Mom, daughter stabbed to death on South Side

Brittany Pullum describes the scene at a fire in the East Chatham neighborhood on Wednesday afternoon. (Posted on: Feb. 21, 2013)

Curtria Duncan had gone back to school to become a medical technician. Her mother Cherie Adams doted on her grandchildren.

Wednesday afternoon, the two were found stabbed in the bathroom of their apartment in the East Chatham neighborhood as firefighters put out a suspicious blaze.

Duncan, 24, was lying inside a bathtub and Adams, 43, was lying on the floor nearby in their apartment in the 8100 block of South Maryland Avenue, officials said.

Duncan died from "homicidal asphyxia," with multiple sharp force injuries a contributing factor in her death and Adams died from multiple sharp force and blunt force injuries, the Cook County medical examiner's office determined following autopsies. Both deaths were ruled homicides.

The apartment may have been set on fire to conceal the homicides, sources said. A large kitchen knife was found in the bathroom. No arrests have been reported.

"It hurts so bad," said Duncan’s sister Rochelle Pinex, 28, of Harvey. "Who could have done this and what for?"

Duncan had a 3-year-old son, Michael, but the boy was not home because he was visiting his father, Pinex said.

She said Duncan was studying to become a medical technician at Kennedy-King College, where she’d met a man who works at the school.

Pinex said Adams was her stepmother who had eight grandchildren who called her “Nana.’’

"She was changing her life around," Pinex said of Adams. "She was going to church three times a week and trying to spend more time with her grandchildren."

She described her sister and stepmother as people who “stayed to themselves’’ mostly.  “They don’t bother anybody,'' she said, sobbing.

Pinex said the women lived at the Maryland address for just under a year and rarely socialized, except for going to church and classes. “She’s a quiet girl,’’Pinex said of her sister.

Pinex, who has three children, said her 8-year-old daughter was looking forward to seeing Adams. “My kids, they loved their Nana to death,’’ she said. Her daughter was “begging” to go there for a weekend visit.

“She tugs at her (Adams’) heart and made her feel good,’’ Pinex said. “My daughter was her heart.’

“I’m trying to be strong,’’ Pinex said. “I can’t believe this tragedy.’’

chicagobreaking@tribune.com

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SAfrica police replace top Pistorius investigator

PRETORIA, South Africa (AP) — South African police appointed a new chief investigator Thursday in the Oscar Pistorius murder case, replacing a veteran detective after unsettling revelations that the officer was charged with seven counts of attempted murder.

The sensational twist in the state's troubled investigation fueled growing public fascination with the case against the double-amputee Olympian, who is charged with premeditated murder in the Valentine's Day slaying of his girlfriend, Reeva Steenkamp.

Pistorius, a sporting icon and source of inspiration to millions until the shooting last week, is backed by a high-powered team of lawyers and publicists. The abruptness of his fall, and its gruesome circumstances, have gripped a global audience and put South Africa's police and judicial system under the spotlight.

The man at the center of the storm sat in the dock during his bail hearing, mostly keeping his composure in contrast to slumped-over outbursts of weeping on previous days in court. In front of Pistorius, defense lawyer Barry Roux pounced on the apparent disarray in the state's case, laying out arguments that amounted to a test run for the full trial yet to come.

Roux pointed to what he called the "poor quality" of the state's investigation and raised the matter of intent, saying Pistorius and Steenkamp had a "loving relationship" and the athlete had no motive to plan her killing.

Pistorius, 26, says he mistook Steenkamp for an intruder when he shot her through a locked bathroom door in his home. Prosecutors believe the shooting happened after the couple got into an argument, and prosecutor Gerrie Nel painted a picture of a man he said was "willing and ready to fire and kill."

Much of the drama Thursday, however, happened outside the courtroom as South African police scrambled to get their investigation on track.

In a news conference at a training academy, National Police Commissioner Riah Phiyega said a senior detective would gather a team of "highly skilled and experienced" officers to investigate the killing of 29-year-old Steenkamp, a model and budding reality TV contestant.

The decision to put police Lt. Gen. Vinesh Moonoo in charge came soon after word emerged that the initial chief investigator, Hilton Botha, is facing attempted murder charges, and a day after he offered testimony damaging to the prosecution.

