M&A deals lift Wall Street shares nearer a record high

NEW YORK (Reuters) - U.S. stocks rose on Tuesday as this year's ongoing surge in merger activity suggested investors were still finding value in the market even as indexes closed in on all-time highs.


Office Depot Inc surged 9.4 percent to $5.02 after a person familiar with the matter said the No. 2 U.S. office supply retailer was in advanced talks to merge with smaller rival OfficeMax Inc , which jumped more than 20 percent.


News of the potential move came just days after Berkshire Hathaway and a partner agreed to acquire H.J. Heinz Co for $23 billion, and following a revised $20 billion takeover of Mexican brewer Grupo Modelo by Anheuser-Busch InBev .


Deal activity has helped equities resist a pullback as investors use dips in stocks as buying opportunities. The S&P is up about 7 percent so far in 2013 and has climbed for the past seven weeks in its longest weekly winning streak since January 2011, though most of the weekly gains have been slim.


The Dow industrials closed 0.9 percent away from their record high while S&P 500 was 2.2 percent off its peak.


"Deals are good for the market," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago. "The fact that they're being done is a positive."


More than $158 billion in deals has been announced so far in 2013, more than double the activity in the same period last year and accounting for 57 percent of global deal volumes, according to Thomson Reuters Deals Intelligence.


The Dow Jones industrial average <.dji> gained 53.91 points, or 0.39 percent, to 14,035.67. The Standard & Poor's 500 Index <.spx> gained 11.15 points, or 0.73 percent, to 1,530.94. The Nasdaq Composite Index <.ixic> gained 21.56 points, or 0.68 percent, to 3,213.59.


Other stocks in the office supplies sector also rose. Larger rival Staples Inc shot up 13.1 percent to $14.65 as the best performer on the S&P 500.


"Equity investors have to be encouraged by M&A since, if the number crunchers are offering large premiums, that shows how much value is still in the market," said Mike Gibbs, co-head of the equity advisory group at Raymond James in Memphis, Tennessee.


On the downside, health insurance stocks tumbled, led by a 6.4 percent drop in Humana Inc to $73.01. The company said the government's proposed 2014 payment rates for Medicare Advantage participants were lower than expected and would hurt its profit outlook.


UnitedHealth Group lost 1.2 percent to $56.66. The Morgan Stanley healthcare payor index <.hmo> dropped 1.2 percent.


Wall Street's strong start to the year was fueled by better-than-expected corporate earnings, as well as a compromise in Washington that temporarily averted automatic spending cuts and tax hikes that are predicted to damage the economy.


The compromise on across-the-board spending cuts postponed the matter until March 1, at which point the cuts take effect. Ahead of the debate over the cuts, known as sequestration, further gains for stocks may be difficult to come by.


Some investors say the debate could be the catalyst for a long anticipated sell-off after the market's recent strong run.


Carter Worth, a technical analyst at Oppenheimer, pointed to the "especially complacent action of the past six weeks," noting that, as of Friday, stocks have gone 33 sessions without a dip of more than 1.5 percent.


"We would be selling aggressively into the market's current strength," he said in a research note.


Economic data showed the NAHB/Wells Fargo Housing Market index unexpectedly edged down to 46 in February from 47 in the prior month as builders faced higher material costs.


According to the Thomson Reuters data through Monday morning, of the 391 companies in the S&P 500 that have reported results, 70.1 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters.


Fourth-quarter earnings for S&P 500 companies have risen 5.6 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


Express Scripts rose 2.5 percent to $56.98 after the pharmacy benefits manager posted fourth-quarter earnings.


About two stocks rose for everyone that fell on the New York Stock Exchange and Nasdaq. About 6.48 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, in line with the daily average so far this year.


(Additional reporting by Chuck Mikolajczak Ryan Vlastelica and Rodrigo Campos; Editing by Chizu Nomiyama, Kenneth Barry and Nick Zieminski)



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Pistorius: Lover caught in tragedy or killer?


PRETORIA, South Africa (AP) — Oscar Pistorius portrayed himself as a lover caught in tragedy, wielding a pistol and frightened as he stood only on his stumps, then killed his girlfriend after mistaking her for an intruder on Valentine's Day.


Prosecutors, however, said the double-amputee Olympian committed premeditated murder, planning the slaying, then firing at Reeva Steenkamp as she cowered behind his locked bathroom door with no hope of escape.


"She couldn't go anywhere," Prosecutor Gerrie Nel told a packed courtroom Tuesday. "It must have been horrific."


Weeping uncontrollably, Pistorius listened as his words were read out in court by his attorney during the opening of a two-day bail hearing, his first public account of the events surrounding the shooting death of Steenkamp, a 29-year-old model and reality TV star who had spoken out against violence against women.


"I fail to understand how I could be charged with murder, let alone premeditated murder, as I had no intention to kill my girlfriend, Reeva Steenkamp," Pistorius said in the sworn affidavit. "I deny the aforesaid allegation in the strongest terms."


It was the first time that the prosecution and Pistorius provided details of their radically divergent accounts of the killing, which has shocked South Africans and fans worldwide, who idolized the 26-year-old track star known as the Blade Runner for overcoming his disability to compete in last summer's London Olympics.


Nel said Pistorius committed premeditated murder when he rose from his bed after a fight with Steenkamp, pulled on his prosthetic legs and walked about 20 feet from his bedroom to the locked toilet door and pumped it with four bullets, three of which hit the model.


That contradicted the runner's statement, read aloud by defense attorney Barry Roux, who described how the couple spent a quiet night together in the athlete's upscale home in a gated community in the capital of Pretoria, then went to sleep around 10 p.m.


Sometime before dawn, Pistorius said he awoke, and walking only on his stumps, pulled a fan in from an open balcony and closed it. That's when he said he heard a noise and became alarmed because the bathroom window, which had no security bars, was open and workers had left ladders nearby.


"It filled me with horror and fear," Pistorius said in the statement.


