Office Depot to buy OfficeMax

Office Depot Inc. said on Wednesday that it would buy smaller rival OfficeMax Inc. for $1.17 billion in stock to get more clout with suppliers and better compete against Staples Inc and Amazon.com Inc .

After days of speculation that a deal was close, the news was buried on the fourth page of Office Depot's earnings press release. Nearly an hour after it came out, there was still no mention on OfficeMax's website.

Office Depot will issue 2.69 new shares of common stock for each outstanding common share of OfficeMax. At Tuesday's closing prices, the deal is valued at $13.50 per share, or $1.17 billion, based on 86.7 million shares outstanding as of Oct. 26.

After the merger is completed, Office Depot's board will consist of an equal number of directors chosen by that company and OfficeMax.

The news comes as both companies face pressure from investors to boost profitability and lift their sagging shares.

Analysts say they expect far less pushback from antitrust authorities for this deal than what Office Depot faced in the 1990s, when it tried to merge with Staples, given the changes in the office supply market since then.

Underscoring how tough that business has become, Office Depot reported a fourth-quarter net loss, hurt by a 6 percent decrease in comparable sales at its North American stores and a revenue drop at its unit that serves North American businesses.

Office supply retailers, which are often seen as reflecting overall economic health, have suffered as demand for their products fell in the years after the last U.S. recession led companies to cut spending.

They also face strong competition from the likes of Amazon and Wal-Mart Stores Inc in selling everything from pens and notebooks to furniture and break room supplies to government, businesses and individuals.

SMALL PREMIUM

The offer represented a premium of just under 4 percent to OfficeMax's $13 close. It was not immediately clear if that was enough to satisfy one of the company's largest shareholders, Neuberger Berman, which said earlier this week it would support a deal depending on the terms.

OfficeMax shares rose 9.2 percent to $14.20 in premarket trading. Office Depot was up 10 percent at $5.52, meaning that OfficeMax was still trading below the value of the bid.

The deal, considered long overdue by many on Wall Street, will also give Office Depot and OfficeMax a chance to save hundreds of millions of dollars by closing stores, cutting advertising costs and streamlining their supply chain.

Industry experts have long hoped Office Depot would join hands with OfficeMax to take on Staples, which boosted its international business and clout with suppliers by buying Dutch rival Corporate Express in 2008.

BB&T Capital Markets analyst Anthony Chukumba said the Office Depot-OfficeMax combination would help Staples, however.

"Clearly, you can't make this deal work unless you close a bunch of stores," he said. "Store rationalization is long overdue, and Staples will clearly benefit from just having fewer stores to compete with."

Staples has 39.9 percent of the U.S. office supply market, Office Depot 19.2 percent and OfficeMax holds 15.7 percent, according to Euromonitor International.

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Weather cited in Antioch crash that killed 2 teens

Two teens were killed after the vehicle they were traveling in left Wilmot Road in Antioch and struck a tree, police say. (WGN-TV / February 18, 2013)

Staff report and WGN-TV

8:06 a.m. CST, February 19, 2013

Two teenagers were killed when their SUV crashed into a tree in Antioch in heavy rain, authorities said.

The 16-year-old boy and 17-year-old girl were traveling west when their Chevrolet Trailblazer left the road in the 27000 block of Wilmot Road around 7 p.m. Monday, according to the Lake County sheriff's office. The SUV went through a yard before hitting the tree, the office said.

Both teens died on the scene. The boy, who was driving, was from Antioch and the girl was from Lindenhurst. The Lake County coroner's office was expected to release further details after notifying family members.

Authorities said they believe weather contributed to the crash. A man who lives where the crash occurred said it was raining hard when the accident occurred.

"It was pouring," said Tim Staples.

Staples said he was home when "I just saw the headlights spin ... We ran out and you could see the car was in the tree, the tree was on the car ... a mangled car I couldn't recognize."

"We checked the scene," he said. "We had flashlights and we looked inside. It didn't look promising, it looked really bad."

He said firefighters reached the scene in 7 or 8 minutes. "It took them an hour to get them out. They had to take the top of the car off."

Staples said the car hit a tree he had planted on his property 30 years ago.

chicagobreaking@tribune.com

Twitter: @ChicagoBreaking

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Burger King takes down Twitter account after hack attack

NEW YORK (Reuters) - Hackers breached the Twitter account of fast-food chain Burger King, posting the online equivalent of graffiti and sometimes making little sense.

