DealBook: Office Depot and OfficeMax Announce Plans to Merge, After Erroneous Release

10:21 a.m. | Updated

Office Depot and OfficeMax announced plans to merge on Wednesday, just hours after an erroneous news release about the deal surfaced briefly.

Under the terms of the deal, Office Depot said it would issue 2.69 new shares of common stock for each share of OfficeMax. At that level, the transaction would value OfficeMax at $13.50, or roughly $1.19 billion, a premium of more than 25 percent to the company’s closing price last week.

The deal has been anticipated, as the companies face an increasingly difficult competitive environment. Both companies, which are burdened with big real estate footprints, have struggled against lower-priced rivals like Amazon.com and Costco. By uniting, the two companies should be able to reduce costs and better negotiate prices.

“In the past decade, with the growth of the Internet, our industry has changed dramatically,” Neil R. Austrian, chairman and chief executive of Office Depot, said in a statement. “Combining our two companies will enhance our ability to serve customers around the world, offer new opportunities for our employees, make us a more attractive partner to our vendors and increase stockholder value.”

While the deal has been years in the making, it was initially announced prematurely. A news release announcing the merger of the companies was posted on Office Depot’s Web site early on Wednesday morning, but it quickly disappeared.

Several news organizations reported the terms disclosed in the errant news release for Office Depot’s earnings. The details were buried on page four of the release, under the header “Other Matters.”

As the details filtered through the market, shares of the companies jumped. In premarket trading, Office Depot’s stock rose more than 7 percent, while OfficeMax shares were up more than 8 percent.

The episode is reminiscent of other times that companies’ earnings releases were published prematurely. Last fall, Google’s third-quarter earnings were published three hours early, which the technology giant blamed on a mistake by R.R. Donnelley & Sons, the company’s printer.

Representatives for Office Depot and OfficeMax were not immediately available for comment on the erroneous release.

Strategically, the deal makes sense, as the companies face a changing competitive environment.

Combined, the companies reported about $4.4 billion in revenue for their third quarter of 2012; in comparison, Staples disclosed $6.4 billion in revenue for the same period.

Office Depot has also been under pressure from an activist hedge fund, Starboard Value, which sent a letter to the retailer’s board last fall. In it, Starboard called for more cost cuts and a greater focus on higher-margin businesses like copy and print services. With a 14.8 percent stake, Starboard is the company’s biggest investor.

In announcing the deal, the two companies emphasized their new financial heft.

With the merger, the retailers expect to generate $400 million to $600 million in annual cost savings. The combined entity would also have $1 billion in cash, providing additional firepower to invest in the business.

“We are excited to bring together two companies intent on accelerating innovation for our customers and better differentiating us for success in a dynamic and highly competitive global industry,” Ravi K. Saligram, chief executive of OfficeMax, said in a statement. “We are confident that there will be exciting new opportunities for employees as part of a truly global business.”

Each company will have an equal number of directors on the board of the combined retailer. Before the deal closes, OfficeMax will pay a special dividend of $1.50 a share to its shareholders.

OfficeMax was advised by JPMorgan Chase and the law firms Skadden, Arps, Slate, Meagher & Flom and Dechert. Office Depot was counseled by Simpson Thacher & Bartlett, while its board was advised by the Peter J. Solomon Company, Morgan Stanley and Kirkland & Ellis. Perella Weinberg Partners provided financial advice to the board’s transaction committee.

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DealBook: Prosecutors, Shifting Strategy, Build New Wall Street Cases

Criticized for letting Wall Street off the hook after the financial crisis, the Justice Department is building a new model for prosecuting big banks.

In a recent round of actions that shook the financial industry, the government pushed for guilty pleas, rather than just the usual fines and reforms. Prosecutors now aim to apply the approach broadly to financial fraud cases, according to officials involved in the investigations.

Lawyers for several big banks, who spoke on the condition of anonymity, said they were already adjusting their defenses and urging banks to fire employees suspected of wrongdoing in the hope of appeasing authorities.

But critics question whether the new strategy amounts to a symbolic reprimand rather than a sweeping rebuke. So far, the Justice Department has extracted guilty pleas only from remote subsidiaries of big foreign banks, a move that has inflicted reputational damage but little else.

The new strategy first materialized in recent settlements with UBS and the Royal Bank of Scotland, which were accused of manipulating interest rates to bolster profit. As part of a broader deal, the banks’ Japanese subsidiaries pleaded guilty to felony wire fraud.

The settlements present a significant shift. Authorities have long avoided guilty pleas over fears they will destroy the banks and imperil the broader economy. By going after a subsidiary, prosecutors shield the parent company from losing its license, but still send a warning to the financial industry.

The Justice Department plans to continue the campaign as it pursues guilty pleas from other bank subsidiaries suspected of reporting false interest rates, according to the prosecutors and the lawyers who requested anonymity to discuss the cases. Authorities are scrutinizing Citigroup, whose Japanese unit is suspected of rate manipulation, and prosecutors recently accused one former trader there of colluding with other banks in a vast rate-rigging conspiracy.

Prosecutors want the rate-rigging investigation to serve as a template for other financial fraud cases. Two officials, who spoke on condition of anonymity, described a plan to eventually wring an admission of guilt from an entire bank.

“This Department of Justice will continue to hold financial institutions that break the law criminally responsible,” Lanny A. Breuer, the departing head of the agency’s criminal division, said in an interview.

