Cuomo Bucks Tide With Bill to Lift Abortion Limits





ALBANY — Bucking a trend in which states have been seeking to restrict abortion, Gov. Andrew M. Cuomo is putting the finishing touches on legislation that would guarantee women in New York the right to late-term abortions when their health is in danger or the fetus is not viable.




Mr. Cuomo, seeking to deliver on a promise he made in his recent State of the State address, would rewrite a law that currently allows abortions after 24 weeks of pregnancy only if the pregnant woman’s life is at risk. The law is not enforced, because it is superseded by federal court rulings that allow late-term abortions to protect a woman’s health, even if her life is not in jeopardy. But abortion rights advocates say the existence of the more restrictive state law has a chilling effect on some doctors and prompts some women to leave the state for late-term abortions.


Mr. Cuomo’s proposal, which has not yet been made public, would also clarify that licensed health care practitioners, and not only physicians, can perform abortions. It would remove abortion from the state’s penal law and regulate it through the state’s public health law.


Abortion rights advocates have welcomed Mr. Cuomo’s plan, which he outlined in general terms as part of a broader package of women’s rights initiatives in his State of the State address in January. But the Roman Catholic Church and anti-abortion groups are dismayed; opponents have labeled the legislation the Abortion Expansion Act.


The prospects for Mr. Cuomo’s effort are uncertain. The State Assembly is controlled by Democrats who support abortion rights; the Senate is more difficult to predict because this year it is controlled by a coalition of Republicans who have tended to oppose new abortion rights laws and breakaway Democrats who support abortion rights.


New York legalized abortion in 1970, three years before it was legalized nationally by the Supreme Court in Roe v. Wade. Mr. Cuomo’s proposal would update the state law so that it could stand alone if the broader federal standard set by Roe were to be undone.


“Why are we doing this? The Supreme Court could change,” said a senior Cuomo administration official, who spoke on the condition of anonymity because the governor had not formally introduced his proposal.


But opponents of abortion rights, already upset at the high rate of abortions in New York State, worry that rewriting the abortion law would encourage an even greater number of abortions. For example, they suggest that the provision to allow abortions late in a woman’s pregnancy for health reasons could be used as a loophole to allow unchecked late-term abortions.


“I am hard pressed to think of a piece of legislation that is less needed or more harmful than this one,” the archbishop of New York, Cardinal Timothy M. Dolan, wrote in a letter to Mr. Cuomo last month. Referring to Albany lawmakers in a subsequent column, he added, “It’s as though, in their minds, our state motto, ‘Excelsior’ (‘Ever Upward’), applies to the abortion rate.”


National abortion rights groups have sought for years to persuade state legislatures to adopt laws guaranteeing abortion rights as a backup to Roe. But they have had limited success: Only seven states have such measures in place, including California, Connecticut and Maryland; the most recent state to adopt such a law is Hawaii, which did so in 2006.


“Pretty much all of the energy, all of the momentum, has been to restrict abortion, which makes what could potentially happen in New York so interesting,” said Elizabeth Nash, state issues manager at the Guttmacher Institute, a research group that supports abortion rights. “There’s no other state that’s even contemplating this right now.”


In most statehouses, the push by lawmakers has been in the opposite direction. The past two years has seen more provisions adopted at the state level to restrict abortion rights than in any two-year period in decades, according to the Guttmacher Institute; last year, 19 states adopted 43 new provisions restricting abortion access, while not a single significant measure was adopted to expand access to abortion or to comprehensive sex education.


“It’s an extraordinary moment in terms of the degree to which there is government interference in a woman’s ability to make these basic health care decisions,” said Andrea Miller, the president of NARAL Pro-Choice New York. “For New York to be able to send a signal, a hopeful sign, a sense of the turning of the tide, we think is really important.”


Abortion rights advocates say that even though the Roe decision supersedes state law, some doctors are hesitant to perform late-term abortions when a woman’s health is at risk because the criminal statutes remain on the books.


“Doctors and hospitals shouldn’t be reading criminal laws to determine what types of health services they can offer and provide to their patients,” said M. Tracey Brooks, the president of Family Planning Advocates of New York State.


For Mr. Cuomo, the debate over passing a new abortion law presents an opportunity to appeal to women as well as to liberals, who have sought action in Albany without success since Eliot Spitzer made a similar proposal when he was governor. But it also poses a challenge to the coalition of Republicans and a few Democrats that controls the State Senate, the chamber that has in the past stood as the primary obstacle to passing abortion legislation in the capital.


