Jewel parent says sale talks proceeding













 


Exterior of Jewel-Osco's first "Green Store" located at 370 N. Desplaines in Chicago.
(Antonio Perez / November 29, 2012)





















































Supervalu, the Minneapolis-based parent of Jewel-Osco said sale talks are proceeding Thursday after stock closed down more than 18 percent, to $2.28.

The beleaguered grocery chain was likely moving to combat reports that sale talks with suitor Cerberus Capital Management had stalled over funding.

"The company continues to be in active discussion with several parties," according to the statement. "There can be no assurance that this process will result in any transaction or any change in the Company's overall structure or its business model."

Supervalu has acknowledged sale talks since the spring. The company has been closing stores and cutting jobs as it has underperformed competitors like Dominick's parent Safeway and Kroger.

In addition to Jewel, Supervalu owns Albertsons, Cub and other regional grocery chains.




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Two men wounded in South Side shootings























































Two men in their 20s were shot in separate South Side attacks Wednesday night, police said.


A 25-year-old man told police he was driving in the Little Village neighborhood when he heard gunfire and pulled over in the 3100 block of South Pulaski Road to see who was shooting.


He heard more gunfire and realized he had been shot, Chicago Police Department News Affairs Officer Amina Greer said.








He drove himself to MacNeal Hospital, police said, with a gunshot wound to the knee. Greer said he’s in good condition.


About 8:40 p.m., a 22-year-old was shot in the 6800 block of South Ridgeland Avenue in the South Shore neighborhood. He was taken to Northwestern Memorial Hospital in stable condition, Chicago police Department News Affairs Officer Ron Gaines said.


Area detectives are investigating and nobody is in custody for either shooting, police said.


pnickeas@tribune.com
Twitter: @peternickeas






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Amazon's cloud chief targets "old guard" tech giants

LAS VEGAS (Reuters) - Amazon.com Inc's cloud computing division is going after big corporate customers, a new focus that will put the fast-growing unit into direct competition with some of the world's largest technology companies.


Andy Jassy, head of Amazon Web Services or AWS, criticized the hefty profit margins of what he called "old guard" tech companies on Wednesday and unveiled a new data warehousing service that he said will cost about a tenth of existing solutions.


"The old world of technology has a pricing model which is to charge as much as customers can pay. Customers are tired of it," Jassy said, during AWS's first conference in Las Vegas, Nevada, where more than 6,000 people attended.


He is banking on the division to take direct aim at tech stalwarts Oracle Corp, International Business Machines Corp and Hewlett-Packard Co, among others.


Shares of Teradata Corp., a leading independent provider of data warehouse services, fell 3.7 percent to $59.27 on Wednesday on concern about competition from AWS.


"A new competitor is entering the space with significantly lower price points," said Derrick Wood, an analyst at Susquehanna Financial Group. "That's the essence of the concern."


AWS, which Amazon started more than six years ago, provides data storage, computing power and other technology services from remote locations, making it a pioneer in what is now known as cloud computing.


AWS has grown fast because its services are cheap, relatively easy to use and can be shut off or ramped up quickly, depending on companies' needs. Evercore analyst Ken Sena expects AWS revenue to jump 45 percent a year, from about $2 billion this year to $20 billion in 2018.


The division has traditionally been used by start-up tech companies and other smaller businesses. Large corporations, known as enterprises in the tech world, have dabbled with AWS, but most shun cloud-based services for mission critical applications. Jassy said on Wednesday that is changing.


"We expect enterprises to migrate their applications to AWS," he added. "The question isn't if anymore, it's how fast it's going to move and which ones will move first."


Netflix, Royal Dutch Shell, Samsung and InterContinental Hotels Group are a few companies now using AWS, along with more than 300 government agencies and over 1,500 academic organizations, Jassy noted.


"It's increasingly less accurate to say only small companies use AWS," said Bernard Golden, Vice President, Enterprise Solutions for enStratus Networks, a cloud management software company.