Botha acknowledged Wednesday in court that nothing in Pistorius' version of the fatal shooting contradicted what police had discovered, even though there have been some discrepancies. Botha also said that police left a 9 mm slug in the toilet and lost track of allegedly illegal ammunition found in Pistorius' home.

"This matter shall receive attention at the national level," Phiyega told reporters after testimony ended in the third day of Pistorius' bail hearing.

Bulewa Makeke, spokeswoman for South Africa's National Prosecuting Authority, said the attempted murder charges had been reinstated against Botha on Feb. 4. Police say they found out about it after Botha testified in Pistorius' bail hearing Wednesday.

Botha and two other police officers had seven counts of attempted murder reinstated against them in connection with a 2011 shooting incident in which they allegedly fired shots at a minibus they were trying to stop.

Makeke indicated the charges were reinstated because more evidence had been gathered. She said the charge against Botha was initially dropped "because there was not enough evidence at the time."

Pistorius' main sponsor, Nike, meanwhile, suspended its contract with the multiple Paralympic champion, following eyewear manufacturer Oakley's decision to suspend its sponsorship. Nike said in a statement on its website: "We believe Oscar Pistorius should be afforded due process and we will continue to monitor the situation closely."

On Thursday, Chief Magistrate Desmond Nair asked the defense regarding Pistorius' bail application: "Do you think there will be some level of shock if the accused is released?"

Defense lawyer Roux responded: "I think there will be a level of shock in this country if he is not released."

Prosecutor Nel suggested signs of remorse from Pistorius had nothing to do with whether he planned to kill his girlfriend.

"Even if you plan a murder, you plan a murder and shoot. If you fire the shot, you have remorse. Remorse might kick in immediately," Nel said.

As Nel summed up the prosecution's case opposing bail, Pistorius began to weep in the crowded courtroom, leading his brother, Carl Pistorius, to reach out and touch his back.

"He (Pistorius) wants to continue with his life like this never happened," Nel went on, prompting Pistorius, who was crying softly, to shake his head.

"The reason you fire four shots is to kill," Nel persisted.

Earlier Thursday, Nair questioned Botha over delays in processing records from phones found in Pistorius' house following the slaying.

"It seems to me like there was a lack of urgency," the magistrate said.

Botha is to appear in court in May to face seven counts of attempted murder in connection with the minibus shooting incident. He has been quoted in the South African media as denying allegations he was drunk at the time, saying he and the other officers were trying to stop the vehicle and didn't know there were people inside.

While Botha has been dropped from the Pistorius investigation, he has not been suspended from the police force, Phiyega said, and could still be called by defense lawyers at trial.

Pistorius, wearing the same gray suit, blue shirt and gray tie combination he has worn throughout the bail hearing, stood ramrod straight in the dock, then sat calmly looking at his hands.

Roux said an autopsy showed that Steenkamp's bladder was empty, suggesting she had gone to the bathroom to use the toilet, rather than fled there to escape an enraged Pistorius, as prosecutors contend.

"The known forensics is consistent" with Pistorius' statement, Roux said, asking that bail restrictions be eased for his client.

But the prosecutor said Pistorius hadn't given guarantees to the court that he wouldn't leave the country if he was facing a life sentence. Nel also stressed that Pistorius shouldn't be given special treatment.

"'I am Oscar Pistorius. I am a world-renowned athlete.' Is that a special circumstance? No," Nel said. "His version (of the killing) is improbable."

Nel said the court should focus on the "murder of the defenseless woman."

Botha testified Thursday that he investigated a 2009 complaint against Pistorius by a woman who said the athlete assaulted her. However, Pistorius did not hurt the woman, who in fact injured herself when she kicked a door at Pistorius' home, Botha said.

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AP Sports Writer Gerald Imray contributed to this report from Johannesburg

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Flu shot doing poor job of protecting older people

ATLANTA (AP) — It turns out this year's flu shot is doing a startlingly dismal job of protecting older people, the most vulnerable age group.

The vaccine is proving only 9 percent effective in those 65 and older against the harsh strain of the flu that is predominant this season, the Centers for Disease Control and Prevention said Thursday.

Health officials are baffled as to why this is so. But the findings help explain why so many older people have been hospitalized with the flu this year.

Despite the findings, the CDC stood by its recommendation that everyone over 6 months get flu shots, the elderly included, because some protection is better than none, and because those who are vaccinated and still get sick may suffer less severe symptoms.