The governor has said that his Reproductive Health Act would be one plank of a 10-part Women’s Equality Act that also would include equal pay and anti-discrimination provisions. Conservative groups, still stinging from the willingness of Republican lawmakers to go along with Mr. Cuomo’s push to legalize same-sex marriage in 2011, are mobilizing against the proposal. Seven thousand New Yorkers who oppose the measure have sent messages to Mr. Cuomo and legislators via the Web site of the New York State Catholic Conference.


A number of anti-abortion groups have also formed a coalition called New Yorkers for Life, which is seeking to rally opposition to the governor’s proposal using social media.


“If you ask anyone on the street, ‘Is there enough abortion in New York?’ no one in their right mind would say we need more abortion,” said the Rev. Jason J. McGuire, the executive director of New Yorkers for Constitutional Freedoms, which is part of the coalition.


Members of both parties say that the issue of reproductive rights was a significant one in November’s legislative elections. Democrats, who were bolstered by an independent expenditure campaign by NARAL, credit their victories in several key Senate races in part to their pledge to fight for legislation similar to what Mr. Cuomo is planning to propose.


Republicans, who make up most of the coalition that controls the Senate, have generally opposed new abortion rights measures. Speaking with reporters recently, the leader of the Republicans, Dean G. Skelos of Long Island, strenuously objected to rewriting the state’s abortion laws, especially in a manner similar to what the governor is seeking.


“You could have an abortion up until the day the child would be born, and I think that’s just wrong,” Mr. Skelos said. He suggested that the entire debate was unnecessary, noting that abortion is legal in New York State and saying that is “not going to be changed.”


The Senate Democratic leader, Andrea Stewart-Cousins of Yonkers, who is the sponsor of a bill that is similar to the legislation the governor is drafting, said she was optimistic that an abortion measure would reach the Senate floor this year.


“New York State’s abortion laws were passed in 1970 in a bipartisan fashion,” she said. “It would be a sad commentary that over 40 years later we could not manage to do the same thing.”


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Daley turns focus toward Gary









Richard M. Daley has kept a low profile since leaving office in 2011.


That doesn't mean he has lost interest in urban issues. The former mayor has turned his attention in a surprising direction, beyond Chicago's borders to one of the most intractable urban tragedies in America: the collapse of Gary, Ind.


"I always believe no part of America should be forgotten, and I think Gary has been forgotten," Daley said.





Daley is using his influence at the University of Chicago, where he is a distinguished senior fellow, to push a modest but growing amount of manpower toward Gary Mayor Karen Freeman-Wilson.


With guidance from Daley and Freeman-Wilson, University of Chicago graduate students are trying to figure out what to do with Gary's abandoned buildings and how to promote greater use of technology to help the city accomplish more with less, among other projects.


The hope is that the students will go on to help other cities after graduation. If successful, the U. of C.-Gary partnership could be replicated in other industrial towns grappling with decline.


Gary spans about 55 square miles, nearly a quarter of the size of Chicago. Yet the steel town's population has plummeted to an estimated 80,000, meaning the city has lost about half its people since 1960. The city's problems have mounted, including abandoned buildings and homes, sagging infrastructure and a declining budget to pay for services.


Outsiders have tried to fix Gary since at least the Lyndon B. Johnson administration. Freeman-Wilson, a former Indiana attorney general, judge and Harvard College and Harvard Law School graduate, has reinvigorated Gary's renewal efforts. And she's unafraid to ask for help.


Immediately after winning the 2011 Democratic primary, Freeman-Wilson called Daley for advice. They met, and Daley invited her to be the first guest speaker at his lecture series at the University of Chicago's Harris School of Public Policy, where Daley has a five-year appointment.


This quarter, 11 students from the university's public policy, business and social services schools are getting course credit for working on projects for Gary.


"It was Mayor Daley's idea," Freeman-Wilson said as she rode from a meeting on Chicago's West Side to Gary. "I had always envisioned getting the support and work from (University of Chicago Law School) alums, because there were issues around codes and things of that nature. It was not until the mayor came up with the idea of using students from the (Harris) School of Public Policy that I said, 'Oh yeah, that would work. That would work very well.'"


Daley does not teach a class at the University of Chicago. He runs an occasional lecture series.