AWS is targeting its new data warehouse service, called Redshift, at small businesses and large enterprises.


Companies typically pay between $19,000 and $25,000 per terabyte of storage per year for data warehouse solutions, Jassy said.


Redshift, which launches in early 2013, will cost as little as $1,000 per terabyte per year for companies that reserve the service for long periods, such as a year or more. They can also use it on-demand, which costs more, Jassy said.


Software tools that IT departments in big companies currently use to analyze data in their warehouses will work on the new Redshift service, potentially making it easier to switch, Golden said.


"All that will change will be the pricing," he added. "Teradata will be effected and Oracle, IBM and HP too - although this will impact a very small portion of the revenue for the bigger players."


Jassy said on Wednesday that AWS has the potential to be Amazon's biggest business, out-growing its original online retail operation.


AWS will do this by taking the same low-margin, high-volume approach that has turned Amazon into the world's largest Internet retailer, Jassy said.


Amazon does not disclose financial details of AWS, however, Evercore's Sena estimates profit margins below 10 percent on a net income basis. Sena forecasts margins of 22 percent, based on earnings before interest, tax, depreciation and amortization.


In contrast, Teradata has gross profit margins of about 70 percent on its data warehouse products, according to Susquehanna analyst Wood.


"The economics of what we're doing are extremely disruptive for old guard technology companies," Jassy said. "These are companies that have lived on 60 to 80 percent margins for years."


Jassy showed quotations on big screens behind the conference stage on Wednesday from executives at Oracle, IBM and Hewlett-Packard all talking about their high-margin businesses.


"The vast majority of businesses will be moving to the cloud in the next ten years," Jassy said. "We think it's a high-volume, low-margin business."


(Reporting By Alistair Barr; Editing by Bernard Orr)


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Bonds, Clemens, Sosa on Hall ballot for first time

NEW YORK (AP) — The most polarizing Hall of Fame debate since Pete Rose will now be decided by the baseball shrine's voters: Do Barry Bonds, Roger Clemens and Sammy Sosa belong in Cooperstown despite drug allegations that tainted their huge numbers?

In a monthlong election sure to become a referendum on the Steroids Era, the Hall ballot was released Wednesday, and Bonds, Clemens and Sosa are on it for the first time.

Bonds is the all-time home run champion with 762 and won a record seven MVP awards. Clemens took home a record seven Cy Young trophies and is ninth with 354 victories. Sosa ranks eighth on the homer chart with 609.

Yet for all their HRs, RBIs and Ws, the shadow of PEDs looms large.

"You could see for years that this particular ballot was going to be controversial and divisive to an unprecedented extent," Larry Stone of The Seattle Times wrote in an email. "My hope is that some clarity begins to emerge over the Hall of Fame status of those linked to performance-enhancing drugs. But I doubt it."

More than 600 longtime members of the Baseball Writers' Association of America will vote on the 37-player ballot. Candidates require 75 percent for induction, and the results will be announced Jan. 9.

Craig Biggio, Mike Piazza and Curt Schilling also are among the 24 first-time eligibles. Jack Morris, Jeff Bagwell and Tim Raines are the top holdover candidates.

If recent history is any indication, the odds are solidly stacked against Bonds, Clemens and Sosa. Mark McGwire and Rafael Palmeiro both posted Cooperstown-caliber stats, too, but drug clouds doomed them in Hall voting.

Some who favor Bonds and Clemens claim the bulk of their accomplishments came before baseball got wrapped up in drug scandals. They add that PED use was so prevalent in the 1980s, 1990s and early 2000s that it's unfair to exclude anyone because so many who-did-and-who-didn't questions remain.

Many fans on the other side say drug cheats — suspected or otherwise — should never be afforded the game's highest individual honor.

Either way, this election is baseball's newest hot button, generating the most fervent Hall arguments since Rose. The discussion about Rose was moot, however — the game's career hits leader agreed to a lifetime ban in 1989 after an investigation concluded he bet on games while managing the Cincinnati Reds, and that barred him from the BBWAA ballot.

