Amputee Olympic star Pistorius charged in slaying

PRETORIA, South Africa (AP) — Oscar Pistorius, the double-amputee sprinter dubbed the Blade Runner, was charged Thursday in the Valentine's Day slaying of his girlfriend at his upscale home in South Africa, a shocking twist to one of the feel-good stories of last summer's Olympics.

Pistorius buried his face in the hood of his workout jacket as officers escorted him from a police station after his arrest in the shooting death of Reeva Steenkamp, a 30-year-old model who had spoken out on Twitter against rape and abuse of women.

Police said she was shot four times in the pre-dawn hours at Pistorius' villa in a gated community in the capital, Pretoria. Officers found a 9 mm pistol inside the home and arrested Pistorius on a murder charge.

What sparked the shooting remained unclear, but police said they had received calls in the past about domestic altercations at the home of the 26-year-old athlete, who has spoken publicly about his love of firearms.

A police spokeswoman, Brigadier Denise Beukes, said the incidents included "allegations of a domestic nature."

"I'm not going to elaborate on it, but there have been incidents," Beukes said. She said Pistorius was home at the time of Steenkamp's death and "there is no other suspect involved."

Pistorius made history in the London Games when he became the first double-amputee track athlete to compete in the Olympics. He didn't win a medal but did make the semifinals of the 400 meters and became an international star.

Thursday, companies quickly removed billboards and advertising featuring Pistorius, a national hero in South Africa who also inspired fans worldwide with the image of his high-tech carbon-fiber blades whipping through the air.

Kenny Oldwage, Pistorius' lawyer, told reporters the athlete was "emotional" after his arrest, "but he is keeping up." He said he planned to seek bail for Pistorius at a preliminary hearing Friday.

Pistorius has had troubles in the past in his personal life, which often featured fast cars, cage fighters and women.

In February 2009, he crashed a speedboat on South Africa's Vaal River, breaking his nose, jaw and several ribs and damaging an eye socket. He required 180 stitches to his face. Witnesses said he had been drinking, and officers found alcoholic beverages in the wreckage, though they did not do blood tests.

In November, Pistorius was involved in an altercation over a woman with a local coal mining millionaire, South African media reported. The two men involved the South African Police Service's elite Hawks investigative unit before settling the matter.

Pistorius' father, Henke Pistorius, said Thursday: "We all pray for guidance and strength for Oscar and the lady's parents."

A spokeswoman for Pistorius at Fast Track, an international sports marketing agency in London, said the athlete was assisting with the investigation and there would be no further comment "until matters become clearer."

The sprinter's former coach, Andrea Giannini, said he hoped the shooting was "just a tragic accident."

"No matter how bad the situation was, Oscar always stayed calm and positive," Giannini told The Associated Press in Italy. "Whenever he was tired or nervous, he was still extremely nice to people. I never saw him violent."

Firearms captivated Pistorius, the subject of an online Nike advertisement that featured him with the caption: "I am a bullet in the chamber." In November 2011, he posted a photograph on Twitter of himself at a shooting range, bragging about his score. "Had a 96% headshot over 300m from 50shots! Bam!" he wrote.

Linked to a number of women by the South African media, Pistorius and Steenkamp were first seen together publicly in November. She was named one of the world's 100 Sexiest Women for two years running by the men's magazine FHM.

The leggy blonde with a law degree also appeared in international and South African ads and was a celebrity contestant on "Tropika Island of Treasure," a South African reality show filmed in Jamaica.

While known for her bikini-clad, vamping photo spreads, she tweeted messages urging women to stand up against rape. Her tweets also focused on Pistorius, with one of her last messages noting her excitement over Valentine's Day.

"What do you have up your sleeve for your love tomorrow?" she wrote. "It should be a day of love for everyone."

Police have not publicly named Steenkamp as the victim, saying only that a 30-year-old woman was killed. Steenkamp's publicist, however, confirmed in a statement that the model had died.

"Everyone is simply devastated," the publicist, Sarit Tomlinson, said. "She was the kindest, sweetest human being; an angel on earth and will be sorely missed."

Police arrived at Pistorius' home after 3 a.m., and paramedics tried unsuccessfully to revive Steenkamp, police spokeswoman Lt. Col. Katlego Mogale said.

Officers later took Pistorius to a hospital so doctors could collect samples for DNA testing and check his blood alcohol content.