Carol Brown, his last policy chief at City Hall, leads the program and the class, which is called the "Urban Revitalization Project: City of Gary, Ind." Grants from the Chicago-based Joyce and MacArthur foundations help pay administrative costs, including Brown's salary and that of a part-time assistant.


Last quarter's class was divided into three project teams. One team is cataloging Gary's abandoned buildings, which are magnets for crime and eyesores that further depress surrounding property values. Another is trying to recruit pro bono legal and consulting services for the city. And a third is trying to craft a strategy to clean up front stoops and empty lots one block at a time. This quarter's class also is tackling untapped funding opportunities and economic development.


Freeman-Wilson said a major benefit of the partnership is the fresh ideas from students "who aren't jaded by the limitations of government, whereas a 20-year employee might say, 'Oh, no, we can't do that in government because we don't have X, Y and Z.'"


Already their work has prompted more widespread use among Gary employees of a technology that stores and analyzes geographic data. City workers are now using the technology to map potholes, fallen tree limbs and illegal dump sites. That way work crews can be dispatched to neighborhoods where the problems are most severe.


"This partnership encourages urban planners to think broadly about regions instead of cities — greater Chicago instead of the city of Chicago," said Stephen Paul O'Hara, a historian at Xavier University who wrote a book about Gary.


The students operate as consultants. They gather best practices and ideas from cities around the country and then recommend a course of action. At the end of each 10-week quarter, students present their recommendations to Daley, Freeman-Wilson and their staffs. Their grades are based on those presentations and supporting reports.


"I will tell you, it never stops getting nerve-wracking," second-year graduate student Jocelyn Hare said of presenting to Daley. "But it gets easier."


Last spring, Hare, 32, responded to an email seeking student volunteers to conduct preliminary research to test the idea of a partnership. Hare then interned for the city of Gary during the summer. The Harris school paid her $15 an hour. She then enrolled in the first class in the fall and again this winter, when it was opened to graduate students outside of Harris for the first time.





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Off-duty Chicago police officer dies in SUV rollover on Skyway




















Chicago Tribune reporter Peter Nickeas recaps Friday night's breaking news, involving two traffic accidents and one homicide. (Posted Feb. 16th, 2013).




















































A 31-year-old off-duty Chicago police officer who died when the SUV she was driving rolled over on the Chicago Skyway late Friday was on her way to celebrate a new position with the department, according to her family.


Shaunda Bond, 31, was pronounced dead at 1:15 a.m. at the Cook County medical examiner's office. She lived in the 4100 block of South Michigan Avenue in the Bronzeville neighborhood.


The officer's older sister works in the section of the Chicago Police Department that investigates fatal accidents and answered the phone when officers on the Skyway called to notify them of the wreck, police said.








Bond was on her way to meet her cousin Daphne Flores and three other friends at a restaurant to celebrate the woman getting a spot on a tactical response unit, said Flores. Police could not immediately confirm the information.


Bond joined the police department in December 2009 and was assigned to the South Chicago District, which covers the area from 75th Street south to 138th, between roughly Woodlawn Avenue and the state line.


"She loved helping people, she was always able to help somebody," said Flores. "She just had a warm heart."


After college, Bond worked at a rental car company until a spot opened up at the police department, Flores said. She said Bond either always wanted to become a police officer or a teacher. She had two sisters and grew up on the South Side, graduating from Longwood Academy high school.


"She liked working with people, she loved public service work," Flores said.


The crash happened about 10:40 p.m. near 81st Street on the Skyway when the 2003 Land Rover SUV Bond was driving flipped over.


Bond was the lone occupant in the SUV, which was the only vehicle involved in the crash.


According to a witness interviewed by police, her SUV was seen traveling at a high rate of speed before it hit a concrete barrier and rolled.


pnickeas@tribune.com
Twitter: @peternickeas


csadovi@tribune.com






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Epic regrets Lil Wayne lyric about slain civil rights figure






LOS ANGELES (Reuters) – Epic Records has apologized to the family of Emmett Till, whose 1955 murder spurred the U.S. civil rights movement, over a graphic reference by rapper Lil Wayne and promised to delete the lyrics upon its release, the company said on Thursday.


Epic Chairman L.A. Reid told the family it was regretful that a remix of the song “Karate Chop” by rapper Future, in which Lil Wayne likens the beating of African-American Till to sex, had been leaked on the Internet.