Burger King Worldwide Inc suspended its Twitter account about an hour after it learned of the attack at 12:24 p.m. EST on Monday, company spokesman Bryson Thornton said in an email.

"It has come to our attention that the Twitter account of the BURGER KING® brand has been hacked," the company said in a statement. "We have worked directly with administrators to suspend the account until we are able to re-establish our legitimate site and authentic postings."

Several tweets carried the logo of Burger King's larger rival McDonald's, but spelled the latter company's name incorrectly. Others sought to tarnish Burger King, the third-largest U.S. hamburger chain, and its employees.

"Just got sold to McDonalds," one tweet said, adding "FREDOM IS FAILURE".

(Reporting by Ilaina Jonas; Editing by Dale Hudson)

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Pistorius says no intentions to kill girlfriend

PRETORIA, South Africa (AP) — Oscar Pistorius told a packed courtroom Tuesday that he shot his girlfriend to death by mistake, thinking she was a robber. The prosecutor called it premeditated murder.

The double amputee said in an affidavit read by his lawyer at his bail hearing that he felt vulnerable because he did not have on his prosthetic legs when he pumped bullets into the locked bathroom door. Then, Pistorius said in the sworn statement, he realized that model Reeva Steenkamp was not in his bed.

"It filled me with horror and fear," he said.

He put on his prosthetic legs, tried to kick down the door, then bashed it in with a cricket bat to find Steenkamp, 29, shot inside. He said he ran downstairs with her, but "She died in my arms."

Prosecutor Gerrie Nel on Tuesday charged the 26-year-old athlete and Olympian with premeditated murder, alleging he took the time to put on his legs and walk some seven meters (yards) from the bed to the bathroom door before opening fire. A conviction of premeditated murder carries a mandatory sentence of life in jail.

The Valentine's Day shooting death has shocked South Africans and many around the world who idolized Pistorius for overcoming adversity to become a sports champion, competing in the London Olympics last year in track besides being a Paralympian. Steenkamp was a model and law graduate who made her debut on a South African reality TV program that was broadcast on Saturday, two days after her death.

The magistrate ruled that Pistorius faces the harshest bail requirements available in South African law.

Nel told the court that Pistorius fired into the door of a small bathroom where Steenkamp was cowering after a shouting match. He fired four times and three bullets hit Steenkamp, the prosecutor said.

"She couldn't go anywhere. You can run nowhere," prosecutor Nel argued. "It must have been horrific."

Pistorius sobbed softly as his lawyer, Barry Roux, insisted the shooting was an accident and that there was no evidence to substantiate a murder charge.

"Was it to kill her, or was it to get her out?" he asked about the broken-down door. "We submit it is not even murder. There is no concession this is a murder."

He said the state had provided no evidence that the couple quarreled nor offered a motive.

Nel rebutted: "The motive is 'I want to kill.'"

As details emerged at the dramatic court hearing in the capital, Steenkamp's body was being cremated Tuesday at a memorial service in the south-coast port city of Port Elizabeth. The family said members had arrived from around the world. Six pallbearers carried her coffin, draped with a white cloth and covered in white flowers, into the church for the private service.

June Steenkamp, the mother, said the family wants answers.

"Why? Why my little girl? Why did this happen? Why did he do this?" she said in an interview published Monday in The Times newspaper.

Outside the court, several dozen singing women protested against domestic violence and waved placards urging Pistorius be refused bail. "Pistorius must rot in jail," one placard said.

South Africa has some of the world's worst rates of violence against females and the highest rate in the world of women killed by an intimate partner, according to a study by the Medical Research Council. Another council study estimates a child or woman is raped every four minutes. While homicide rates have dropped, the number of women killed by current or former partners has increased, said the council's Professor Rachel Jewkes. At least three women are killed by a partner every day in the country of 50 million, she said.

Steenkamp campaigned actively against domestic violence and had tweeted on Twitter that she planned to join a "Black Friday" protest by wearing black in honor of a 17-year-old girl who was gang-raped and mutilated two weeks ago.

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," her uncle and the family spokesman Mike Steenkamp said after her memorial.

He said the family had planned a big get-together at Christmas but that had not been possible. "But we are here today as a family and the only one who's missing is Reeva," he said, breaking down and weeping.

