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









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

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

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

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

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

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

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

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

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

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

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

sbomkamp@tribune.com | Twitter: @SamWillTravel

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Ryan sent home after spending just hours at halfway house









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

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


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

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

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

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

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

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

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

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


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








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


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


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


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


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


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


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

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


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


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


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


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


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


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


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


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


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


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


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


The conviction overshadowed Ryan's long career in government.


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


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


chicagobreaking@tribune.com

Twitter: @chicagobreaking





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California police probe stunts that shut down freeways






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


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






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


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


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


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


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


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


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


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


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


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


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


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


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


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Barbra Streisand to sing at Oscars for first time in decades






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


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






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


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


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


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


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


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


(Editing by Chris Michaud and Lisa Von Ahn)


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The Consumer: The Drug-Dose Gender Gap

Most sleeping pills are designed to knock you out for eight hours. When the Food and Drug Administration was evaluating a new short-acting pill for people to take when they wake up in the middle of the night, agency scientists wanted to know how much of the drug would still be in users’ systems come morning.

Blood tests uncovered a gender gap: Men metabolized the drug, Intermezzo, faster than women. Ultimately the F.D.A. approved a 3.5 milligram pill for men, and a 1.75 milligram pill for women.

The active ingredient in Intermezzo, zolpidem, is used in many other sleeping aids, including Ambien. But it wasn’t until earlier this month that the F.D.A. reduced doses of Ambien for women by half.

Sleeping pills are hardly the only medications that may have unexpected, even dangerous, effects in women. Studies have shown that women respond differently than men to many drugs, from aspirin to anesthesia. Researchers are only beginning to understand the scope of the issue, but many believe that as a result, women experience a disproportionate share of adverse, often more severe, side effects.

“This is not just about Ambien — that’s just the tip of the iceberg,” said Dr. Janine Clayton, director for the Office of Research on Women’s Health at the National Institutes of Health. “There are a lot of sex differences for a lot of drugs, some of which are well known and some that are not well recognized.”

Until 1993, women of childbearing age were routinely excluded from trials of new drugs. When the F.D.A. lifted the ban that year, agency researchers noted that because landmark studies on aspirin in heart disease and stroke had not included women, the scientific community was left “with doubts about whether aspirin was, in fact, effective in women for these indications.”

Because so many drugs were tested mostly or exclusively in men, scientists may know little of their effects on women until they reach the market. A Government Accountability Office study found that 8 of 10 drugs removed from the market from 1997 through 2000 posed greater health risks to women.

For example, Seldane, an antihistamine, and the gastrointestinal drug Propulsid both triggered a potentially fatal heart arrhythmia more often in women than in men. Many drugs still on the market cause this arrhythmia more often in women, including antibiotics, antipsychotics, anti-malarial drugs and cholesterol-lowering drugs, Dr. Clayton said. Women also tend to use more medications than men.

The sex differences cut both ways. Some drugs, like the high blood pressure drug Verapamil and the antibiotic erythromycin, appear to be more effective in women. On the other hand, women tend to wake up from anesthesia faster than men and are more likely to experience side effects from anesthetic drugs, according to the Society for Women’s Health Research.

Women also react differently to alcohol, tobacco and cocaine, studies have found.

It’s not just because women tend to be smaller than men. Women metabolize drugs differently because they have a higher percentage of body fat and experience hormonal fluctuations and the monthly menstrual cycle. “Some drugs are more water-based and like to hang out in the blood, and some like to hang out in the fat tissue,” said Wesley Lindsey, assistant professor of pharmacy practice at Auburn University, who is a co-author of a paper on sex-based differences in drug activity.

“If the drug is lipophilic” — attracted to fat cells — “it will move into those tissues and hang around for longer,” Dr. Lindsey added. “The body won’t clear it as quickly, and you’ll see effects longer.”

There are also sex differences in liver metabolism, kidney function and certain gastric enzymes. Oral contraceptives, menopause and post-menopausal hormone treatment further complicate the picture. Some studies suggest, for example, that when estrogen levels are low, women may need higher doses of drugs called angiotensin receptor blockers to lower blood pressure, because they have higher levels of proteins that cause the blood vessels to constrict, said Kathryn Sandberg, director of the Center for the Study of Sex Differences in Health, Aging and Disease at Georgetown.

Many researchers say data on these sex differences must be gathered at the very beginning of a drug’s development — even before trials on human subjects begin.

“The path to a new drug starts with the basic science — you study an animal model of the disease, and that’s where you discover a drug target,” Dr. Sandberg said. “But 90 percent of researchers are still studying male animal models of the disease.”

There have been improvements. In an interview, Dr. Robert Temple, with the Center for Drug Evaluation and Research at the F.D.A., said the agency’s new guidelines in 1993 called for studies of sex differences at the earliest stages of drug development, as well as for analysis of clinical trial data by sex.

He said early research on an irritable bowel syndrome drug, alosetron (Lotronex), suggested it would not be effective in men. As a result, only women were included in clinical trials, and it was approved only for women. (Its use is restricted now because of serious side effects.)

But some scientists say drug metabolism studies with only 10 or 15 subjects are too small to pick up sex differences. Even though more women participate in clinical trials than in the past, they are still underrepresented in trials for heart and kidney disease, according to one recent analysis, and even in cancer trials.

“The big problem is we’re not quite sure how much difference this makes,” Dr. Lindsey said. “We just don’t have a good handle on it.”


Readers may submit comments or questions for The Consumer by e-mail to consumer@nytimes.com.

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Airlines had earlier 787 battery issues

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








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

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

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

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

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

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

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

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

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

LITTLE HEADWAY

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

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

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

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

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

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

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






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3 charged with hate crime in St. Charles









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


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


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





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


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


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


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


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


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


kthayer@tribune.com


Twitter: @knthayer





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






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


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






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


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


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


This article was originally published on BGR.com


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Dior: Jennifer Lawrence dress had no malfunction






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


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






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


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


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Chicago home price recovery lags









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

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

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

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

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

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

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

mepodmolik@tribune.com | Twitter @mepodmolik



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