Pistorius had both legs amputated below the knee before his first birthday because of a congenital condition, and campaigned for years to be allowed to compete against able-bodied athletes.

He was initially banned because of his carbon fiber blades — which critics said gave him an unfair advantage — before being cleared by sport's highest court in 2008.

He was a last-minute selection to South Africa's Olympic team, competing in the 400 meters and the 4x400 relay. He later retained his Paralympic title in the 400 meters.

South Africa's Sports Confederation, its Olympic committee and the International Paralympic Committee all had no comment on the shooting.

Shock rippled across South Africa, a nation of 50 million where nearly 50 people are killed each day, one of the world's highest murder rates. U.N. statistics say South Africa also has the second highest rate of shooting deaths in the world, behind only Colombia.

"The question is: Why does this story make the news? Yes, because they are both celebrities, but this is happening on every single day in South Africa," said Adele Kirsten, a member of Gun Free South Africa.

"We have thousands of people killed annually by gun violence in our country. So the anger is about that it is preventable."

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Gerald Imray reported from Cape Town, South Africa. Associated Press writers Michelle Faul and Ed Brown in Johannesburg contributed to this report.

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

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'Melrose' actress gets 3 years for deadly NJ crash

SOMERVILLE, N.J. (AP) — A former "Melrose Place" actress who was drunk when her SUV plowed into a car and killed a woman was sentenced Thursday to three years in prison, infuriating the victim's relatives, who had hoped for the 10-year maximum.

"What a travesty!" the victim's husband, Fred Seeman, yelled after the sentence was read.

"This is not justice," the victim's 26-year-old son, Ford Seeman, told the judge before he stormed out of the courtroom.

A jury in November convicted Amy Locane-Bovenizer of vehicular homicide in the 2010 death of 60-year-old Helene Seeman in Montgomery Township.

Locane-Bovenizer will be eligible for parole after 2 1/2 years and will be credited the 81 days she has already served. She also had her license suspended for five years and will be on probation for three years after her release. She must pay several thousand dollars in fines.

Locane-Bovenizer, who didn't testify at the trial, appeared in 13 episodes of TV's "Melrose Place" and in movies including "Cry-Baby," ''School Ties" and "Secretary."

Prosecutors say she was driving with a blood-alcohol level nearly three times the legal limit when her SUV slammed into a Mercury Milan driven by Fred Seeman as he was turning into his driveway. Fred Seeman's wife, Helene, was killed, and he was seriously injured.

During the trial, the defense argued that Fred Seeman was making a slow turn, which contributed to the crash. They maintained that it was an accident, not a crime.

The defense also shifted blame to a third motorist who they say distracted the actress by honking at her and chasing her after being rear-ended. They said the chase led Locane-Bovenizer to drive 20 miles over the speed limit on a dark two-lane road.

The judge lowered the maximum sentence citing the hardship on Locane-Bovenizer's two young children. One has a serious medical and mental disability. The defense went into detail about how her sick child was deteriorating physically and psychologically since the actress' incarceration and about how a prolonged sentence would make it worse.

"I'm just glad her little girls will have their mother back soon," Locane-Bovenizer's mother, Helen Locane, said as she walked out of the courtroom.

In an emotionally charged statement, Fred Seeman told the court that the defense contention that his vehicle was turning slowly added "salt on the wound," and he said he was appalled that Locane-Bovenizer took no responsibility for killing his wife.

The actress, in turn, apologized to Seeman's family and said she did take full responsibility.

"I am truly sorry for all of the pain I have caused," she said, struggling to get through her statement, as she looked toward the family that packed one side of the courtroom while her friends and family packed the other. "My own suffering will never go away."

Judge Robert Reed said that he had no sympathy for the actress but that the children should not suffer even more because of her actions.

The Seeman family said after the sentencing that the decision was a "mockery" and only added to the suffering they've endured since the accident.

"What's one more punch in the gut?" Ford Seeman said.

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Buffet, 3G to buy Heinz for $23B

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

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

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

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

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

BUFFETT HUNTING GROWTH

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

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

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

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

3G EXPANDS

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

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

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

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

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

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

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

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

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

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

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

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Chicago Public Schools narrows its closing list to 129

Chicago Public Schools has narrowed the number of schools it will consider for closing to 129.

The preliminary list will be culled further before a final list is released by March 31.

Schools will be removed from the list as the district continues to gather information from parents, teachers and community groups during a new round of hearings that begin Wednesday night.