The strategy will face significant roadblocks.

For one, banking regulators are likely to sound alarms about the economy. HSBC avoided charges in a money laundering case last year after concerns arose that an indictment could put the bank out of business. In the first interest rate-rigging case, prosecutors briefly considered criminal charges against an arm of Barclays, but they hesitated given the bank’s cooperation and its importance to the financial system, two people close to the case said.

The Justice Department will also face resistance from Wall Street. In meetings with authorities, banks are trying to distinguish their activities from the bad behavior at UBS and Barclays, according to the industry lawyers. One lawyer who represents Deutsche Bank acknowledged that Wall Street was girding for battle over the push for guilty pleas.

Some lawyers posit that the new approach amounts to a government shakedown, because institutions may plead guilty to dodge an indictment. “I think it’s a step in the wrong direction,” said James R. Copland, the director of the Center for Legal Policy at the Manhattan Institute.

Complicating matters, lawmakers and consumer advocates will continue to complain that banks get off too easily. In the rate manipulation cases, critics have clamored for more potent penalties, seeking convictions against parent companies.

The problems “should provide motivation to prosecutors, regulators and Congress to do more to ensure that this type of behavior is stopped, and that banks and their executives who manipulate markets are held accountable,” said Senator Carl Levin, Democrat of Michigan.

Critics point to the UBS case. Before UBS signed the deal, Japanese authorities assured the bank that a guilty plea would not cost the subsidiary its license, a person involved in the case said. While the case has weighed on the stock price, the subsidiary is operating normally and clients have stayed put, according to people with direct knowledge of the case.

Prosecutors defend their effort, saying it was born from painful experiences over the last decade.

After Arthur Andersen was convicted in 2002, the accounting firm went out of business, taking 28,000 jobs with it. The Supreme Court later overturned the case, prompting the government to alter its approach.

Prosecutors then turned to deferred-prosecution agreements, which suspend charges against corporations in exchange for certain concessions and a promise to behave. But the Justice Department took heat for prosecuting few top bank executives after the financial crisis. A recent “Frontline” documentary portrayed prosecutors as Wall Street apologists.

So the government is seeking a balanced approach, aiming to hold banks accountable without shutting them down. Prosecutors consulted federal policies that required them to weigh action with “collateral consequences” like job losses. Mr. Breuer also collected input from staff, including the head of his fraud unit, Denis J. McInerney, a former defense lawyer who represented Arthur Andersen.

Mr. Breuer eventually deployed a strategy built on guilty pleas for subsidiaries. He imported the model, in part, from his foreign bribery actions and pharmaceutical cases.

“Extracting a guilty plea from a wholly owned subsidiary finally enables the Justice Department to look tough on financial institutions while sparing them from the corporate death penalty,” said Evan T. Barr, a former federal prosecutor who now defends white-collar cases as a partner at Steptoe & Johnson.

As the Arthur Andersen cases fades from memory, some prosecutors say their new approach will lay the groundwork for parent companies to plead guilty.

But first, officials say, they are testing the strategy in the interest rate-rigging case. Authorities suspect that more than a dozen banks falsified reports to influence benchmark interest rates like the London interbank offered rate, or Libor, which underpins the costs for trillions of dollars in financial products like mortgages and credit cards.

Prosecutors focused on Japanese units because e-mail traffic exposed how traders there had routinely manipulated rates to increase profits, officials say. The units also have few ties to American arms of the banks, containing any threat to the economy.

After the Barclays case, authorities shifted to UBS, given the scope of the evidence and the bank’s past brushes with authorities, according to officials. The bank’s Japanese subsidiary was also a hub of rate-rigging activity. “The Justice Department had a clear view on the past of this institution,” said one executive who met with government officials.

Along with paying $1.5 billion in fines, the bank agreed to bolster its controls and have its Japanese unit plead guilty. It was the first big global bank subsidiary to plead guilty in more than two decades.

The Royal Bank of Scotland met a similar fate. The bank’s conduct was less severe than the actions of UBS, but it too had a rogue Japanese subsidiary. The bank announced a $612 million settlement with authorities this month, including a guilty plea in Japan.

Using the settlements as a template, prosecutors are building cases against other banks ensnared in the investigation, people involved in the case said, and guilty pleas are likely. Deutsche Bank is expected to settle with authorities by late 2013, the people said.

Citigroup and JPMorgan Chase, two American banks under scrutiny, pose a thornier challenge. So far, authorities have flexed their newfound muscle with foreign banks.

American regulators may warn that extending the campaign to Citigroup would threaten the company’s stock and prompt an exodus of clients. Japan’s regulators, some feeling upstaged by the recent actions, might raise similar concerns. Citigroup’s lawyers will also push back, people involved in the case said, citing the bank’s cooperation with investigators and emphasizing that wrongdoing never reached upper levels of management. The bank fired the trader recently charged by the Justice Department.

Authorities could counter that Citigroup’s Japanese unit is a repeat offender. It butted heads with Japanese regulators three times over the last decade.

“This is hard-nosed negotiation,” said Samuel W. Buell, a former prosecutor who is now a professor at Duke Law School. “It’s a game of chicken.”

Mark Scott contributed reporting from London and Hiroko Tabuchi from Tokyo.

