Exclusive: Banks offer to help Sony offload battery unit – sources

TOKYO (Reuters) – Sony Corp has been approached by at least three investment banks offering to sell its battery business as the struggling Japanese group looks to offload non-core assets and focus on reviving its consumer electronics business, banking sources said.

Selling the unit, which employs 2,700 people and had sales last year of $ 1.74 billion, would help Sony cut costs and generate cash as it restructures its operations, three people involved in the preliminary discussions told Reuters.

The company, a byword for innovative gadgetry in the 1970s and 80s, has been battered by weak demand for its TVs in a fiercely competitive market. The TV business has racked up huge losses; Sony’s market value has slumped to below $ 10 billion and ratings agency Fitch last week downgraded the company’s debt to “junk” status – a move likely to push up borrowing costs and make asset sales more attractive.

CEO Kazuo Hirai has pledged to rebuild Sony around gaming, digital imaging and mobile devices, while nurturing new businesses such as medical devices. He is axing 10,000 jobs, closing facilities and selling assets. Any disposals would be part of a broader “garage sale” by Japan’s leading electronics groups that are hurting in weak markets and tight financing.

Potential buyers for Sony Energy Devices Corp – founded in 1975 as Sony-Eveready, a joint venture with Union Carbide Corp – could include Taiwan’s Hon Hai Precision Industry and BYD Co Ltd, a Chinese carmaker backed by billionaire investor Warren Buffett, said one of the sources. Hon Hai is also in negotiations to become rival TV maker Sharp Corp’s biggest shareholder.

FOREIGN INTEREST

Despite a strong yen, interest is likely to come mainly from potential foreign buyers, said the sources, who did not want to be named as the talks are private.

Selling the business overseas may not go down well with a Japanese government that in the past has kept technology at home by promoting alliances between local producers. Panasonic Corp, NEC Corp and Hitachi Ltd also make lithium-ion batteries, though the firms’ fabrication technology differs.

Sony declined to comment on the possible sale of the business, which makes lithium-ion batteries used in smartphones, tablets and PCs. “At our corporate strategy announcement in April, (Hirai) said we would explore possible alliances in E-vehicle batteries and battery storage,” said spokesman George Boyd.

As with TVs, Sony has struggled to compete against South Korean rivals in a battery business that is worth $ 18 billion a year. The small cells that power mobile devices now account for around 60 percent of the market, ahead of those used in cars and electrical tools, according to research company IHS iSuppli.

While lithium-ion battery demand has steadily expanded with the boom in mobile consumer electronics, severe price competition has resulted in razor thin margins that favor large-scale manufacturers with weak local currencies.

“The battery business is a prime example of the company’s loss-making and unwanted assets. It doesn’t make sense for them to keep it,” said one of the banking sources.

FALLING MARKET SHARE

As Hirai doubles down on Sony’s strength in consumer electronics, the company has sold a chemicals company, with 2,900 workers, and may also let go its U.S. headquarters building in New York go. At the same time, it has spent close to $ 2 billion on a U.S. game clouding company and a stake in medical equipment maker Olympus Corp.

Sony produced 74 million lithium-ion battery cells in July-September – almost 40 percent fewer than in the first quarter of 2008, when its output topped Samsung SDI Co Ltd’s 110 million and LG Chem Ltd’s 54 million, according to Techno System Research in Tokyo. Sony’s market share is now 7 percent, dwarfed by Samsung SDI’s 27 percent, Panasonic’s 21 percent and LG Chem’s 17 percent.

Sony’s battery unit, which also makes button batteries for watches and smaller appliances and optical devices, has three factories in Japan and two overseas assembly plants in China and Singapore. It has yet to enter the more lucrative business for automotive batteries.

In its most recent filing, Sony valued the battery unit’s fixed assets, including production sites and machinery, at 52 billion yen ($ 633 million). Under Sony’s accounting rules, asset sales are typically booked as operating profit.

The cost to protect $ 10 million of Sony debt against default for five years has edged higher this week to almost $ 400,000. The CDS spreads had tumbled earlier this month – from above 480 basis points – after Sony said it would raise 150 billion yen ($ 1.9 billion) through a sale of convertible bonds.

