Slot maker WMS Ind. to be sold for $1.5B









Gaming machines maker WMS Industries Inc. is being swallowed up by larger rival Scientific Games Corp. for $1.42 billion in cash and debt.

The deal announced Thursday values WMS at $26 a share -- nearly 60 percent higher than the stock's closing price on Wednesday. Shares shot up in early trading Thursday after the deal was announced, rising 54 percent to reach $25.14, just under its 12-month high.

Scientific Games primarily makes instant lottery tickets and software. Executives said on a conference call that grabbing WMS will allow it to quickly expand its offerings in arcade-type games, slots and video poker.

While Scientific Games executives on a conference call rejected the characterization that WMS is in the midst of a "turnaround," business has certainly been improving in recent months for the Waukegan-based game maker.

WMS, formerly Williams, said in November is fiscal 2013 first-quarter profit tripled on a combination of higher revenue and lower costs. 

The revenue was driven by new initiatives, including social gaming on Facebook and mobile phones, that's paid off.

Those new ventures have compounded the growth WMS has seen as it gambled on some other new outposts for its business.

In September, it received one of the first licenses to operate online poker games in Nevada, the only state other than Delaware to legalize some form of Internet gambling.                       

Online sites in Nevada are expected to go live in early 2013, but only people physically within that state's borders will be able to play. For everyone else, there's WMS's Facebook app, "Jackpot Party Social Casino."

The companies plan to save about $90 million through operating efficiencies by the third year they're combined. They expect the deal to close by the end of the year, pending regulatory and other approvals.

Executives say they are still working out the details on how the combined company will be run, so there's no word yet on whether the company's headquarters will remain in Illinois or if there will be any layoffs. A spokeswoman for WMS didn't immediately return a call seeking comment.

sbomkamp@tribune.com | Twitter: @SamWillTravel

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Ryan sent home after spending just hours at halfway house









Former Gov. George Ryan spent just hours at a halfway house on Chicago’s West Side this morning before he was released and sent to his Kankakee home, where he will be on home confinement until he completes his 6 ½-year sentence.

Ryan will not have to wear an electronic monitor while under house arrest, according to his lawyer, former Gov. Jim Thompson.


Speaking to a crowd of reporters outside Ryan’s Kankakee home late this morning, Thompson said Ryan was inside with more than a dozen relatives. He said the former governor would not be coming outside to address the media.

"He's doing fine inside. He's with 17 kids and grandkids," said Thompson as many of Ryan’s relatives, mostly children, gathered on the front stoop smiling and occasionally hugging one another.

Ryan left the federal prison in Terre Haute, Ind. at about 1 a.m., arrived at Thompson's home around 4:30 a.m. in sweats and changed clothes, Thompson said. He was processed at the halfway house and arrived in Kankakee at about 10:30 a.m.

Thompson said he suspected the Bureau of Prisons allowed Ryan to bypass the halfway house because of his age. He will be 79 next month.  "A halfway house wouldn't be helpful to him,” Thompson said. “They teach people how to write checks, how to construct a resume, how to look for a job."

Thompson said there was no point in Ryan taking the place of another inmate in a halfway house if others would benefit more from the services.

"When you leave the penitentiary, you are sent to either a halfway house or to home confinement," Thompson said. "Home confinement's a regular program of the Bureau of Prisons, just like a halfway house, because they can't fit everybody in a halfway house. So apparently the Bureau of Prisons decided home confinement was a better outcome."

Thompson said Ryan will have to follow the rules of the halfway house even though he is at home.

Thompson said he has not spoken with Ryan about how it feels to come home after the death of his wife, Lura Lynn.  "I imagine it's very hard. Just as I imagine it's been very hard ever since she died and it's been very hard ever since he left her. At least he's got closure now with his family."


Bureau of Prisons spokesman Chris Burke also insisted that Ryan did not receive special treatment. He said BOP officials would have made the decision based on several factors – including whether Ryan had a stable environment to go back to in Kankakee.








“There is no requirement to actually spend a minimum amount of time in the halfway house,” Burke said. “How much time is based on the needs of the offender. Whether or not he has financial support, family support, an approved release residence. His health issues.”


Burke said Ryan knew he would bypass the halfway house home confinement long before he left the federal prison.


“To surprise the inmate with something at the last minute would not be conducive to transitioning back to society,” he said. “It wouldn’t do any good to keep secrets from inmates.”


As for Ryan’s release from the prison in the middle of the night, Burke said that call would have been made by BOP officials who have to consider “special characteristics that an inmate may present.”