A version of this article appeared in print on 02/19/2013, on page B1 of the NewYork edition with the headline: Prosecutors, Shifting Strategy, Build New Wall Street Cases.
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Clive Davis reveals in memoir that he's bisexual


NEW YORK (AP) — Record executive Clive Davis says he's bisexual.


In his new memoir, out Tuesday, the 80-year-old, who is twice divorced, reveals that he had sex with a man in the 1970s. Davis writes in "The Soundtrack of My Life" that he hadn't been repressed or confused during his marriages and that sex with a man "provided welcome relief."


He also writes that he started dating a man from 1990 to 2004, which he says was a "tough adjustment" for his son Mitchell. He says after "one trying year," he and his son worked things out. Davis is the father of three children.


Davis is the chief creative officer of Sony Music Entertainment. He writes that he's been in a "strong monogamous relationship" with a man for the last seven years.


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Well: Susan Love's Illness Gives New Focus to Her Cause

During a talk last spring in San Francisco, Dr. Susan Love, the well-known breast cancer book author and patient advocate, chided the research establishment for ignoring the needs of people with cancer. “The only difference between a researcher and a patient is a diagnosis,” she told the crowd. “We’re all patients.”

It was an eerily prescient lecture. Less than two months later, Dr. Love was given a diagnosis of acute myelogenous leukemia. She had no obvious symptoms and learned of her disease only after a checkup and routine blood work.

“Little did I know I was talking about myself,” she said in an interview. “It was really out of the blue. I was feeling fine. I ran five miles the day before.”

Dr. Love, a surgeon, is best known as the author of the top-selling “Dr. Susan Love’s Breast Book” (Da Capo Press, 2010) now in its fifth edition. She is also president of the Dr. Susan Love Research Foundation, which focuses on breast cancer prevention and research into eradicating the disease. But after decades of tireless advocacy on behalf of women with breast cancer, Dr. Love found herself in an unfamiliar role with an unfamiliar disease.

“There is a sense of shock when it happens to you,” she said. “In some ways I would have been less shocked if I got breast cancer because it’s so common, but getting leukemia was a world I didn’t know. Even when you’re a physician, when you get shocking news like this you sort of forget everything you know and are scared the same as everybody else.”

Because Dr. Love’s disease was caught early, she had a little time to seek second opinions and choose her medical team. She chose City of Hope in Duarte, Calif., because of its extensive experience in bone marrow transplants. At 65, Dr. Love was startled to learn she was considered among the “elderly” patients for this type of leukemia.

She was admitted to the hospital and underwent chemotherapy. Because her blood counts did not rebound after the treatment, her stay lasted a grueling seven weeks.

She went home for just two weeks, and then returned to the hospital for a bone-marrow transplant, with marrow donated by her younger sister, Elizabeth Love De Garcia, 53, who lives in Mexico City.

Although the transplant itself was uneventful, the next four weeks were an ordeal. Dr. Love developed pain and neuropathy from the chemotherapy drugs. Dr. Love’s wife, Dr. Helen Cooksey; daughter, Katie Love-Cooksey, 24; and siblings offered round-the-clock support. Ms. Love-Cooksey slept in the hospital every night. “I wasn’t very articulate during that time, but I always had my family there,” Dr. Love said. “They were great advocates for me.”

The transplant “is quite an amazing thing,” Dr. Love said. Her blood type changed from O positive to B positive, the same type as her sister. She also has inherited her sister’s immune system, and a lifelong allergy to nickel has disappeared. “I can wear cheap jewelry now,” she said. She returned to work last month.

Dr. Love has been told her disease is in remission, though her immune system remains compromised and she is more susceptible to infection. So she avoids crowds, air travel and other potential sources of cold and flu viruses.

While Dr. Love has always been a strong advocate for women undergoing cancer treatment, she says her disease and treatment has strengthened her understanding of what women with breast cancer and other types of cancer go through during treatments.

“There are little things like having numb toes or having less stamina to building muscles back up after a month of bed rest,” she said. “There is significant collateral damage from the treatment that is underestimated by the medical profession. There’s a sense of ‘You’re lucky to be alive, so why are you complaining?’ ”

Dr. Love says her experience has emboldened her in her quest to focus on the causes of disease rather than new drugs to treat it.

“I think I’m more impatient now and in more of a hurry,” she said. “I’ve been reminded that you don’t know how long you have. There are women being diagnosed every day. We don’t have the luxury to sit around and come up with a new marketing scheme. We have to get rid of this disease, and there is no reason we can’t do it.”

People who remain skeptical about the ability to eradicate breast cancer should look to the history of cervical cancer, she said. Decades ago, a woman with an abnormal Pap smear would be advised to undergo hysterectomy. Now a vaccine exists that can protect women from the infection that causes most cervical cancers.

“We need to focus more on the cause of breast cancer,” she said. “I’m still very impressed with the fact that cancer of the cervix went from being a disease that robbed women of their fertility, if not their lives, to having a vaccine to prevent it.”

Dr. Love, who wrote a book called “Live a Little!,” said illness has also made her grateful that she didn’t put off her “bucket list” and that she has traveled the world and focused on work she finds challenging and satisfying.

“It just reminds you that none of us are going to get out of here alive, and we don’t know how much time we have,” she said. “I say this to my daughter, whether it’s changing the world or having a good time, that we should do what we want to do. I drink the expensive wine now.”