($ 1 = 82.1200 Japanese yen)

(Additional reporting by Reiji Murai; Editing by Ian Geoghegan)

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In elf ears and wizard hats, ‘Hobbit’ fans rejoice

WELLINGTON, New Zealand (AP) — Wearing elf ears and wizard hats, sitting atop their dad’s shoulders or peering from balconies, tens of thousands of New Zealanders watched their favorite “Hobbit” actors walk the red carpet Wednesday at the film trilogy’s hometown premiere.

An Air New Zealand plane freshly painted with “Hobbit” characters flew low over Wellington’s Embassy Theatre, eliciting roars of approval from the crowd.

Sam Rashidmardani, 12, said he came to see Gollum actor Andy Serkis walk the red carpet — and he wasn’t disappointed.

“It was amazing,” Rashidmardani said of the evening, adding his Gollum impression: “My precious.”

British actor Martin Freeman, who brings comedic timing to the lead role of Bilbo Baggins, said he thought director Peter Jackson had done a fantastic job on “The Hobbit: An Unexpected Journey.”

“He’s done it again,” Freeman said in an interview on the red carpet. “If it’s possible, it’s probably even better than ‘The Lord of the Rings.’ I think he’s surpassed it.”

While is unusual for a city so far from Hollywood to host the premiere of a hoped-for blockbuster, Jackson’s filming of his lauded ‘LOTR’ trilogy and now “The Hobbit” in New Zealand has helped create a film industry here. The film will open in theaters around the world next month.

One of the talking points of the film is the choice by Jackson to shoot it using 48 frames per second instead of the traditional 24 in hopes of improving the picture quality.

Some say the images come out too clear and look so realistic that they take away from the magic of the film medium. Jackson likens it to advancing from vinyl records to CDs.

“I really think 48 frames is pretty terrific and I’m looking forward to seeing the reaction,” Jackson said on the red carpet. “It’s been talked about for so long, but finally the film is being released and people can decide for themselves.”

Jackson said it was strange working on the project so intimately for two years and then having it suddenly taken away as the world got to see the movie.

“It spins your head a little bit,” he said.

Aidan Turner, who plays the dwarf Kili in the movie, said his character is reckless and thinks he’s charming.

“I don’t get to play real people it seems, I only get to play supernatural ones,” he said. “So playing a dwarf didn’t seem that weird, actually.

Perhaps the most well-known celebrities to walk the carpet were Cate Blanchett and Elijah Wood, who reprise their roles in the LOTR in the “Hobbit.”

“Mostly I came here to see everyone. I like them all,” said fan Aysu Shahin, 16, adding that Wood was her favorite. She said she wanted to see the movie “as soon as possible. I’m excited for it.”

At a news conference earlier in the day, Jackson said many younger people are happy to watch movies on their iPads.

“We just have to make the cinema-going experience more magical and more spectacular to get people coming back to the movies again,” he said.

Jackson said only about 1,000 of the 25,000 theaters that will show the film worldwide are equipped to show 48 frames, so most people will see it in the more traditional format. The movie has also been shot in 3D.

A handful of animal rights protesters held signs at the premiere.

The protest by the group People for the Ethical Treatment of Animals comes after several animal wranglers said three horses and up to two dozen other animals had died during the making of the movies because they were housed at an unsafe farm.

Jackson’s spokesman earlier acknowledged two horses had died preventable deaths at the farms but said the production company worked quickly to improve stables and other facilities and that claims of mistreatment were unfounded.

“No mistreatment, no abuse. Absolutely none,” Jackson said at the news conference.

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Powerball fever grips country

DEAR ABBY: My wife and I have been married for five years. I recently discovered that she made between 10 and 20 porn videos when she was 19. We got married when she was 27. We have four kids from two previous marriages.I am devastated. When I confronted her about it, she cried harder than I had ever seen. She said she was lost, and it's the biggest regret of her entire life.I understand how hard it can be to tell someone you have done something like this. I haven't led a perfect life either, and I have my own skeletons and things that I would never mention. But still, I can't get over this. ...

