Chicago beer firm Crown Imports is caught in antitrust fight

An antitrust brouhaha in Washington has thrown the future of Crown Imports, a Chicago-based beer importer, into question.

The company, which ranks third in U.S. beer sales volume, is a joint venture between New York-based Constellation Brands Inc. and Mexico's Grupo Modelo, which makes Corona Extra, the leading imported beer in the U.S., and other brands. Crown sells Modelo brands as well as China's Tsingtao.

As part of its proposed sale to Anheuser-Busch InBev, Grupo Modelo agreed to sell its 50 percent stake in Crown to Constellation Brands for $1.85 billion. The separate transaction was meant to ease possible antitrust concerns that the merger would eliminate Crown Imports as a competitor.

But on Thursday the U.S. Department of Justice filed an antitrust suit against AB InBev to block its acquisition of Grupo Modelo. Antitrust officials said the merger would further increase the concentration of the U.S. beer market, leading to higher prices for American consumers.

The lawsuit said the sale of Modelo's interest in Crown Imports to its partner would only create "a facade of competition" between AB InBev and the importer.

"In reality, Defendants' proposed 'remedy' eliminates from the market Modelo — a particularly aggressive competitor — and replaces it with an entity wholly dependent on ABI," the Justice Department said in the lawsuit.

The suits cites as evidence part of an internal memo that Crown's chief executive, Bill Hackett, wrote to employees after the transactions were announced in June. According to the suit, Hackett wrote, "Our #1 competitor will now be our supplier ... it is not currently or will not, going forward, be 'business as usual.'"

Under the terms of the proposed merger with Modelo, AB InBev also had the option to terminate its agreement with Crown Imports after 10 years, giving it full control of Corona distribution.

Constellation Brands on Friday attacked the Justice Department, saying in a statement that the suit "demonstrates its incomplete understanding" of the proposed merger. Constellation and AB InBev have indicated that they plan to challenge the suit.

In a detailed defense, Constellation said its full control of Crown would improve competition, not harm it. According to the lawsuit, Modelo controls about 7 percent of U.S. beer sales, far behind AB InBev's market-leading 39 percent.

Constellation attempted to ease concerns that AB InBev's merger with Modelo would lead to higher prices. Hackett said in a statement: "Our Crown team independently develops, implements and refines pricing, promotional and sales strategies for each of our brands in the U.S."

The proposed beer merger had reduced uncertainty hanging over Crown Imports because the Modelo-Constellation joint venture was set to expire at the end of 2016. The Justice Department action creates a new level of uncertainty, said Benj Steinman, president of Beer Marketer's Insights, a beer industry trade publication.

"Crown's fate is hanging in the balance," Steinman said.

asachdev@tribune.com

Twitter@ameetsachdev

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Hadiya Pendleton's 'twin' describes death of best friend

The best friend of Hadiya Pendleton talks about the moments before her friend was shot in Chicago on January 31, 2013. (Heather Charles, Chicago Tribune)

As she and her high school classmates fled from the gunfire, Hadiya Pendleton screamed that she had been shot, fell to the ground, struggled to get up and fell again, according to her best friend.

The best friend and another girl scrambled to Pendleton's side, cradling her in their arms as others ran for help.

"I was holding her hand trying to talk her through it," her best friend told the Tribune on Thursday. "I was like, 'You're going to be fine, you're going to be OK.'"

But Hadiya, 15, died shortly after a bullet pierced her back Tuesday, igniting outrage over the senseless loss of another young victim of Chicago's out-of-control gun violence and leaving her friends staggered by the horrifying chain of events on what had been a carefree afternoon.

In the account that follows, the Tribune is not naming those who witnessed the shooting and its aftermath because the gunman is still at large.

On Tuesday afternoon, the mood outside King College Prep in North Kenwood was jubilant. The students at the elite high school had just finished final exams, classes had let out early and the winter weather was spectacular, tipping into the low 60s.

Hadiya and her best friend, both sophomores, headed toward a nearby Potbelly's, one of their favorite places to eat, the friend said. But on their way, at about 1:30 p.m., they ran into friends who invited them to Harsh Park, just a few blocks away from the school.

"We were like, 'OK, sure, who doesn't want to walk around outside when it's nice?'" Hadiya's best friend said.

As they walked, the group of about a dozen teens discussed which tests had been easy and which had been hard. Some were volleyball players from King and others went to another high school, Hadiya's friends said.

Once they reached the small, residential park, Hadiya and others headed to a playground where they swung in the warm air while chatting about their plans for the summer and their 16th birthdays. Hadiya's best friend said she and Hadiya had talked about a joint sweet 16 party and possibly wearing matching gold heels and colorful outfits to celebrate the occasion.

But then a sudden downpour drove the teens beneath a metal awning where Hadiya played "Misery Business" by the band Paramore on her cellphone and others tweeted and texted as they waited out the rain.