“He (Reid) apologized to me and our family and stated the song is being pulled,” said a post on the Facebook page of the Mamie Till Mobley Memorial Foundation on Wednesday. Mobley, who died in 2003, was Till’s mother.


The song reportedly first appeared online over the weekend.


“Mr. Reid stated the song was leaked out and he had not heard the lyric,” the statement added. “He is a man of integrity that values our family’s legacy and wouldn’t allow such a heinous usage of Emmett Till’s name or dishonor his memory.”


The foundation, which was founded by Till’s cousin Airickca Gordon-Taylor, said that it had yet to hear from Lil Wayne.


Reid, an African American, is one of the music industry’s highest-profile executives and was a judge on the Fox singing competition “The X Factor” for two seasons.


Till, from Chicago, was beaten and murdered in 1955 at the age of 14 for allegedly whistling at a white woman in the village of Money, Mississippi, where he was visiting family.


An all-white jury acquitted two white men of Till’s murder, sparking national outrage. The trial is credited with mobilizing the civil rights movement and drawing attention to racial injustice and violence in the American South.


Epic Records called the song an “unauthorized remix” and promised to delete the reference from the official version.


“Out of respect for the legacy of Emmett Till and his family and the support of the Reverend Jesse L. Jackson, Sr. founder and president of the Rainbow PUSH Coalition, we are going through great efforts to take down the unauthorized version,” the record company said in a statement.


Epic Records is owned by Sony Music Entertainment, a division of Sony Corp.


(Reporting by Eric Kelsey; Editing by Jackie Frank)


Music News Headlines – Yahoo! News





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Livestrong Tattoos as Reminder of Personal Connections, Not Tarnished Brand





As Jax Mariash went under the tattoo needle to have “Livestrong” emblazoned on her wrist in bold black letters, she did not think about Lance Armstrong or doping allegations, but rather the 10 people affected by cancer she wanted to commemorate in ink. It was Jan. 22, 2010, exactly a year since the disease had taken the life of her stepfather. After years of wearing yellow Livestrong wristbands, she wanted something permanent.




A lifelong runner, Mariash got the tattoo to mark her 10-10-10 goal to run the Chicago Marathon on Oct. 10, 2010, and fund-raising efforts for Livestrong. Less than three years later, antidoping officials laid out their case against Armstrong — a lengthy account of his practice of doping and bullying. He did not contest the charges and was barred for life from competing in Olympic sports.


“It’s heartbreaking,” Mariash, of Wilson, Wyo., said of the antidoping officials’ report, released in October, and Armstrong’s subsequent confession to Oprah Winfrey. “When I look at the tattoo now, I just think of living strong, and it’s more connected to the cancer fight and optimal health than Lance.”


Mariash is among those dealing with the fallout from Armstrong’s descent. She is not alone in having Livestrong permanently emblazoned on her skin.


Now the tattoos are a complicated, internationally recognized symbol of both an epic crusade against cancer and a cyclist who stood defiant in the face of accusations for years but ultimately admitted to lying.


The Internet abounds with epidermal reminders of the power of the Armstrong and Livestrong brands: the iconic yellow bracelet permanently wrapped around a wrist; block letters stretching along a rib cage; a heart on a foot bearing the word Livestrong; a mural on a back depicting Armstrong with the years of his now-stripped seven Tour de France victories and the phrase “ride with pride.”


While history has provided numerous examples of ill-fated tattoos to commemorate lovers, sports teams, gang membership and bands that break up, the Livestrong image is a complex one, said Michael Atkinson, a sociologist at the University of Toronto who has studied tattoos.


“People often regret the pop culture tattoos, the mass commodified tattoos,” said Atkinson, who has a Guns N’ Roses tattoo as a marker of his younger days. “A lot of people can’t divorce the movement from Lance Armstrong, and the Livestrong movement is a social movement. It’s very real and visceral and embodied in narrative survivorship. But we’re still not at a place where we look at a tattoo on the body and say that it’s a meaningful thing to someone.”


Geoff Livingston, a 40-year-old marketing professional in Washington, D.C., said that since Armstrong’s confession to Winfrey, he has received taunts on Twitter and inquiries at the gym regarding the yellow Livestrong armband tattoo that curls around his right bicep.