"I am acutely aware of violent crime being committed by intruders entering homes," he said. "I have received death threats before. I have also been a victim of violence and of burglaries before. For that reason I kept my firearm, a 9 mm Parabellum, underneath my bed when I went to bed at night."


Too frightened to turn on a light, Pistorius said, he pulled out his pistol and headed for the bathroom, believing Steenkamp was still asleep "in the pitch dark" of the bedroom.


"As I did not have my prosthetic legs on and felt extremely vulnerable, I knew I had to protect Reeva and myself," he said, adding that he shouted to Steenkamp to call the police as he fired at the closed toilet door.


It was then, Pistorius said, that he realized Steenkamp was not in bed.


He said he pulled on his prosthetic legs and tried to kick down the toilet door before finally giving up and bashing it in with a cricket bat. Inside, he said he found Steenkamp, slumped over but still alive. He said he lifted her bloodied body and carried her downstairs to seek medical help.


But it was too late. "She died in my arms," Pistorius said.


"We were deeply in love and I could not be happier," the athlete said. "I know she felt the same way. She had given me a present for Valentine's Day but asked me only to open it the next day."


Pistorius broke down in sobs repeatedly as his account was read, prompting Chief Magistrate Desmond Nair to call a recess at one point.


"Maintain your composure," the magistrate said. "You need to apply your mind here."


"Yes, my lordship," Pistorius replied, his voice quivering.


Nair adjourned the case until Wednesday without ruling on whether Pistorius would be granted bail. However, he said the gravity of the charge — which carries a mandatory life sentence — meant the athlete's lawyers must offer "exceptional" reasons for bail to be granted, making his release unlikely.


Roux, the defense attorney, said there was no evidence to substantiate a murder charge. "We submit it is not even murder. There is no concession this is a murder," he said.


The prosecutor disagreed.


"It is our respectful argument that 'pre-planning' or premeditation do not require months of planning," Nel said. "If ... I ready myself and walk a distance with the intention to kill someone, it is premeditated."


Hundreds of miles from the Magistrate's Court, a memorial service was held for Steenkamp in the south coast city of Port Elizabeth. Six pallbearers carried her coffin, draped with a white cloth and covered in white flowers, into the church for the private service and cremation.


Relatives recalled how the model with a law degree had campaigned against domestic violence and had planned to don black for a "Black Friday" protest in honor of a 17-year-old girl who was recently gang-raped and mutilated.


What "she stood for, and the abuse against women, unfortunately it's gone right around, and I think the Lord knows that statement is more powerful now," said her uncle, Mike Steenkamp.


South Africa has some of the world's worst rates of violence against women and the highest rate in the world of women killed by an intimate partner, according to a study by the Medical Research Council, which said at least three women are killed by a partner every day in the country of 50 million.


Since the shooting, several of Pistorius' sponsors have dropped him. On Tuesday, Clarins Group, which owns Thierry Mugler Perfumes, said it would withdraw all advertising featuring the Olympian. A cologne line with the company, called A(asterisk)Men, bears his image.


___


Associated Press writer Michelle Faul in Johannesburg and AP photographer Schalk van Zuydam in Port Elizabeth, South Africa, contributed to this report.


___


Jon Gambrell can be reached at www.twitter.com/jongambrellAP. Gerald Imray can be reached at www.twitter.com/geraldimrayAP.


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How can U.S. deal with cyber war?




Michael Hayden says lack of domestic agreement is driving U.S. to take the offense on cyber attacks.




STORY HIGHLIGHTS


  • Obama administration beefing up effort to counter cyberattacks

  • Michael Hayden says emphasis is on striking first, as the U.S. does with drone attacks

  • Ex-CIA director says drone policy reflects lack of consensus on handling prisoners

  • Hayden: Is killing terrorists preferred because of division over how to try them?




Editor's note: Gen. Michael V. Hayden, who was appointed by President George W. Bush as CIA director in 2006 and served until February 2009, is a principal with the Chertoff Group, a security consulting firm. He serves on the boards of several defense firms and is a distinguished visiting professor at George Mason University.


(CNN) -- Human decisions have complex roots: history, circumstance, personality, even chance.


So it's a dangerous game to oversimplify reality, isolate causation and attribute any particular course of action to one or another singular motive.


But let me tempt fate, since some recent government decisions suggest important issues for public discussion.



Michael Hayden

Michael Hayden




Over the past several weeks, press accounts have outlined a series of Obama administration moves dealing with the cyberdefense of the United States.


According to one report, the Department of Defense will add some 4,000 personnel to U.S. Cyber Command, on top of a current base of fewer than a thousand. The command will also pick up a "national defense" mission to protect critical infrastructure by disabling would-be aggressors.


A second report reveals another administration decision, very reminiscent of the Bush Doctrine of preemption, to strike first when there is imminent danger of serious cyberattack against the United States.


Both of these represent dramatic and largely welcome moves.


But they also suggest the failure of a deeper national policy process and, more importantly, the failure to develop national consensus on some very difficult issues.


Chinese military leading cyber attacks


Let me reason by analogy, and in this case the analogy is the program of targeted killings supported and indeed expanded by the Obama administration. Again, I have no legal or moral objections to killing those who threaten us. We are, as the administration rightly holds, in a global state of war with al Qaeda and its affiliates.








But at the level of policy, killing terrorists rather than capturing them seems to be the default option, and part of that dynamic is fairly attributable to our inability to decide where to put a detainee once we have decided to detain him.


Congress won't let him into the United States unless he is going before a criminal court, and the administration will not send him to Guantanamo despite the legitimate claim that a nation at war has the right to detain enemy combatants without trial.


Failing to come to agreement on the implications of the "we are at war" position, we have made it so legally difficult and so politically dangerous to detain anyone that we seem to default to killing those who would do us harm.


Clearly, it's an easier path: no debates over the location or conditions of confinement. Frequently such action can be kept covert. Decision-making is confined to one branch of government. Congress is "notified." Courts are not involved.


Besides, we are powerful. We have technology at our fingertips. We know that we can be precise, and the professionalism of our combatants allows them to easily meet the standards of proportionality and distinction (between combatants and noncombatants) in such strikes, despite claims to the contrary.