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Homebuilder Confidence Dips







LOS ANGELES (AP) — Confidence among U.S. homebuilders slipped this month from the 6½ year high it reached in January, with many builders reporting less traffic by prospective customers before the critical spring home-buying season.




The National Association of Home Builders/Wells Fargo builder sentiment index released Tuesday dipped to 46 from 47 in January. It was the first monthly decline in the index since April.


Readings below 50 suggest negative sentiment about the housing market. The last time the index was at 50 or higher was in April 2006, when it was 51. It began trending higher in October 2011, when it was 17.


The latest index, based on responses from 402 builders, comes as the U.S. housing market is strengthening after stagnating for roughly five years after the housing boom collapsed.


Steady job gains and near-record-low mortgage rates have encouraged more people to buy homes. Prices have been rising. In part, that's because the supply of previously occupied homes for sale has thinned to the lowest level in more than a decade. And the pace of foreclosures, while still rising in some states, has slowed sharply on a national basis.


The trends have led homebuilders to increase construction. Last year, builders broke ground on the most new homes in four years.


All told, sales of new homes jumped nearly 20 percent last year to 367,000, the most since 2009. Still, many economists don't foresee a full housing recovery before 2015 at the earliest.


"The index remains near its highest level since May of 2006, and we expect homebuilding to continue on a modest rising trajectory this year," said David Crowe, the NAHB's chief economist.


Even so, builders remain concerned about the sturdiness of the U.S. economy and unemployment, which ticked up to 7.9 percent last month from 7.8 percent in December.


Many builders are facing higher costs for building materials and having trouble obtaining financing for construction. Some also are facing a shortage of workers in markets where residential construction has picked up sharply, such as Texas and Arizona.


An index that measures current sales conditions fell one point to 51. And a gauge of traffic by prospective buyers declined four points to 32 from 36 in January.


But builders' outlook for sales in the next six months improved one point to 50.


Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to NAHB statistics.


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Anti-Apartheid Leader Forms New Party in South Africa





JOHANNESBURG — Mamphela Ramphele, a respected veteran of the struggle against apartheid, announced on Monday that she had formed a new political party to compete against the governing African National Congress, calling on South Africans to “join me on a journey to build the country of our dreams.”




The party is called Agang, a Sotho word meaning “build,” said Dr. Ramphele, 65, a medical doctor who became an anti-apartheid activist and a leader of the Black Consciousness movement. In recent years, Dr. Ramphele has focused on social activism and business, serving until last week as the chairwoman of Gold Fields, a major mining firm.


The new party is the latest in a string of challengers to the dominance of the A.N.C., which has handily won every national election since apartheid ended in 1994 but has come under increasing scrutiny over charges of corruption and poor governance. In addition, inequality has grown in South Africa since the end of apartheid despite the party’s pledge to bring “A Better Life for All.” The country’s education system is in shambles.


Dr. Ramphele argued forcefully to an audience at the old Women’s Jail in Johannesburg that the government had failed to deliver, and vowed to tackle corruption head on.


“The country of our dreams has unfortunately faded,” she said in a speech. “The dream has faded for the many living in poverty and destitution in our increasingly unequal society. And perhaps worst of all, my generation has to confess to the young people of our country: we have failed you. We have failed to build for you an education and training system to prepare you for life in the 21st century.”


It is a refrain that echoes the criticisms of other opposition parties, including the Democratic Alliance, the main opposition, which was reported to have courted Dr. Ramphele, seeking to put a prominent and well-respected black leader atop what is still perceived as a largely white party despite its gains in urban black townships.


In an interview, Dr. Ramphele said she opted to start her own movement because South Africa needs a fresh start.


“The country needs a new beginning,” she said, dressed in a embroidered traditional outfit from her home state, Limpopo. “It is not going to happen with the current players.”


Dr. Ramphele has been a fixture in South African public life for decades. She had a close relationship with the Black Consciousness activist Steve Biko, who died in police custody in 1977, having two children with him. She was banished for seven years to the village of Lenyenye in a bleak northern corner of the country by the apartheid regime for her political activism. Undeterred, she started a small clinic that treated thousands of rural residents. She also earned degrees in anthropology and business.


When apartheid ended she was named Vice Chancellor of the University of Cape Town, the first black person to hold that post. She later became a managing director of the World Bank, and in recent years has been sought after as a corporate board member.


While her career has given her sterling international credentials, it remains to be seen whether she can muster a mass following in a country where populist appeal has proved essential to political success. Asked about the size of her team, she responded that “we are an energetic team of five.” Hobnobbing with corporate titans and global leaders has left Dr. Ramphele open to charges of elitism, some say.


Bantu Holomisa, leader of the United Democratic Movement, which he started after leaving the A.N.C. in 1997, said in a statement that he welcomed Dr. Ramphele to politics and signaled a willingness to join forces.


“We look forward to working with Dr. Ramphele in our efforts to build a strong political alternative for the people of South Africa,” he said.


But efforts to blunt A.N.C. dominance have struggled in the past. The Congress of the People, a breakaway party started in 2008 by supporters of former president Thabo Mbeki and other disgruntled A.N.C. members, has seen its power wane.


The A.N.C. has been rocked by scandal and tragedy over the past year. President Jacob Zuma has faced repeated investigations over $27 million in government money spent on security upgrades to his private residence in his home village of Nkandla. The police killing of 33 striking workers at a platinum mine in August 2012 caused many to question the A.N.C.’s commitment to helping the poor. The crisis led credit agencies to slash the country’s debt rating, which has hurt already slowing economic growth.