When asked if a former governor with intense media scrutiny would be on such characteristic, Burke replied, “That would be one thing.”


A somber and silent Ryan had arrived at the halfway house shortly before 7 a.m. Wearing a gray sports coat, white shirt and maroon tie, Ryan was surrounded by TV cameras as he walked down the street and entered the four-story red brick building.


Ryan smiled tightly as he refused to answer questions from reporters. Ryan's son, George Ryan Jr. and Thompson accompanied Ryan into the house.

After Ryan checked in, Thompson came back out and told reporters "today is another step in a long journey for George Ryan. . .He would like me to tell you he's grateful to leave the penitentiary. He's grateful also for the encouragement and support from many people. He has paid a severe price. The loss of his wife and brother while he was in the penitentiary, the loss of his pension, his office, his good name and 5 1/2 years of imprisonment. Now near 80 years old, that is a significant punishment. But he is going to go forward."


Ryan left the prison early this morning and managed to escape the notice of media camped at the facility. The first indication that Ryan has been released was around 6:45 a.m. when he left a building down the street and started walking toward the halfway house.


His son put his left hand on his father and guided him out the door. Ryan kept his head down, his hands in his pockets as he talked to his son and walked slowly through the knot of TV cameras.


As they neared the halfway house, a worker opened the door and tried to clear a path through the cameras. Ryan raised his head, his hands still in his pockets, his son to his right, as he walked down five steps and into the halfway house.


Thompson said Ryan didn't speak much during the van trip to Chicago.


"He didn't talk much, just small talk," Thompson said. "He looks good. He's been lifting weights. . .He knows something about carpentry now.


"He tied his own tie this morning, he hasn't forgotten that," Thompson said. "He's in decent spirits. He has to become accustomed to seeing things differently. . .We came down Michigan Avenue and he was looking at the lights left over from Christmas. That was sort of wonderful, I think. He hasn’t seen the city of Chicago in 5 1/2 years.”


Thompson said people forget that Ryan "was a very good governor." But he added that Ryan "is not bitter, he's not angry. He's accepting. This has been a long fight."


Ryan completed more than 5 years of a a 6 1/2-year prison sentence in Terre Haute, Ind. for a corruption conviction. Ryan entered prison on Nov. 7, 2007. His wife of more than 50 years, Lura Lynn, died of cancer in June 2011.


The halfway house, operated by the Salvation Army a few blocks east of the United Center, has been a way station for about 20,000 men and women since opening in 1975. Many corrupt Illinois politicians have finished their sentences at the facility. Among the most recent graduates was former Chicago Ald. Edward Vrdolyak.


Ryan's conviction for fraud, racketeering and other charges was the culmination of the federal Operation Safe Road investigation that exposed rampant bribery in state driver's license facilities while he was secretary of state as well as misdeeds as governor.


After a six-month trial, a federal jury convicted Ryan in 2006 of steering millions of dollars in state business to lobbyists and friends in return for vacations, gifts and other benefits to Ryan and his family.


The conviction overshadowed Ryan's long career in government.


The Kankakee native rose from speaker of the Illinois House to win statewide election as lieutenant governor, secretary of state and then one term as governor. His actions as governor included placing a moratorium on the death penalty and emptying death row, moves that won him international acclaim.


Thompson said Ryan may become involved in death penalty issues after his sentence ends in July. "It's way too soon to tell."


chicagobreaking@tribune.com

Twitter: @chicagobreaking





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California police probe stunts that shut down freeways






LOS ANGELES (Reuters) – The California Highway Patrol is investigating two apparently unrelated stunts that jammed freeways over the weekend, including one involving hundreds of motorcyclists celebrating a marriage proposal that inconvenienced motorists east of Los Angeles.


Both events created a flurry of viral Internet videos, fueling concerns about a repeat performance by copycats.






On Interstate 10 east of Los Angeles on Sunday, up to 300 bikers stopped traffic so that one of them could propose to his girlfriend, said Officer Vince Ramirez, a Los Angeles-area spokesman for the California Highway Patrol.


Video that surfaced online of the stunt showed some bikers creating a wall of smoke by spinning their tires against the concrete. In the middle of the gathering, pink smoke could be seen wafting into the air.


As they exited the freeway, several bikers were later ticketed for reckless riding unrelated to their possible role in the freeway shutdown, Ramirez said.


He said officers were working with the Los Angeles County District Attorney‘s office to prepare additional charges against some of the bikers.


