that shields operators from big-money lawsuits.

(Additional reporting by David Adams and Kevin Gray in Miami, Writing by Tom Brown; Editing by Peter Cooney and Lisa Shumaker)

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Emmett Till’s family reacts to Lil Wayne lyric

NASHVILLE, Tenn. (AP) — A cousin of the late Emmett Till wonders if Lil Wayne understands just how damaging it was when he rapped a vulgar reference to the black U.S. teen whose death in 1955 became a significant moment in the civil rights movement.

Airickca Gordon-Taylor says Till’s family would like an apology from Lil Wayne for the brief but disturbing lyric on Future’s “Karate Chop” remix. But more than that, she’d like the platinum-selling New Orleans rapper to understand how his comparison of a sex act to the 14-year-old Chicago native’s torture death in Mississippi is hurtful to the black community.

“It was a heinous murder,” Gordon-Taylor said in a phone interview Thursday from Chicago. “He was brutally beaten and tortured, and he was shot, wrapped in barbed wire and tossed in the Tallahatchie River. The images that we’re fortunate to have (of his open casket) that ‘Jet’ published, they demonstrate the ugliness of racism. So to compare a woman’s anatomy — the gateway of life — to the ugly face of death, it just destroyed me. And then I had to call the elders in my family and explain to them before they heard it from some another source.”

The Future remix with Weezy guesting was leaked on the internet over the weekend. Epic Records said Wednesday it regretted the unauthorized remix version and that it was employing “great efforts” to pull it down. The brief reference — just seven words — will be stricken from the song when it’s officially released later.

The rapper made a crude reference to rough sex and used an obscenity. He indicated he wanted to do as much damage as had been done to Till.

Gordon-Taylor says Epic Chairman and CEO LA Reid personally reached out to her on a conference call Wednesday evening that included the Rev. Jesse Jackson to explain and apologize. Jackson said in a phone interview Thursday that Reid said on the call that Future and Lil Wayne were cooperative.

“Once he got the point he realized this was beyond the zone and he immediately pulled it,” Jackson said. “And he talked with both artists, who agreed.”

Weezy has made no comment, nor has he addressed the issue on his Twitter account. Gordon-Taylor says there’s been no attempt to apologize so far.

Till was in Mississippi visiting family when he was killed for allegedly flirting with a white woman. He was beaten, had his eyes gouged out and was shot in the head before his assailants tied a cotton gin fan to his body with barbed wire and tossed his body into the Tallahatchie River. Two white men, including the woman’s husband, were acquitted of the killing by an all-white jury.

Till’s body was recovered and returned to Chicago where his mother, Mamie Till, insisted on having an open casket at his funeral. The pictures of his battered body helped push civil rights into the cultural conversation in the U.S. Bob Dylan even wrote a song about it: “The Death of Emmett Till.”

Gordon-Taylor, founding director of the Mamie Till Mobley Memorial Foundation, said Lil Wayne’s lyric was devastating to her family. Simeon Wright, Till’s cousin who shared a bed with his relative the night he was taken by the killers, heard the lyric for the first time Wednesday night.

“And he said the Ku Klux Klan would be very proud of Lil Wayne,” Gordon-Taylor said. “And as tough a man as he is, I could see the hurt and the anger in his eyes. It just demonstrates to our family just how lost are our youth.”

Both Gordon-Taylor and Jackson believe the 30-year-old rapper could help with that problem if he chose. Jackson has met Wayne, whose real name is Dwayne Carter, before and said, “I respect his art.”

Jackson says the issue of a negative portrayal of the black community comes up from time to time, citing The Rolling Stones’ “Some Girls,” for instance: “We just felt they could make their point without grossly insulting people.”

Music also has the power to uplift, he noted. Harry Belafonte opened eyes to conditions in Africa and the Caribbean, for instance. Marvin Gaye’s “What’s Going On” helped Americans see the war in Vietnam in a new light. And Stevie Wonder’s “Happy Birthday” helped clear the way for a national holiday honoring Dr. Martin Luther King Jr.

“We want artists who have considerable power to use their power to uplift and redirect,” Jackson said. “It’s not a matter of free speech, it’s also speech that matters. … These artists have culturally transforming power. Either they hurt or they help.”

___

Online:

http://epicrecords.com

___

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

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Well: Ask Well: Swimming to Ease Back Pain

Many people find that recreational swimming helps ease back pain, and there is research to back that up. But some strokes may be better than others.

An advantage to exercising in a pool is that the buoyancy of the water takes stress off the joints. At the same time, swimming and other aquatic exercises can strengthen back and core muscles.