Minutes later, however, Hadiya's best friend said she saw a gun-wielding male scale the park fence and approach the group. She yelled a warning to her friends, but the gunman opened fire, spraying the teens with bullets as they ran.

Hadiya was struck in the back about 2:20 p.m. One teen suffered a graze wound to an ankle. And a 17-year-old junior at King was hit in the left leg below the calf, according to his mother, who said he was trying to protect his girlfriend.

The teen's mother said that her son, an Eagle Scout, didn't realize he had been shot. He felt a little sting in his leg before he looked down and saw blood.

A nurse who lived in the area and was leaving her home at the time of the shooting ran to the group, applied a makeshift tourniquet to the teen shot in the leg and called 911. The nurse instructed the others on how to take care of Hadiya.

In the meantime, another friend of Hadiya's ran to a nearby Subway restaurant, burst through the door and asked to borrow a man's phone to call 911.

But by then wailing police cars whizzed by toward the park, so she called her mom.

"I told her to stay put," her mother told the Tribune. "I can't even tell you, as a mother, what it's like to get that phone call. My goal was to get to my child."

The friend said that she and Hadiya met freshman year at a high school dance camp. The friend joined poms, while Hadiya became a majorette, traveling to Washington last month to perform in a competition with her squad during President Barack Obama's inauguration weekend.

The girls were nicknamed "twins" by classmates and teachers because of their similar appearance, the friend said. From haircut to smile to skin tone to personalities, the two were hard to tell apart, she said.

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Sony ignites talk of PS4 unveil with Playstation meeting

TOKYO (Reuters) - Sony Corp will this month host its first major Playstation meeting in two years, sparking a flare-up in online speculation the Japanese consumer electronics giant is preparing to unveil the successor to its 70 million-selling PS3 games console.

Sony declined to say whether it would release a new product at the meeting in New York on February 20. "We will be talking about the Playstation business," spokesman Masaki Tsukakoshi said on Friday. A Google search for "Sony Feb 20 Playstation" returned more than 7 million hits.

The last time Sony held a Playstation event, in January 2011, it presented a protoype of its handheld Vita console. Before that, it convened a gathering in 2005 two months after it first demonstrated the PS3 concept. A meeting in 1999 revealed designs for the PS2.

It has been more than six years since Sony launched the PS3 home console, a longer gap than between it and its PS2 predecessor, adding to the anticipation that it will soon disclose its next gaming concept.

Since Sony's last home console launch, the games market has been transformed by the boom in smartphones and tablet computers that have wooed players with free or cheap games.

Sony and other console makers Nintendo Co Ltd and Microsoft Corp now have to contend with competition from hand-held devices made by Apple Inc, Samsung Electronics and others.

Analysts expect that tablets and other mobile devices will match the power and graphics of today's games consoles within a few years.

Struggling under competitive pressure, Nintendo on Wednesday cut its sales target for the Wii U, successor to its 100 million-selling Wii, to 4 million machines by the end of March from its launch in November, compared with an earlier forecast for 5.5 million.

(Reporting by Tim Kelly; Editing by Daniel Magnowski)

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SUPER BOWL WATCH: Beyonce, avocados, practice

NEW ORLEANS (AP) — Around Super Bowl XLVII and its host city with journalists from The Associated Press bringing the flavor and details of everything surrounding the game:

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GRIDIRON TO LEMONADE STAND

Donald Driver didn't waste much time finding a new job.

The Green Bay Packers all-time leading receiver announced his retirement Thursday morning, then helped kids from Junior Achievement sell lemonade at a pop-up stand in the Super Bowl media center.

Not only did Driver help behind the counter, he loaded up four carrying cases and he and his three new friends set out to find customers. Their cases were empty when they returned.

"All the money they've raised will stay here in New Orleans," Driver said. "What they're starting to do is learn how to run their own business, become entrepreneurs by themselves.

"I'm just here to raise as much money so maybe they can open up their own lemonade stand the next couple of years.

— Nancy Armour — http://twitter.com/nrarmour

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JUDGE FOR YOURSELF: BEYONCE

Wondering about Beyonce and her response inauguration lip syncing flap?

Judge for yourself — here's her full rendition of the national anthem during a press conference Thursday: http://www.youtube.com/watch?v=8p2MTKCLNsY

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QUICKQUOTE: JERSEYS AND DRUGS

Authorities say buying a cheap imitation NFL jersey may be more harmful than you think.

Kevin Abar, assistant special agent in charge of Homeland Security Investigations in New Mexico, said there's evidence that Mexican drug cartels are getting involved in the counterfeit NFL black market trade because they can make quick money.

"A lot of folks may think that there's nothing wrong with buying a knockoff Denver Broncos jersey, but in reality, the money is being used to fund the drug war in Mexico," Abar said.