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Salary growth lagging for primary care doctors

NEW YORK (Reuters Health) – Despite rising spending on health care in the United States, primary care doctors don’t seem to be reaping the rewards on their paychecks, a new study suggests.

The findings could have implications for what some predictions say will be a primary care shortage in some parts of the country in the coming years.

Researchers found that since the late 1980s, the average doctor‘s earnings have grown more slowly than the salaries of other health professionals, such as pharmacists, dentists and registered nurses.

“It is possible that there are some specialties that have done extremely well in the past 10 or 15 years,” said health policy researcher Amitabh Chandra from Harvard University in Cambridge, Massachusetts, who worked on the study.

But, “In terms of the experience of the median doctor, the median doctor is not at the heart of all the cost growth we’re seeing in America.” And that may have implications for the primary care field in the future, he noted.

For their study, Chandra and his colleagues analyzed data from a nationally-representative survey of Americans’ occupations and earnings conducted every year between 1987 and 2010. Each round included people older than 35 from 60,000 different households.

Over the 14-year study, 30,556 health professionals were surveyed, including 6,258 doctors.

The researchers found that between 1987-1990 and 2006-2010, the median doctor’s annual earnings grew from $ 143,963 to $ 157,751 – a difference of 9.6 percent. That was after taking into account any salary differences based on gender, age and location.

In comparison, the average pharmacist’s earnings increased by 44 percent, from $ 70,341 to $ 101,279, and the average dentist’s by 23 percent, from $ 105,511 to $ 129,795, the researchers reported Tuesday in the Journal of the American Medical Association.

Looking closer, the study team found that doctors’ salaries grew between 1987-1990 and 1996-2000, but then were stagnant over the next decade – a time when other health professionals continued to get bigger paychecks.

Because the earnings reflect pay for doctors in the middle of the salary pack, Chandra said the slow growth probably represents patterns for primary care doctors rather than specialists – and earnings for some “procedure-driven specialties,” such as cardiology, may have grown a lot.

Medicare payment cuts, as well as tougher bargaining by insurance companies, may be partly to blame for the “sluggish” growth in the primary care field, he added.

THE WHOLE PACKAGE?

In addition, more women and minorities are becoming doctors – and research has suggested they make less money than white, male physicians, said Bob Konrad from the University of North Carolina at Chapel Hill, who has studied doctor salaries.

He said the new findings may also not tell the whole economic story for primary care doctors.

Recently employers have started offering to pay off more of new doctors’ college and medical school debt as a way of luring top candidates, he said – but such financial benefits wouldn’t show up on their paychecks.

“Going forward, thinking about physician incomes, you have to think about the whole package,” Konrad, who wasn’t involved in the new study, told Reuters Health.

But Chandra said the study may have implications for some parts of the U.S. that are already facing a shortage of primary care doctors.

“If as a country we want more people to go into primary care, this anemic, jaundiced earnings growth is not going to be a motivator to get people to join primary care,” he told Reuters Health.

One profession not covered by the new research, Konrad pointed out, is wage workers such as home health aides.

“That’s a big part of the healthcare workforce and growing much faster than many other occupations,” he said. What’s more, “The hourly wage of a home health aide has been going down every year for the last 10 years… Half the people in the health sector are in the bottom half (of American workers) – they’re making less than $ 40,000 a year.”

SOURCE: http://bit.ly/JjFzqx Journal of the American Medical Association, online November 27, 2012.

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Mexican beauty queen killed in shootout

CULIACAN, Mexico (AP) — A 20-year-old state beauty queen died in a gun battle between soldiers and the alleged gang of drug traffickers she was traveling with in a scene befitting the hit movie “Miss Bala,” or “Miss Bullet,” about Mexico’s not uncommon ties between narcos and beautiful pageant contestants.

The body of Maria Susana Flores Gamez was found Saturday lying near an assault rifle on a rural road in a mountainous area of the drug-plagued state of Sinaloa, the chief state prosecutor said Monday. It was unclear if she had used the weapon.

“She was with the gang of criminals, but we cannot say whether she participated in the shootout,” state prosecutor Marco Antonio Higuera said. “That’s what we’re going to have to investigate.”