Pistorius was born without fibula bones and had them amputated when he was 11 months.

The man known as the Blade Runner because of his running prostheses has lost several valuable sponsorships estimated to be worth more than $1 million a year.

On Tuesday, the athlete was ousted from a pro-gay campaign being launched in Cape Town, organizers said. In a video axed from the campaign, Pistorius says "You don't have to worry. You don't have to change. Take a deep breath and remember, 'It will get better.'"

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Associated Press writer Michelle Faul contributed from Johannesburg and AP photographer Schalk van Zuydam from Port Elizabeth.

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Hip implants a bit more likely to fail in women

CHICAGO (AP) — Hip replacements are slightly more likely to fail in women than in men, according to one of the largest studies of its kind in U.S. patients. The risk of the implants failing is low, but women were 29 percent more likely than men to need a repeat surgery within the first three years.

The message for women considering hip replacement surgery remains unclear. It's not known which models of hip implants perform best in women, even though women make up the majority of the more than 400,000 Americans who have full or partial hip replacements each year to ease the pain and loss of mobility caused by arthritis or injuries.

"This is the first step in what has to be a much longer-term research strategy to figure out why women have worse experiences," said Diana Zuckerman, president of the nonprofit National Research Center for Women & Families. "Research in this area could save billions of dollars" and prevent patients from experiencing the pain and inconvenience of surgeries to fix hip implants that go wrong.

Researchers looked at more than 35,000 surgeries at 46 hospitals in the Kaiser Permanente health system. The research, published Monday in JAMA Internal Medicine, was funded by the U.S. Food and Drug Administration.

After an average of three years, 2.3 percent of the women and 1.9 percent of the men had undergone revision surgery to fix a problem with the original hip replacement. Problems included instability, infection, broken bones and loosening.

"There is an increased risk of failure in women compared to men," said lead author Maria Inacio, an epidemiologist at Southern California Permanente Medical Group in San Diego. "This is still a very small number of failures."

Women tend to have smaller joints and bones than men, and so they tend to need smaller artificial hips. Devices with smaller femoral heads — the ball-shaped part of the ball-and-socket joint in an artificial hip — are more likely to dislocate and require a surgical repair.

That explained some, but not all, of the difference between women and men in the study. It's not clear what else may have contributed to the gap. Co-author Dr. Monti Khatod, an orthopedic surgeon in Los Angeles, speculated that one factor may be a greater loss of bone density in women.

The failure of metal-on-metal hips was almost twice as high for women than in men. The once-popular models were promoted by manufacturers as being more durable than standard plastic or ceramic joints, but several high-profile recalls have led to a decrease in their use in recent years.

"Don't be fooled by hype about a new hip product," said Zuckerman, who wrote an accompanying commentary in the medical journal. "I would not choose the latest, greatest hip implant if I were a woman patient. ... At least if it's been for sale for a few years, there's more evidence for how well it's working."

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Online:

Journal: http://www.jamainternalmed.com

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Alec Baldwin, NY Post photog file harass claims

NEW YORK (AP) — New York City police are investigating harassment complaints made by actor Alec Baldwin and a New York Post photographer after an altercation.

According to police, photographer G.N. Miller says the former "30 Rock" star yelled racial epithets and other insults when he was trying to take pictures of the actor outside his Manhattan apartment. Baldwin maintains he hollered at the photographer, but never said anything racist. He called the allegations "outrageous."

Baldwin called police and filed a harassment complaint Monday after the incident. The photographer later filed a cross-complaint.

The police department's Hate Crimes Task force was looking into the allegations.

A Post spokeswoman had no immediate comment on Tuesday.

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Second major hotel planned for McCormick area

The agency that owns McCormick Place announced Tuesday it will build a second hotel near the convention center complex, with plans calling for a 1,200-room facility that can serve as a headquarters for trade shows and conventions.

The Metropolitan Pier and Exposition Authority, also known as McPier, said it is acquiring land for the $400 million project, which will be located between Indiana and Michigan, along the south side of Cermak.

The announcement was made jointly with Mayor Rahm Emanuel and Gov. Pat Quinn. McPier has made it known for some time that it was drawing up plans to add to hotel and entertainment offerings in the area to better compete with rival cities such as Orlando and Las Vegas.