— Michael Kunzelman — http://twitter.com/Kunzelman75

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STAT OF THE DAY: 158M AVOCADOS

AP Food Editor J.M. Hirsch has the stat of the day today: Americans are expected to consume 158 million avocados around the Super Bowl.

That's 79 million pounds of green goodness — up from 8 million pounds at the turn of the century.

So has the guacamole improved that much? Not really, it's just outstanding marketing and other factors.

— J.M. Hirsch — http://twitter.com/JM_Hirsch

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YUP, WE HEARD YOU, BEYONCE

Beyonce belted out the national anthem — for real — and America clearly heard.

Shortly after the singer's press conference on Thursday where she admitted singing to a backup track during President Barack Obama's inauguration, "National Anthem" became a trending topic in the United States on Twitter.

Millions of fans clearly approved of her impromptu performance, now reassured that her pipes are still fine.

— Oskar Garcia — http://twitter.com/oskargarcia .

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NO TAPE NEEDED

Beyonce's version of the national anthem was worth the wait.

The superstar singer, roundly criticized for lip syncing "The Star-Spangled Banner" at the inauguration 10 days ago, walked into Thursday's news conference for the Super Bowl halftime show and asked the ballroom filled with several hundred people to stand. She then belted out a spine-tingling version of the anthem, leaving no doubts about the power of her voice. Many in the room applauded when she finished.

"Thank you guys so much. Any questions?" Beyonce said, drawing laughs.

Beyonce admitted she sang along with a pre-recorded track at the inauguration, saying she hadn't had time to rehearse with the orchestra. This was too big of an occasion to have it be anything less than perfect, she said.

"I did not feel comfortable taking a risk," she said. "This was about the president and the inauguration and I wanted to make my country proud."

She did promise to sing live Sunday, however.

"I am well-rehearsed," she said. "This was what I was born to do."

That was about all Beyonce was willing to spill, though. She wouldn't say what she'll be singing, though she did say it was "not easy" to choose a few songs from her many hits.

"All of my songs are like my children," she said.

As for that rumored Destiny's Child reunion, Beyonce wouldn't confirm it.

She didn't deny it, though, either.

"I can't really give you any details," she said. "I'm sorry."

— Nancy Armour — http://twitter.com/nrarmour

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TURF WARS

The Baltimore Ravens don't like the artificial turf at Tulane's baseball field.

So they've moved to the Saints' facility instead.

The San Francisco 49ers were already training at the Saints' complex in nearby Metairie.

The AFC champions were forced to practice in the outfield of the baseball facility Wednesday because Tulane has broken ground on a new football stadium. Coach John Harbaugh, star linebacker Ray Lewis and several other players said it was "hard on the legs."

After the Ravens approached the league about practicing on grass, the NFL arranged for them to follow the 49ers at the Saints training fields.

— Barry Wilner

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10 ADS TO WATCH

If you're a fan of Super Bowl ads, here are 10 to look out for during Sunday's game. With more than 111 million people expected to tune in, it's advertising's biggest showcase.

1. Samsung Mobile's 2-minute ad with "Knocked Up" actors Paul Rudd and Seth Rogen, directed by Jon Favreau ("Iron Man"). The company has not released details about the ad's plot other than to say that it shows Rogen and Rudd on a "quest to become the next big thing." Teaser here: http://www.youtube.com/watch?v=pzfAdmAtYIY

2. Best Buy's 30-second ad in the first quarter stars Amy Poehler, star of NBC's "Parks and Recreation," asking a Best Buy employee "lots of questions." Teaser: http://www.youtube.com/watch?v=PcmW8HCuLo8

3. Kraft enlists Tracy Morgan from NBC's "30 Rock" to introduce its new Mio Fit water enhancing drops in a 30-second ad during the third quarter. Teaser: http://www.youtube.com/user/makeitmio?feature=watch

4. Hyundai Motor Group's Kia invents a fanciful way that babies are made, blasting in from a baby planet in its "Space babies" ad for the 2014 Sorento crossover. Link: http://www.youtube.com/user/KiaMotorsAmerica?feature=watch

5. First-time advertiser Paramount Farms is touting its Wonderful Pistachios brand of nuts in a 30-second ad with Korean pop sensation Psy. The campaign: http://getcrackin.com/

6. First-time advertiser Axe shows a woman in the ocean getting rescued by a sexy lifeguard, but going for an astronaut instead. It promotes Axe's new cologne "Apollo" and its contest to send someone on the first suborbital space tour in 2014. Link: http://www.youtube.com/watch?v=QGoU3VH7He4

7. Audi's 60-second ad in the first quarter, with an ending voted on by viewers, shows a boy gaining confidence from driving his father's Audi to the prom, kissing the prom queen and getting decked by the prom king. Link: http://www.youtube.com/watch?v=ANhmS6QLd5Q

8. PepsiCo's Frito-Lay's Doritos "Crash the Super Bowl" ads are back for the seventh straight year. Two 30-second commercials made by consumers will make it on the air. Fans voted for one winner and Doritos chose the other.