The slender, 5-foot-7-inch brunette was voted the 2012 Woman of Sinaloa in a beauty pageant in February. In June, the model competed with other seven contestants for the more prestigious state beauty contest, Our Beauty Sinaloa, but didn’t win. The Our Beauty state winners compete for the Miss Mexico title, whose holder represents the country in the international Miss Universe.

Higuera said Flores Gamez was traveling in one of the vehicles that engaged soldiers in an hours-long chase and running gun battle on Saturday near her native city of Guamuchil in the state of Sinaloa, home to Mexico’s most powerful drug cartel. Higuera said two other members of the drug gang were killed and four were detained.

The shootout began when the gunmen opened fire on a Mexican army patrol. Soldiers gave chase and cornered the gang at a safe house in the town of Mocorito. The other men escaped, and the gunbattle continued along a nearby roadway, where the gang’s vehicles were eventually stopped. Six vehicles, drugs and weapons were seized following the confrontation.

It was at least the third instance in which a beauty queen or pageant contestants have been linked to Mexico’s violent drug gangs, a theme so common it was the subject of a critically acclaimed 2011 movie.

In “Miss Bala,” Mexico’s official submission to the Best Foreign Language Film category of this year’s Academy Awards, a young woman competing for Miss Baja California becomes an unwilling participant in a drug-running ring, finally getting arrested for deeds she was forced into performing.

In real life, former Miss Sinaloa Laura Zuniga was stripped of her 2008 crown in the Hispanoamerican Queen pageant after she was detained on suspicion of drug and weapons violations. She was later released without charges.

Zuniga was detained in western Mexico in late 2010 along with seven men, some of them suspected drug traffickers. Authorities found a large stash of weapons, ammunition and $ 53,300 with them inside a vehicle.

In 2011, a Colombian former model and pageant contestant was detained along with Jose Jorge Balderas, an accused drug trafficker and suspect in the 2010 bar shooting of Salvador Cabanas, a former star for Paraguay‘s national football team and Mexico’s Club America. She was also later released.

Higuera said Flores Gamez’s body has been turned over to relatives for burial.

“This is a sad situation,” Higuera told a local radio station. She had been enrolled in media courses at a local university, and had been modeling and in pageants since at least 2009.

Javier Valdez, the author of a 2009 book about narco ties to beauty pageants entitled “Miss Narco,” said “this is a recurrent story.”

“There is a relationship, sometimes pleasant and sometimes tragic, between organized crime and the beauty queens, the pageants, the beauty industry itself,” Valdez said.

“It is a question of privilege, power, money, but also a question of need,” said Valdez. “For a lot of these young women, it is easy to get involved with organized crime, in a country that doesn’t offer many opportunities for young people.”

Sometimes drug traffickers seek out beauty queens, but sometimes the models themselves look for narco boyfriends, Valdez said.

“I once wrote about a girl I knew of who was desperate to get a narco boyfriend,” he said. “She practically took out a classified ad saying ‘Looking for a Narco’.”

The stories seldom end well. In the best of cases, a beautiful woman with a tear-stained face is marched before the press in handcuffs. In the worst of cases, they simply disappear.

“They are disposable objects, the lowest link in the chain of criminal organizations, the young men recruited as gunmen and the pretty young women who are tossed away in two or three years, or are turned into police or killed,” Valdez said.

___

Associated Press Writer E. Eduardo Castillo contributed to this report

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HTC confirms 5-inch ‘Deluxe’ smartphone won’t launch in Europe

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Halle Berry’s ex claims he was victim in Thanksgiving brawl

LOS ANGELES (Reuters) – Halle Berry‘s ex-boyfriend Gabriel Aubry on Monday won a restraining order against the actress’s current lover, as the two men fought in the Los Angeles courts over who started their Thanksgiving Day brawl.

Releasing photos of himself with a black eye and cuts to his face, Aubry claimed that he was the victim in the November 22 punch-up with Berry’s fiancé, French actor Olivier Martinez, in the driveway of her Los Angeles house.

“I suffered numerous injuries as a result of the attack, including a fractured rib, multiple bruises on my face and a number of cuts which required stitches,” Aubry said in court papers, alleging that Martinez had threatened the day before to kill him.