"Year in and year out, the vaccine is the best protection we have," said CDC flu expert Dr. Joseph Bresee.

Overall, across the age groups studied, the vaccine's effectiveness was found to be a moderate 56 percent, which means those who got a shot have a 56 percent lower chance of winding up at the doctor with the flu. That is somewhat worse than what has been seen in other years.

For those 65 and older, the vaccine was only 27 percent effective against the three strains it is designed to protect against, the worst level in about a decade. It did a particularly poor job against the tough strain that is causing more than three-quarters of the illnesses this year.

It is well known that flu vaccine tends to protect younger people better than older ones. Elderly people have weaker immune systems that don't respond as well to flu shots, and they are more vulnerable to the illness and its complications, including pneumonia.

But health officials said they don't know why this year's vaccine did so poorly in that age group.

One theory, as yet unproven, is that older people's immune systems were accustomed to strains from the last two years and had more trouble switching gears to handle this year's different, harsh strain.

The preliminary data for senior citizens is less than definitive. It is based on fewer than 300 people scattered among five states.

But it will no doubt surprise many people that the effectiveness is that low, said Michael Osterholm, a University of Minnesota infectious-disease expert who has tried to draw attention to the need for a more effective flu vaccine.

Among infectious diseases, flu is considered one of the nation's leading killers. On average, about 24,000 Americans die each flu season, according to the CDC.

This flu season started in early December, a month earlier than usual, and peaked by the end of year. Hospitalization rates for people 65 and older have been some of the highest in a decade, at 146 per 100,000 people.

Flu viruses tend to mutate more quickly than others, so a new vaccine is formulated each year to target the strains expected to be the major threats. CDC officials have said that in formulating this year's vaccine, scientists accurately anticipated the strains that are circulating this season.

Because of the guesswork involved, scientists tend to set a lower bar for flu vaccine. While childhood vaccines against diseases like measles are expected to be 90 or 95 percent effective, a flu vaccine that's 60 to 70 percent effective in the U.S. is considered pretty good. By that standard, this year's vaccine is OK.

For senior citizens, a flu vaccine is considered pretty good if it's in the 30 to 40 percent range, said Dr. Arnold Monto, a University of Michigan flu expert.

A high-dose version of the flu shot was recently made available for those 65 and older, but the new study was too small to show whether that has made a difference.

The CDC estimates are based on about 2,700 people who got sick in December and January. The researchers traced back to see who had gotten shots and who hadn't. An earlier, smaller study put the vaccine's overall effectiveness at 62 percent, but other factors that might have influenced that figure weren't taken into account.

The CDC's Bresee said there is a danger in providing preliminary results because it may result in people doubting — or skipping — flu shots. But the figures were released to warn older people who got shots that they may still get sick and shouldn't ignore any serious flu-like symptoms, he said.

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Online:

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

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United takes Dreamliner off schedule until June

The All Nippon Airways Dreamliner 787 arrives at Mineta San Jose International Airport. (Gary Reyes/San Jose Mercury News/MCT / January 22, 2013)

Staff and wire report

1:35 p.m. CST, February 21, 2013

The parent company of United Airlines says it is taking the Boeing 787 off its schedule through June 5 for all but one of its routes.

United Continental Holdings Inc. said it still plans to use the 787 on its flights between Denver and Tokyo's Narita airport starting May 12. It had aimed to start that route on March 31.

United, currently world's largest airline and the only U.S. customer for the 787, said the timing of that reinstatement will depend on resolution of the Dreamliner's current issues.

The 50 Dreamliners in commercial service were grounded worldwide last month after a series of battery-related incidents including a fire on board a parked plane in the United States and an in-flight problem on another jet in Japan. United had only been flying the plance since November.

Sources told Reuters earlier this week that Boeing Co. has found a way to fix the battery problems that involves increasing the space between the lithium ion battery cells.

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2 bodies found in home following East Chatham blaze

Firefighters found two bodies at a South Side residence this afternoon while putting out a fire at the home, according to authorities, and a source said at least one might be a homicide victim.

The bodies were found about 4 p.m. as firefighters were extinguishing a fire in the 8100 block of South Maryland Avenue, according to Larry Langford, a Chicago Fire Department spokesman. 