The hotel will operate in cooperation with McPier's existing hotel on the convention campus, the Hyatt Regency McCormick Place, which is undergoing a major expansion.

kbergen@tribune.com | Twitter@kathy_bergen

 

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2 questioned in fatal shooting of Chicago teen

Janay McFarlane, 18, was shot on the way to a store, the same day Obama spoke on gun violence.

Two people are being questioned in connection with the fatal shooting of an 18-year-old Chicago woman who was killed Friday, the same day her sister attended President Barack Obama's speech on gun violence, officials said Sunday.

An 18-year-old man and a 20-year-old man are considered persons of interest in the homicide investigation and are being questioned by North Chicago police and officials from the Lake County State's Attorney's Office in connection with the death of Janay McFarlane, according to a statement released Sunday afternoon by North Chicago police.

The men were arrested after McFarlane was shot at about 11:30 p.m. Friday on the  1300 block of Jackson Avenue in the northern suburb.

Angela Blakely, McFarlane’s mother, said she knew few details about the investigation but was encouraged by the news of the arrests.

“I’m just hoping that they do find out who did this to my baby, so they can pay for the crime they committed,” she said.

Blakely urged anyone with information about the killing to talk with police.

McFarlane, 18, of the 8900 block of South Lowe Avenue, was in North Chicago visiting family and friends and was walking with friends when she was shot, according Blakely. McFarlane was walking with friends, one of whom may have been the intended target, Blakely said.

When police responded to a call of shots being fired in the area they found McFarlane fatally shot, police said. They canvassed the area and were tipped off to the men who were taken in for questioning, according to police.

McFarlane was killed just hours after her sister, Destini Warren, 14, had attended President Barack Obama's speech against gun violence Friday.

Blakely, the mother of both girls, said that the family had been anticipating the President's visit to the school where Destini is a freshman.

Leading up to the visit, McFarlane frequently mentioned the recent death of Hadiya Pendleton, 15, whose own shooting death a mile from the Obama's home spurred the President's visit.

"It's terrible, it's terrible the only thing I can remember is my daughter telling me, 'Mommy, it's so sad about Hadiya. That makes no sense,' " Blakely said. "She always asked me a lot of questions about death."

The speech resonated even more when her family got the call from McFarlane's father in North Chicago, who told Destini that her sister was dead, she said.

"It was like real painful," said Destini, her voice choking back tears.

North Chicago officials said McFarlane's killing is the first in the northern suburb since October. The October slaying was the only homicide for the town last year.

chicagobreaking@tribune.com

Twitter: @ChicagoBreaking

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Sony cuts price of Vita handheld games console in Japan

TOKYO (Reuters) - Sony Corp on Monday slashed the price of its struggling Vita handheld games console in Japan in a bid to spur sales of the device as gamers switch to free or cheap games played on tablet computers and smartphones.

The maker of Playstation consoles trimmed the price of its 3G Wifi version by 10,000 yen ($110) to 19,980 yen, with all other models also reduced, it said in a statement.

Tablets and smartphones are encroaching on the gaming market, with handheld consoles in particular suffering. Sony this month trimmed its forecast for handheld sales, including the Vita and older PSP, to 7 million machines in the year ending March 31 compared with an estimate of 16 million at the start of the business term.

The Vita price comes ahead of a rare Playstation gathering in New York on February 20, when Sony is expected to reveal the successor to its Playstation 3 home console.

(Reporting by Tim Kelly; Editing by Daniel Magnowski)

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Oscar Pistorius faces bail hearing in murder case

JOHANNESBURG (AP) — Oscar Pistorius faces a bail hearing Tuesday and Wednesday, in which prosecutors explain why they've charged the Olympian with murder over the Valentine's Day shooting death of girlfriend Reeva Steenkamp.

Pistorius hasn't entered a plea in the case, though his family has said they strongly deny the 26-year-old double-amputee runner committed murder. They have not, however, denied outright that Pistorius shot Steenkamp, a 29-year-old model and law school graduate who is featured in a South African reality television show.

Here are some facts about the case that has shaken a nation that idolized the runner:

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THE BLADE RUNNER

Pistorius made history in the London Games last year when he became the first double-amputee track athlete to compete in the Olympics. He's known as "the Blade Runner," a nickname that plays off the high-tech carbon-fiber blades that he races on. Pistorius had both legs amputated below the knee before his first birthday because of a congenital condition, and campaigned for years to be allowed to compete against able-bodied athletes. He was initially banned because of his blades — which critics said gave him an unfair advantage — before being cleared by sport's highest court in 2008. In 2011, he won a silver medal at the world championships having been the first amputee runner to ever compete there.