“It all happened so fast and so suddenly; I did not see Mr Martinez’s actions coming and thus I was not ready for it and was not able to defend myself,” Aubry wrote.

Aubry, Martinez, and the Oscar-winning “Monster’s Ball” actress have been embroiled for months in a custody fight over Berry’s 4-year-old daughter, Nahla. Berry wants to take the daughter she had with Aubry to live with her and Martinez in France, but a Los Angeles judge denied that request earlier in November.

Aubry claimed in his request for a restraining order on Monday that Martinez told him, “You cost us $ 3 million,” while the French actor punched and kicked him on November 22.

Aubry, a Canadian model, was arrested last week for battery after the fist fight, and ordered to stay away from Berry, the child, and Martinez.

Neither man has been yet been formally charged in the case.

(Reporting by Jill Serjeant; Editing by Jackie Frank)

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Arafat's remains exhumed for poison tests

RAMALLAH, West Bank (Reuters) - Forensic experts took samples from Yasser Arafat's buried corpse in the West Bank on Tuesday, trying to determine if he was murdered by Israeli agents using the hard-to-trace radioactive poison, Polonium.

Palestinians witnessed the funeral of their hero and longtime leader eight years ago, but conspiracy theories surrounding his death have never been laid to rest.

Many are convinced their icon was the victim of a cowardly assassination, and may stay convinced whatever the outcome of this autopsy. But some in the city of Ramallah where he lies deplored the exhumation.

"This is wrong. After all this time, today they suddenly want to find out the truth?" said construction worker Ahmad Yousef, 31, who stopped to watch the disinterment, carried out behind a wall of blue plastic near the Palestinian presidency headquarters.

"They should have done it eight years ago," he said.

French magistrates in August opened a murder inquiry into Arafat's death in Paris in 2004 after a Swiss institute said it had discovered high levels of polonium on clothing of his which was supplied by his widow, Suha, for a television documentary.

"Samples will be taken according to a very strict protocol and these samples will be analyzed," said Darcy Christen, spokesman for Lausanne University Hospital in Switzerland that carried out the original tests on Arafat's clothes.

"In order to do these analyses, to check, cross-check and double cross-check, it will take several months and I don't think we'll have anything tangible available before March or April next year," he added.

Arafat was always a freedom fighter to Palestinians but a terrorist to Israelis first, and a partner for peace only later. He led the bid for a Palestinian state through years of war and peacemaking, then died in a French hospital aged 75 after a short, mysterious illness.

No autopsy was carried out at the time, at the request of Suha, and French doctors who treated him said they were unable to determine the cause of death.

But allegations of foul play immediately surfaced, and many Palestinians pointed the finger at Israel, which confined Arafat to his West Bank headquarters in Ramallah for the final two and a half years of his life after a Palestinian uprising erupted.

Israel denies murdering him. Its leader at the time, Ariel Sharon, now lies in a coma from which he is expected never to awake. Israel invited the Palestinian leadership to release all Arafat's medical records, which were never made public following his death and still have not been opened.

FRENCH INVESTIGATORS

Polonium, apparently ingested with food, was found to have caused the death of former Russian spy Alexander Litvinenko in London in 2006. But some experts have questioned whether Arafat could have died in this way, pointing to a brief recovery during his illness that they said was not consistent with radioactive poisoning. They also noted he did not lose all his hair.

Eight years is considered the limit to detect any traces of the fast-decaying polonium and Lausanne hospital questioned in August if it would be worth seeking any samples, if access to Arafat's body was delayed as late as "October or November."

Not all of Arafat's family agreed to the exhumation, and his wife Suha chose not to attend the operation she had prompted.

Working in parallel with the forensic team, French magistrates were in Ramallah this week to ask if members of Arafat's inner circle might be able to shed light on his death.

One source told Reuters the French had a list of 60 questions, and had questioned one man for five hours.

Many Palestinians acknowledge that a Palestinian would almost certainly have had to administer any poison, wittingly or unwittingly.

(Writing by Crispian Balmer; Editing by Douglas Hamilton and Tom Pfeiffer)

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Outbreak-Tied Peanut Butter Plant Shut

Nov 26, 2012 7:37pm

The Food and Drug Administration today shut down the country’s largest organic peanut butter processor following a salmonella outbreak that sickened scores of people nationwide.