And we also believe that we can live with the second and third order effects of targeted killings. We believe that the care we show will set high standards for the use of such weapons by others who will inevitably follow us. We also believe that any long-term blowback (akin to what Gen. Stanley McChrystal calls the image of "arrogance" such strikes create) is more than offset by the immediate effects on America's safety.


I agree with much of the above. But I also fear that the lack of political consensus at home can drive us to routinely exercise an option whose long-term effects are hard to discern. Which brings us back to last week's stories on American cyberdefense.


In the last Congress, there were two prominent bills introduced to strengthen America's cyberdefenses. Neither came close to passing.


In the Senate, the Collins-Lieberman Bill created a near perfect storm with the American Civil Liberties Union and the American Chamber of Commerce weighing in strongly against the legislation. That two such disparate bodies had issues with the legislation should suggest how far we are from a national consensus.


In the House, a modest proposal from the Intelligence Committee to enhance cybersharing between the private sector and the National Security Agency was met with a presidential veto threat over alleged privacy concerns and was never even considered by the Senate.


Indeed, my preferred option -- a more active and well-regulated role for NSA and Cyber Command on and for American networks -- is almost a third rail in the debate over U.S. cybersecurity. The cybertalent and firepower at Fort Meade, where both are headquartered, are on a short leash because few dare to even address what we would ask them to do or what we would permit them to do on domestic networks.


And hence, last week's "decisions." Rather than settle the roles of these institutions by dealing with the tough issues of security and privacy domestically, we have opted for a policy not unlike targeted killing. Rather than opt for the painful process of building consensus at home, we are opting for "killing" threats abroad in their "safe haven."


We appear more willing to preempt perceived threats "over there" than spill the domestic political blood that would be needed to settle questions about standards for the defense of critical infrastructure, the role of government surveillance or even questions of information sharing. And we seem willing to live with the consequences, not unlike those of targeted killings, of the precedent we set with a policy to shoot on warning.


I understand the advantage that accrues to the offense in dealing with terrorists or cyberthreats. I also accept the underlying legality and morality of preemptive drone or cyberstrikes.


I just hope that we don't do either merely because we don't have the courage to face ourselves and make some hard decisions at home.


Follow @CNNOpinion on Twitter


Join us at Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Michael Hayden.






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Jacksons set for plea hearings in D.C. on Wednesday









WASHINGTON — Former Rep. Jesse Jackson Jr., and his wife, former Chicago Ald. Sandi Jackson, are expected to plead guilty to federal charges Wednesday, when more details may emerge about an alleged crime spree in which he is accused of spending more than $750,000 in campaign cash to buy luxury items, memorabilia and other goods.


Attorneys familiar with public corruption investigations said the amount of campaign cash allegedly converted to personal use in this case is the largest of any that they can remember.


Jackson Jr., who has been largely out of the public eye for eight months, is to appear in court at 9:30 a.m. Chicago time. His wife is to appear at 1:30 p.m. Chicago time. Both Jacksons will stand before U.S. District Court Judge Robert Wilkins.





Sentencing is not expected for several weeks. Jackson Jr. faces up to five years in prison, while she faces up to three years, according to the U.S. Attorney’s Office for the District of Columbia.


Jackson Jr., 47, was in the House of Representatives for 17 years until he resigned last November. Sandi Jackson, 49, was a Chicago alderman from 2007 until she stepped down in January.


He is charged with conspiracy in a case involving a $43,350 men’s Rolex watch, nearly $9,600 in children’s furniture and $5,150 in cashmere clothing and furs, court papers show. She is charged with filing false tax returns for six years, most recently calendar year 2011.


When separate felony charges were filed against them Friday, their attorneys said the two would plead guilty.


Prosecutors also are seeking a $750,000 judgment against Jackson Jr. and the forfeiture of thousands of dollars of goods he purchased, including cashmere clothing, furs and an array of memorabilia from celebrities including Michael Jackson, Bruce Lee and civil rights leader Martin Luther King Jr.


Jackson Jr. began a mysterious medical leave of absence last June for what was eventually described as bipolar disorder. Though he did not campaign for re-election, he won another term last Nov. 6 while being treated at the Mayo Clinic in Minnesota. He left office two weeks later, saying he was cooperating with federal investigators.


Married for more than 20 years, the Jacksons have a 12-year-old daughter and a 9-year-old son. The family has homes in Washington and on Chicago’s South Side.


Washington defense attorney Stan Brand, the former general counsel of the House of Representatives, said Tuesday that Jackson Jr.’s case involved the largest sum of money he’s seen in a case involving personal use of campaign money. “Historically, there have been members of Congress who either inadvertently or maybe purposefully, but not to this magnitude, used campaign funds inappropriately,” he said.


Brand said that when the dollar figure involved is low, a lawmaker may be fined and ordered to reimburse the money. “This is so large, the Department of Justice decided to make his case criminal,” he said.


Other attorneys said they could not remember a bigger case of its kind. Washington attorney Ken Gross, a former lawyer for the Federal Election Commission, said: “Directly dipping into your campaign coffers, and spending money on personal items, I can’t recall a case where it involved this much money.”


Brand once represented another disgraced Illinois Democratic congressman, Rep. Dan Rostenkowski, who in 1996 pleaded guilty to two counts of mail fraud. Rostenkowski was represented by attorney Dan Webb, who is Sandi Jackson’s counsel.


Rostenkowski, who died in 2010, entered his pleas and received his punishment in the U.S. District Court for the District of Columbia — the same venue on the Jacksons’ calendars on Wednesday.


kskiba@tribune.com




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Syria "Scud-type" missile said to kill 20 in Aleppo


AMMAN (Reuters) - A Syrian missile killed at least 20 people in a rebel-held district of Aleppo on Tuesday, opposition activists said, as the army turns to longer-range weapons after losing bases in the country's second-largest city.


The use of what opposition activists said was a large missile of the same type as Russian-made Scuds against an Aleppo residential district came after rebels overran army bases over the past two months from which troops had fired artillery.