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Singer Mindy McCready dies in apparent suicide


HEBER SPRINGS, Ark. (AP) — Perhaps there was one heartbreak too many for Mindy McCready.


The former country star apparently took her own life on Sunday at her home in Heber Springs, Ark. Authorities say McCready died of a suspected self-inflicted gunshot to the head and an autopsy is planned. She was 37, and left behind two young sons.


McCready had attempted suicide at least three times since 2005, as she struggled to cope amid a series of tumultuous public events that marked much of her adult life.


Speaking to The Associated Press in 2010, McCready smiled wryly while talking about the string of issues she'd dealt with over the last half-decade.


"It is a giant whirlwind of chaos all the time," she said of her life. "I call my life a beautiful mess and organized chaos. It's just always been like that. My entire life things have been attracted to me and vice versa that turn into chaotic nightmares or I create the chaos myself. I think that's really the life of a celebrity, of a big, huge, giant personality."


This time it seems the whirlwind overwhelmed McCready.


Her death comes a month after that of David Wilson, her longtime boyfriend and the father of her youngest son. He is believed to have shot himself on the same porch of the home they shared in Heber Springs, a small vacation community of large lakefront houses about 65 miles north of Little Rock. His death also was investigated as a suicide.


It was the most difficult moment in a life full of them. McCready issued a statement last month lamenting his death. And she called him her soul mate and a caregiver to her sons in an interview with NBC's "Today" show.


"I just keep telling myself that the more suffering that I go through, the greater character I'll have," she said, according to a transcript of the interview.


Like so many times before, McCready showed a little toughness in the midst of a personal storm, again endearing herself to her fans. But as usual, the brave face for the camera hid a much more complicated internal struggle that surfaced publicly time and again over the last 10 years.


This time, along with her remembrances of finding Wilson as he lay dying, she also answered questions about whether they'd argued earlier that evening about an affair and if she'd shot him.


"Oh, my God," the "Today" transcript reads. "No. Oh, my God. No. He was my life. We were each other's life."


It's unclear what circumstances led to McCready taking her own life, but it appears she was struggling again with twin issues that have persisted for years — substance abuse and the custody of her children. She checked into court-ordered rehab and gave her children up to foster care earlier this month after her father asked a judge to intervene, saying she'd stopped taking care of herself and her sons and was abusing alcohol and prescription drugs.


It's not clear where her sons, 6-year-old Zander and infant Zayne, were Sunday.


A deputy stationed outside McCready's home Sunday night referred questions to the Cleburne County sheriff, who was unavailable. Yellow crime-scene tape cordoned off the front yard and a dark-colored pickup truck sat in the driveway.


News of McCready's death spread quickly Sunday night on Twitter, with major country stars paying their respects to the onetime Nashville darling.


"Too much tragedy to overcome. R.I.P Mindy McCready," wrote Natalie Maines of The Dixie Chicks.


And Carrie Underwood added: "I grew up listening to Mindy McCready...so sad for her family tonight. Many prayers are going out to them... ."


On Monday, neighbors who never met McCready but knew well of her very public struggles expressed grief.


Jim Jones, 58, said police had already blocked off McCready's house Sunday evening when he and his wife pulled up to their weekend home down the street. People knew McCready lived in town, but many homeowners live only part-time in Heber Springs, particularly in the warmer months for the boating, fishing and golfing.


"I never met anybody. That's the thing about up here. So many of them are summer lake houses that you don't know your neighbors."


Melinda Gayle McCready arrived in Nashville in 1994 still in her teens with tapes of her karaoke vocals and earned a recording contract with BNA Records. She had a few memorable moments professionally, scoring her first No. 1 hit almost immediately.


"Guys Do It All the Time," a self-assured dig at male chauvinism, endeared her to female fans in 1996. She also scored a hit with "Ten Thousand Angels," and her album of that title sold 2 million copies.


Beyond that, though, she's mostly remembered for a string of dramatic moments as she spent the next 15 years chasing another huge hit. Her problems included a custody battle with her mother over one of her sons, arrests, overdoses and discord in her love life.


She made headlines in April 2008 when she claimed a longtime relationship with baseball great Roger Clemens. Published reports at the time said she met the pitcher at a Florida karaoke bar when she was 15 and he was 28 and married. Clemens has denied the relationship.


On Monday, Clemens handed a written statement to reporters at the Houston Astros spring training facility in Kissimmee, Fla., where he is serving as a special instructor for the team.


"Yes, that is sad news. I had heard over time that she was trying to get peace and direction in her life. The few times that I had met her and her manager/agent they were extremely nice."


A decade earlier she was engaged to actor Dean Cain, but the two never married.


She also had a turbulent relationship with Billy McKnight, a country singer who is the father of her oldest son. McKnight was arrested in 2005 on charges of attempted murder after authorities say he beat and choked her.


During this period she also pleaded guilty to obtaining the painkiller OxyContin fraudulently at a pharmacy and got probation. She violated the probation with a drunken driving arrest in May 2005, a few days before McKnight was arrested. And in July 2007, she was arrested in her hometown of Fort Myers, Fla., on misdemeanor charges of scratching her mother, Gayle Inge, on the face during a scuffle and resisting sheriff's deputies.