Preliminary reports indicate that at least one of the victims was found stabbed to death, and the residence may have been set ablaze to conceal their deaths, a source said.

The bodies were found in a bathroom, according to a source.

Chicago police officers sealed off the three-story multi-unit building near the southwest corner of East 81st Street and South Maryland Avenue with yellow and red crime tape. Several onlookers gazed at the building in the fire's aftermath.

Investigators could be seen inside the first-floor apartment unit where the fire erupted, its rear window broken. Several men working for two different board-up companies also stood in the alley while police conducted their investigation.

Brittany Pullman was inside her apartment across the alley when she saw black smoke coming from the first-floor unit. She said she then ran outside and saw about 15 to 20 people who evacuated from the fire building.

She said a lady who evacuated told Pullman she called 911.

"It's crazy. It's crazy," Pullman said, still appearing somewhat shocked at the news of the two deaths. "It's scary. Very scary."

One of the fire building's tenants, Alexander Brown, said his wife was home during the fire, but their unit wasn't damaged.

He said their unit, where he's lived for about five years, is next-door to the burned apartment. Brown was outside of the building after the blaze and said he was eager to find shelter because of the frigid temperatures.

Brown didn't know the occupants of the burned unit too well, but he said he's seen two women coming and going from there, periodically.

Police said the two victims were females. Although an autopsy Thursday will determine the official cause of their deaths, police said the deaths may be domestic-related homicides.

Police said the fire was confined to the one unit, which appeared badly damaged.

Langford said the investigation has been turned over to the Chicago Police.

chicagobreaking@tribune.com

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Sony unveils new PlayStation4 console

(Reuters) - And the Oscar for best pickup line in a movie goes to - Audrey Hepburn in the romantic thriller, "Charade." That's according to the results from women polled by the U.K.-based dating site Badoo.com and released on Wednesday before the Academy Awards on Sunday. "I don't bite you know ... unless it's called for," Hepburn told Cary Grant in the 1963 release, and, 50 years later, women still chose it first. Men, however, had different ideas. They favored this Bette Davis line from the 1932 movie, "The Cabin in the Cotton," - "I'd love to kiss you, but I just washed my hair. ...

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Police add more confusion to Oscar Pistorius case

PRETORIA, South Africa (AP) — The prosecution case against Oscar Pistorius began to unravel Wednesday with revelations of a series of police blunders and the lead investigator's admission that authorities have no evidence challenging the double-amputee Olympian's claim he killed his girlfriend accidentally.

Detective Hilton Botha's often confused testimony left prosecutors rubbing their heads in frustration as he misjudged distances and said testosterone — banned for professional athletes in some cases — was found at the scene, only to be later contradicted by the prosecutor's office.

The second day of what was supposed to be a mere bail hearing almost resembled a full-blown trial for the 26-year-old runner, with his lawyer, Barry Roux, tearing into Botha's testimony step by step during cross examination.

Police, Botha acknowledged, left a 9 mm slug from the barrage that killed Reeva Steenkamp inside a toilet and lost track of illegal ammunition found inside the house. And the detective himself walked through the crime scene without wearing protective shoe covers, potentially contaminating the area.

Authorities, Roux asserted, were selectively taking "every piece of evidence to try to extract the most possibly negative connotation and present it to the court."

The case has riveted South Africa, with journalists and the curious crowding into the brick-walled courtroom where Pistorius, dubbed the Blade Runner for his prosthetic legs, faces a charge of premeditated murder in the Valentine's Day slaying.

Pistorius says he mistook Steenkamp for an intruder and shot her out of fear, while prosecutors say he planned the killing and attacked her as she cowered behind a locked bathroom door.

The day seemed to start out well for the prosecution, with Botha offering new details of the shooting that appeared to call into question Pistorius' account of the moments leading up to the 29-year-old model's death.

Ballistic evidence, he said, showed the bullets that killed her had been fired from a height, supporting the prosecution's assertion that Pistorius was wearing prosthetic legs when he took aim at the bathroom door. The athlete has maintained he was standing only on his stumps, and felt vulnerable and frightened as he opened fire from a low position.

Projecting a diagram of the bedroom and bathroom, prosecutor Gerrie Nel said it showed Pistorius had to walk past his bed to get to bathroom and could not have done so without seeing that Steenkamp was not asleep there.