As the uprising against President Bashar al-Assad, now a civil war, nears its two-year mark, rebels also landed three mortar bombs in the rarely-used presidential palace compound in the capital Damascus, opposition activists said on Tuesday.


The United Nations estimates 70,000 people have been killed in the conflict between largely Sunni Muslim rebels and Assad's supporters among his minority Alawite sect. An international diplomatic deadlock has prevented intervention, as the war worsens sectarian tensions throughout the Middle East.


A Russian official said on Tuesday that Moscow, which is a long-time ally of Damascus, would not immediately back U.N. investigators' calls for some Syrian leaders to face the International Criminal Court for war crimes.


Moscow has blocked three U.N. Security Council resolutions that would have increased pressure on Assad.


Casualties are not only being caused directly by fighting, but also by disruption to infrastructure and Syria's economy.


An estimated 2,500 people in a rebel-held area of northeastern Deir al-Zor province have been infected with typhoid, which causes diarrhea and can be fatal, due to drinking contaminated water from the Euphrates River, the World Health Organization (WHO) said on Tuesday.


"There is not enough fuel or electricity to run the pumps so people drink water from the Euphrates which is contaminated, probably with sewage," the WHO representative in Syria, Elisabeth Hoff, told Reuters by telephone.


The WHO had no confirmed reports of deaths so far.


BURIED UNDER RUBBLE


In northern Aleppo, opposition activists said 25 people were missing under rubble of three buildings hit by a several-meter-long missile. They said remains of the weapon showed it to be a Scud-type missile of the type government forces increasingly use in Aleppo and in Deir a-Zor.


NATO said in December Assad's forces fired Scud-type missiles. It did not specify where they landed but said their deployment was an act of desperation.


Bodies were being gradually dug up, Mohammad Nour, an activist, said by phone from Aleppo.


"Some, including children, have died in hospitals," he said.


Video footage showed dozens of people scouring for victims and inspecting damage. A body was pulled from under collapsed concrete. At a nearby hospital, a baby said to have been dug out from wreckage was shown dying in the hands of doctors.


Reuters could not independently verify the reports.


Opposition activists also reported fighting near the town of Nabak on the Damascus-Homs highway, another route vital for supplying forces in the capital loyal to Assad, whose family has ruled Syria since the 1960s.


Rebels moved anti-aircraft guns into the eastern Damascus district of Jobar, adjacent to the city centre, as they seek to secure recent gains, an activist said.


"The rebels moved truck-mounted anti-aircraft guns to Jobar and are now firing at warplanes rocketing the district," said Damascus activist Moaz al-Shami.


Russian Deputy Foreign Minister Gennady Gatilov told a news conference a U.N. war crimes report, which accuses military leaders and rebels of terrorizing civilians, was "not the path we should follow ... at this stage it would be untimely and unconstructive."


Syria is not party to the Rome Statute that established the ICC and the only way the court can investigate the situation is if it receives a referral from the Security Council, where Moscow is a permanent member.


(Writing by Oliver Holmes; Editing by Jason Webb)



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Yen firmer but near lows, Asian shares capped

TOKYO (Reuters) - The yen remained near recent lows on Tuesday, as attention turned to the appointment of a new Bank of Japan governor.


Regional share markets held to tight ranges as the absence of catalysts and a holiday in the U.S. overnight capped demand.


The yen, which has dropped 20 percent against the dollar since mid-November, fell further at the start of the week after financial leaders from the G20 promised not to devalue their currencies to boost exports and avoided singling out Japan for any direct criticism.


The choice of the next BOJ governor and two deputies has drawn market attention as a gauge to how strongly Prime Minister Shinzo Abe is committed to reflating the economy. The G20's message was that as long as Japan pursues aggressive monetary easing to achieve that goal, a weaker yen as a result of such domestic monetary policy will be tolerated, analysts say.


"But that means that some other economy's monetary conditions have been tightened," said Barclays Capital in a note.


"Japan hasn't even changed its policy stance thus far, and the effect of expectations of a looser setting have led to limited moves in domestic interest rates, but the sell-off of the JPY has been marked and has clearly caused unease in other economies."


Market reaction was muted to the release of the minutes of the BOJ's January 21-22 meeting, when the bank set a 2 percent inflation target and pledged to an open-ended quantitative easing from 2014, but the yen was bought when Finance Minister Taro Aso told reporters Japan has no plans to buy foreign currency bonds as part of monetary easing, a trader said.


The dollar was down 0.2 percent to 93.75 yen, but remained near its highest since May 2010 of 94.465 hit on February 11. The euro also eased 0.3 percent to 125.05 yen, below its peak since April 2010 of 127.71 yen touched on February 6.


The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was nearly flat.


The Nikkei stock average <.n225> opened down 0.6 percent, after closing up 2.1 percent on Monday to approach its highest level since September 2008 of 11,498.42 tapped on February 6. <.t/>


Australian shares <.axjo> inched down 0.1 percent on the back of weakness in metals prices, with investors focusing on local corporate earnings for direction after a three-month rally that has taken the market to 4-1/2 year highs.


Seoul shares <.ks11> opened little changed, and were expected to struggle to find momentum on worries about the weak yen.


"The market has been taking a breather recently after staging a recovery earlier this month," said Lee Jae-man, an analyst at Tong Yang Securities in Seoul. "The weaker yen has been priced in to some extent, and the pace of its fall is expected to slow down."


Disappointing earnings pushed European shares lower on Monday for a third straight session of losses while U.S. markets were closed for the President's Day holiday.


The euro was steady around $1.3348. The currency eased slightly on Monday after European Central Bank President Mario Draghi said in a speech at the European Parliament that "the exchange rate is not a policy target but is important for growth and price stability" and that its rise is "a risk."


The risk of an inconclusive outcome in Italy's election this weekend added to investor concerns.


Sterling hovered near a seven-month low against the dollar touched on Monday after a key policymaker made comments about the need for further weakness, while recent poor data has spurred worries of another British recession.