The stunt did not cause any injuries or collisions, he said.


In Oakland on Saturday, traffic ground to a halt on Interstate 880 near the city’s sports coliseum, as several sports cars did doughnuts, spinning around and filling the air with tire smoke, officials said. Stunned motorists exited their cars and watched.


Several motorists caught in the sudden traffic jam were frightened or angry, according to recordings of calls to authorities released on Tuesday.


“I can’t believe this – I have three kids in the car,” one caller told an Oakland-area dispatcher. “It scares the hell out of me.”


Authorities have not found or identified any of the drivers, said California Highway Patrol Sergeant Diana McDermott.


California Highway Patrol officers said they feared the weekend events’ popularity on social media websites could start a dangerous trend. So far, such stunts have been rare, they said.


“That’s why the investigation is expanding,” Ramirez said.


“If there are any criminal charges that can be filed as a result of this incident, they will be filed,” he said.


(Editing by Alex Dobuzinskis, Tom Brown and Eric Walsh)


Internet News Headlines – Yahoo! News





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Barbra Streisand to sing at Oscars for first time in decades






NEW YORK (Reuters) – Actress, singer and director Barbra Streisand may be a familiar figure at Hollywood‘s Oscars, but she has only sung on the annual awards show once.


Streisand will perform again at the Academy Awards on February 24, producers said on Wednesday, without providing details about how her appearance would fit into the show or what she might sing.






Streisand, 70, has won two Oscars, one for best actress in “Funny Girl” and another for best original song, “Evergreen” from her 1976 vehicle “A Star Is Born.” Her performance of the song at the 1977 Oscars show was her only previous onstage stint at Hollywood’s biggest night.


“In an evening that celebrates the artistry of movies and music, how could the telecast be complete without Barbra Streisand?” producers Craig Zadan and Neil Meron said in a statement. “We are honored that she has agreed to do a very special performance on this year’s Oscars.”


Streisand has also been nominated for several Oscars, including for best actress in “The Way We Were” and as producer for best picture nominee “The Prince of Tides.”


Most recently she co-starred with Seth Rogen in “The Guilt Trip,” a Christmas 2012 release.


Earlier this month, the Film Society of Lincoln Center announced that Streisand would be this year’s recipient of its annual Chaplin Award, a prestigious honor recognizing achievement in film.


The Oscars will be presented at Hollywood’s Dolby Theatre, hosted by Seth MacFarlane and broadcast live on ABC as well as in more than 225 countries worldwide.


(Editing by Chris Michaud and Lisa Von Ahn)


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Airlines had earlier 787 battery issues

U.S. Transportation regulators are asking Boeing for a complete history of the lithium-ion batteries used on 787 Dreamliners. Battery problems have grounded all 50 787s in use around the world. (Jan. 30)








Boeing Co. said Wednesday that numerous replacements of potentially flammable lithium-ion batteries by airlines flying the new 787 Dreamliner were not made because of safety concerns.

"We have not seen 787 battery replacements occurring as a result of safety concerns," the company said in a statement. "Batteries are a replaceable unit on airplanes, regardless of the technology used."

The statement comes after All Nippon Airways Co. and Japan Airlines Co., Japan's two biggest airlines, said they had repeatedly replaced sub-par lithium-ion batteries on their Dreamliners in the months before the two incidents that led to the 787 groundings.

Boeing said: "The batteries are being returned because our robust protection scheme ensures that no battery that has been deeply discharged or improperly disconnected can be used. The third-highest category for battery returns is exceeding the battery shelf life -- this is a fact of life in dealing with batteries; they sometimes expire and must be returned."

Comments from All Nippon, the Boeing jetliner's biggest customer to date, and JAL pointed to reliability issues with the batteries long before one caught fire on a JAL 787 at Boston's airport and a second was badly charred and melted on an ANA domestic flight that was forced into an emergency landing.

ANA said it changed 10 batteries on its 787s last year, but did not inform accident investigators in the United States because the incidents, including five batteries that had unusually low charges, did not compromise the plane's safety, spokesman Ryosei Nomura said on Wednesday.

JAL also replaced batteries on the 787 “on a few occasions”, said spokeswoman Sze Hunn Yap, declining to be more specific on when units were replaced or whether these were reported to authorities.

ANA did, however, inform Boeing of the faults that began in May, and returned the batteries to their manufacturer, GS Yuasa Corp. A spokesman for the battery maker declined to comment on Wednesday. Shares of the company fell 1.2 percent.