"There's no other way of getting there," Nel said in disputing Pistorius' claim that he had no idea Steenkamp was no longer in bed when he pumped four bullets into the bathroom door, striking her with three.

Botha backed the prosecutor up, saying the holster for Pistorius' 9 mm pistol was found under the left side of the bed, where Steenkamp slept, and it would have been impossible for Pistorius to get the gun without checking to see if she was there.

"I believe that he knew that Reeva was in the bathroom and he shot four shots through the door," the detective said.

Botha described how bullets struck Steenkamp in the head and shattered her right arm and hip, eliciting sobs from Pistorius, who held his head in hands.

However, when asked if Steenkamp's body showed "any pattern of defensive wounds" or bruising from an assault, Botha said "no." He again responded "no" when asked if investigators found anything inconsistent with Pistorius' version of events, though he later said nothing contradicted the police version either.

Testimony began with the prosecutor telling the court that before the shooting, a neighbor heard "nonstop" shouting between 2 a.m. and 3 a.m. at Pistorius' upscale home in a gated community in the capital, Pretoria.

However, Botha later said under cross examination that the witness was in a house 600 yards (meters) away, possibly out of earshot. He cut that estimate in half when questioned again by the prosecutor, as confusion reigned for much of his testimony.

At one point, Botha told the court that police found syringes and two boxes of testosterone in Pistorius' bedroom — testimony the prosecution later withdrew, saying it was too early to identify the substance, which was still being tested.

"It is not certain (what it is) until the forensics" are completed, Medupe Simasiku, a spokesman for South Africa's National Prosecution Agency, told The Associated Press. It's not clear if it was "a legal or an illegal medication for now."

The defense also disputed the claim. "It is an herbal remedy," Roux said. "It is not ... a banned substance."

Still, Botha offered potentially damaging details about Pistorius' past, saying the athlete was once involved in an accidental shooting at a restaurant in Johannesburg and asked someone else "to take the wrap."

The runner also threatened men on two separate occasions, Botha said, allegedly telling one he'd "break his legs."

The detective said police found two iPhones in Pistorius' bathroom and two BlackBerrys in his bedroom, and none had been used to phone for help. Guards at the gated community did call the athlete, Botha said, and all he said was: "I'm all right," as he wept uncontrollably.

Roux later suggested that a fifth phone, not collected by the police, was used by Pistorius to call for help.

The question now is whether Botha's troubled testimony will be enough to convince Chief Magistrate Desmond Nair to keep Pistorius in prison until trial. While Pistorius faces the harshest bail requirements under South African law, the magistrate has said he would consider loosening them based on testimony in the hearing. Final arguments were scheduled for Thursday.

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Gerald Imray reported from Johannesburg. Associated Press writer Michelle Faul in Johannesburg contributed to this report.

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

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Agency checks water after body found in hotel tank

LOS ANGELES (AP) — British tourist Michael Baugh and his wife said water had only dribbled out of the taps at the downtown Cecil Hotel for days.

On Tuesday, after showering, brushing their teeth and drinking some of the tap water, they headed down to the lobby and found out why.

The body of a Canadian woman had been discovered at the bottom of one of four cisterns on the roof of the historic hotel near Skid Row. The tanks provide water for hotel taps and would have been used by guests for washing and drinking.

"The moment we found out, we felt a bit sick to the stomach, quite literally, especially having drank the water, we're not well mentally," Michael Baugh, 27, said.

Los Angeles County Department of Public Health officials issued a do-not-drink order Tuesday while its lab analyzes the water, said Allen Solomon, a spokesman for the department. The disclosure contradicts a previous police statement that the water had been deemed safe.

Solomon said the water was also used for cooking in the hotel. Results of the testing were expected Thursday.

A call to the hotel was not returned.

The remains of Elisa Lam, 21, were found by a maintenance worker at the 600-room hotel that charges $65 a night after guests complained about the low water pressure.

Police detectives were working to determine if her death was the result of foul play or an accident.

Lopez called it suspicious and said a coroner's investigation will determine Lam's cause of death.

Before she died, hotel surveillance footage showed Lam inside an elevator pushing buttons and sticking her head out the doors, looking in both directions. She was later found in the water tank.

The discovery turned the Baughs' two-week vacation into a nightmare.