“People see it and go, ‘Wow,’ ” he said, “But I’m not going to get rid of it, and I’m not going to stop wearing short sleeves because of it. It’s about my family, not Lance Armstrong.”


Livingston got the tattoo in 2010 to commemorate his brother-in-law, who was told he had cancer and embarked on a fund-raising campaign for the charity. If he could raise $5,000, he agreed to get a tattoo. Within four days, the goal was exceeded, and Livingston went to a tattoo parlor to get his seventh tattoo.


“It’s actually grown in emotional significance for me,” Livingston said of the tattoo. “It brought me closer to my sister. It was a big statement of support.”


For Eddie Bonds, co-owner of Rabbit Bicycle in Hill City, S.D., getting a Livestrong tattoo was also a reflection of the growth of the sport of cycling. His wife, Joey, operates a tattoo parlor in front of their store, and in 2006 she designed a yellow Livestrong band that wraps around his right calf, topped off with a series of small cyclists.


“He kept breaking the Livestrong bands,” Joey Bonds said. “So it made more sense to tattoo it on him.”


“It’s about the cancer, not Lance,” Eddie Bonds said.


That was also the case for Jeremy Nienhouse, a 37-year old in Denver, Colo., who used a Livestrong tattoo to commemorate his own triumph over testicular cancer.


Given the diagnosis in 2004, Nienhouse had three rounds of chemotherapy, which ended on March 15, 2005, the date he had tattooed on his left arm the day after his five-year anniversary of being cancer free in 2010. It reads: “3-15-05” and “LIVESTRONG” on the image of a yellow band.


Nienhouse said he had heard about Livestrong and Armstrong’s own battle with the cancer around the time he learned he had cancer, which alerted him to the fact that even though he was young and healthy, he, too, could have cancer.


“On a personal level,” Nienhouse said, “he sounds like kind of a jerk. But if he hadn’t been in the public eye, I don’t know if I would have been diagnosed when I had been.”


Nienhouse said he had no plans to have the tattoo removed.


As for Mariash, she said she read every page of the antidoping officials’ report. She soon donated her Livestrong shirts, shorts and running gear. She watched Armstrong’s confession to Winfrey and wondered if his apology was an effort to reduce his ban from the sport or a genuine appeal to those who showed their support to him and now wear a visible sign of it.


“People called me ‘Miss Livestrong,’ ” Mariash said. “It was part of my identity.”


She also said she did not plan to have her tattoo removed.


“I wanted to show it’s forever,” she said. “Cancer isn’t something that just goes away from people. I wanted to show this is permanent and keep people remembering the fight.”


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Facebook's latest revenue trick: Pay to promote friends' posts









Facebook has announced its latest attempt at making money, and this time it involves letting users pay to promote their friends' posts.


The feature lets users pay to have a friend's post show more prominently in other friends' news feeds.


"If your friend is renting their apartment out and she tells her friends on Facebook, you can share the post with the people you and your friend have in common so that it shows up higher in news feed and more people notice it," the company said, citing an example of when this feature could be useful. 





PHOTOS: Tech we want to see in 2013


The feature is similar to another one that Facebook introduced last year that lets users pay to promote their own posts.


The company said Thursday that people have been using that feature to promote posts about charities and causes, publicize events, advertise items they're selling, promote important life announcements or congratulate someone else on an accomplishment.


The cost of promoting a post depends on a number of factors, including geographic location and how many people the post would reach, Facebook said.


Facebook said the ability to pay to promote a friend's post will be rolled out to all users over time.


ALSO:


Google under fire for sending users' information to developers


Mother's 'baby' portraits of 13-year-old son go viral on Facebook


Bandai resurrects Tamagotchi pets just in time for Valentine's Day






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More than 1,000 injured when meteor explodes over Russia









CHELYABINSK, Russia—





A meteorite streaked across the sky and exploded over central Russia on Friday, raining fireballs over a vast area and causing a shock wave that smashed windows, damaged buildings and injured 1,200 people.

People heading to work in Chelyabinsk heard what sounded like an explosion, saw a bright light and then felt the shock wave, according to a Reuters correspondent in the industrial city 1,500 km (950 miles) east of Moscow.






The fireball, travelling at a speed of 30 km (19 miles) per second according to Russian space agency Roscosmos, had blazed across the horizon, leaving a long white trail that could be seen as far as 200 km (125 miles) away.