9. Ford Motor Co. enlisted late-night talk show host Jimmy Fallon to choose road trip stories submitted by Twitter with the hashtag (hash)steerthescript to base its Super Bowl commercial for Lincoln. The ad features rapper Joseph "Rev Run" Simmons, Wil Wheaton, who acted in the iconic science-fiction series "Star Trek: The Next Generation."

10. The Milk Processor Education Program, known as MilkPep and popular for its "Got Milk?" print ads, is featuring actor and professional wrestler Dwayne "The Rock" Johnson in a 30-second ad in the second quarter that is directed by Peter Berg ("Friday Night Lights.")

— Mae Anderson

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BEYONCE, BUT WHO ELSE?

There's lots of hype for Beyonce's halftime performance at the Super Bowl, but she's far from the only A-list act in New Orleans this week.

The NFL has announced Jennifer Hudson is planning to sing "America the Beautiful" before the game with the chorus from Sandy Hook Elementary School in Newtown, Conn.

Just add her to the already packed list. It also includes:

— Justin Timberlake, in his first major musical performance in four years (hosting Saturday Night Live doesn't count — he hasn't been an official musical guest on the show since 2006).

— Stevie Wonder

— CeeLo Green with his old hip-hop clique, Goodie Mob.

—Rascal Flatts with Journey.

And then there's the parties. Lil Wayne is throwing a bash. Jay-Z will host another event the night before his wife, Beyonce, takes stage. Jamie Foxx and Santigold are also performing, while DJs including Diplo and Questlove from The Roots are spinning.

Not that it's ever difficult, but it's extra easy to find a party in New Orleans the next few days.

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— Stacey Plaisance

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PUTTING POLITICS ASIDE FOR NEW ORLEANS

Long working on opposite sides of the American political spectrum, James Carville and Mary Matalin are pulling in the same direction when it comes to promoting their adopted home of New Orleans as a Super Bowl host.

Carville, a longtime Democratic strategist, and Matalin, a Republican pundit, are the co-chairs of the Super Bowl host committee. They're also married.

They've been making the rounds together from one event to the next in the convention center, which houses both the NFL Experience theme park and work stations for several thousand international media.

Carville is from Louisiana and the couple married in New Orleans. Then in 2008, they decided to move here from Washington, D.C. Now living in a stately home just two blocks off of historic St. Charles Avenue, they've been among the biggest boosters of the Big Easy's recovery from Hurricane Katrina, lending their support to a variety of community projects with goals ranging from restoration of fragile coastal wetlands to education and economic development.

The pair agree that while organizing a Super Bowl doesn't cost as much as a presidential campaign, it's just as hard because it's a multiyear project with a lot of moving parts.

Carville says he's always been a sports fan so the transition was natural for him. Matalin says one obvious goal is to get New Orleans back in the regular rotation as a Super Bowl host, but the larger goal is to help the city's future by demonstrating how successfully it can host one of the biggest single events in the sports world. While New Orleans is hosting its 10th Super Bowl, the NFL championship has not been played there since 2002.

Says Carville: "If it goes the way we hope it does, it'll go beyond economic impact. It'll go beyond who won the game. It think there's something significant that's coming to a point here in the city."

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— Brett Martel — http://twitter.com/brettmartel

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ZOO VS ZOO

File this in the quirky Super Bowl wager department: Zoos in Baltimore and San Francisco are gambling with the homes of two ravens and a rhino.

Leaders of The Maryland Zoo and The San Francisco Zoological Gardens have wagered naming rights to their respective exhibits with ties to their hometown football teams.

The zoo in Baltimore is home to official Ravens mascots, Rise and Conquer. If 49ers win, it will rename the ravens' enclosure the "San Francisco 49ers exhibit."

If the Ravens win, the San Francisco zoo has agreed to re-name the enclosure of its black rhino "Boone," who is named after the 49ers offensive tackle Alex Boone, in honor of the Ravens.

The new name would last one month, starting Feb. 11.

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CATCHING THE COUNTERFEITERS

Shop wisely when looking for those Super Bowl souvenirs.

Federal officials have seized more than 163,000 counterfeit items worth more than $13.6 million over the last five months as part of Operation Red Zone, John Morton, director of U.S. Immigrations and Customs Enforcement, said. That's a "significant" increase from last year, when about $5 million worth of merchandise was seized.

"Everything from hats to jerseys to Nike shoes. My personal favorite is this counterfeit Super Bowl ring from Super Bowl XLIV," Morton said, holding up a massive gold ring. "It's actually quite heavy and a better counterfeit than most. Just goes to show you the lengths people will go in this business."

Equally troubling are websites selling counterfeit merchandise, some so sophisticated they include anti-virus logos and the seal of the Better Business Bureau — making them almost impossible to tell them apart from legitimate vendors.

