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)

By Emily Bryson York




Chicago Tribune reporter

6:51 a.m. CST, November 30, 2012

Supervalu, the Minneapolis-based parent of Jewel-Osco said sale talks are proceeding after stock closed down more than 18 percent Thursday, 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, the third-largest U.S. grocery chain, 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.

If Supervalu does not sell to Cerberus, it may have to restructure on its own or sell off individual assets, which could have big tax consequences, Bloomberg said.

Reuters reported last month that buyout firm Cerberus was preparing a takeover bid for Supervalu, the third-largest U.S. supermarket chain.

Cerberus officials could not be reached immediately for comment.

-- Reuters contributed to this report

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

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Five injured when church van rolls over in Gary

Five people were injured when a church van from Hammond rolled over on Gary Avenue Thursday night in Gary. (WGN-TV / November 30, 2012)

Staff report

8:35 a.m. CST, November 30, 2012

Five people were injured, including a teen-aged boy airlifted in serious condition, after a church van carrying basketball players rolled over in Gary, officials said.

The boy, 17, was thrown from the van when it veered off the northbound ramp to Gary Avenue around 9 p.m. Thursday, according to Patti Van Til, a spokeswoman for the Lake County sheriff's office. The boy was airlifted to Loyola University Medical Center in Maywood.

The boy is suffering from bleeding in the brain and a rib fracture, according to Eddie Wilson, a spokesman for the First Baptist Church.

Another boy, 15, suffered head trauma and was taken to Comer's Children's Hospital, Wilson said. The driver of the van, a teacher at the church's school, suffered a fractured skull and was stable at St. Catherine's Hospital in East Chicago, Ind., Wilson said.

Otheres in the van suffered bumps and bruises, officials said.

The van was carrying members of the church school's basketball team. They had been playing in a tournament at Hyles-Anderson College in St. John Township and were out getting something to eat, Wilson said.

The van was headed back toward the college campus when the accident happened, he said.

chicagobreaking@tribune.com
Twitter: @chicagobreaking

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RIM stock rises after Goldman Sachs upgrade

TORONTO (AP) — Research In Motion rose Thursday after Goldman Sachs upgraded the phone maker’s shares, saying there’s a “30 percent chance” RIM‘s much-delayed BlackBerry 10 smartphones will be a success.

THE SPARK: Goldman Sachs analyst Simona Jankowski lifted RIM to “Buy” from “Neutral,” the latest analyst to voice a slightly more optimistic view for the troubled company. Goldman lifted its 12-month price target to $ 16 from $ 9.

THE BIG PICTURE: RIM was once Canada’s most valuable company, with a market value of more than $ 80 billion in 2008, but shares have sunk due to ground lost to Apple Inc.‘s iPhone and phones running Google Inc.‘s Android system.

Now the company’s new BlackBerrys, expected sometime after Jan. 30, are considered critical to its survival. The new system includes a touch screen and the apps experience that customers now expect.

THE ANALYSIS: Jankowski noted positive early reviews for the new operating system and broad-based support by carriers who are looking to sell a third operating system beyond Google’s Android and Apple’s iOS.

She predicted that RIM will become profitable in the year ending in February 2014. Analysts polled by FactSet expect a loss. Still, she expects RIM to revert to a loss the next year.

Last week, National Bank Financial Kris Thompson increased his price target to $ 15 from $ 12, while Jefferies analyst Peter Misek doubled his price target from $ 5 to $ 10, saying the BlackBerry 10 operating system has a 20 to 30 percent chance of succeeding.

SHARE ACTION: Shares of Research In Motion added 67 cents, or 6.4 percent, to $ 11.77 in midday trading on the Nasdaq. The stock is up 78 percent since late September — but it’s down 23 percent this year through Wednesday’s close, and has lost more than 90 percent from its 2008 high.

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Mayim Bialik files to end 9-year marriage in LA

LOS ANGELES (AP) — Court records show Mayim Bialik filed for divorce from her husband of nine years on the same day she announced the couple’s split in a blog post.

She cited irreconcilable differences with husband Michael Stone in the documents filed Nov. 21 in Los Angeles.

Bialik currently stars on the CBS comedy “The Big Bang Theory” and rose to fame as the star of the TV show “Blossom.”

She has been a proponent of “attachment parenting” and the former couple have two sons together, ages 7 and 4. Bialik has said their parenting style was not a factor in the divorce and she is seeking joint custody of the children.

The 36-year-old wrote in her post last week that the divorce is “terribly sad, painful and incomprehensible” for children.

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Man Indicted in New Hampshire in Hepatitis Infections

A traveling medical technician who is believed to have infected at least 39 people with hepatitis C through his use of stolen hospital drugs and syringes was indicted late Wednesday in New Hampshire on 14 new charges.