The BBWAA election rules allow voters to pick up to 10 candidates. As for criteria, this is the only instruction: "Voting shall be based upon the player's record, playing ability, integrity, sportsmanship, character, and contributions to the team(s) on which the player played."

That leaves a lot of room for interpretation.

Bonds, Clemens and Sosa won't get a vote from Mike Klis of The Denver Post.

"Nay on all three. I think in all three cases, their performances were artificially enhanced. Especially in the cases of Bonds and Clemens, their production went up abnormally late in their careers," he wrote in an email.

They'll do better with Bob Dutton of The Kansas City Star.

"I plan to vote for all three. I understand the steroid/PED questions surrounding each one, and I've wrestled with the implications," he wrote in an email.

"My view is these guys played and posted Hall of Fame-type numbers against the competition of their time. That will be my sole yardstick. If Major League Baseball took no action against a player during his career for alleged or suspected steroid/PED use, I'm not going to do so in assessing their career for the Hall of Fame," he said.

San Jose Mercury News columnist Mark Purdy will reserve judgment.

"At the beginning of all this, I made up my mind I had to adopt a consistent policy on the steroid social club. So, my policy has been, with the brilliance in the way they set up the Hall of Fame vote where these guys have a 15-year window, I'm not going to vote for any of those guys until I get the best picture possible of what was happening then," he wrote in an email.

"We learn a little bit more each year. We learned a lot during the Bonds trial. We learned a lot during the Clemens trial. I don't want to say I'm never going to vote for any of them. I want to wait until the end of their eligibility window and have my best idea of what was really going on," he said.

Clemens was acquitted this summer in federal court on six counts that he lied and obstructed Congress when he denied using performance-enhancing drugs.

Bonds was found guilty in 2011 by a federal court jury on one count of obstruction of justice, ruling he gave an evasive answer in 2003 to a grand jury looking into the distribution of illegal steroids. Bonds is appealing the verdict.

McGwire is 10th on the career home run list with 583, but has never received even 24 percent in his six Hall tries. Big Mac has admitted to using steroids and human growth hormone.

Palmeiro is among only four players with 500 homers and 3,000 hits, yet has gotten a high of just 12.6 percent in his two years on the ballot. He drew a 10-day suspension in 2005 after a positive test for PEDs, and said the result was due to a vitamin vial given to him by teammate Miguel Tejada.

Biggio topped the 3,000-hit mark — which always has been considered an automatic credential for Cooperstown — and spent his entire career with the Houston Astros.

"Hopefully, the writers feel strongly that they liked what they saw, and we'll see what happens," Biggio said last week.

Schilling was 216-146 and won three World Series championships, including his "bloody sock" performance for the Boston Red Sox in 2004.

___

AP Baseball Writer Janie McCauley and AP Sports Writers Arnie Stapleton and Dave Skretta contributed to this report.

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Simple measures cut infections caught in hospitals

CHICAGO (AP) — Preventing surgery-linked infections is a major concern for hospitals and it turns out some simple measures can make a big difference.

A project at seven big hospitals reduced infections after colorectal surgeries by nearly one-third. It prevented an estimated 135 infections, saving almost $4 million, the Joint Commission hospital regulating group and the American College of Surgeons announced Wednesday. The two groups directed the 2 1/2-year project.

Solutions included having patients shower with special germ-fighting soap before surgery, and having surgery teams change gowns, gloves and instruments during operations to prevent spreading germs picked up during the procedures.

Some hospitals used special wound-protecting devices on surgery openings to keep intestine germs from reaching the skin.

The average rate of infections linked with colorectal operations at the seven hospitals dropped from about 16 percent of patients during a 10-month phase when hospitals started adopting changes to almost 11 percent once all the changes had been made.

Hospital stays for patients who got infections dropped from an average of 15 days to 13 days, which helped cut costs.