That said, it does not mean that everyone with a case of back pain should jump in a pool, said Dr. Scott A. Rodeo, a team physician for U.S.A. Olympic Swimming at the last three Olympic Games. Back pain can have a number of potential causes, some that require more caution than others. So the first thing to do is to get a careful evaluation and diagnosis. A doctor might recommend working with a physical therapist and starting off with standing exercises in the pool that involve bands and balls to strengthen the core and lower back muscles.

If you are cleared to swim, and just starting for the first time, pay close attention to your technique. Work with a coach or trainer if necessary. It may also be a good idea to start with the breaststroke, because the butterfly and freestyle strokes involve more trunk rotation. The backstroke is another good option, said Dr. Rodeo, who is co-chief of the sports medicine and shoulder service at the Hospital for Special Surgery in New York.

“With all the other strokes, you have the potential for some spine hyperextension,” Dr. Rodeo said. “With the backstroke, being on your back, you don’t have as much hyperextension.”

Like any activity, begin gradually, swimming perhaps twice a week at first and then progressing slowly over four to six weeks, he said. In one study, Japanese researchers looked at 35 people with low back pain who were enrolled in an aquatic exercise program, which included swimming and walking in a pool. Almost all of the patients showed improvements after six months, but the researchers found that those who participated at least twice weekly showed more significant improvements than those who went only once a week. “The improvement in physical score was independent of the initial ability in swimming,” they wrote.

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Push for online sales taxes pick up steam in Congress

U.S. states could collect millions of dollars in online sales taxes, with members of both parties in Congress sponsoring legislation Thursday that would resolve states' decades-long struggle to tax businesses beyond their borders.

"Small businesses and states alike are suffering from the inability to collect due -- not new -- taxes from purchases made online," said Rep. Steve Womack, R-Ark., adding the legislation is a "bipartisan, bicameral, common-sense solution that promotes states' rights and levels the playing field for our Main Street businesses."

Legislation on the Amazon tax, named for the colossal Internet retailer, has languished for years.

In 1992 the Supreme Court decided the patchwork of state tax laws made it too difficult for online retailers to collect and remit sales taxes. So states can tax Internet only sales made by companies with a physical presence in the states. That means online retailers such as Amazon.com Inc. collect sales tax in some states and not in others.

The bills introduced on Thursday reconcile differences in legislation that the House of Representatives and Senate considered last year. The nearly identical details in the bills and strong bipartisan support mean the final bill could be sent to President Barack Obama this year.

Members of Congress recently assured state lawmakers they would pass a law in 2013.

In the last decade, Internet sales have gone from 1.6 percent of all U.S. retail sales to more than 5 percent, according to Commerce Department data, a proportion that will likely grow as shoppers make more purchases on handheld devices. In the third quarter of 2012,  "e-commerce" sales were $57 billion, the department said.

Large Internet retailers are worried the tax could drive up the cost of doing business. They would also have to create new systems and software to collect the surcharges, adding to their costs. Amazon said in July it prefers having the tax issue resolved at the federal level.

When the 2007-09 recession caused states' revenues to collapse, Republican and Democratic governors backed the tax as a financial solution that would not require federal aid.

A leader in the Republican party, Virginia Gov. Bob McDonnell went so far as to figure online tax revenue into his recent plan for overhauling the state's transportation funding.

"The revenue states are losing out on is legally owed, but because of a pre-Internet Supreme Court ruling, states aren't able to collect it," Sen. Deb Peters, R-S.D., said in a statement.

States and cities say they can recoup billions of dollars with the tax. Fitch Ratings estimates put the states' loss at $11 billion.

Some states are considering their own legislation. Florida is debating a bill that advocates say could bring the state more than $400 million.

Small retailers, meanwhile, have said the sales tax will will allow them to compete with massive online retailers.

"While store owners collect and remit state and local sales taxes their digital competitors are off the hook -- and benefiting because of it," said David French, the National Retail Federation's senior vice president for government relations, in a statement.

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Anxiety grows as Chicago Public Schools narrows closing list

After trimming the number of schools that could be closed to 129, Mayor Rahm Emanuel's school administration on Wednesday entered the latest and what is likely to be the most intense phase so far in trying to determine which schools should be shut.

Chicago Public Schools chief Barbara Byrd-Bennett is expected to pare the preliminary list before unveiling a final one at the end of March. She said administrators will determine which schools are saved in the coming weeks amid a final round of community meetings to hear arguments from parents, teachers and community groups about why their schools should stay open.

If a hearing Wednesday night in North Lawndale was any indication, CPS still has a long way to go to gain the public's trust.