The technician, David Kwiatkowski, known as the “serial infector,” was arrested in July and charged with tampering with a consumer product and illegally obtaining drugs, primarily fentanyl, a powerful anesthetic that is about 80 times more potent than morphine.

After a lengthy investigation that ranged over several states, he was indicted Wednesday by a federal grand jury in Concord, N.H., and charged with seven counts of tampering with a consumer product and seven counts of illegally obtaining drugs.

If convicted on the pending charges, Mr. Kwiatkowski, 33, faces up to 10 years in prison for each count of tampering with a consumer product and up to four years in prison for each count of obtaining controlled substances by fraud. Each offense is also punishable by a fine of $250,000.

Mr. Kwiatkowski had pleaded not guilty to the original charges and remains in federal custody in New Hampshire.

In announcing the indictment, John P. Kacavas, the United States attorney in New Hampshire, said that Mr. Kwiatkowski “used the stolen syringes to inject himself, causing them to become tainted with his infected blood, before filling them with saline and then replacing them for use in the medical procedure.”

He continued, “Consequently, instead of receiving the prescribed dose of fentanyl, patients instead received saline tainted by Kwiatkowski’s infected blood.”

The problem was discovered after several patients in the cardiac catheterization lab at Exeter Hospital, where Mr. Kwiatkowski worked, tested positive for a specific strain of hepatitis C, a chronic disease that can lead to cancer and is a major reason for liver transplants. Mr. Kwiatkowski tested positive for the same strain, leading to the testing of thousands of patients in New Hampshire this summer.

The outbreak was one of the largest in recent history. The investigation has been complicated because Mr. Kwiatkowski worked at 18 hospitals in seven other states (Arizona, Georgia, Kansas, Maryland, Michigan, New York and Pennsylvania) over the last decade. He was fired from at least two hospitals but was hired subsequently by four others.

Since Mr. Kwiatkowski’s arrest, thousands of patients in the other states have been tested for hepatitis C. More than 30 patients in New Hampshire, about a half-dozen in Kansas and one in Maryland have tested positive for the same strain.

A report in August by the federal Centers for Medicare and Medicaid Services said that syringes at Exeter Hospital were left unattended on medication carts by nurses in the cardiac catheterization lab.

Hospital officials have said that they received reports of concerns about Mr. Kwiatkowski but not that he was diverting drugs. A statement on the hospital’s Web site said: “We understand that this has been a difficult time for our patients and the community. Our focus remains on all of our patients and while this situation has shaken the community, we will continue to do everything we can to restore the community’s confidence by providing excellent care to the hundreds of patients who receive care within our health system each day.”

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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)

By Emily Bryson York




Chicago Tribune reporter

6:51 a.m. CST, November 30, 2012

Supervalu, the Minneapolis-based parent of Jewel-Osco said sale talks are proceeding after stock closed down more than 18 percent Thursday, 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, the third-largest U.S. grocery chain, 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.

If Supervalu does not sell to Cerberus, it may have to restructure on its own or sell off individual assets, which could have big tax consequences, Bloomberg said.

Reuters reported last month that buyout firm Cerberus was preparing a takeover bid for Supervalu, the third-largest U.S. supermarket chain.

Cerberus officials could not be reached immediately for comment.

-- Reuters contributed to this report

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

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Riccardo Muti a $2 million man for CSO

You can't put a price on genius. But when it comes in the form of a world-renowned maestro, the bill usually tops $1 million.

The Chicago Symphony Orchestra is no exception: Superstar conductor Riccardo Muti earned about $2.2 million in salary, performance fees, and recording and broadcast fees in 2011, his first full calendar year with the symphony, according to a CSO estimate provided to the Tribune this week -- the first time Muti's annual pay has been made public.

CSO Association President Deborah Rutter said Muti, who became CSO music director Sept. 1, 2010, "has brought to the CSO and Chicago a musical genius and charisma that has transformed the musical landscape of our city and the classical music world."

Contributions and ticket revenue reached all-time highs this year at the CSO.

"The musicians continue to be head over heels in love with their music director," Rutter said, "and we have seen that pride extend throughout the city."

Conductors' responsibilities vary widely from city to city and from conductor to conductor. For example, Muti's predecessor, Daniel Barenboim, earned $1.9 million in his last full tax year, 2005, but some of that payment was for work as a soloist. In addition to conducting the CSO, Barenboim, who left the CSO in June 2006, was also a renowned pianist.

San Francisco Symphony conductor Michael Tilson Thomas earned $2.41 million, and the Metropolitan Opera paid conductor James Levine $2.06 million in tax year 2010 (which lasts from mid-2010 to mid-2011). Orchestras in Boston, New York and Philadelphia also paid out more than $1 million to conductors that year.