The district in December said 330 schools are underutilized, the chief consideration for closing, so the list released Wednesday offers a far better picture of what schools are still on the block.

Most of the targeted schools are on the South, West and Southwest Sides, many in impoverished neighborhoods that saw significant population loss over the last decade.

CPS last month removed high schools and high performing schools from consideratio. On Wednesday, the district told schools with student populations over 600 or utilization rates of at least 70 percent that they also were safe.

“We are going to take these 129 and continue to sift through these schools,” said CPS schools chief Barbara Byrd-Bennett.

Over the next month, CPS will look at schools on the preliminary list in an effort to determine what led to the declines in enrollment, and whether the schools have academic plans in place to drive improvement.

Safety issues connected with moving students to different neighborhoods will also be considered. CPS is working with the Chicago Police Department and using its own data to determine if closing specific schools could jeopardize the safety of students.

CPS says it needs to close a significant number of under-utilized schools to “right-size” the district and address a $1 billion deficit expected next year.

District officials say closings this year will be based primarily on under-enrollment but have begun looking at academic performance as they whittle down their list.

The district has been holding school closing meetings across the city since December. The initial round of meetings were overseen by the Commission on School Utilization, whose recommendations included removing high schools and the best performing schools.

Most of the additional criteria announced Wednesday came out of suggestions made by the commission and gathered during community meetings the district began holding in late January. Byrd-Bennett had asked for more time to study the commission’s recommendations and define parameters like which improving schools should be taken off the list.

Schools in the middle tier of performance, or Level 2, that have seen increased enrollment over the last three years will be removed from consideration. There are 33 Level 2 schools still on the preliminary list.

District officials have also decided to no longer target Level 3 or the worst-performing schools that have shown gains on state assessment tests while serving 300 or more students. Schools that were designated by CPS to take in students from school closings over the past three years or were forced to share their building with another school this year have also been taken off the chopping block.
 
In addition, CPS added a few parameters: Schools separated from another neighborhood school by more than a mile, and schools that are surrounded by neighborhood schools that are at capacity or overcrowded, are no longer targeted for a shut down.

Tribune reporter John Chase contributed to this story.

nahmed@tribune.com

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No "Plan B" for Microsoft's mobile ambitions: CFO

SEATTLE (Reuters) - Microsoft Corp has not made much of a dent in Apple Inc's and Google Inc's domination of mobile computing, but a top executive hinted on Wednesday that it will not stop trying and does not have an alternative strategy.

"We're very focused on continuing the success we have with PCs and taking that to tablets and phones," Microsoft's Chief Financial Officer Peter Klein said at the annual Goldman Sachs Technology and Internet Conference in San Francisco, which was webcast.

Given Microsoft's lack of success so far, he was asked if there was an alternative strategy or 'Plan B' in reserve.

"It's less 'Plan B' than how you execute on the current plan," said Klein. "We aim to evolve this generation of Windows to make sure we have the right set of experiences at the right price points for all customers."

Microsoft now has two versions of its own brand Surface tablet for sale and released its newest Windows phone software last year. But the company has not made big inroads into either market.

Gartner estimates that Microsoft sold fewer than 900,000 Surface tablets in the fourth quarter, which is a fraction of the 23 million iPads sold by Apple. Microsoft has not released its own figures but has not disputed Gartner's.

Windows phones now account for 3 percent of the global smartphone market, Gartner says, which is almost double their share a year ago but way behind Google's Android with 70 percent and Apple with 21 percent.

To grab more share, Klein said Microsoft was working with hardware makers to make sure Windows software is available on devices ranging from phones to tablets to larger all-in-one PCs.

"It's probably more nuanced than just you lower prices or raise prices," said Klein. "It's less a Plan B and more, how do you tweak your plan, how do you bring these things to market to make sure you have the right offerings at the right price points?"

Klein did not say whether Microsoft itself was planning to move into the growing small tablet market, following the success of Apple's iPad mini, Google's Nexus 7 and Amazon.com Inc's Kindle Fire tablet.

Along with its partners, Klein said only that Microsoft was "well set-up to deliver the most versatile set of experiences across form factors".

Regarding Microsoft's $2 billion loan to Michael Dell and private equity firm Silver Lake to take PC maker Dell Inc private, announced last week, Klein suggested it was simply part of its efforts to support the "ecosystem" of PC makers.