"The improvements translate into safer patient care," said Dr. Mark Chassin, president of the Joint Commission. "Now it's our job to spread these effective interventions to all hospitals."

Almost 2 million health care-related infections occur each year nationwide; more than 90,000 of these are fatal.

Besides wanting to keep patients healthy, hospitals have a monetary incentive to prevent these infections. Medicare cuts payments to hospitals that have lots of certain health care-related infections, and those cuts are expected to increase under the new health care law.

The project involved surgeries for cancer and other colorectal problems. Infections linked with colorectal surgery are particularly common because intestinal tract bacteria are so abundant.

To succeed at reducing infection rates requires hospitals to commit to changing habits, "to really look in the mirror and identify these things," said Dr. Clifford Ko of the American College of Surgeons.

The hospitals involved were Cedars-Sinai Medical Center in Los Angeles; Cleveland Clinic in Ohio; Mayo Clinic-Rochester Methodist Hospital in Rochester, Minn.; North Shore-Long Island Jewish Health System in Great Neck, NY; Northwestern Memorial Hospital in Chicago; OSF Saint Francis Medical Center in Peoria, Ill.; and Stanford Hospital & Clinics in Palo Alto, Calif.

___

Online:

Joint Commission: http://www.jointcommission.org

American College of Surgeons: http://www.facs.org

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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'That 70s Show' star arrested in North Carolina

STATESVILLE, N.C. (AP) — "That '70s Show" star Lisa Robin Kelly is free on bond after being arrested for assault.

Police in the Charlotte, N.C., suburb of Mooresville arrested the 42-year-old Kelly and 61-year-old husband Robert Joseph Gilliam after responding to a disturbance at their home Monday. Both are free on bond.

Gilliam is charged with misdemeanor assault on a female. Kelly is charged with misdemeanor assault. They were taken to the Iredell County Detention Center and released on $500 bond apiece. They have a court date of Jan. 25. It's not known if either has an attorney.

Kelly portrayed Laurie Forman, sister of Topher Grace's lead character Eric, on the FOX series, which ended in 2006. She also appeared on the TV shows "Murphy Brown" and "Married . . . With Children."

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Groupon CEO Mason offers to step down









Groupon Inc Chief Executive Andrew Mason, under fire for a plunging share price and tapering growth, declared on Wednesday he would fire himself if he ever thought he was the wrong man for the job.

Mason, whose performance at the helm will come under scrutiny from his board of directors during a regular board meeting Thursday, said it would be "weird" if they did not. But he said he believed the board was comfortable with his strategy.

Shares in the company, once touted as innovating local business advertising t hrough the marketing of Internet discounts on everything from spa treatments to dining, surged 8 percent to $4.25 i n the afternoon.

"It would be more noteworthy if the board wasn't discussing whether I'm the right guy for the job," Mason said in an interview from a Business Insider conference in New York. "If I ever thought I wasn't the right guy for the job, I'd be the first person to fire myself."

"As the founder and creator of Groupon, as a large shareholder ... I care far more about the success of the business than I do about my role as CEO," he said.

Groupon has shed four-fifths of its value since its public trading debut as an investor favorite during last year's consumer dotcom IPO boom, and Mason himself has presided over a string of high-profile executive departures.

Wall Street has grown uneasy about the viability of its business as fever for daily deals has cooled among consumers and merchants, hurting its growth rate.

In the interview broadcast from the conference, the outspoken and sometimes-zany co-founder argued his company was going through a period of volatility but believed it was on the right path. Groupon's efforts to reduce its reliance on plain vanilla deals include bumping up its "Goods" retail business, increasing the selection of "persistent" or long-running deals, and allowing users to search for such deals on demand.

Shares in Groupon spiked after the interview and were up 8 p ercent at $4.2 6, still way below its $20 market debut price.

Groupon and rivals in the daily deals business, like Amazon.com-backed LivingSocial, were supposed to change the very nature of small-business advertising. Instead, they were forced to revamp their business models as evidence mounts that their strategy was flawed.