Boeing spokesman Marc Birtel said the airplane maker could not comment as the U.S. National Transportation Safety Board (NTSB) has indicated this is now part of their investigation.

LITTLE HEADWAY

The New York Times earlier quoted an NTSB spokeswoman as saying the agency would include these “numerous issues” with the 787 battery in its investigations.

Under aviation inspection rules, airlines are required to perform detailed battery inspections once every two years.

Officials are carrying out detailed tests on the batteries, chargers and monitoring units in Japan and the United States, but have so far made little headway in finding out what caused the battery failures.

Japan's transport ministry said the manufacturing process at the company which makes the 787 battery's monitoring unit did not appear to be linked to the problem on the ANA Dreamliner that made the emergency landing.

The NTSB said on Tuesday it was carrying out a microscopic investigation of the JAL 787 battery. Neither it nor the Japan Transport Safety Board has been able to say when they are likely to complete their work.

The global fleet of 50 Dreamliners - 17 of which are operated by ANA - remain grounded, increasing the likely financial impact to Boeing, which is still producing the aircraft but has stopped delivering them, and the airlines that fly the Dreamliner.

Boeing is due to report its latest quarterly earnings later on Wednesday, and ANA posts its earnings on Thursday. ANA shares rose 0.56 percent on Wednesday.
 






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3 charged with hate crime in St. Charles









Three St. Charles residents have been charged with a hate crime in connection with a violent attack on a group of people while taunting two men in the group for being gay.


Stephan C. Bolt, 31, of the 4N800 block of East Mary Lane; Christopher M. Miner, 30, of the 100 block of North 15th Street; and Susan V. Patton, 31, of the 6N200 block of Woodland Road, each are charged with two counts of felony hate crime.


They also face two counts of aggravated battery and one count of mob action. Bolt and Miner were also charged with four counts of misdemeanor battery, while Patton faces six counts of that offense.





Although police announced the charges Monday, the incident is alleged to have taken place in the early morning hours of Jan. 6 in the 2000 block of Lincoln Highway (Route 38). The three were eventually arrested late last week, police said. None was immediately available for comment Tuesday morning.


About 1:45 a.m., police were called to the scene outside a bar. Witnesses told police that shortly after closing time, Patton threw a drink in the face of a 26-year-old woman. That woman, who was with two male friends, then walked away and headed home, police said.


As the group of three walked across a parking lot, a grey Mazda pulled up to them and stopped, witnesses reported. Patton got out of the car and again confronted the woman, police said. When the woman's two male friends stepped in front of her, Patton struck them, police said.


Bolt and Miner then got out of the car and joined Patton in punching and kicking the two men, "while taunting them for being gay," police said. One of the men was able to call 911 on his cell phone, causing Patton, Bolt and Miner to get back in the car and drive away, police said.


Police said a fourth person was also present during the incident and could face charges as the investigation continues.


While Patton and Bolt are free from jail on $3,000 bond, Miner remains in custody. All are due in Kane County court next on Feb. 15.


kthayer@tribune.com


Twitter: @knthayer





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China may consider ending its decade-long ban on video game consoles






Shares of Sony (SNE) and Nintendo (NTDOY) surged on Monday following a report from China’s official newspaper that claimed the country is considering the lift of a decade-long ban on video game consoles. An unnamed source told the China Daily newspaper that the Ministry of Culture is “reviewing the policy,” and has conducted surveys and held discussions with other ministries on the possibility of lifting the ban. An official at the ministry’s cultural market department denied the report in a statement to Reuters, however, claiming it “is not considering lifting the ban.”


[More from BGR: BlackBerry 10 debuts on Wednesday – strap in for a wild ride]






China banned the sale of video game consoles in 2000 to safeguard children’s mental and physical development. In order for the ban to be lifted, the seven different ministries who issued the ruling must all agree to reverse it.


[More from BGR: Apple releases iOS 6.1 to iPhone, iPad and iPod touch users]


Shares of Sony’s stock were up more than 8% in Tokyo on Monday, while Nintendo gained 3.5% on a weaker Nikkei index.


This article was originally published on BGR.com


Gaming News Headlines – Yahoo! News





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Dior: Jennifer Lawrence dress had no malfunction






LOS ANGELES (AP) — That was no wardrobe malfunction — that was couture.


When Jennifer Lawrence ascended the stairs to accept her SAG Award Sunday night, a bit of skin showed through the skirt of her gown, leading to some speculation that it had ripped.






Dior Couture told The Associated Press that wasn’t so.