"We have a long history of participating and supporting the ecosystem and that takes different forms. Oftentimes it takes the form of co-marketing, sometimes in helping with development," said Klein. "In a very dynamic industry, our ability to support the ecosystem - particularly the ecosystem that is innovating on our devices and platforms - is a good thing and something we will continue to do."

(Reporting By Bill Rigby; Editing by Kenneth Barry)

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Barry Bonds seeks dismissal of felony conviction

SAN FRANCISCO (AP) — A lawyer for Barry Bonds urged a federal appeals court on Wednesday to toss out the slugger's obstruction of justice conviction, saying a rambling answer he gave while testifying before a grand jury was not a crime.

Appellate specialist Dennis Riordan argued that Bonds was not formally or specifically charged with the felony that he was convicted of committing. A federal jury in April 2011 found baseball's all-time home runs leader guilty of obstruction for saying he was a "celebrity child" when asked about injecting steroids.

Prosecutors asked Bonds during his December 2003 grand jury appearance whether Greg Anderson, his personal trainer, ever gave him "anything that required a syringe to inject yourself with?"

Bonds referred to his father, former major leaguer Bobby Bonds, when he responded "that's what keeps our friendship. You know, I am sorry, but that — you know, that — I was a celebrity child, not just in baseball by my own instincts. I became a celebrity child with a famous father. I just don't get into other people's business because of my father's situation, you see ..."

That particular exchange wasn't included in the indictment originally released in November 2007. The omission is "the dagger in the heart of this conviction," Riordan argued.

Further, Riordan said that Bonds ultimately answered the question when put to him again and denied receiving any substance to inject.

Judge Michael Daly Hawkins wondered aloud if Bonds' direct denial undercut the government's argument that Bonds intentionally misled the grand jury.

Assistant U.S. Attorney Merry Jean Chan countered that the denial was a lie because Bonds' former personal assistant, Cathy Hoskins, testified that she witnessed Anderson inject Bonds. Chan said Bonds' denial and his other rambling answers to the same question throughout his grand jury appearance added up to obstruction.

"He answered the question falsely each time," she said.

Bonds and his legal team are asking a three-judge panel of the U.S. 9th Circuit Court of Appeals to dismiss the lone felony conviction stemming from Bonds' 2½ hours of testimony in December 2003 before a grand jury investigating performance enhancing drug use and sales among elite athletes. Bonds, who was rejected by voters last month in his first year of eligibility for the Hall of Fame, wasn't required to attend Wednesday's highly technical hearing, though Riordan said his client expressed a desired to watch the proceedings in person.

Riordan said outside court that he advised Bonds to watch from afar rather than personally attending the 35-minute session San Francisco. A local television station was given permission to show the hearing live and streamed at least a couple of segments on the Internet.

"His presence would have been a distraction," Riordan said.

Legal experts who have followed the case closely since his grand jury appearance in December 2003 are divided over Bonds' chances before Daly Hawkins and Judges Mary Schroeder and Mary Murguia, each of whom was appointed by a different Democrat president and all of whom are based in Phoenix, home of San Francisco's division rival Diamondbacks and about a 20-minute drive from the Giants' Scottsdale spring training facility.

One set of analysts argue that appellate courts are reluctant to overturn jury verdicts absent an overwhelmingly obvious mistake. They say that U.S. District Judge Susan Illston, who ran the trial, is a respected jurist who has few of her cases overturned.

"There is a definite overriding respect of a jury's verdict," said Howard Wasserman, a Florida International University law professor. "Typically, it's pretty hard to get a jury's verdict reversed."

On the other hand, there are those lawyers who argue that Bonds stands a good chance to clear his name.

"The government's biggest hurdle is that testimony obstruction cases are usually based on blatant, undeniable lies to questions at the heart of an investigation," said William Keane, a San Francisco criminal defense attorney. "Here the prosecution limps in with only a single rambling, unresponsive, unimportant answer that is literally true."

Regardless of the outcome, University of New Hampshire law professor Michael McCann contends that the case was ultimately a loss of the U.S. Department of Justice. In a case that put a superstar athlete at the defendant's table, the jury deadlocked on three charges of making false statements

"The main thrust of the government's original case was that he lied when he denied taking steroids," said McCann, who also edits the popular Sports Law Blog. "That's not what he was convicted of. Obstruction was not the main charge."

If Bonds' conviction is upheld, he will have to serve 30 days house arrest.