This month, Groupon reported another quarter of disappointing earnings, and its stock went as low as $2.60 on Nov. 12.

Europe has been a particular problem for Groupon, partly because the sovereign debt crisis has sapped demand for higher-priced deals. Groupon was also offering steeper discounts, turning off some European merchants.

International revenue, which includes Europe, grew just 3 percent to $277 million in the third quarter, while North American revenue surged 80 percent to $292 million.

Adding to its difficulties, the U.S. Securities and Exchange Commission is looking into Groupon's accounting and disclosures, areas that raised questions among some analysts during its IPO.

But Mason shrugged off speculation that the company might run into a cash crunch and go bankrupt. The company has said it had $1.2 billion in cash and equivalents with no long-term debt.

"There was a period when those stories started that I'd go to my CFO and say: 'How would that happen, walk me through what would be required for us to actually go bankrupt'," Mason said. "And it's like an end of days, apocalyptic scenario. The business would have to go into severe negative growth for something like this. The scenario is so absurd there's no evidence for it."



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Charges dropped against NIU officer









Sex assault charges against a former Northern Illinois University police officer were dropped Tuesday after new revelations of possible irregularities in the investigation surfaced, the officer’s attorney said.


The charges against Andrew Rifkin were dropped following a hearing where a campus police IT specialist testified that he was summoned around 10 p.m. on Nov. 9, by NIU Police Chief Donald Grady and was told to remove between 60 and 70 files from the chief’s computer, Rifkin attorney Bruce Brandwein said.


Earlier that day, university administration had appointed a new supervisor to oversee Grady and the department. That same day, a DeKalb County judge had ordered the NIU police to sign an affidavit confirming that all evidence in the Rifkin case had been handed over to county prosecutors, following a previous finding that the department had withheld evidence.








Grady was placed on administrative leave the following day.


Brandwein said the specialist did not know whether the files he removed pertained to the Rifkin investigation, but Brandwein said he found the timing curious.  After hearing about the removal of the files, DeKalb County State’s Atty. Clay Campbell told the judge that prosecutors would drop the charges against Rifkin, Brandwein said.


“It was incredible,” he said. “I applaud the state’s attorney for doing the right thing.”


An attempt to reach Campbell for comment was not successful Tuesday night.


Rifkin, 25, was fired from the department in October 2011 after it was alleged he sexually assaulted an NIU student. However, the NIU police’s investigation of the case came under fire this month when it was learned that the department had failed to turn over reports of witnesses who indicated that Rifkin and the student had engaged in consensual sexual activity.


Those reports ended up in a personnel file in what the NIU police said was an oversight. But DeKalb County Judge Robin Stuckert called it an “egregious” error and ruled that the department had purposely withheld the evidence.


That prompted university officials to place Grady on leave, pending a final disciplinary action. NIU also said it plans to terminate the officer who conducted the investigation against Rifkin.


chicagobreaking@tribune.com
Twitter: @chicagobreaking





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Microsoft sold 40 million Windows 8 licenses in month: exec

SEATTLE (Reuters) - Microsoft Corp has sold 40 million Windows 8 licenses in the month since the launch, according to one of the new co-heads of the Windows unit, setting a faster pace than Windows 7 three years ago.


The sales number represents a solid but unspectacular start for the touch-friendly operating system designed to combat Apple Inc's and Google Inc's domination of mobile computing, which has shunted aside PCs in favor of iPads and smartphones.


Tami Reller, finance and marketing head of the Windows business, did not give a precise comparison, but sales of 40 million licenses for Windows 8, launched on October 26, appear to be ahead of Windows 7, which sold just over 60 million units in the first 10 weeks on sale at the end of 2009.


Reller did not break down the Windows 8 license sales between relatively cheap upgrades and purchases of new machines running the new software, but suggested much of the growth was coming from upgrades.