U.S. crude fell 0.4 percent to $95.47 a barrel.


(Additional reporting by Hyunjoo Jin and Miyoung Kim in Seoul; Editing by Shri Navaratnam)



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Jerry Buss, Lakers' flamboyant owner, dies at 80


Jerry Buss built a glittering life at the intersection of sports and Hollywood.


After growing up in poverty in Wyoming, he earned success in academia, aerospace and real estate before discovering his favorite vocation when he bought the Los Angeles Lakers in 1979. While Buss wrote the checks and fostered partnerships with two generations of basketball greats, the Lakers won 10 NBA titles and became a glamorous global brand.


With a scientist's analytical skills, a playboy's flair, a businessman's money-making savvy and a die-hard hoops fan's heart, Buss fashioned the Lakers into a remarkable sports entity. They became a nightly happening, often defined by just one word coined by Buss: Showtime.


"His impact is felt worldwide," said Kobe Bryant, who has spent nearly half his life working for Buss.


Buss, who shepherded his NBA team from the Showtime dynasty of the 1980s to the current Bryant era while becoming one of the most important and successful owners in pro sports, died Monday. He was 80.


"Think about the impact that he's had on the game and the decisions he's made, and the brand of basketball he brought here with Showtime and the impact that had on the sport as a whole," Bryant said a few days ago. "Those vibrations were felt to a kid all the way in Italy who was 6 years old, before basketball was even global."


Under Buss' leadership, the star-studded, trophy-winning Lakers became Southern California's most beloved sports franchise and a signature cultural representation of Los Angeles. Buss acquired, nurtured and befriended a staggering array of talented players and basketball minds during his Hall of Fame tenure, from Magic Johnson, Kareem Abdul-Jabbar and James Worthy to Bryant, Shaquille O'Neal and Dwight Howard.


Few owners in sports history can approach Buss' accomplishments with the Lakers, who made the NBA Finals 16 times during his nearly 34 years in charge, winning 10 titles between 1980 and 2010. Whatever the Lakers did under Buss' watch, they did it big — with marquee players, eye-popping style and a relentless pursuit of success with little regard to its financial cost.


"His incredible commitment and desire to build a championship-caliber team that could sustain success over a long period of time has been unmatched," said Jerry West, Buss' longtime general manager and now a consultant with the Golden State Warriors. "With all of his achievements, Jerry was without a doubt one of the most humble men I've ever been around. His vision was second to none; he wanted an NBA franchise brand that represented the very best and went to every extreme to accomplish his goals."


Buss died at Cedars-Sinai Medical Center in Los Angeles, said Bob Steiner, his assistant and longtime friend. Buss had been hospitalized for most of the past 18 months while undergoing cancer treatment, but the cause of death was kidney failure, Steiner said.


"When someone as celebrated and charismatic as Jerry Buss dies, we are reminded of two things," said Abdul-Jabbar, the leading scorer in NBA history. "First, just how much one person with vision and strength of will can accomplish. Second, how fragile each of us is, regardless of how powerful we were. Those two things combine to inspire us to reach for the stars, but also to remain with our feet firmly on the ground among our loved ones. ... The man may be gone, but he has made us all better people for knowing him."


With his condition worsening in recent months, several prominent former Lakers visited Buss to say goodbye. Even rivals such as Dallas Mavericks owner Mark Cuban and Clippers owner Donald Sterling hailed the passion and bonhomie of the former chemist and mathematician who lived his own Hollywood dream.


"He was a great man and an incredible friend," Johnson tweeted.


Buss always referred to the Lakers as his extended family, and his players rewarded his fanlike excitement with devotion, friendship and two hands full of championship rings. Working with front-office executives West, Bill Sharman and Mitch Kupchak, Buss spent lavishly to win his titles despite lacking a huge personal fortune, often running the NBA's highest payroll while also paying high-profile coaches Pat Riley and Phil Jackson.


"Jerry Buss was more than just an owner. He was one of the great innovators that any sport has ever encountered," Riley said. "He was a true visionary, and it was obvious with the Lakers in the 80's that 'Showtime' was more than just Magic Johnson and Kareem Abdul-Jabbar. It was really the vision of a man who saw something that connected with a community."


Ownership of the Lakers is now in a trust controlled by Buss' six children, who all have worked for the Lakers in various capacities for several years. With 1,786 victories, the Lakers easily are the NBA's winningest franchise since he bought the club, which is now run largely by Jim Buss and Jeanie Buss.


"We not only have lost our cherished father, but a beloved man of our community and a person respected by the world basketball community," the Buss family said in a statement issued by the Lakers.


"It was our father's often-stated desire and expectation that the Lakers remain in the Buss family. The Lakers have been our lives as well, and we will honor his wish and do everything in our power to continue his unparalleled legacy."


Johnson and fellow Hall of Famers Abdul-Jabbar and Worthy formed lifelong bonds with Buss during the Lakers' run to five titles in nine years in the 1980s, when the Lakers earned a reputation as basketball's most exciting team with their flamboyant Showtime repartee.


The buzz extended throughout the Forum, where Buss turned the Lakers' games into a must-see event. He used the Laker Girls, a brass band and promotions to keep Lakers fans interested during all four quarters. Courtside seats, priced at $15 when he bought the Lakers, became the hottest tickets in Hollywood — and they still are, with fixture Jack Nicholson and many other celebrities attending every home game.


"Anybody associated with the NBA since 1980 benefited greatly from Jerry Buss' impact on the game," Steiner said. "He had a different way of looking at things than I did, and people who had been raised in basketball."


Buss paid the Lakers' bills through both their wild success and his groundbreaking moves to raise revenue. He co-founded a basic-cable sports television network and sold the naming rights to the Forum at times when both now-standard strategies were unusual, further justifying his induction to the Naismith Memorial Basketball Hall of Fame in 2010.


"The NBA has lost a visionary owner whose influence on our league is incalculable and will be felt for decades to come," NBA Commissioner David Stern said. "More importantly, we have lost a dear and valued friend."