Morton said federal officials have already seized domain names of 313 web sites, almost all of which originated overseas.

"Imagine what's going on when you're putting your credit card through this site. Really think about that," Morton said. "The site is being run by overseas criminals in Asia.... You can imagine what the result is, and sadly many, many of these sites come with malware and other unfortunate ornaments on the Christmas tree."

The easiest way to make sure fans are buying legitimate merchandise is to buy from an official vendor, Morton said. Each team has one, as does the NFL.

But the best way fans can prevent being scammed is to use common sense, Morton said. Look closely at items, and there will be signs they're fakes. If there are extra words in a website address — com.us — or misspellings, that's almost always a dead giveaway.

"We're not letting up," Morton said. "We'll have teams out the next couple of days looking for counterfeit and scam artists."

— Nancy Armour — http://twitter.com/nrarmour

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RENO: THE KAEPERNICK EFFECT

Casinos in the Biggest Little City in the World are expecting a bump in Super Bowl betting this year thanks to 49ers quarterback Colin Kaepernick, maybe enough to help Nevada set a record in wagering on the game.

Kaepernick played college football at Nevada, just down the street from casinos in Reno.

Now, most of those casinos are offering an especially large number of proposition bets on the quarterback.

Kaep-mania has run so rampant in Reno that sporting goods stores can't keep stocked in jerseys. More than 7,000 fans set what Nevada officials said was a world record when they all simultaneously kissed their arms "Kaepernicking style" during a break in last week's basketball game against San Diego State.

A Kaepernick viewing party is planned during Sunday's game at the student union.

— Scott Sonner

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NO MORE TALKING

The players can focus on football now — they're officially done talking to the media.

Ravens safety Ed Reed was the last guy at the podium on Thursday. After he finished talking with reporters, he scooped up a blue placard with his name on it.

"I'm going to give it to my mother," he said.

He said he's very glad that his interviews are done for the week.

Players had three hourlong sessions during the week, and Reed had another press availability on Monday.

The coaches for the 49ers and Ravens will speak with reporters again on Friday morning.

— Paul Newberry — http://twitter.com/pnewberry1963

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BROTHERLY ADVICE: BROOK LOPEZ

Baltimore Ravens coach John Harbaugh and San Francisco 49ers coach Jim Harbaugh are hardly the only high-profile siblings who've squared off in their arena of expertise. The AP is asking some others who can relate how they'd handle going against a family member in the Super Bowl.

Brooklyn Nets center Brook Lopez said after scoring 21 points in a loss to the Miami Heat on Wednesday night that it's a combination of joy and competitiveness.

"I know they're just going to treat it as a game. That's how I treat it whenever I play Robin," Brook Lopez said. "I know they will enjoy it as well. But if I have any experience playing against Robin growing up, I know it's going to be competitive. I know they're going to want to beat each other."

Brook's brother, Robin, plays for the New Orleans Hornets.

— Brian Mahoney — http://twitter.com/briancmahoney

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SORRY, MOM

The way Jack Harbaugh tells the story, Jackie Harbaugh was so shocked by her eldest son's decision to choose coaching over a career in law or politics, she fell face-first into a dish of mashed potatoes.

See, Jackie Harbaugh loves political science and politics. And as a political science major at Bowling Green with a high grade-point, John Harbaugh seemed headed for law school.

"Jackie was so excited about it," Jack Harbaugh said.

But both of the Harbaugh boys had been bitten by the coaching bug early. The practice fields at Iowa and Michigan were their playground, and they knew more about coaching before they got out of grade school than some veteran assistants.

"He came home one day and we're sitting around the table and we're having dinner. Jackie says, 'John, what law school will it be?' John said, 'Mom, I think I want to try coaching,' Jack Harbaugh said. "To which Jackie went facedown into the mashed potatoes. She said, 'What? Coaching? You've got to reconsider!'"

That's not exactly what happened, Jackie Harbaugh said.

"May I tell the truth? There were no mashed potatoes," she said. "When he came home and talked about (coaching) and I saw that look in his eyes, my feeling was, you have to do what you want to do. If you want to try this and see where it takes you, that would be great."

Seems like he made the right choice. After making the playoffs in each of his first four seasons, John Harbaugh has the Baltimore Ravens in the Super Bowl on Sunday, where they'll face his brother Jim's San Francisco 49ers.

— Nancy Armour — http://twitter.com/nrarmour

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EATING RIGHT

How about some home cookin' in the Big Easy — as in 150 plates of it to feed a football team? That's what Ravens wide receiver Jacoby Jones' mother, Emily, presented the Baltimore players for dinner this week at the team hotel to kick off Super Bowl prep New Orleans-style.

"Gumbo, jambalaya, potato salad, bread pudding, macaroni, the whole nine yards. She made 150 plates," Jones said. "All they kept saying is she put her foot in it. I love it."