"Our schools don't need to close," Dwayne Truss, vice chairman of CPS' Austin Community Action Council, said in front of hundreds of people packed inside a church auditorium in the West Side neighborhood. "CPS is perpetrating a myth that there's a budget crisis."

CPS initially said 330 of its schools are underenrolled, the chief criterion for closing. Members of a commission assembled to gather public input on the issue told CPS officials earlier this year that closing a large number of schools would create too much upheaval. The Tribune, citing sources, said the commission indicated a far smaller number should be closed than initially feared, possibly as few as 15.

CPS then started holding its own hearings and on Wednesday, while following many of the formal recommendations made by the Commission on School Utilization, said 129 schools still fit the criteria for closing.

The new number and the latest round of hearings sets the stage for the administration to counter questions about the district's abilities to close a large number of schools and the need to do so.

For many who have already turned up to school closing meetings, this final round of hearings will be even more critical. School supporters must show how they plan to turn around academic performance and build enrollment, and also make the case for any security problems that would be created by closing their school.

"We are prepared now to move to the next level of conversation with our community and discuss a list of approximately 129 schools that still require further vetting and further conversation," Bryd-Bennett said. "We are going to take these 129 and continue to sift through these schools."

In the past, political clout has played a role in the district's final decisions. Already this year, several aldermen have spoken out on behalf of schools in their wards.

On the Near Northwest Side, for instance, the initial list of 330 underused schools included about six in the 1st Ward. Ald. Proco "Joe" Moreno helped organize local school council members, school administrators and parents to fight any closing. He also took that fight to leaders in City Hall and within CPS' bureaucracy. Nearly all of the schools in the ward were excluded from the list of 129.

"It is effort and it's organizing and not just showing up at meetings and yelling. Anybody can do that," Moreno said. "Those schools that proactively work before those meetings and explain what they are doing, what they need and that they are willing to accept new students, that's when politics works.

"My responsibility in this juncture was to focus on these schools," he said. "I had to work on the inside, with CPS and with City Hall, and with my schools on the outside."

Most of the schools on the list of 129 are on the West, South and Southwest sides, many in impoverished neighborhoods that saw significant population loss over the last decade. Largely spared were the North and Northwest sides.

In all, more than 43,000 students attend those 129 schools on the preliminary list, according to CPS records.

The area with the most schools on the list is a CPS network (the district groups its schools in 14 networks) that runs roughly from Madison Street south to 71st Street and from the lake to State Street. The preliminary list includes 24 schools in that area.

The Englewood-Gresham network has the second-largest number, 19, while the Austin-North Lawndale network where Wednesday night's meeting was held still has 16 schools on the list.

CPS critics said the preliminary list is still too large to be meaningful and that the district's promise to trim it before March 31 is only a tactic to make the final number seem reasonable.

"They started out with such a far-fetched, exaggerated list of schools, many of which are nowhere near underutilized," said Wendy Katten, co-founder of the parent group Raise Your Hand. "They might appear to be looking like they're listening, but they're not. They have not done a thorough and substantive assessment of these schools."

Following the commission's recommendations, CPS last month removed high schools and schools performing at a high level academically from consideration. On Wednesday, the district said schools with more than 600 students or utilization rates of at least 70 percent have also been taken out of consideration for closing.

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Josh Groban beats Tim McGraw to top of Billboard 200 album chart

LOS ANGELES (Reuters) – Singer Josh Groban scored his third No. 1 on Wednesday as his latest album shot to the top of the Billboard 200 album chart, edging out new entries from Tim McGraw and rock band Coheed and Cambria.

“All That Echoes,” Groban’s sixth studio album, sold 145,000 copies in its first week, according to figures from Nielsen SoundScan, making it the singer’s third chart-topping album since 2007′s holiday set, “Noel.”

Country crooner McGraw debuted at No. 2 with his 12th studio album, “Two Lanes of Freedom,” selling 107,000 copies. McGraw and his country singer wife, Faith Hill, were also presenters at Sunday’s Grammy Awards.

“Now 45,” the latest installment of the “Now Music” compilations featuring chart hits by One Direction, Maroon 5 and Pink, landed at No. 3 this week.

British folk band Mumford & Sons’ album “Babel” climbed the chart from No. 7 to No. 4, following the band’s big Grammy night win on Sunday for Album of the Year.

The album is likely to get a bigger boost from the Grammy Awards win, to be reflected in next week’s chart, which accumulates all sales from a Monday to Sunday weekly cycle.

Other new entries on this week’s top 10 include Nashville rock band Red with their fourth studio album, “Release the Panic,” at No. 7 and New York rockers Coheed and Cambria at No. 9 with their latest set, “The Afterman: Descension.”