Showtime couldn't last forever, but after a rough stretch in the 1990s, Buss rekindled the Lakers' mystique by paying top dollar to hire Jackson, who led O'Neal and Bryant to a three-peat from 2000-02. Bryant and Pau Gasol won two more titles under Jackson in 2009 and 2010.


The current Lakers (25-29) have struggled mightily despite adding Howard and Steve Nash in a couple of moves that were typical of Buss' big, brash style. Los Angeles could miss the playoffs this spring for just the third time since Buss bought the franchise.


"Today is a very sad day for all the Lakers and basketball," Gasol tweeted. "All my support and condolences to the Buss family. Rest in peace Dr. Buss."


Although Buss gained fame and another fortune with the Lakers, he also was a scholar, Renaissance man and bon vivant who epitomized California cool his entire public life.


Buss rarely appeared in public without at least one attractive, much younger woman on his arm — at Southern California football games, high-stakes poker tournaments, hundreds of boxing matches promoted by Buss at the Forum — and, of course, Lakers games from his private box at Staples Center, which was built under his watch. With his failing health, Buss hadn't attended a Lakers game in the past two seasons.


After a rough-and-tumble childhood that included stints as a ditch-digger and a bellhop in the frigid Wyoming winters, Buss earned a Ph.D. in chemistry from USC at age 24, and had careers in aerospace and real estate development before getting into sports. With money from his real-estate ventures and a good bit of creative accounting, Buss bought the then-struggling Lakers, the NHL's Los Angeles Kings and both clubs' arena — the Forum — from Jack Kent Cooke in a $67.5 million deal that was the largest sports transaction in history at the time.


Last month, Forbes estimated the Lakers were worth $1 billion, second most in the NBA.


Buss also helped change televised sports by co-founding the Prime Ticket network in 1985, and he received a star on the Hollywood Walk of Fame in 2006 for his work in television. Breaking the contemporary model of subscription services for televised sports, Buss' Prime Ticket put beloved broadcaster Chick Hearn and the Lakers' home games on basic cable.


Buss also sold the naming rights to the Forum in 1988 to Great Western Savings & Loan — another deal that was ahead of its time.


Born in Salt Lake City, Gerald Hatten Buss was raised in poverty in Wyoming before improving his life through education. He also grew to love basketball, describing himself as an "overly competitive but underly endowed player."


After graduating from the University of Wyoming, Buss attended USC for graduate school because he loved its sports teams. He also became a chemistry professor and worked in the missile division of defense contractor McDonnell Douglas before carving out a path to wealth and sports prominence.


His real-estate portfolio grew out of a $1,000 investment in a West Los Angeles apartment building with partner Frank Mariani, an aerospace engineer and co-worker.


Heavily leveraging his fortune and various real-estate holdings during two years of negotiations, Buss purchased Cooke's entire Los Angeles sports empire along with a 13,000-acre ranch in Kern County. Buss immediately worked to transform the Lakers — who had won just one NBA title since moving west from Minneapolis in 1960 — into a star-powered endeavor befitting Hollywood.


"One of the first things I tried to do when I bought the team was to make it an identification for this city, like Motown in Detroit," he told the Los Angeles Times in 2008. "I try to keep that identification alive. I'm a real Angeleno. I want us to be part of the community."


With showmanship, fearless spending and a little drafting luck, Buss quickly succeeded: Johnson, Abdul-Jabbar and coach Paul Westhead led the Lakers to the 1980 title. Johnson's ball-handling wizardry and Abdul-Jabbar's smooth inside game made for an attractive style of play, and the Lakers came to define West Coast sophistication.


Riley, the former broadcaster who fit the L.A. image perfectly with his slick-backed hair and good looks, was surprisingly promoted by Buss early in the 1981-82 season. He became one of the best coaches in NBA history, leading the Lakers to four straight NBA finals and four titles, with Worthy, Michael Cooper, Byron Scott and A.C. Green playing major roles.


"I was privileged to be part of that for 10 years and even more grateful for the friendship that has lasted all these many years," Riley said. "I have always come to realize that if it weren't for Dr. Buss, I wouldn't be where I am today."


Overall, the Lakers made the Finals nine times in Buss' first 12 seasons while rekindling the NBA's best rivalry with the Boston Celtics, and Buss basked in the worldwide celebrity he received from his team's achievements. His partying became the stuff of Los Angeles legends, with even his players struggling to keep up with Buss' lifestyle.


Johnson's HIV diagnosis and retirement in 1991 staggered Buss and the Lakers, the owner recalled in 2011. The Lakers went through seven coaches and made just one conference finals appearance in an eight-year stretch of the 1990s despite the 1996 arrivals of O'Neal, who signed with Los Angeles as a free agent, and Bryant, the 17-year-old high schooler acquired in a draft-week trade.


Shaq and Kobe didn't reach their potential until Buss persuaded Jackson, the Chicago Bulls' six-time NBA champion coach, to take over the Lakers in 1999. Los Angeles immediately won the next three NBA titles in brand-new Staples Center, AEG's state-of-the-art downtown arena built with the Lakers as the primary tenant.


After the Lakers traded O'Neal in 2004, they hovered in mediocrity again until acquiring Gasol in a heist of a trade with Memphis in early 2008. Los Angeles made the next three NBA Finals, winning two more titles.


Through the Lakers' frequent successes and occasional struggles, Buss never stopped living his Hollywood dream. He was an avid poker player and a fixture on the Los Angeles club scene well into his 70s, when a late-night drunk-driving arrest in 2007 — with a 23-year-old woman in the passenger seat of his Mercedes-Benz — prompted him to cut down on his partying.


Buss owned the NHL's Kings from 1979-87, and the WNBA's Los Angeles Sparks won two league titles under Buss' ownership. He also owned Los Angeles franchises in World Team Tennis and the Major Indoor Soccer League.


Buss' children have pledged to continue his commitment to the Lakers' distinctive success, although their efforts haven't been rewarded in the past three years while Jerry Buss ceded many decision-making responsibilities to Jim Buss, the Lakers' executive vice president of player personnel and the second-oldest child. While daughter Jeanie runs the franchise's business side, Jim Buss now has the final say on basketball decisions.