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First lady plugs 'Beasts of the Southern Wild'

WASHINGTON (AP) — Michelle Obama on Wednesday gushed over the Oscar-nominated film "Beasts of the Southern Wild," calling it one of the "most powerful and most important" movies in a long time in a ringing endorsement delivered less than two weeks before this month's Academy Awards ceremony.

The first lady commented during a Black History Month workshop at the White House for about 80 middle- and high-school students from the District of Columbia and New Orleans. The movie was set in Louisiana.

Students saw the film, then got to question director Benh Zeitlin and actors Dwight Henry and 9-year-old Quvenzhane Wallis. Wallis stars in the mythical tale of a 6-year-old girl named Hushpuppy struggling to survive in the southern Delta with her ailing father as a storm approaches. Her world consists of a tight-knit, shantytown community on the bayou with wild animals, both real and imagined.

The film won four Oscar nominations, including for best picture, best actress and directing.

Mrs. Obama said she saw the 93-minute film over the summer with a large group of friends and family who ranged in age from 3 to 73, and they were enthralled by it.

"It's rare these days to find a movie that can so completely and utterly captivate such a broad audience and that was one of the things that struck me about this movie," she said. "It managed to be beautiful, joyful and devastatingly honest."

The first lady said "Beasts" makes viewers "think deeply about the people we love in our lives who make us who we are" and shows the strength of communities and the power they give others to overcome obstacles.

"It also tells a compelling story of poverty and devastation but also of hope and love in the midst of some great challenges," she said.

Mrs. Obama also said it was "cool" that "there are so many important lessons to learn in that little 93 minutes."

"That a director and a set of writers and producers can say so much in just 93 minutes," the first lady told the students. "And it doesn't always happen in a movie, quite frankly, but this one did it, and that's why I love this movie so much and why our team wanted to bring it here to the White House and share it with all of you."

Mrs. Obama also used the film to inspire her young audience, noting that Wallis was just 5 years old when she auditioned for the part and Henry, who runs a bakery, had never acted a day in his life.

"You all have to really be focused on preparing yourselves for the challenges and the opportunities that will lie ahead for all of you. You've got to be prepared," she said, urging them to go to school, do their homework every day and follow her husband's example by reading everything they get their hands on.

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Follow Darlene Superville on Twitter: http://www.twitter.com/dsupervilleap

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Feds OK insurance exchange partnership

Health and Human Services Secretary Kathleen Sebelius on Wednesday said her department conditionally approved Illinois’ plan to operate a health insurance exchange in a partnership with the federal government, a widely expected move that makes the state the third to receive the official go ahead. 

Sebelius plans to make the announcement Wednesday afternoon at a West Side clinic alongside Gov. Pat Quinn, Sebelius said the approval will allow the state and the federal government to continue work on readying the online marketplace for Oct. 1, when uninsured Illinoisans can begin signing up for health insurance offered under the 2010 health care overhaul law.

Under the partnership model, Illinois will maintain its responsibility for regulating the insurance market, a function that will allow the state to tailor the types of private health insurance plans offered through the exchange. Illinois also will be in charge of customer assistance, which will allow it to conduct outreach efforts and aid people in signing up.

The federal government is responsible for building and operating the exchange.

Illinois becomes the third state to have its partnership plan approved, following Delaware and Arkansas. A handful of other states, including Iowa, Michigan, West Virginia and New Hampshire, also are interested in the partnership model. Other states have opted to set up and run their own exchanges, while a majority refused to participate, relying on the federal government to do so.

Sebelius is in town through Thursday to meet with several large stakeholders, including union leaders, clergy and community groups, to raise awareness about the forthcoming exchanges, a spokesman said.

The exchanges are a crucial part of the government's plan to expand the number of Americans who have some form of health insurance.

Eventually, an estimated 20 million people will benefit from federal tax credits starting in 2014 that will help offset the cost of paying for insurance premiums. Even so, the government estimates that about 6 million Americans will not sign up and will start paying tax penalties in 2014.

In the first year, those penalties are relatively modest, starting at $95 for adults and $47.50 per child. But they’re expected to increase in future years, eventually totaling nearly $7 billion in 2016, an average fine of about $1,200 per person.

While states were given the option of setting up and running their own exchanges, only 18 chose to do so, with most of the rest opting to allow the federal government to operate them, at least in the beginning.

Julie Hamos, director of the state Department of Healthcare and Family Services, has said she hopes to get legislation passed this spring to authorize a purely state-run exchange that will be up and ready in time for open enrollment for 2015.