"Windows 8 upgrade momentum is outpacing that of Windows 7," said Reller, speaking at an investor conference held by Credit Suisse. Upgrading to Windows 8 costs $40, compared to $70 for the full software package or hundreds of dollars for a new PC.


The latest figure does not mean that 40 million users have adopted Windows 8. Many of the sales are to PC manufacturers, who in turn sell a large number of machines to companies, very few of which are using Windows 8 yet.


According to tech research firm StatCounter, about 1 percent of the world's 1.5 billion or so personal computers - making a total of around 15 million - are actually running Windows 8.


Reller did not disclose sales of Microsoft's new Surface tablet, its first-ever own-brand PC, designed to challenge the iPad head on.


The first Surface, based on a chip designed by ARM Holdings Plc, does not run old versions of Microsoft programs. A slightly bigger version based on an Intel Corp chip that will run the full Windows 8 Pro operating system and be fully compatible with the Office suite of applications will be available in January, Reller said.


The investor conference was the first public appearance for Reller since she was named as one of two executives to run the Windows unit after president Steven Sinofsky unexpectedly left two weeks ago. Julie Larson-Green heads the engineering side of Windows.


Reller said the Windows unit had survived Sinofsky's surprise departure.


"The team holistically is in great, great shape. And the product is in great shape," she said, responding to a question from a Credit Suisse analyst. "I think transitions are always somewhat of a challenge, but I think that timing-wise it is a reasonable time, and the team is busy."


Earlier in the day, Microsoft said it had sold more than 750,000 Xbox game consoles in the United States last week, including the day after Thanksgiving, one of the country's biggest shopping days.


That is down from 960,000 sales in the same week a year ago, in line with reduced computer game spending across the board this year, as gamers hold off on purchases in the tight economy and move toward free online games.


(Reporting by Bill Rigby; Editing by Gary Hill, Andre Grenon and Bernard Orr)


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Bonds, Clemens, Sosa set to show up on Hall ballot

NEW YORK (AP) — Barry Bonds, Roger Clemens and Sammy Sosa are set to show up on the Hall of Fame ballot for the first time, and fans will soon find out whether drug allegations block the former stars from reaching baseball's shrine.

The 2013 ballot will be announced Wednesday.

Craig Biggio, Mike Piazza and Curt Schilling are certain to be among the other first-time eligibles. Jack Morris, Jeff Bagwell and Tim Raines are the top holdover candidates.

Longtime members of the Baseball Writers' Association of America will vote through next month. The much-awaited results will be announced Jan. 9, with players needing to be listed on 75 percent of the ballots to gain induction.

The upcoming election is certain to fuel the most polarizing Hall debate since career hits leader Pete Rose's betting problems put him on baseball's permanently ineligible list, barring him from the BBWAA ballot.

Bonds, Clemens and Sosa each posted some of the biggest numbers in the game's history, but all were tainted by accusations that they used performance-enhancing drugs.

Bonds is baseball's all-time home runs leader with 762 and won a record seven MVP awards. Clemens ranks ninth in career wins with 354 and took home a record seven Cy Young Awards. Sosa is eighth on the home run chart with 609.

Fans, players and Hall of Fame members have all chimed in about whether stars who supposedly juiced up during the Steroids Era should make it to Cooperstown.

Many of those opposed say drug cheats should never be afforded baseball's highest individual honors. Others on the opposite side claim the use of performance-enhancing drugs was pervasive in the 1980s and 1990s, and shouldn't disqualify candidates.

If recent voting for the Hall is any indication, the odds are solidly stacked against Bonds, Clemens and Sosa.

Mark McGwire is 10th on the career home run list with 583, but has never received even 24 percent in his six tries. Big Mac has admitted using steroids and human growth hormone.

Rafael Palmeiro is among only four players with 500 homers and 3,000 hits, yet has gotten a high of 12.6 percent in his two years on the ballot. Palmeiro drew a 10-day suspension in 2005 after a positive test for performance-enhancing drugs, and said the result was due to a vitamin vial given to him by teammate Miguel Tejada.

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