Jerry Buss still served two terms as president of the NBA's Board of Governors and was actively involved in the 2011 lockout negotiations, developing blood clots in his legs attributed to his extensive travel during that time.


"I am blessed with a wonderful family who have helped me and guided me every step of the way," Buss said in 2010 at his Hall of Fame induction ceremony. "This support is the best anybody could ever have."


Buss is survived by his six children: sons Johnny, Jim, Joey and Jesse, and daughters Jeanie Buss and Janie Drexel. He had eight grandchildren.


Arrangements are pending for a funeral and memorial service, likely at Staples Center or a nearby theatre in downtown Los Angeles.


___


Associated Press writers Beth Harris and Andrew Dalton contributed to this report.


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Borneo tension linked to rebel deal




A Malaysian policemen mans a security check in the areas where suspected Philippine militants are located in Borneo on Monday.




STORY HIGHLIGHTS


  • More than 100 Filipinos arrived by boat on the Malaysian coast last week

  • They say they represent a sultanate that once ruled the area

  • The move seems to be a response to a recent peace deal in the Philippines

  • The leaders of the sultanate appear to have felt left out of the accord, an expert says




(CNN) -- The peculiar standoff on Borneo between Malaysian security forces and a group of men from the southern Philippines has its roots in a recent landmark peace deal between Manila and Muslim rebels, according to an expert on the region.


More than 100 men from the mainly Muslim southern Philippines came ashore in the Malaysian state of Sabah on Borneo early last week demanding to be recognized as representatives of a sultanate that has historical claims on the area.


Their claims touch on an unresolved territorial question between the Philippines and Malaysia, as well as Manila's efforts to improve relations with Islamic insurgents in the country's south after decades of violence.


Malaysian police and armed forces soon surrounded the village in the eastern Sabah district of Lahad Datu where the men had gathered. Police officials said they were negotiating with the group in an effort to persuade its members to return to their homes in the Philippines peacefully.


The Philippine government also urged them to come back to the country, saying it hadn't authorized their voyage. There was no indication of a resolution to the standoff on Monday.


The men claim to be the Royal Army of the Sultanate of Sulu, which once encompassed Sabah, and say they don't want their people to be sent away from the area, Malaysian authorities said. There are conflicting claims about to what extent the men are armed.


Eroded power


Over the weekend, comments appeared in the news media from representatives of the sultanate, whose power is now largely symbolic, saying that their followers who had gone to Sabah planned to stay where they were.


"Nobody will be sent to the Philippines. Sabah is our home," Jamalul Kiram, a member of the sultanate's ruling family, told reporters in Manila on Sunday, according to Agence France-Presse.


The sultanate's claim to Sabah plays a long-standing and important role in the Philippine government's relationship with the country's Muslim minority and with neighboring Malaysia, said Julkipli Wadi, the dean of the Institute of Islamic Studies at the University of the Philippines.


Established in the 15th century, the Sultanate of Sulu became an Islamic power center in Southeast Asia that at one point ruled Sabah.


But the encroachment of Western colonial powers, followed by the emergence of the Philippines and Malaysia as independent nation states, steadily eroded the sultanate's power, according to Wadi.


It became "a sultanate without a kingdom" to rule over, he said. Sulu is now a province within the Republic of the Philippines.


But the sultanate has nonetheless retained influence over some people in the southern Philippines and Sabah who still identify themselves with it, according to Wadi.


Excluded from a peace deal


The members of the sultanate's royal family, although riven by internal disputes over who the rightful sultan is today, appear to have felt isolated by the provisional accord signed in October by the Philippine government and the Moro Islamic Liberation Front, which has fought for decades to establish an independent Islamic state in southern Philippines.


Malaysia, a mainly Muslim country, helped facilitate the agreement.


Kiram was cited by AFP as saying that the sultanate's exclusion from the deal, which aims to set up a new autonomous region to be administered by Muslims, prompted the decision to send the men to Sabah this month.


Dispatching the boat loads of followers to Lahad Datu served to make the sultanate's presence felt, according to Wadi.


"The whole aim is not to create conflict or initiate war, it is just to position themselves and make governments like Malaysia and the Philippines recognize them," he said.


Historical ties


The economic, cultural and historical links between Sabah and the nearby Philippines islands, as well as the porous nature of the border between the two, means that many of the Filipino men have friends and relatives in Lahad Datu.


But the historical connection still fuels tensions between Malaysia and the Philippines, with Manila retaining a "dormant claim" to Sabah through the Sultanate of Sulu, according to the CIA World Factbook.


According to the official Philippine News Agency, Manila still claims much of the eastern part of Sabah, which was leased to the British North Borneo Company in 1878 by the Sultanate of Sulu. In 1963, Britain transferred Sabah to Malaysia, a move that the sultanate claimed was a breach of the 1878 deal.


Malaysia still pays a token rent to the sultanate for the lease of Sabah, according to Wadi.







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Rose returns to 5-on-5 drills for first time since injury









A sense of doubt has evolved into a hint of optimism about Derrick Rose's comeback from knee surgery.

The Bulls guard, who last week mentioned the possibility of sitting out the season, appeared to take another step Monday as he participated in 5-on-5 drills during practice.






"He was able to get out there, and it's good," teammate Kirk Hinrich said. "It was something that (we) as a team needed, as far as every individual coming off the (All-Star) break needed to scrimmage a little bit. And I'm sure it was good for (Rose), helpful to ... give him a good gauge of where he's at."

Coach Tom Thibodeau said Rose did "what everyone else did'' and said his participation wasn't out of the ordinary based on the previously stated outlook. The plan all along was to have Rose return to 5-on-5 action after the break.

Rose cited his inability to dunk as the reason he knew he hadn't fully recovered, and Joakim Noah said Rose still wasn't dunking Monday. The Bulls went through three scrimmages of seven to eight minutes, during which Rose ran full-court. It was unclear how much contact Rose endured or how much pressure he put on his left knee.