That's a real compliment around here.

Now, Jones might give his mother a break.

"I'm going to let her be. I might buy me some crawfish or something."

And he knows all the best spots in New Orleans to get it.

— Janie McCauley — http://twitter.com/janieMcCAP

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EDITOR'S NOTE — "Super Bowl Watch" shows you the Super Bowl and the events surrounding the game through the eyes of Associated Press journalists across New Orleans and around the world. Follow them on Twitter where available with the handles listed after each item.

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Whitney Houston anniversary to be marked with TV Grammy special

LOS ANGELES (Reuters) – Grammy organizers plan to mark the first anniversary of the sudden death of Whitney Houston with a behind-the-scenes TV show on how they scrambled to honor the singer just 24 hours after she died.

The Recording Academy said on Thursday that the hour-long special entitled “The Grammys Will Go On: A Death in the Family” will air on February 9, the day before the 2013 Grammy Awards ceremony in Los Angeles.

Houston, who sold hundreds of millions of records and scored the mega hits “I Will Always Love You” and “I Wanna Dance with Somebody,” drowned in a bathtub at a Beverly Hills hotel room on February 11 2012 – the eve of last year’s Grammy Awards show.

Houston’s unexpected death at age 48 cast a shadow over the event, which quickly changed its program to pay homage to the soaring voice that had dominated the Grammys in decades past.

Singer and actress Jennifer Hudson performed a medley of Houston’s hits at last year’s Grammys, and rapper and host LL Cool J opened the show with a prayer.

The TV special on broadcaster CBS features rehearsals and interviews with artists – including Hudson, Bruce Springsteen and Taylor Swift – and the show’s producers in the hours before and after Houston’s death.

The Recording Academy produces the annual Grammy awards.

(Reporting by Eric Kelsey, editing by Jill Serjeant and David Brunnstrom)

Music News Headlines – Yahoo! News

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Hedgehog Alert! Prickly pets can carry salmonella

NEW YORK (AP) — Add those cute little hedgehogs to the list of pets that can make you sick.

In the last year, 20 people were infected by a rare but dangerous form of salmonella bacteria, and one person died in January. The illnesses were linked to contact with hedgehogs kept as pets, according to a report released Thursday by the Centers for Disease Control and Prevention.

Health officials on Thursday say such cases seem to be increasing.

The CDC recommends thoroughly washing your hands after handling hedgehogs and cleaning pet cages and other equipment outside.

Other pets that carry the salmonella bug are frogs, toads, turtles, snakes, lizards, chicks and ducklings.

Seven of the hedgehog illnesses were in Washington state, including the death — an elderly man from Spokane County who died in January. The other cases were in Alabama, Illinois, Indiana, Michigan, Minnesota, Ohio and Oregon.

In years past, only one or two illnesses from this salmonella strain have been reported annually, but the numbers rose to 14 in 2011, 18 last year, and two so far this year.

Children younger than five and the elderly are considered at highest risk for severe illness, CDC officials said.

Hedgehogs are small, insect-eating mammals with a coat of stiff quills. In nature, they sometimes live under hedges and defend themselves by rolling up into a spiky ball.

The critters linked to recent illnesses were purchased from various breeders, many of them licensed by the U.S. Department of Agriculture, CDC officials said. Hedgehogs are native to Western Europe, New Zealand and some other parts of the world, but are bred in the United States.

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Online:

CDC report: http://www.cdc.gov/mmwr

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Appeals judges: Anti-paparazzi law appears legal

LOS ANGELES (AP) — An appeals panel says California's anti-paparazzi statute appears to be constitutional based on a brief filed by prosecutors.

A preliminary statement by three judges in Los Angeles requires a judge who dismissed charges aimed at a paparazzo who authorities say was driving recklessly to review his order. The judge may stick to his ruling, which would trigger a full appeal, or he could schedule further arguments on the case against freelance photographer Paul Raef.

Raef was the first person charged under the new law after a high-speed chase involving Justin Bieber last year.

Superior Court Judge Thomas Rubinson dismissed two charges in November, ruling the law is too broad and is unconstitutional.

Raef's attorney David S. Kestenbaum says he is asking Rubinson to stand by his ruling and allow a full appeal.

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Former Peregrine CEO Wasendorf gets 50 years in prison

A U.S. judge on Thursday sentenced the founder of Peregrine Financial Group to 50 years in prison for looting hundreds of millions of dollars from the brokerage, saying his customers would probably never recover the money they lost.

Russell Wasendorf Sr., who had tried to kill himself just before the fraud was uncovered, received the maximum sentence allowed by law and was ordered to pay $215.5 million in restitution for his nearly 20-year scheme.

Wasendorf's fraud was revealed in 2012, triggering the collapse of the brokerage and further shaking investors' confidence in the U.S. futures industry, already rattled by the failure of larger rival M.F. Global.