Los Angeles Philharmonic conductor Gustavo Dudamel earned $985,363 in salary and benefits for tax year 2010, also his first full year.

Muti's contract runs through August 2015. When he missed five weeks of concerts in late 2010 and early 2011 due to illness, he continued to receive his music director salary but did not receive performance fees.

Oak Park-based arts consultant Drew McManus said Muti's pay is "entirely in line with comparable budget size orchestras."

McManus said that in an ideal situation the benefits of a good maestro more than pay for its cost, since "that artistic momentum will help ticket sales, donations, and — especially important for an orchestra of the CSO's size — (attract) national sponsors."

Whether that happens, he said, is "the $2 million dollar question, and it really depends on each individual group."

Rutter said Muti's arrival "has bolstered earned and contributed revenues for the CSO."

Like many orchestras around the country, the CSO faces some financial difficulties, including two straight years of operating losses and a 48-hour musician strike in September.

The current base salary for CSO musicians is $145,860, a spokeswoman said. Principals can make well over $200,000 with benefits, tax forms show.

Muti's job entails conducting 10 weeks of subscription concerts per year (about one third of the CSO's season) as well as domestic and international tours. His compensation includes performance fees paid for all such appearances. (Conducting the CSO at Ravinia is not part of his job.)

The maestro also participates in auditions and appointments to the orchestra and in "community engagement programs," according to a CSO statement, and he is responsible for programming decisions and "the overall artistic vision for the institution." A spokeswoman noted that Muti donates his performance fees for two concerts per year back to the CSO.

Tribune Newspapers' Mike Boehm contributed.

hgillers@tribune.com

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Palm Springs Fest gives Robert Zemeckis’ awards campaign a boost

LOS ANGELES (TheWrap.com) – Robert Zemeckis has been named Director of the Year by the Palm Springs International Film Festival, making the “Flight” director the latest awards hopeful to be honored by one of the two big January film festivals that double as campaign stops on the awards circuit.

The announcement by Palm Springs organizers came one day after the Santa Barbara Film Festival declared “Silver Linings Playbook” star Jennifer Lawrence the Outstanding Performer of the Year.

Palm Springs holds its awards gala on the first Saturday of the new year, which this year falls on January 5, two days after Oscar polls close. Santa Barbara spreads out its awards over a two-week period in late January, after Oscar nominations are announced but before final voting begins.

Both festivals jockey to assemble lineups of probable Oscar nominees, and both are lobbied by Oscar campaigners as they make their selections. The two festivals try to stagger their announcements so as not to compete with each other.

Besides Zemeckis’ award, Palm Springs has announced that it will honor Naomi Watts with the Desert Palm Achievement Award for Acting and Helen Hunt with the Spotlight Award.

In addition to Lawrence, Santa Barbara will give its Modern Master Award to Ben Affleck. Robert De Niro will receive the festival’s Kirk Douglas Award for Excellence in Film, an honor that is presented at a separate black-tie event in December rather than during the festival.

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Medicare Is Faulted in Electronic Medical Records Conversion

The conversion to electronic medical records — a critical piece of the Obama administration’s plan for health care reform — is “vulnerable” to fraud and abuse because of the failure of Medicare officials to develop appropriate safeguards, according to a sharply critical report to be issued Thursday by federal investigators.

Mike Spencer/Wilmington Star-News, via Associated Press

Celeste Stephens, a nurse, leads a session on electronic records at New Hanover Regional Medical Center in Wilmington, N.C.

Centers for Medicare and Medicaid Services

Marilyn Tavenner, acting administrator for Medicare.

The use of electronic medical records has been central to the aim of overhauling health care in America. Advocates contend that electronic records systems will improve patient care and lower costs through better coordination of medical services, and the Obama administration is spending billions of dollars to encourage doctors and hospitals to switch to electronic records to track patient care.

But the report says Medicare, which is charged with managing the incentive program that encourages the adoption of electronic records, has failed to put in place adequate safeguards to ensure that information being provided by hospitals and doctors about their electronic records systems is accurate. To qualify for the incentive payments, doctors and hospitals must demonstrate that the systems lead to better patient care, meeting a so-called meaningful use standard by, for example, checking for harmful drug interactions.

Medicare “faces obstacles” in overseeing the electronic records incentive program “that leave the program vulnerable to paying incentives to professionals and hospitals that do not fully meet the meaningful use requirements,” the investigators concluded. The report was prepared by the Office of Inspector General for the Department of Health and Human Services, which oversees Medicare.

The investigators contrasted the looser management of the incentive program with the agency’s pledge to more closely monitor Medicare payments of medical claims. Medicare officials have indicated that the agency intends to move away from a “pay and chase” model, in which it tried to get back any money it has paid in error, to one in which it focuses on trying to avoid making unjustified payments in the first place.