"He's doing what he should be doing,'' Thibodeau said. "He's focused on his rehab, doing more and more. We just have to be patient. When he's ready, he'll go.''

Thibodeau reiterated how his players need to pick up their intensity after dropping five of the last seven games and six of the last 10. A Rose return would instantly inject life into the 30-22 Bulls, although they've performed admirably at times in his absence while currently holding the Eastern Conference's fifth seed.

Until Rose steps on the court for a game, his teammates have to lean on each other.

"When we're right and we're playing the right way, we've proved that we can beat everybody,'' Noah said. "We've also proved that if we don't come with the right (attitude), don't play together, we can lose to anybody.''

The return of Hinrich to the lineup for Tuesday night's game in New Orleans should provide a boost. The Bulls went 2-5 with Hinrich sidelined by a right elbow infection and committed 15.6 turnovers per game in the losses.

With all due respect to Nate Robinson and his scoring ability, Hinrich runs the offense more efficiently and is a better defender.

"He's a huge part of what we do, and it just feels good to have Kirk back,'' Noah said. "What he brings to our team, it's hard to measure. His defensive intensity, the ball movement ... it's all big.''

The Bulls have lost two straight and take on a 19-34 Hornets team that has won its last two and is 5-5 over the last 10. Four of the Bulls' next six opponents have sub-.500 records, but the Heat (36-14) and Thunder (39-14) are in that stretch too.

"We have to clean some things up offensively and defensively,'' Thibodeau said. "But the biggest challenge is going to be the level of intensity, to get that back.''

vxmcclure@tribune.com

Twitter @vxmcclure23



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Time to refer Syrian war crimes to ICC: U.N. inquiry


GENEVA (Reuters) - United Nations investigators said on Monday that Syrian leaders they had identified as suspected war criminals should face the International Criminal Court (ICC).


The investigators urged the U.N. Security Council to "act urgently to ensure accountability" for violations, including murder and torture, committed by both sides in an uprising and civil war that has killed about 70,000 people since March 2011.


"Now really it's time ... We have a permanent court, the International Criminal Court, who would be ready to take this case," Carla del Ponte, a former ICC chief prosecutor who joined the U.N. team in September, told a news briefing in Geneva.


But because Syria is not party to the Rome Statute that established the ICC, the only way the court can investigate the situation is if it receives a referral from the Security Council. Russia, Assad's long-standing ally and a permanent veto-wielding member of the council, has opposed such a move.


"We cannot decide. But we pressure the international community to decide because it's time to act," del Ponte said.


Brazilian expert Paulo Pinheiro, who leads the U.N. inquiry set up in 2011, said: "We are in very close dialogue with all the five permanent members and with all the members of the Security Council, but we don't have the key that will open the path to cooperation inside the Security Council."


His team of some two dozen experts is tracing the chain of command in Syria to establish criminal responsibility and build a case for eventual prosecution.


"Of course we were able to identify high-level perpetrators," del Ponte said, adding that these were people "in command responsibility...deciding, organizing, planning and aiding and abetting the commission of crimes".


She said it was urgent for the Hague-based war crimes tribunal to take up cases of "very high officials", but did not identify them, in line with the inquiry's practice.


"We have crimes committed against children, rape and sexual violence. We have grave concerns. That is also one reason why an international body of justice must act because it is terrible."


Del Ponte, who tried former Yugoslav President Slobodan Milosevic at the International Criminal Tribunal for the Former Yugoslavia on war crimes charges, said the ICC prosecutor would need to deepen the investigation on Syria before an indictment could be prepared.


Karen Koning AbuZayd, an American member of the U.N. team, told Reuters it had information pointing to "people who have given instructions and are responsible for government policy, people who are in the leadership of the military, for example".


The inquiry's third roster of suspects, building on lists drawn up in the past year, remains secret. It will be entrusted to U.N. High Commissioner for Human Rights Navi Pillay upon expiry of its mandate at the end of March, the report said.


Pillay, a former ICC judge, said on Saturday Assad should be investigated for war crimes, and called for outside action on Syria, including possible military intervention.


Pinheiro said the investigators would not speak publicly about "numbers, names or levels" of suspects.


SEVEN MASSACRES IDENTIFIED


The investigators' latest report, covering the six months to mid-January, was based on 445 interviews conducted abroad with victims and witnesses, as they have not been allowed into Syria.


"We identified seven massacres during the period, five on the government side, two on the armed opponents' side. We need to enter the sites to be able to confirm elements of proof that we have," del Ponte said.


The U.N. report said the ICC was the appropriate institution for the fight against impunity in Syria. "As an established, broadly supported structure, it could immediately initiate investigations against authors of serious crimes in Syria."


Government forces have carried out shelling and air strikes across Syria including Aleppo, Damascus, Deraa, Homs and Idlib, the 131-page report said, citing corroborating satellite images.


"Government forces and affiliated militias have committed extra-judicial executions, breaching international human rights law. This conduct also constitutes the war crime of murder. Where murder was committed as part of a widespread or systematic attack against a civilian population, with knowledge of that attack, it is a crime against humanity," the report said.


Those forces have targeted bakery queues and funeral processions to spread "terror among the civilian population".


Rebels fighting to topple Assad have also committed war crimes including murder, torture, hostage-taking and using children under age 15 in hostilities, the U.N. report said.


"They continue to endanger the civilian population by positioning military objectives inside civilian areas" and rebel snipers had caused "considerable civilian casualties", it said.


George Sabra, a vice president of the opposition Syrian National Coalition, asked about the U.N. report, told Reuters at a conference in Stockholm: "We condemn all kind of crimes, regardless who did it.


"We can't ignore that some mistakes have been made and maybe still happen right now. But nobody also can ignore that the most criminal file is that of the regime."


(This story has been corrected to fix name of Milosevic tribunal in 11th paragraph)


(Reporting by Stephanie Nebehay; additional reporting by Anna Ringstrom in Stockholm; Editing by Mark Heinrich)



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