Car alarms went off, thousands of windows shattered and mobile phone networks were disrupted. The Interior Ministry said the meteorite explosion, a very rare spectacle, also unleashed a sonic boom.

"I was driving to work, it was quite dark, but it suddenly became as bright as if it were day," said Viktor Prokofiev, 36, a resident of Yekaterinburg in the Urals Mountains.

"I felt like I was blinded by headlights."

The meteorite, which weighed about 10 tonnes and may have been made of iron, entered Earth's atmosphere and broke apart 30-50 km (19-31 miles) above ground, according to Russia's Academy of Sciences.

The energy released when it entered the Earth's atmosphere was equivalent to a few kilotonnes, the academy said, the power of a small atomic weapon exploding.

No deaths were reported but the Emergencies Ministry said 20,000 rescue and clean-up workers were sent to the region after President Vladimir Putin told Emergencies Minister Vladimir Puchkov to ease the disruption and help the victims.

The Interior Ministry said about 1,200 people had been injured, at least 200 of them children, and most from shards of glass.

WINDOWS BLOWN OUT

The early-morning blast and ensuing shock wave blew out windows on Chelyabinsk's central Lenin Street, buckled some shop fronts, rattled apartment buildings in the city centre and blew out windows.

"I was standing at a bus stop, seeing off my girlfriend," said Andrei, a local resident who did not give his second name. "Then there was a flash and I saw a trail of smoke across the sky and felt a shock wave that smashed windows."

A wall and roof were badly damaged at the Chelyabinsk Zinc Plant but a spokeswoman said no environmental threat resulted.

One piece of meteorite broke through the ice the Cherbakul Lake near Chelyabinsk, leaving a hole several metres (yards) wide.

The region has long been a hub for the Russian military and defence industry, and it is often the site where artillery shells are decommissioned.

A local Emergencies Ministry official said meteorite storms were extremely rare and Friday's incident may have been connected with an asteroid the size of an Olympic swimming pool that was due to pass Earth.

But an astronomer at Russia's Academy of Sciences, Sergei Barabanov, cast doubt on that report and the European Space Agency said its experts had confirmed there was no link.

The regional governor in Chelyabinsk said the meteorite shower had caused more than $30 million in damage, and the Emergencies Ministry said 300 buildings had been affected.

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Brad Pitt, Angelina Jolie venture into winemaking






(Reuters) – Brad Pitt and Angelina Jolie have gone into the wine business, helping to produce a rose called Miraval from their French estate and putting their names on the label, wine website Decanter.com reported.


The movie star couple have been working with French winemaker Marc Perrin starting with the 2012 harvest, the website said. The Miraval wine will be on the market in March, and white wines will begin arriving by the end of this summer.






“They … want to ensure they are making the best Provence wines they can,” Perrin told Britain-based Decanter.com. on Wednesday.


“They were present at the blending sessions this year, and are relooking at everything from the installations in the winery – where we have already switched to stainless steel tanks – to reworking the labels across the range of wines,” he added.


The back label of the Miraval wine carries the names Jolie-Pitt and Perrin.


Pitt and Jolie began renting Chateau Miraval in Correns, southern France, about four years ago and later bought the property, which has about 148 acres of vines.


The Miraval wine was formerly called Pink Floyd because the British rock band recorded their 1979 album “The Wall” in a studio on the estate, Decanter.com said.


Pitt last year unveiled a high-end collection of furniture that he helped create with designer Frank Pollaro. He has also worked with architects to create affordable quality housing for victims of Hurricane Katrina in New Orleans.


(Reporting by Jill Serjeant; Editing by Xavier Briand)


Celebrity News Headlines – Yahoo! News





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Well: The Well Flu Quiz

What surface is the most friendly to the flu virus? Where’s the best place to stand when you’re talking to a sick person? And how are Australians curbing germs in schools?
To find out these answers and more, take the Well flu quiz.

With contributions from Laura Geggel and Tara Parker-Pope.

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Buffet, 3G to buy Heinz for $23B









Warren Buffett's Berkshire Hathaway and private equity firm 3G Capital will buy ketchup and baby food maker H.J. Heinz Co for $23.2 billion in cash, a deal that combines 3G's ambitions in the food industry with Buffett's hunt for growth.


Including debt assumption, Heinz valued the transaction, which it called the largest in its industry's history, at $28 billion. Berkshire and 3G will pay $72.50 per share, a 19 percent premium to the stock's previous all-time high. Heinz shares actually rose slightly above the offer price, although Buffett cautioned he had no intention of raising his bid.