"I'm very sorry for the financial and emotional damage I've caused to investors and employees of Peregrine Financial Group," Wasendorf said in a feeble voice at a sentencing hearing in Cedar Rapids, Iowa. "I feel I fully deserve whatever sentence I am given… My guilt is such I will accept that sentence."

Chief Judge Linda Reade of the U.S. District Court of the Northern District of Iowa said former Peregrine customers will probably never get all their money back.

Wasendorf, 64, admitted last July that he had bilked tens of thousands of clients over a period of nearly 20 years, faking bank statements and lying to federal regulators, employees and his closest family members.

As regulators closed in on the fraud, Wasendorf made a botched suicide attempt outside his $24-million headquarters in Cedar Falls, Iowa, which investigators say was financed with money siphoned from customers.

Peregrine Financial, known as PFGBest, quickly collapsed, and 24,000 former customers are still missing most of the money they had invested with the firm.

Wasendorf pleaded guilty in September to embezzling more than $100 million. Prosecutors said the amount stolen was more like $215 million.

"The lengthy prison sentence imposed today is just punishment for a con man who built a business on smoke and mirrors," said Acting U.S. Attorney Sean Berry.

PLEAS FOR LENIENCY

Supporters of the disgraced executive had asked Reade for leniency, arguing that Wasendorf is in frail health and that he had helped others even in the midst of his 20-year fraud.

Wasendorf, wearing an orange sweatshirt, looked gaunt in court after spending six months in isolation in a county jail.

He has been sick in jail, and doctors found a tumor on or near his pancreas, according to testimony from his pastor, Linda Livingston of Ascension Lutheran Church. Wasendorf's mother died of pancreatic cancer, but it is unknown whether Wasendorf's tumor is cancerous, she said.

U.S. prosecutors said the large loss, the sophisticated nature of the crime, and the sheer number of victims justified Wasendorf spending the rest of his life behind bars.

"The defendant spent like he was the richest man in the world," Assistant U.S. Attorney Peter Deegan said in court.

Peregrine's collapse dealt a blow to confidence in the U.S futures industry, already reeling from $1.6 billion hole in customer pockets left when giant brokerage MF Global failed nine months earlier.

Futures traders had never before suffered such large losses as a result of a brokerage failure.

Despite his misdeeds, Wasendorf "did do some positive things for the community," said former U.S. Congressman David Nagle from Iowa, who spoke up for the fallen CEO in court.

Nagle, who helped Wasendorf win zoning approval for Peregrine's environmentally-friendly headquarters, asked the judge for leniency.

"Who wants to defend the magnitude of the crimes Mr. Wasendorf committed?" he said. "But good people do bad things."

Wasendorf was well known for donating to local charities before his empire came crashing down.

However, he built his reputation for generosity using money stolen from his customers, Judge Reade said, adding that the donations likely lessened Wasendorf's feelings of guilt.

Peregrine customers "unwittingly funded the charities, but it was Mr. Wasendorf who took the credit," she said.

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Hawks' streak ends in 3-2 shootout loss

Blackhawks suffered first loss of the season.

ST. PAUL, Minn. — For the first time this season, the only sounds in the Blackhawks' postgame dressing room were pieces of tape being ripped from pads and hushed tones.

Gone was the celebrating as the Hawks had their six-game winning streak to start 2013 snapped as the Wild edged them 3-2 in a shootout Wednesday night at Xcel Energy Center.

Matt Cullen scored the winner in the shootout for the Wild as the Hawks suffered their first loss on the road in five outings. Cullen and Cal Clutterbuck scored in regulation and Niklas Backstrom earned the victory in goal in relief of Josh Harding for the Wild, playing the second of back-to-back games.

"Those are the tight games in the last three or four games that we found a way to win," said Hawks captain Jonathan Toews, who scored in regulation and in the shootout. "We were this close again and we had a great chance to win in overtime and in the shootout but we just came up a bit short.

"We just wanted to play a patient game and keep wearing them down as much as we could (but) we didn't get on them as much as we wanted to."

Andrew Shaw also had a goal in regulation for the Hawks but it wasn't enough as Corey Crawford suffered the defeat in the first of the six-game trip. The Hawks managed a point and lead the NHL with 13, but fell to 4-0-1 on the road.

"We played a lot better the second half of the game," defenseman Duncan Keith said. "If we had won we probably would be saying we played a great game and we're happy, but we lost in a shootout so we're not going to get down and get negative."

After the Wild struck early in the opening period on Cullen's goal, the Hawks answered when Shaw and Toews scored 1 minute, 31 seconds apart a few minutes later. First, Shaw rushed the net and took a pass from Bryan Bickell and stuffed it past Harding.

Toews put the Hawks ahead when he snapped a quick shot from the left dot that eluded Harding. Wild coach Mike Yeo had seen enough and yanked Harding, who proceeded to take out his frustration on his goalie stick in the tunnel leading to the dressing room.