(Reporting By Piya Sinha-Roy; Editing by Eric Beech)

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To Lower Suicide Rates, New Focus Turns to Guns

Larry Mayer for The New York Times

Craig and Cara Reichert and their daughter, Kassidy, in Dayton, Wyo. “I will always believe in guns,” Mr. Reichert said. Kameron Reichert killed himself with a family heirloom.

DAYTON, Wyo. — Craig Reichert found his son’s body on a winter morning, lying on the floor as if he were napping with his great-uncle’s pistol under his knee. The 911 dispatcher told him to administer CPR, but Mr. Reichert, who has had emergency training, told her it was too late. His son, Kameron, 17, was already cold to the touch.

Guns are like a grandmother’s diamonds in the Reichert family, heirlooms that carry memory and tradition. They are used on the occasional hunting trip, but most days they are stored, forgotten, under a bed. So when Kameron used one on himself, his parents were as shocked as they were heartbroken.

“I beat myself up quite a bit over not having a gun safe or something to put them in,” Mr. Reichert said. But he said even if he had had one, “There would have been two people in the house with the combination, him and me.”

The gun debate has focused on mass shootings and assault weapons since the schoolhouse massacre in Newtown, Conn., but far more Americans die by turning guns on themselves. Nearly 20,000 of the 30,000 deaths from guns in the United States in 2010 were suicides, according to the most recent figures from the Centers for Disease Control and Prevention. The national suicide rate has climbed by 12 percent since 2003, and suicide is the third-leading cause of death for teenagers.

Guns are particularly lethal. Suicidal acts with guns are fatal in 85 percent of cases, while those with pills are fatal in just 2 percent of cases, according to the Harvard Injury Control Research Center.

The national map of suicide lights up in states with the highest gun ownership rates. Wyoming, Montana and Alaska, the states with the three highest suicide rates, are also the top gun-owning states, according to the Harvard center. The state-level data are too broad to tell whether the deaths were in homes with guns, but a series of individual-level studies since the early 1990s found a direct link. Most researchers say the weight of evidence from multiple studies is that guns in the home increase the risk of suicide.

“The literature suggests that having a gun in your home to protect your family is like bringing a time bomb into your house,” said Dr. Mark Rosenberg, an epidemiologist who helped establish the C.D.C.’s National Center for Injury Prevention and Control. “Instead of protecting you, it’s more likely to blow up.”

Still, some dispute the link, saying that it does not prove cause and effect, and that other factors, like alcoholism and drug abuse, may be driving the association. Gary Kleck, a professor of criminology at Florida State University in Tallahassee, contends that gun owners may have qualities that make them more susceptible to suicide. They may be more likely to see the world as a hostile place, or to blame themselves when things go wrong, a dark side of self-reliance.

Health officials in a number of states are trying to persuade families to keep guns away from troubled relatives or to lock the weapons up so teenagers cannot get them. Some of those same officials say the inflamed national gun control debate is actually making progress harder because the politics put gun owners on the defensive.

“You just bump up against that glass wall, and barriers go up and the conversations break down,” said B. J. Ayers, a suicide prevention specialist in southeast Wyoming.

Seeking to lower death rates, health departments in Missouri, Wyoming and North Carolina are giving out gunlocks. In New Hampshire, about half the gun shops put up posters and give out fliers alerting gun owners to the warning signs for suicide and suggesting ways to keep guns from loved ones at risk of harming themselves. A coalition of firearm dealers in Maryland is now planning a similar program.

“This is an issue whose time has come,” said Keith Hotle, state suicide prevention team leader for Wyoming, the state with the highest suicide rate. A state advisory council recently bumped firearms safety to the top priority in a new report to the governor on suicide prevention. But Mr. Hotle cautioned that in Wyoming, where guns are like cars — just about everybody has one — direct arguments against them simply will not work.

“The framing is important,” he said. “It’s not about taking away people’s guns. It’s about how to deal with folks in a temporary crisis.”

Kameron’s crisis was, by all accounts, temporary. He was a popular football player with adoring parents and no history of depression. He worked after school at the only corner grocery store in Dayton, a tiny town in northeastern Wyoming with tidy, tree-lined streets and a park at the base of Bighorn National Forest. He liked to drive students around in his Pontiac Grand Prix, and he always bought multipacks of gum at Costco so he could give out sticks in pretty blue wrappers to girls at school.

“If someone had a hankering for a hamburger, he’d be off,” said his mother, Cara Reichert, an administrator in the local school system.

The event that preceded his death in 2008 seems like the mischievous scrape of a teenage boy. Out one night in the town park, he was caught with a package of cigars by local police officers.