Meanwhile, consumers can expect a marketing blitz during the summer and into the fall touting the exchanges, which will serve individuals who are not eligible for Medicare or Medicaid and not offered health insurance through their employers.

pfrost@tribune.com | Twitter: @peterfrost

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Ex-cop shootout: 1 deputy killed, 1 wounded, sources say

Christopher Dorner was engaged in a shootout with federal authorities in the Big Bear area Tuesday, a law enforcement source told The Times.

Los Angeles Times

5:53 p.m. CST, February 12, 2013

One of the deputies involved in a gun battle Tuesday afternoon with fugitive former police officer Christopher Dorner has died of his wounds, law enforcement sources told The Times.

The San Bernardino County sheriff's deputy was airlifted to Loma Linda University Medical Center, where he was pronounced dead, according to the sources. 

Another deputy was also wounded in the shootout near a cabin where Dorner was believed to be holed up in the snow-covered mountains near Big Bear. His condition was not immediately known.

The afternoon gun battle in which hundreds of rounds were exchanged was part of a quickly changing situation that began after Dorner allegedly broke into a home, tied up a couple and held them hostage before fleeing with their white pickup truck, authorities said. 

Then Dorner was allegedly spotted by state Fish and Wildlife officers in the pickup truck, sources said. A vehicle-to-vehicle shootout ensued. The officer's vehicle was peppered with multiple rounds, according to authorities.

Dorner crashed his vehicle and took refuge in a nearby cabin, sources said. One deputy was hit as Dorner fired out of the cabin and a second deputy was injured when Dorner exited the back of the cabin, deployed a smoke bomb and opened fire again in an apparent attempt to flee. Dorner was driven back inside the cabin, the source said.

He remained inside the cabin Tuesday afternoon as officers swarmed the site.

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Yahoo CEO says Microsoft search deal underperforms

SAN FRANCISCO (Reuters) - Yahoo Inc Chief Executive Marissa Mayer said the company's search partnership with Microsoft Corp was not delivering the market share gains or the revenue boost that it should.

"One of the points of the alliance is that we collectively want to grow share rather than just trading share with each other," Mayer said at the Goldman Sachs Technology and Internet Conference in San Francisco on Tuesday.

In her first appearance at an investor conference since taking the reins of the struggling Web portal in July, Mayer said she planned to prune a sprawling lineup of mobile apps and she reiterated her focus on enticing consumers to spend more time on Yahoo's online properties, in order to display more money-making ads.

"I'm not confused. Our biggest business problem right now is impressions. Basically can we grow impressions, can we get growth happening here," Mayer said.

Yahoo shares finished Tuesday's regular trading session up 31 cents at $21.21.

Mayer, 37, took over after a tumultuous period at Yahoo in which former CEO Scott Thompson resigned after less than 6 months on the job over a controversy about his academic credentials and in which Yahoo co-founder Jerry Yang resigned from the board and cut his ties with the company.

Yahoo's revenue in 2012 was flat year-over-year, at roughly $5 billion, and down from roughly $6.3 billion in 2010.

"We need to see monetization working better because we know that it can and we've seen other competitors in the space illustrate how well it can work," Mayer said of the search deal with Microsoft.

Yahoo and Microsoft entered into a 10-year search partnership in 2010, hoping their combined efforts could mount a more competitive challenge to Google Inc, the world's No.1 search engine. But the partnership has not lived up to expectations.

Google remains the dominant search engine, with a 66.7 percent share of the U.S. market in December, almost unchanged from its 66.6 percent share two years earlier, according to online analytics firm comScore.

Microsoft had 16.3 percent share and Yahoo had 12.2 percent share in December, a reversal of two years earlier when Yahoo's U.S. search share was 16 percent and Microsoft had 12 percent share.

Yahoo's stock has risen more than 30 percent since Mayer took the helm in July, reaching its highest levels since 2008.

Analysts say that part of the stock's rise has been driven by significant stock buybacks, using proceeds from a $7.6 billion deal to sell half of its 40 percent stake in Chinese Internet company Alibaba Group.

Mayer said that she viewed the company's relationship with Yahoo Japan, which is partly owned by Softbank, as "strategic" to the company. Under previous CEOs, Yahoo had engaged in unsuccessful discussions to "monetize" its roughly 35 percent stake in Yahoo Japan.

(Reporting by Alexei Oreskovic; Editing by Phil Berlowitz)

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