"We'd hop in the shower, imagine, the water sprinkles out, and this is the only appropriate word, it dribbled out," Baugh said.

He and his wife Sabina, 27, who were on their first trip to the U.S., had booked their room as part of a tour package and had "no idea that it was in a dodgy area," he said.

The hotel is on Main Street in a part of downtown where efforts at gentrification often conflicts with homelessness and crime.

"When you look at the area, it's not surprising," Baugh said of the discovery of the body. "Everyone we spoke to said why are you staying there? Don't walk at night in that area, stay indoors."

Lam, of Vancouver, British Columbia, traveled alone to Los Angeles on Jan. 26 and was last seen five days later by workers at the hotel.

Lopez said the hotel has four cisterns on its roof that are each about 10 feet tall, 4.5 feet wide and hold at least 1,000 gallons of water.

Lam's body was found Tuesday morning at the bottom of one cistern that was about three-quarters full of water, Lopez said.

The opening at the top of the cistern is too small to accommodate firefighters and equipment, so they had to cut a hole in the storage tank to recover Lam's body.

The cisterns are on a platform at least 10 feet above the roof.

To get to the tanks, someone would have to go to the top floor then take a staircase with a locked door and emergency alarm preventing roof access.

Another ladder would have to be taken to the platform and a person would have to climb the side of the tank.

Lopez said there are no security cameras on the roof.

Lam intended to travel to Santa Cruz, about 350 miles north of Los Angeles. Officials said she tended to use public transportation and had been in touch with her family daily until she disappeared.

The Cecil Hotel was built in the 1920s and refurbished several years ago. It had once been the occasional home of infamous serial killers such as Richard Ramirez, known as the Night Stalker, and Austrian prison author Jack Unterweger, who was convicted of murdering nine prostitutes in Europe and the U.S., the Los Angeles Times reported.

Baugh and his wife had planned to go to SeaWorld on Wednesday but instead camped in the hotel lobby for more than 12 hours because they refused to sign a health risk waiver to stay in their rooms as they waited to hear back from their tour agency to be placed elsewhere.

"We've got nowhere to go, we've got all our luggage with us," Michael Baugh said.

They also called their family and the British Embassy trying to figure out what to do.

The couple hadn't touched any water at the hotel since learning the body had been discovered.

Eventually, they were placed at another downtown hotel with a less than sterling reputation, from what they heard.

"We're just going from one dodgy place to another," Baugh said, resigned, "but at least there's water."

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Tami Abdollah can be reached at http://www.twitter.com/latams. Shaya Tayefe Mohajer contributed to this report.

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'For Better or Worse' moves from TBS to OWN

LOS ANGELES (AP) — Oprah Winfrey's cable channel says it will be the new home of the sitcom "For Better or Worse."

Tyler Perry's comedy series will move from TBS to OWN for its third season, starting this fall. OWN announced Wednesday that it's also getting rerun rights for the show's first two years.

"For Better or Worse" is about three couples dealing with the challenges of dating and married life. OWN says the original cast, including Tasha Smith and Michael Jai White, will remain with the show. Production on season three begins in April.

The comedy will be OWN's third scripted series from Perry, who has a deal with OWN to produce TV shows and other projects. The first two original series, a sitcom and a drama, are scheduled to debut in May.

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Office Depot to buy OfficeMax

Office Depot to buy Office Max as an attempt to compete with Staples.

Office Depot Inc. and Office Max Inc. have agreed to merge in a $1.17 billion stock transfer, the companies announced Wednesday, ending nearly two hours of confusion about whether a deal had been reached.

Officials at Naperville-based OfficeMax and Office Depot declined to say who would lead the combined company nor where it would be located when the "merger of equals" is completed, likely by the end of the year.

After some confusion early Wednesday, when a draft press release was posted prematurely on the website of Boca Raton, Fla.-based Office Depot's, both companies issued a joint statement at around 8:30 a.m. CT announcing the planned merger. 

The combined entity's name, headquarters and CEO are all undecided, creating an unusual level of uncertainty that points to the integration challenge the companies face.

"During the appropriated times ... our board will make the right decision,"  OfficeMax President and CEO Ravi Saligram said of the location and leadership of the combined firm. "Now we're independent companies and we've got to go through lots of processes," he said.