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THE MODEL GIRLFRIEND

Steenkamp is a local celebrity in South Africa, known for appearing in both domestic and international commercials. She's also known for her vampy, bikini-clad photo spreads in men's magazines. She was named one of the world's 100 Sexiest Women for two years running by FHM magazine. She met Pistorius in November at a race track near Johannesburg and ended up accompanying him to a sports award show the same night, a mutual friend has said. She also was a contestant on "Tropika Island of Treasure 5," a reality television show sponsored by a milk-fruit drink now being aired on South Africa's national broadcaster SABC.

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THE VALENTINE'S DAY KILLING

In the predawn hours of Feb. 14, police officers arrived to Pistorius' home in a gated community in the suburbs of South Africa's capital, Pretoria. There, police say they found paramedics trying to resuscitate Steenkamp, whose body lay in a pool of her own blood. Police say officers found a 9 mm pistol and arrested Pistorius, who they say was the only other person in the home at the time of the shooting. Pistorius later underwent DNA testing and had samples of his blood collected. Investigators also conducted an autopsy on Steenkamp's body, though police declined to give any information about what they found. They have said she was shot multiple times in the attack. Police have not offered a motive for the killing and Pistorius' uncle Arnold later said that "the state's own case, including its own forensic evidence, strongly refutes any possibility of a premeditated murder or murder as such."

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PISTORIUS' PAST

Pistorius has had troubles in the past in his personal life. In February 2009, he crashed a speedboat on South Africa's Vaal River, breaking his nose, jaw and several ribs and damaging an eye socket. He required some 180 stitches to his face. Witnesses said he had been drinking, and officers found alcoholic beverages in the wreckage, though they did not do blood tests. In November, Pistorius was involved in an altercation over a woman with a local coal mining millionaire, South African media reported. The South African Police Service's elite Hawks investigative unit became involved before the two settled the matter. Pistorius had a fondness for guns and once tweeted about him searching his house once with a pistol, looking for an intruder.

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THE BAIL HEARING

The bail hearing Tuesday and Wednesday in Pretoria will see prosecutors offer Chief Magistrate Desmond Nair evidence about the killing to bolster their arguments that Pistorius should be denied bail and held until his trial. That evidence likely will include specific details about the killing and why they believe the athlete killed Steenkamp — things that police have been hesitant so far to release publicly. Pistorius likely will offer a plea in the case, as he didn't in a brief court appearance Friday. Pistorius' lawyers will likely try to show that he is not a flight risk and represents no danger to the community if he's free until trial. Prosecutors have said they'll pursue a premeditated murder charge against Pistorius, which could make it more difficult for him to be granted bail. Nair will hear both the prosecution and the defense, then issue a ruling about whether Pistorius will be allowed bail. That could include Nair asking Pistorius to put up cash for his release, as well as the athlete giving up his passport and setting other restrictions. If Pistorius is held without bail until trial, he will be transferred from the local police station he's currently being held in to prison, likely in Pretoria.

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JUSTICE IN SOUTH AFRICA

South Africa is one of a few countries in the world that that has a court system that takes root in Roman-Dutch law. Because of this, those appearing in criminal trials do not have the option of a jury trial, common in the United States and other countries. Instead, a single judge will hear the entire case and then rule on a person's guilt or innocence. The judge can be assisted by two advisers during the trial. Typically, those advisers offer assistance in looking at the more technical aspects of the evidence given at trial. If found guilty, a person can later appeal the ruling or the sentence they receive. A premeditated murder charge carries a minimum sentence of life in prison. There is no death penalty in South Africa.

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REACTION TO THE CASE

The day of the shooting, companies quickly removed billboards and advertising featuring Pistorius. One pulled an Internet ad for Nike showed Pistorius starting to sprint in his blades, with the caption: "I am the bullet in the chamber." Pistorius' agent was forced to cancel all the athlete's future scheduled races. Pistorius' sponsors — including big-name brands like Nike and eyewear manufacturer Oakley — are sticking by him, the agent said.

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AP Sports Writer Gerald Imray contributed to this report.

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

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