Analysts said the deal could be the first step in a broader wave of mergers for the food and beverage industry.








"Maybe for the consumer staples group in general this may start some talk about consolidation. Even corporate entities are flush with cash, interest rates are low, it would seemingly make sense," Edward Jones analyst Jack Russo said.


Companies like General Mills and Campbell Soup - itself long seen as a potential Heinz merge partner - rose on the news.


BUFFETT HUNTING GROWTH


The surprise purchase satisfies, at least in part, Buffett's hunt for growth through acquisition. He was frustrated in 2012 by the collapse of at least two deals in excess of $20 billion and said he might have to do a $30 billion deal this year to help fuel Berkshire's growth engine. In this case, Berkshire is putting up about $12 billion to $13 billion cash, Buffett told CNBC, leaving it ample room for another major transaction.


Berkshire Hathaway already has a variety of food assets, including the Dairy Queen ice cream chain, chocolatier See's Candies and the food distributor McLane. Buffett, famed for a love of cheeseburgers, joked he was well acquainted with Heinz's products already and that this was "my kind of deal."


It does represent an unusual teaming of Berkshire with private equity, though; historically, Buffett's purchases have been outright his own. He and 3G founder Jorge Paulo Lemann have known each other for years, and Buffett said Lemann approached him with the Heinz idea in December. One Berkshire investor said he had mixed feelings about the deal because of the limited growth prospects domestically.


"We're a little hesitant on the staple companies because they don't have any leverage in the United States," said Bill Smead, chief investment officer of Smead Capital Management in Seattle. But at the same time, he said, Buffett was likely willing to accept a bond-like steady return even if it was not necessarily a "home run."


3G EXPANDS


For 3G, a little-known firm with Brazilian roots, the purchase is something of a natural complement to its investment in fast-food chain Burger King, which it acquired in late 2010 and in which it still holds a major stake. Lemann, a globe-trotting financier with Swiss roots, made his money in banking and gained notoriety for helping to pull together the deals that ultimately formed the beer brewing giant AB InBev.


3G's Alex Behring runs the fund out of New York. He appeared at a Pittsburgh news conference on Thursday with Heinz management to discuss the deal - and to reassure anxious local crowds that the company will remain based there and will continue to support local philanthropy.


But at the same time, Behring said it was too soon to talk about cost cuts at the company. Unlike Berkshire, which is a hands-off operator, 3G is known for aggressively controlling costs at its operations.


PITTSBURGH ROOTS Also to be determined is whether CEO Bill Johnson would stay on. Only the fifth chairman in the company's history, Johnson is widely credited with Heinz's recent strong growth.


"I am way too young to retire," he told the news conference, adding that discussions had not yet started with 3G over the details of Heinz's future management.


The company, known for its iconic ketchup bottles, Heinz 57 sauces as well as other brands including Ore-Ida frozen potatoes, has increased net sales for the last eight fiscal years in a row.


Heinz said the transaction would be financed with cash from Berkshire and 3G, debt rollover and debt financing from J.P. Morgan and Wells Fargo. Buffett told CNBC that Berkshire and 3G would be equal equity partners.


Heinz shares soared 19.9 percent, or $12.06, to $72.54 on the New York Stock Exchange. A week ago the stock hit a long-term high of $61 a share - near records it set in 1998 - having risen almost 5 percent this year and nearly 12 percent since the beginning of 2012.


The deal is also a potential boon for new U.S. Secretary of State John Kerry, whose wife Teresa is the widow of H.J. Heinz Co heir John Heinz.


Kerry's most recent financial disclosures from his time in the U.S. Senate show a position in Heinz shares of more than $1 million, although the precise size is unclear.


Centerview Partners and BofA Merrill Lynch were financial advisers to Heinz, with Davis Polk & Wardwell LLP the legal adviser. Moelis & Company was financial adviser to the transaction committee of Heinz's board and Wachtell, Lipton, Rosen & Katz served as its legal adviser. Lazard served as lead financial adviser. J.P. Morgan and Wells Fargo also served as financial advisers to the investment consortium. Kirkland & Ellis LLP was legal adviser to 3G Capital, and Munger, Tolles & Olson LLP was legal adviser to Berkshire Hathaway.





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