Less than a year later, McCready was arrested and charged with violating her probation by falsifying her community service records relating to the 2004 drug charge. A month later, she entered an extended care facility for undisclosed treatment, and followed that with a 60-day jail sentence. Inge took custody of Zander.


There were at least three suicide attempts between July 2005 and December 2008.


She tried to get help in an unusual way, joining the cast of "Celebrity Rehab 3" with Dr. Drew Pinsky. McCready came off as a sympathetic figure during the show's run. Pinsky called her an "angel" and in an interview in 2010 said it appeared McCready was doing "rather well."


Pinsky helped treat McCready for love addiction on the show and said he'd referred her to professionals who could continue to help her afterward.


"A love addict basically is somebody that really didn't have a good model for intimacy in their childhood, often times traumatized in one way or another, thereby intimacy becomes a risk place, becomes an intolerable place," Pinsky said. "And so what they tend to do is attach themselves to idealized, bigger than life, unavailable others, specifically go after some public figure that's married or go after some rock star who is himself a sex addict and not interested in a relationship, and then idealize that person and actively pursue them to the point of obsession."


McCready suffered a seizure in one of the show's scarier moments. Tests showed she has suffered brain damage, something she attributed to her abusive relationship with McKnight.


McCready is the fifth celebrity to pass away since appearing on Pinsky's show and the third from Season 3. Alice in Chains bassist Mike Starr and "Real World" participant Joey Kovar both died of overdoses.


In the months after her stint, McCready said she found some peace, telling The Associated Press in early 2010 that she hoped to get her career restarted, write a book about her experiences and begin production on a reality show with her brothers. She'd just met Wilson and talked openly about their relationship, although the producer and musician declined to speak on the record.


With a publicist, reporters, cameras, makeup artists and musicians swirling around her during a press day for her last album, "I'm Still Here," McCready fended off questions about a sex tape and said she and Wilson started out as friends.


"And I've never had a relationship like that before where we started completely as friends," she said. "It turned into friends really caring about each other and then it turned into love and I've never had that happen before."


At the time, Pinsky thought the relationship was on the right track: "She's an easy person to like and to care about and we hope she does well," Pinsky said. "So far so good as far as I can tell."


McCready said her main goal in 2010 was to pull her family back together: "I would like my son back with me and for my brothers and I and he to be able to go and do this (TV reality show), and I think after that I will be a pretty happy girl."


The new album debuted at No. 71 and failed to gain radio airplay. McCready's plans never materialized and she soon was in legal trouble again, this time fighting for custody.


McCready took her older son from her mother, the boy's legal guardian, in late 2011. She fled to Arkansas without permission over what she called child abuse fears. Authorities eventually found McCready hiding in a home without permission and took the boy into custody.


She and Wilson had their son in April 2012.


___


Music Writer Chris Talbott reported from Nashville, Tenn. Baseball Writer Noah Trister, in Kissimmee, Fla., and Associated Press writer Tamara Lush in Tampa, Fla., contributed to this report.


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Well: Certain Television Fare Can Help Ease Aggression in Young Children, Study Finds

Experts have long known that children imitate many of the deeds — good and bad — that they see on television. But it has rarely been shown that changing a young child’s viewing habits at home can lead to improved behavior.

In a study published Monday in the journal Pediatrics, researchers reported the results of a program designed to limit the exposure of preschool children to violence-laden videos and television shows and increase their time with educational programming that encourages empathy. They found that the experiment reduced the children’s aggression toward others, compared with a group of children who were allowed to watch whatever they wanted.

“Here we have an experiment that proposes a potential solution,” said Dr. Thomas N. Robinson, a professor of pediatrics at Stanford, who was not involved in the study. “Giving this intervention — exposing kids to less adult television, less aggression on television and more prosocial television — will have an effect on behavior.”

While the research showed “a small to moderate effect” on the preschoolers’ behavior, he added, the broader public health impact could be “very meaningful.”

The new study was a randomized trial, rare in research on the effects of media on children. The researchers, at Seattle Children’s Research Institute and the University of Washington, divided 565 parents of children ages 3 to 5 into two groups. Both were told to track their children’s media consumption in a diary that the researchers assessed for violent, didactic and prosocial content, which they defined as showing empathy, helping others and resolving disputes without violence.

The control group was given advice only on better dietary habits for children. The second group of parents were sent program guides highlighting positive shows for young children. They also received newsletters encouraging parents to watch television with their children and ask questions during the shows about the best ways to deal with conflict. The parents also received monthly phone calls from the researchers, who helped them set television-watching goals for their preschoolers.

The researchers surveyed the parents at six months and again after a year about their children’s social behavior. After six months, parents in the group receiving advice about television-watching said their children were somewhat less aggressive with others, compared with those in the control group. The children who watched less violent shows also scored higher on measures of social competence, a difference that persisted after one year.

Low-income boys showed the most improvement, though the researchers could not say why. Total viewing time did not differ between the two groups.

“The take-home message for parents is it’s not just about turning off the TV; it’s about changing the channel,” said Dr. Dimitri A. Christakis, the lead author of the study and a professor of pediatrics at the University of Washington.

“We want our children to behave better,” Dr. Christakis said, “and changing their media diet is a good way to do that.”