The Hawks rode the momentum of a strong penalty-killing effort into the intermission but it was short-lived as Clutterbuck redirected a long Tom Gilbert shot in the opening minute of the second.

With Crawford and Backstrom both playing well, the game eventually went to the shootout. It ended when Patrick Sharp rifled a shot off the crossbar and the Wild had the extra point.

"Going to a shootout, anything can happen," Hawks coach Joel Quenneville said. "We had the play in the last part of the game. It's disappointing, obviously, when you don't win but at least let's get excited about getting back in the 'W' column."

ckuc@tribune.com

Twitter @ChrisKuc

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Facebook's mobile ad revenue doubles in fourth quarter

SAN FRANCISCO (Reuters) - Facebook Inc doubled its mobile advertising revenue in the fourth quarter, a sign that the No.1 social network is seeing early success in expanding onto handheld devices as more of its users migrate to smartphones and tablets.

Investors want to see evidence that CEO Mark Zuckerberg's 8-year-old company is delivering on promises to develop a full-fledged mobile advertising business, a challenge facing many of today's technology leaders including Google Inc.

But the growth trailed some of Wall Street's most aggressive estimates. Shares of Facebook were down roughly 3 percent at $30.21 in after-hours trading on Wednesday, regaining ground after falling more than 8 percent immediately after the numbers were released.

Mobile revenue estimates among some analysts and investors were unreasonably high, said Sterne, Agee & Leach analyst Arvind Bhatia.

"As a result the stock was set up for disappointment," he said. Overall, he said, Facebook's results were encouraging.

The company's overall advertising business grew at its fastest clip since before its May initial public offering, helping the company's revenue expand 40 percent and surpass Wall Street targets.

Facebook has rolled out a wide variety of new services in recent months as the company seeks to stay ahead in the fast-moving Web market and to convince Wall Street that it can turn its audience of more than 1 billion users into a sustainable business.

Zuckerberg said the company plans to spend heavily to recruit talent in 2013 as the company pushes forward with new product development, particularly "mobile-first" services.

"We aren't operating to maximize our profit this year but we're doing what we think will build the best service and business over the long term," Zuckerberg said during a conference call with analysts on Wednesday.

The strategy makes sense for an Internet company, said Stifel Nicolaus Jordan Rohan. But it will force Wall Street analysts to "ratchet down" their profit expectations.

"The conference call was a bit of a sobering event," said Rohan. "The company advised analysts and investors to expect lower margins, and downplayed the near-term opportunity for revenues from Gifts," Facebook's recently-launched online commerce service.

FUTURE OPPORTUNITIES

Facebook shares, which lost more than half their value following a rocky IPO, have regained ground in recent months as concerns about its mobile ad business and insider selling have eased. Shares have surged roughly 60 percent since mid-November.

Zuckerberg said that recently introduced products such as Gifts, which allows Facebook users to purchase retail goods for their friends, as well as its new social search tool could become important businesses in the future. But in the near term he said that Facebook's advertising efforts will be the core of its business.

The number of monthly active users on the social network reached 1.06 billion at the end of last year, with 618 million daily active users, Facebook said. But much of that growth again came from emerging markets like Asia, rather than the United States or Europe, where revenue per user is several times higher. For instance, average revenue per user is $13.58 for the United States and Canada, but just $2.35 in Asia.

Overall fourth-quarter revenue came to $1.585 billion, up 40 percent versus $1.131 billion a year earlier. Analysts were looking for revenue of $1.53 billion.

Executives said some revenue from its payments business dating back to September 2012 had been booked in the October-December quarter, inflating the number somewhat. Excluding those deferred sales, overall revenue would have been up just 34 percent in the quarter.

But it was the fledgling mobile business that dominated Wednesday's discussion on the call. Finance Chief David Ebersman said Facebook had "basically doubled" mobile ad revenue from the third quarter to the fourth quarter.

"Two quarters ago we really had no mobile revenue," Ebersman told Reuters in an interview. "In the course of a pretty short period of time, we've dramatically ramped up our ability to monetize mobile."

Facebook said net income in the fourth quarter was $64 million, or 3 cents a share, compared to $302 million, or 14 cents a share a year earlier.

Excluding certain items, Facebook said it earned 17 cents a share, compared to the 15 cents a share expected by analysts polled by Thomson Reuters I/B/E/S.

Facebook expects expenses -- excluding stock-based compensation for employees -- to jump 50 percent in 2013, likely outpacing revenue growth. Capital investments may climb to $1.8 billion, up 14 percent from last year's $1.575 billion.

"They're going to have to continue to develop new products, which will cost them," said Bhatia of Sterne, Agee & Leach.

But he said, "the market would be less happy if they were not finding enough opportunities."

(Reporting by Alexei Oreskovic; Editing by Phil Berlowitz and Ryan Woo)

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