His parents are still tormented over the bad luck that followed. The officers searched him because they were training a new colleague. Then a clerk at the local court told him — incorrectly — that his parents had to be present to pay the fine. His parents punished him by taking away his cellphone, though they left him his car.

“If just one little piece of this story would not have fallen into place,” Mr. Reichert said, his voice breaking.

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Sources: American, US Airways boards approve merger

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

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

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

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

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

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

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

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

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

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

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

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Dorner manhunt: Confusion over whether body was found

Raw footage of Christopher Dorner's cabin engulfed in flames. It is unclear who set it. There are also reports of ammo exploding inside.

There were conflicting reports tonight about whether a body was located inside the burned-out cabin Tuesday night where Christopher Jordan Dorner was believed to have kept law enforcement authorities at bay.

Several sources told The Times and many other news organizations that a body was located in the rubble. But LAPD officials just said that the cabin is still too hot to search and no body has been found.

Another update is expected within the next hour from law enforcement officers near the scene, and officials said they might have an update clarifying the confusion.

San Bernardino County Sheriff's spokeswoman Cindy Bachman said officials have not confirmed what is inside the cabin. She said police believed a suspect was inside the cabin at the time of the fire but that officials have not gone in yet to look for the body.

As authorities moved into the cabin earlier Tuesday, they heard a single gunshot.

According to a law enforcement source, police had broken down windows, fired tear gas into the cabin and blasted over a loud speaker urging Dorner to surrender. When they got no response, police deployed a vehicle to rip down the walls of the cabin "one by one, like peeling an onion," a law enforcement official said.

By the time they got to the last wall, authorities heard a single gunshot, the source said. Then flames began to spread through the structure, and gunshots, probably set off by the fire, were heard. 

As darkness descended on the mountainside, Dorner's body had not been found, authorities said. Police were planning to focus their search in the basement area, the source said.

Earlier Tuesday, a tall plume of smoke was rising as flames consumed the wood-paneled cabin. Hundreds of law enforcement personnel had swooped down on the site near Big Bear after the gun battles between Dorner and officers that broke out in the snow-covered mountains where the fugitive had been eluding a massive manhunt since his truck was found burning in the area late last week.

Law enforcement personnel in military-style gear and armed with high-powered weapons took up positions in the heavily forested area as the tense standoff progressed. 

One San Bernardino County sheriff's deputy died of his wounds after he and another deputy were wounded in an exchange of gunfire outside the cabin in which hundreds of rounds were fired, sources told The Times. The deputy was airlifted to Loma Linda University Medical Center, where he died of his wounds.

The afternoon gun battle was part of a quickly changing situation that began after Dorner allegedly broke into a home, tied up a couple and held them hostage. He then stole a silver pickup truck, sources said.

Then Dorner was allegedly spotted by a state Fish and Wildlife officer in the pickup truck, sources said. A vehicle-to-vehicle shootout ensued. The officer's vehicle was peppered with multiple rounds, according to authorities.

Dorner crashed his vehicle and took refuge in a nearby cabin, sources said. One deputy was hit as Dorner fired out of the cabin and a second deputy was injured when Dorner exited the back of the cabin, deployed a smoke bomb and opened fire again in an apparent attempt to flee. Dorner was driven back inside the cabin, the sources said.

During the unprecedented manhunt, officers had crisscrossed California for days pursuing the more than 1,000 tips that poured in about Dorner's possible whereabouts -- including efforts in Tijuana, San Diego County and Big Bear -- and serving warrants at homes in Las Vegas and the Point Loma area of San Diego.

Statewide alerts were issued in California and Nevada, and border authorities were alerted. The Transportation Security Administration also had issued an alert urging pilots and other aircraft operators to keep an eye out for Dorner.

The search turned to Big Bear last week after Dorner's burning truck was found on a local forest road.

At the search's height, more than 200 officers scoured the mountain, conducting cabin-by-cabin checks. It was scaled back Sunday -- about 30 officers were out in the field Tuesday, the San Bernardino County Sheriff's Department said.

Dorner allegedly threatened "unconventional and asymmetrical warfare" against police in a lengthy manifesto that authorities say he posted on Facebook. The posting named dozens of potential targets, including police officers, whom Dorner allegedly threatened to attack, according to authorities.

Records state that the manifesto was discovered by authorities last Wednesday, three days after the slaying of an Irvine couple: Monica Quan, a Cal State Fullerton assistant basketball coach, and her fiance, Keith Lawrence, a USC public safety officer.

Quan was the daughter of a retired LAPD captain whom Dorner allegedly blamed in part for his firing from the force in 2009.

 

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