On a conference call with analysts, Office Depot CEO Neil Austrian apologized for the announcement mishap on Wednesday morning.  "Our webcast provider inadvertently released our earnings in advance of schedule," he said.  We regret any inconvenience that this may have caused." 

Saligram and Austrian emphasized that the combination, which will create a company that will do roughly $18 billion in revenue, is a merger of equals.

"This [merger] will create a stronger, more global, more efficient competitor able to meet the growing challenges a rapidly changing industry," said Saligram. 

While Office Depot insisted the deal was a merger of equals and not an acquisition, its shareholders will get the larger part of the combined company. CEOs of both companies and outside candidates are being considered for the top job.

When combined, OfficeMax and Office Depot, the world's second and third largest office products companies by revenue, will still not eclipse the segment's largest business, Staples Inc.

The pair had combined revenue of about $18.5 billion in the last fiscal year. They expect to save about $400 million to $600 million per year within three years through layoffs, streamlining of back-office functions and combined advertising. They didn't provide details on how many workers would lose their jobs or the fate of OfficeMax's Naperville headquarters.

After days of speculation that a deal was close, a draft of a press release announcing the news was posted prematurely on Office Depot's website early Wednesday morning. More than an hour after it came out, there was still no mention of the merger on either company's website nor on the SEC or other investor websites. Sources cited by the New York Times Wednesday morning said negotiations were ongoing.

Thomson Reuters Corporate Services, which operates various investor relations websites including Office Depot's, took responsibility for the early publication.

"Unfortunately, Thomson Reuters incorrectly posted this morning's announcement of Office Depot's intention to merge with Office Max prior to its intended release," Lemuel Brewster, PR director - investors at Thomson Reuters, said Wednesday afternoon in an email response to an inquiry. "We regret this error and are taking all steps necessary to enhance our processes and controls to ensure this does not happen again."

Office Depot will issue 2.69 new shares of common stock for each outstanding common share of OfficeMax. At Tuesday's closing prices, the deal is valued at $13.50 per share, or $1.17 billion, based on 86.7 million shares outstanding as of Oct. 26.

After the merger is completed, Office Depot's board will consist of an equal number of directors chosen by that company and OfficeMax.

Although the actual announcement didn’t go as planned, the deal has been rumored for years as the struggling office supply sector deals with fickle consumers and businesses that are conserving costs and doing more online.

Analysts say they expect far less pushback from antitrust authorities for this deal than what Office Depot faced in the 1990s, when it tried to merge with Staples, given the changes in the office supply market since then.

Underscoring how tough that business has become, Office Depot reported a fourth-quarter net loss, hurt by a 6 percent decrease in comparable sales at its North American stores and a revenue drop at its unit that serves North American businesses.

Office supply retailers, which are often seen as reflecting overall economic health, have suffered as demand for their products fell in the years after the last U.S. recession led companies to cut spending.

They also face strong competition from the likes of Amazon and Wal-Mart Stores Inc in selling everything from pens and notebooks to furniture and break room supplies to government, businesses and individuals.

SMALL PREMIUM

The offer represented a premium of just under 4 percent to OfficeMax's $13 close. It was not immediately clear if that was enough to satisfy one of the company's largest shareholders, Neuberger Berman, which said earlier this week it would support a deal depending on the terms.

OfficeMax shares rose 9.2 percent to $14.20 in premarket trading. Office Depot was up 10 percent at $5.52, meaning that OfficeMax was still trading below the value of the bid.

The deal, considered long overdue by many on Wall Street, will also give Office Depot and OfficeMax a chance to save hundreds of millions of dollars by closing stores, cutting advertising costs and streamlining their supply chain.

Industry experts have long hoped Office Depot would join hands with OfficeMax to take on Staples, which boosted its international business and clout with suppliers by buying Dutch rival Corporate Express in 2008.

BB&T Capital Markets analyst Anthony Chukumba said the Office Depot-OfficeMax combination would help Staples, however.

"Clearly, you can't make this deal work unless you close a bunch of stores," he said. "Store rationalization is long overdue, and Staples will clearly benefit from just having fewer stores to compete with."

Staples has 39.9 percent of the U.S. office supply market, Office Depot 19.2 percent and OfficeMax holds 15.7 percent, according to Euromonitor International.

Tribune reporter Samantha Bomkamp and Reuters contributed.

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