For the first time the FDA has utilized new power granted by the 2011 food safety law and shut down Sunland Inc.’s New Mexico processing plant.

In a statement on their website, the FDA said that the link between the company and the salmonella outbreak that sickened 41 people in 20 states along with “Sunland’s history of violations led FDA to make the decision to suspend the company’s registration.”

Between June 2000 and September 2012 eleven product lots of nut butter tested positive for presence of Salmonella. And, according to the FDA, between March 2010 and September 2012, Sunland Inc. distributed at least a portion of eight product lots after they had tested positive.

The FDA also found the presence of Salmonella in 28 environmental samples during a September and October 2012 inspection.  FDA inspectors reported that employees of Sunland Inc. failed to wash hands, improperly handled equipment used to process food as well as providing  ”no records” to document cleaning of equipment. Additionally, the building housing the production and packaging had no hand-washing sinks even though employees had “bare-handed contact” with the product.

“The super-sized bags used by the firm to store peanuts were not cleaned despite being used for both raw and roasted peanuts.  There was a leaking sink in a washroom which resulted in water accumulating on the floor, and the plant is not built to allow floors, walls and ceilings to be adequately cleaned.

Finally, investigators found that raw materials were exposed to potential contamination.  Raw, in-shell peanuts were found outside the plant in uncovered trailers. Birds were observed landing in the trailers and the peanuts were exposed to rain, which provides a growth environment for Salmonella and other bacteria.  Inside the warehouse, facility doors were open to the outside, which could allow pests to enter.”

In a November 15 statement the president and CEO of Sunland, Jimmie Shearer, emphasized that at “no time” did the company distribute products they knew to be contaminated. The company has submitted a response to the FDA outlining their response to the recall and contaminated product testing.

“We believe that drawing any inferences much less conclusions about the Company’s practices based solely on the observations as set forth in the Form 483 without considering the Company’s response would be wholly premature and unduly prejudicial to Sunland.”

Food Safety Modernization Act, which the FDA acted under to shut down the plant, grants the agency the authority to suspend manufacturing when there is “reasonable probability of causing serious adverse health consequences or death to humans or animals, and other conditions are met.”

Sunland Inc., can request an informal hearing to lift the suspension.  However the 24-year-old company will only have its registration returned after the FDA decides the company has safe manufacturing practices.

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UN climate talks open in Qatar

DOHA, Qatar (AP) — U.N. talks on a new climate pact resumed Monday in oil and gas-rich Qatar, where negotiators from nearly 200 countries will discuss fighting global warming and helping poor nations adapt to it.

The two-decade-old talks have not fulfilled their main purpose: reducing the greenhouse gas emissions that scientists say are warming the planet.

Attempts to create a new climate treaty failed in Copenhagen three years ago but countries agreed last year to try again, giving themselves a deadline of 2015 to adopt a new treaty.

A host of issues need to be resolved by then, including how to spread the burden of emissions cuts between rich and poor countries. That’s unlikely to be decided in the Qatari capital of Doha, where negotiators will focus on extending the Kyoto Protocol, an emissions deal for industrialized countries, and trying to raise billions of dollars to help developing countries adapt to a shifting climate.

“We all realize why we are here, why we keep coming back year and after year,” said South Africa Foreign Minister Maite Nkoana-Mashabane, who led last year’s talks in Durban, South Africa. “We owe it to our people, the global citizenry. We owe it to our children to give them a safer future than what they are currently facing.”

The U.N. process is often criticized, even ridiculed, both by climate activists who say the talks are too slow, and by those who challenge the scientific near-consensus that the global temperature rise is at least partly caused by human activity, primarily the burning of fossil fuels like coal and oil.

The concentration of greenhouse gases such as carbon dioxide has jumped 20 percent since 2000, according to a U.N. report released last week.

A recent projection by the World Bank showed temperatures are on track to increase by up to 4 degrees C (7.2 F) this century, compared with pre-industrial times, overshooting the 2-degree target that has been the goal of the U.N. talks.

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