Until she began participating in Dr. Christakis’s trial, Nancy Jensen, a writer in Seattle, had never heard of shows like Nickelodeon’s “Wonder Pets!,” featuring cooperative team players, and NBC’s “My Friend Rabbit,” with its themes of loyalty and friendship.

At the time, her daughter Elizabeth, then 3, liked“King of the Hill,”a cartoon comedy geared toward adults that features beer and gossip. In hindsight, she said, the show was “hilariously funny, but completely inappropriate for a 3-year-old.”

These days, she consults Common Sense Media, a nonprofit advocacy group in San Francisco, to make sure that the shows her daughter watches have some prosocial benefit. Elizabeth, now 6, was “not necessarily an aggressive kid,” Ms. Jensen said. Still, the girl’s teacher recently commended her as very considerate, and Ms. Jensen believes a better television diet is an important reason.

The new study has limitations, experts noted. Data on both the children’s television habits and their behavior was reported by their parents, who may not be objective. And the study focused only on media content in the home, although some preschool-aged children are exposed to programming elsewhere.

Children watch a mix of “prosocial but also antisocial media,” said Marie-Louise Mares, an associate professor of communications at the University of Wisconsin, Madison. “Merely being exposed to prosocial media doesn’t mean that kids take it that way.”

Even educational programming with messages of empathy can be misunderstood by preschoolers, with negative consequences. A study published online in November in The Journal of Applied Developmental Psychology found that preschoolers shown educational media were more likely to engage in certain forms of interpersonal aggression over time.

Preschoolers observe relationship conflict early in a television episode but do not always connect it to the moral lesson or resolution at the end, said Jamie M. Ostrov, the lead author of the November study and an associate professor of psychology at the University of Buffalo.

Preschoolers watch an estimated 4.1 hours of television and other screen time daily, according to a 2011 study. Dr. Ostrov advised parents to watch television with their young children and to speak up during the relationship conflicts that are depicted. Citing one example, Dr. Ostrov counseled parents to ask children, “What could we do differently here?” to make it clear that yelling at a sibling is not acceptable.

He also urged parents to stick with age-appropriate programming. A 3-year-old might misunderstand the sibling strife in the PBS show“Arthur,” he said, or stop paying attention before it is resolved.

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Disruptions: Disruptions: 3-D Printing Is on the Fast Track

Will the future be printed in 3-D?

At first glance, looking at past predictions about the future of technology, prognosticators got a whole lot wrong. The Web is a garbage dump of inaccurate guesses about the year 2000, 2010 and beyond. Flying cars, robotic maids and jet packs still are nowhere near a reality.

Yet the prediction that 3-D printers will become a part of our daily lives is happening much sooner than anyone anticipated. These printers can produce objects, even rather intricate ones, by printing thin layer after layer of plastic, metal, ceramics or other materials. And the products they make can be highly customized.

Last week, President Obama cited this nascent technology during his State of the Union address — as if everyone already knew what the technology was.

He expressed hope that it was a way to rejuvenate American manufacturing. “A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3-D printing that has the potential to revolutionize the way we make almost everything,” Mr. Obama said. He has pushed new technologies before, like solar and wind power, as remedies for our nation’s problems, and those attempts have only revived the debate about the limitations of government industrial policy.

But this one shows more promise. The question is, can the United States get a foothold in manufacturing one 3-D printer at a time?

Hod Lipson, an associate professor and the director of the Creative Machines Lab at Cornell, said “3-D printing is worming its way into almost every industry, from entertainment, to food, to bio- and medical-applications.”

It won’t necessarily directly create manufacturing jobs, except perhaps for the printers themselves. Dr. Lipson, the co-author of “Fabricated: The New World of 3D Printing,” said that the technology “is not going to simply replace existing manufacturing anytime soon.” But he said he believed that it would give rise to new businesses. “The bigger opportunity in the U.S. is that it opens and creates new business models that are based on this idea of customization.”

In addition to the lab that the president mentioned, a federally financed manufacturing innovation institute in Youngstown, Ohio, schools are embracing the technology. The University of Virginia has been working to introduce 3-D printers into some programs from kindergarten through 12th grade in Charlottesville to prepare students for a new future in manufacturing.

“We have 3-D printers in classrooms, and in one example, we’re teaching kids how to design and print catapults that they then analyze for efficiency,” said Glen L. Bull, professor and co-director of the Center for Technology and Teacher Education. “We believe that every school in America could have a 3-D printer in the classroom in the next few years.”

The education system may want to speed things up. The time between predictions for 3-D printers and the reality of what they can accomplish is compressing rapidly.

For example, in 2010, researchers at the University of Southern California said that another decade would pass before we could build a home using a 3-D printer. Yet last week, Softkill Design, a London architecture collective, announced that it planned to make the first such home — which it will assemble in a single day — later this year. The home isn’t that pretty, and will look more like a calcified spider web than a cozy house, but it will show it can be done. The price of 3-D printers has also dropped sharply over the last two years, with machines that once cost $20,000, now at $1,000 or less. That’s partly because Chinese companies are driving down prices. Yes, China sees the opportunity in these things, even though the technology may undermine some of its manufacturing advantages.

“When it costs you the same amount of manufacturing effort to make advanced robotic parts as it does to manufacture a paperweight, that really changes things in a profound way,” Dr. Lipson said.

This leaves us with one more question about the future: When will these 3-D printers be able to make us flying cars, robotic maids and jet packs?