The design house said Lawrence’s gown was designed by Raf Simons “with different levels of tulle and satin.” That was what viewers saw on television when she lifted her gown to walk upstairs.


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Chicago home price recovery lags









The Chicago area's housing recovery continued to lag behind other cities and the nation, as prices in November fell 1.3 percent from a month earlier, according to a widely watched barometer of the housing market.

On an annual basis, home prices in the Chicago area rose only 0.8 percent in November, the smallest positive gain recorded among the 20 cities included in the S&P/Case-Shiller home price index, released Tuesday.

Nationally, home prices rose 5.5 percent annually for the 20-city composite. Much of that gain can be traced to market improvements in once hard-hit places like Phoenix, where home prices have risen 22.8 percent in 12 months. Other cities recording strong yearly increases included Detroit, up 11.9 percent; Las Vegas, up 10 percent; San Francisco, up 12.7 percent; and Minneapolis, up 11.1 percent.

"Housing is clearly recovering," said David Blitzer, chairman of S&P Dow Jones Indices' index committee. "Prices are rising as are both new and existing home sales."

Most cities saw prices decrease in November from their October levels, which Blitzer tied with the housing market's typical winter weakness.

Nevertheless, Chicago turned in the worst monthly performance among the 20 cities. It was the third consecutive monthly decline for local home prices, which showed signs of strength earlier in 2012.

Condominium values in the Chicago market also fell for the second consecutive month. In November, they were down .9 percent from October but rose 2.7 percent from November 2011.

mepodmolik@tribune.com | Twitter @mepodmolik



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CO leak suspected in 2 deaths: 'They were very good people'









The first sign of trouble came around 3 a.m. Sunday when Shabbir Ahmed's sister-in-law woke up feeling ill.

"It started from there," Ahmed said. "She was feeling dizzy."

Four hours later his 77-year-old mother, Rasheeda Akhter, was so ill she could not get out of bed. "They took her to Swedish Covenant Hospital but before she got there, she died," Ahmed said.

An hour later, relatives tried to wake his 18-year-old niece Zanib Ahmed. "She couldn't wake up," Ahmed said.  She was rushed by ambulance to the same hospital where "they tried their best to save her life but she did not come back."

Ahmed's brother then gathered five children ranging in age from 5 to 12 and took them to a hospital for observation. "We figured out something was wrong," said Ahmed, 49. "They were OK, they were eating and playing around."


Autopsies for Akhter and her granddaughter are scheduled for today, but officials suspect they were overcome by carbon monoxide.


Fire officials and workers from Peoples Gas have determined there was a leak in the exhaust system of the boiler in the basement of the four-flat in the 2500 block of West North Shore Avenue. Fire Department spokesman Larry Langford said officials believe people in the building had been exposed to low levels of carbon monoxide over a long period of time.

When fire officials first responded to the address, they checked the carbon monoxide levels and found no indication of a leak in the building, according to Fire Department spokeswoman Meg Ahlheim said.

When paramedics were called back to the scene, they checked again and still found no evidence of a leak, Ahlheim said. A carbon monoxide detector in a room near the boiler had not gone off, according to Langford, but high levels were found in the boiler room.





Langford said the building had no other working carbon monoxide detectors, though there were smoke detectors. City code requires carbon monoxide detectors on every floor where there are bedrooms, Langford said.


Ahmed said no work was done recently on the boiler. "It was the same boiler we had, it was working perfectly, then all of a sudden like a car, cars break down," he said.

The four-flat building is owned by his family and was purchased by his father more than 20 years ago. He said relatives live in each of the units.  "We owned the whole building, nobody else was living there."

Ahmed said his parents came to the United States from Pakistan. His father died about two years ago from a heart condition. He said his mother had three sons and a daughter and 11 grandchildren.

He called his mother a "beautiful person." He said the grandchildren would call her "Dadyji," which is Urdu for grandmother. He said most of the grandchildren lived in the building and she was a constant presence in their lives.

"All of the kids loved her and played with her all of the time, they are going to miss her very badly," Ahmed said.

He said his niece was a senior at St. Scholastica Academy High School and was scheduled to graduate this year. She was considering going to Northwestern University, where she wanted to go into premed.

"She had planned to go to medical school, she always talked about being a surgeon," Ahmed said.

She was the oldest of three children, and leaves behind a sister and brother, Ahmed said. "They were very close."


Another relatives said the family "is going through a tough time, they were very good people."


asege@tribune.com


chicagobreaking@tribune.com


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