Late Wednesday, a Medicare spokesman said in a statement: “Protecting taxpayer dollars is our top priority and we have implemented aggressive procedures to hold providers accountable. Making a false claim is a serious offense with serious consequences and we believe the overwhelming majority of doctors and hospitals take seriously their responsibility to honestly report their performance.”

The government’s investment in electronic records was authorized under the broader stimulus package passed in 2009. Medicare expects to spend nearly $7 billion over five years as a way of inducing doctors and hospitals to adopt and use electronic records. So far, the report said, the agency has paid 74, 317 health professionals and 1,333 hospitals. By attesting that they meet the criteria established under the program, a doctor can receive as much as $44,000 for adopting electronic records, while a hospital could be paid as much as $2 million in the first year of its adoption. The inspector general’s report follows earlier concerns among regulators and others over whether doctors and hospitals are using electronic records inappropriately to charge more for services, as reported by The New York Times last September, and is likely to fuel the debate over the government’s efforts to promote electronic records. Critics say the push for electronic records may be resulting in higher Medicare spending with little in the way of improvement in patients’ health. Thursday’s report did not address patient care.

Even those within the industry say the speed with which systems are being developed and adopted by hospitals and doctors has led to a lack of clarity over how the records should be used and concerns about their overall accuracy.

“We’ve gone from the horse and buggy to the Model T, and we don’t know the rules of the road. Now we’ve had a big car pileup,” said Lynne Thomas Gordon, the chief executive of the American Health Information Management Association, a trade group in Chicago. The association, which contends more study is needed to determine whether hospitals and doctors actually are abusing electronic records to increase their payments, says it supports more clarity.

Although there is little disagreement over the potential benefits of electronic records in reducing duplicative tests and avoiding medical errors, critics increasingly argue that the federal government has not devoted enough time or resources to making certain the money it is investing is being well spent.

House Republicans echoed these concerns in early October in a letter to Kathleen Sebelius, secretary of health and human services. Citing the Times article, they called for suspending the incentive program until concerns about standardization had been resolved. “The top House policy makers on health care are concerned that H.H.S. is squandering taxpayer dollars by asking little of providers in return for incentive payments,” said a statement issued at the same time by the Republicans, who are likely to seize on the latest inspector general report as further evidence of lax oversight. Republicans have said they will continue to monitor the program.

In her letter in response, which has not been made public, Ms. Sebelius dismissed the idea of suspending the incentive program, arguing that it “would be profoundly unfair to the hospitals and eligible professionals that have invested billions of dollars and devoted countless hours of work to purchase and install systems and educate staff.” She said Medicare was trying to determine whether electronic records had been used in any fraudulent billing but she insisted that the current efforts to certify the systems and address the concerns raised by the Republicans and others were adequate.

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Starbucks sells $7-a-cup coffee

Starbucks serves up $7 cup of coffee. (Source: WPIX - New York)

Coffee aficionados have a difficult decision to make: Spend $7 on a full lunch or on a single cup of Starbucks coffee?

The brew in question: The Seattle giant’s new Costa Rica Finca Palmilera, its most expensive offering ever and also one of its rarest. The coffee is part of the company’s Reserve line and costs $7 for a grande cup.

An 8-ounce package costs $40. The uber-premium beans and brew are available only in 46 Starbucks stores in Portland and Seattle, as well as a licensed store in Idaho and Starbucks’ Roy Street Coffee & Tea offshoot in Washington.

There are more than 11,000 Starbucks stores nationwide.

Online, Starbucks has already sold out of a similar offering – the Costa Rica Tarrazu Geisha, listed on the website as having “rose petal aromas with ripe banana and subtle red current notes and silky mouth feel." The 450 half-pound bags of beans available were snapped up within 24 hours of being offered Nov. 8.

Both kind of beans are known as Geisha heirloom varietals, named for the village in Ethiopia where they were first discovered before making their way to Central America in the 1950s.

Starbucks justifies the high price by explaining that Geisha plants don’t produce many cherries, making the beans extremely rare and also full of concentrated flavor. This is the company’s first go-round with Geisha beans.

Now Starbucks is working through 3,800 pounds of Finca Palmilera beans, which feature notes of white peach and pineapple, spokeswoman Alisa Martinez said.

“It leaves a tingly, kind of light feeling,” she said. “It’s a very exquisite coffee.”

But try telling that to the consumers pranked by comedian Jimmy Kimmel this week, who set up a fake taste test in Hollywood asking people to distinguish between standard coffee and what was supposedly the “Finca Palmilera” brew. Turns out, both cups contained the same basic Joe.

“I feel like this is a test to find out just how stupid we are,” Kimmel said on his show. “Although, while it’s ridiculous to spend $7 on a cup of coffee, it’s actually not that much more ridiculous to spend $4 on a cup of coffee.”

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