E-mail: bilton@nytimes.com

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White House Continues Work on Its Own Immigration Bill





WASHINGTON — President Obama’s chief of staff said Sunday morning that the administration has privately drafted an immigration bill so they can “be ready” with a proposal if lawmakers ultimately fail to agree on their own version of an overhaul of existing laws.




But Denis McDonough, the president’s top White House official, said Mr. Obama’s aides are continuing to work with a bipartisan group of senators despite harsh criticism Saturday night from a key Republican after a newspaper reported what it said were details of the administration’s immigration plan.


“We’ve not proposed anything to Capitol Hill yet,” Mr. McDonough said on ABC’s “This Week” in his first appearance as chief of staff. “We’re just going to be ready. We have developed each of these proposals so we have them in a position so that we can succeed.”


USA Today reported on Saturday that early drafts of the White House legislation call for immigrants to wait eight years before becoming permanent residents. The report drew a scathing response from Senator Marco Rubio, Republican of Florida, who said the plan would be “dead on arrival” in Congress.


“It’s a mistake for the White House to draft immigration legislation without seeking input from Republican members of Congress,” Mr. Rubio charged in a statement late Saturday night.


The White House has declined to confirm the paper’s report, and Mr. McDonough did not say what specific proposals are in the president’s legislation. But he said everyone will find out if lawmakers can’t reach an agreement.


“He says it’s dead on arrival if proposed?” Mr. McDonough said of Mr. Rubio’s comments. “Well, let’s make sure that it doesn’t have to be proposed, let’s make sure that that group up there, the gang of eight, makes some good progress on these efforts, as much as they say they want to. That’s exactly what we intend to do, to work with them.”


The USA Today report said that the president’s draft legislation would allow illegal immigrants to apply for a “Lawful Prospective Immigrant” visa before they became eligible for permanent resident status.


Those details are similar to the statement of principles that the White House provided to reporters after Mr. Obama’s Las Vegas speech. A fact sheet said the president wanted to strengthen border security, provide “earned citizenship,” streamline legal immigration and crack down on employers who knowingly hire illegal immigrants.


“Immigrants living here illegally must be held responsible for their actions by passing national security and criminal background checks, paying taxes and a penalty, going to the back of the line, and learning English before they can earn their citizenship,” the fact sheet said. “There will be no uncertainty about their ability to become U.S. citizens if they meet these eligibility criteria.”


In his statement, Mr. Rubio criticized Mr. Obama, saying that the details reported in the USA Today article represented legislation that “is half-baked and seriously flawed.”


“It would actually make our immigration problems worse,” he said. Mr. Rubio has been among the leading Republicans pushing for a comprehensive overhaul of immigration.


Senator Charles E. Schumer, Democrat of New York, said Sunday that Mr. Rubio is “upset” by the reports of Mr. Obama’s immigration plan. But Mr. Schumer said he remains optimistic about the chances of reaching a bipartisan agreement by sometime in March.


“We’ve talked to Senator Rubio and he’s fully on board with our process,” Mr. Schumer said on CNN’s “State of the Union,” adding that the president assured lawmakers last week that they should take the lead. “He agreed to give us the space we need to come up with a bipartisan proposal.”


But Demetrios G. Papademetriou, president of the Migration Policy Institute, an independent nonpartisan research center in Washington, said the eight-year temporary status for illegal immigrants in the document obtained by USA Today was “essentially the same as the probationary status” envisioned in a proposal developed by a bipartisan group of eight senators. During that probationary period, Mr. Papademetriou said, immigrants would have temporary visas with full work authorization.


The bipartisan Senate proposal calls for additional border security and more effective enforcement to curb illegal immigration. And it would require that “enforcement measures be complete before any immigrant on probationary status can earn a green card.” It was not immediately clear whether the White House would support such linkage.


Mr. Obama’s administration has been working on immigration legislation for years. But the issue shot to the top of the president’s second-term agenda after his re-election in November, when Hispanic voters backed him in large numbers. White House officials are betting that Republicans will be eager to embrace immigration changes as a way of repairing their image with an important voting bloc.


But getting legislation passed remains tricky, especially in the Republican-controlled House, and Mr. Obama has made it clear he will take a back seat to lawmakers if it will help. Negotiations are taking place among a bipartisan group of senators, a separate group in the House, and labor leaders and the U.S. Chamber of Commerce.


Representative Paul D. Ryan, Republican of Wisconsin, praised Mr. Obama’s tone on the issue last week, saying the president “actually doesn’t want to politicize this, which is conducive to getting something done.”


On Wednesday, the White House said Mr. Obama met with Democratic senators at the White House to get a status report on the pace of progress on the legislation. In a statement after the meeting, White House officials said the president reiterated his pledge to become more involved if necessary.


The statement said Mr. Obama told them “he expects the process to continue to move forward and stands ready to introduce his own legislation if Congress fails to act.”


It remains unclear how long the president is willing to wait. In interviews with Spanish-language television stations after his speech last month, Mr. Obama suggested that he wanted to see real progress by March, when lawmakers had said they hoped to have reached an agreement.


“If they can get a piece of legislation debated on the floor by March I think that’s a good timeline. And I think that can be accomplished,” he said on Univision last month. “I’m not going to lay down a particular date because I want to give them a little bit of room to debate. If it slips a week, that’s one thing. If it starts slipping three months, that’s a problem.”


Robert Pear contributed reporting.



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