DealBook: S.E.C. Is Said to Be Investigating Trading Before Heinz Deal

Regulators are scrutinizing unusual trading surrounding the planned $23 billion takeover of the food company H. J. Heinz, raising questions about potential illegal activity in one of the biggest deals in recent memory, a person briefed on the matter said.

The Securities and Exchange Commission opened an insider trading inquiry on Thursday as Berkshire Hathaway and the investment firm 3G Capital agreed to pay $72.50 a share for Heinz, this person said. Regulators first noticed a suspicious spike in trading on Wednesday.

If the S.E.C.’s preliminary inquiry turns into a broader investigation, it could cast a shadow over the deal. As part of the process, authorities would turn their focus toward the limited universe of insiders who could have tipped off traders about the deal.

The agency’s inquiry is expected to be centered on options trading in Heinz, activity that soared this week as news of the deal circulated Wall Street. In what is known as a call option, investors can place a bullish bet on a stock, without actually committing to buy the shares. Instead, investors have the opportunity to buy at a given price and future date.

As recently as Tuesday, there was scant activity in Heinz options. But by Wednesday, as the companies were putting the finishing touches on the deal, options trading jumped, data from Bloomberg shows.

The price of Heinz’s stock soared after the deal was announced. The stock finished up nearly 20 percent on Thursday to close at $72.50, matching the offer price.

The S.E.C. is focusing on the sudden leap in options trading Wednesday, building on a related case it filed last year that also involved 3G, a company with Brazilian roots. In September, the agency obtained an emergency court order to freeze the assets of a Brazilian man suspected of insider trading around 3G Capital’s takeover of Burger King. The trader, a Brazilian citizen who worked at Wells Fargo in Miami, reportedly received the tip from a 3G investor.

Neither the company nor any individual at 3G has been accused of any wrongdoing in that case or in the Heinz inquiry.

While the inquiry is in its early stages, the person briefed on the matter said that regulators could take relatively prompt action. If it is concerned that traders might move the money overseas, the S.E.C. could ask a federal court to freeze the traders’ assets.

The S.E.C. routinely opens inquiries into trading activity after major mergers are announced, but often does not bring charges. The agency, however, has renewed its focus on insider trading, mounting dozens of cases in recent years.

An S.E.C. spokesman declined to comment. Bloomberg News earlier reported that S.E.C. investigators were reviewing the surge in Heinz options trading.

Read More..

Woman Found Fatally Shot at Home of Pistorius

Emilio Morenatti/Associated Press

Oscar Pistorius, the South African Olympic and Paralympic track star, has been arrested after a woman was shot dead at his home.

JOHANNESBURG — South African police and media reports said on Thursday that Oscar Pistorius, a Paralympic gold medal sprinter nicknamed Blade Runner, was being questioned after his girlfriend was fatally shot at his home in Pretoria, possibly mistaken for an intruder. Police said a man had been arrested, but did not identify him by name.

Mr. Pistorius, 26, who races using carbon fiber prosthetic blades, won two gold medals and a silver at last year’s Paralympic Games in London. He was the first double amputee to also run in the Olympics, where reached the 400-meter semifinal and competed in the 4x400-meter relay.

He is one of South Africa’s best-known athletes.

“We found a 9-mm pistol at the scene. A 26-year-old man was taken into custody,” a police spokeswoman, Katlego Mogale, told Reuters without giving further detail.

Capt. Sarah Mcira, another police spokeswoman, said: “There is a woman who was shot by Oscar Pretorius.”

Johannesburg’s Talk Radio 702 said the victim was thought to have been struck in the head and arm in circumstances that have not been fully explained. But the radio said she may have been mistaken for a burglar.

In the Paralympics last September, Mr. Pistorius won individual gold, when he successfully defended his Paralympic 400 meter title. He had lost his 100- and 200-meter titles, but was part of the gold medal-winning 4x100 meter relay team. He same second in the 200 meter race.

After that contest, Mr. Pistorius damaged his reputation among his followers by criticizing the winner, Alan Oliveira of Brazil, raising questions about the length of the winner’s blades. Mr. Pistorius later apologized and praised the gold medalist in the 100 meter race, Jonnie Peacock of Britain. Mr. Pistorius, who was born without fibulas, had both legs amputated below the knee before his first birthday and he battled for many years to compete against able-bodied athletes. In 2008, he qualified for the Beijing Games but was ruled ineligible by track’s world governing body because his blades were deemed to give him a competitive advantage.

South African journalists said Mr. Pistorius lived in an upscale, walled complex near the South Africa capital of Pretoria and said his girlfriend was a fashion model. South Africa has a high crime rate. and elaborate security precautions, as well as personal weapons, are not uncommon.

A reporter outside the complex on Thursday said it was protected by high walls and razor wire.

Lydia Polgreen reported from Johannesburg, and Alan Cowell from Paris.

This article has been revised to reflect the following correction:

Correction: February 14, 2013

An earlier version of this article referred incorrectly in one reference to the sprinter at whose home a woman was fatally shot. He is Oscar Pistorius, not Pretorias.

Read More..

Pistorius arrested after woman shot at his home

PRETORIA, South Africa (AP) — Olympic sprinter Oscar Pistorius was arrested Thursday after a 30-year-old woman was shot dead at his home in South Africa.

Police said the 26-year-old Pistorius, a double-amputee known as "Blade Runner," was taken into custody after the shooting early Thursday morning at his home in a gated complex.

Lt. Col. Katlego Mogale told The Associated Press that police received a call that there had been a shooting at the runner's home. Mogale said when police arrived, they found paramedics trying to revive the woman, who had been shot an unspecified number of times. Mogale, who was at the scene, said the woman died at the home. Police have not released the name of the woman.

Officers found a 9-mm pistol at Pistorius' home. Mogale said Pistorius was expected to appear in court later Thursday.

Several South African media outlets reported that the woman was Pistorius' girlfriend and that he may have mistaken her for a burglar and shot her, but police did not clarify the woman's relationship to Pistorius.

South Africa's Sports Confederation and Olympic committee released a statement saying they had been "inundated" with requests for comment, but were not in a position to give out any details of the shooting.

"SASCOC, like the rest of the public, knows no more than what is in the public domain, which is there has been an alleged fatal shooting on the basis of a mistaken identity and an apparent assumption of a burglary," the South African Olympic committee said. "The organization is in no position to comment on the incident other than to say our deepest sympathy and condolences have been expressed to the families of all concerned."

SACOC said it would be inappropriate to comment because of the ongoing police investigation.

Pistorius made history in London last year when he became the first double-amputee track athlete to compete in the Olympic Games. He is one of South Africa's and the world's most famous athletes.

Having had both his legs amputated below the knee before his first birthday because of a congenital condition, he campaigned for years to be allowed to compete against able-bodied athletes. Having initially been banned because of his carbon fiber blades — which critics said gave him an unfair advantage — he was cleared by sport's highest court in 2008 and allowed to run at the top events.

He competed in the 400 meters and on South Africa's 4x400 relay team at the London Games, making history after being have his selection confirmed on South Africa's team at the very last minute. He also retained his Paralympic title in the 400 meters in London.

___

Imray reported from Cape Town, South Africa.

Read More..

Use of Morning-After Pill Is Rising, Report Says

The use of morning-after pills by American women has more than doubled in recent years, driven largely by rising rates of use among women in their early 20s, according to new federal data released Thursday.

The finding is likely to add to the public debate over rules issued by the Obama administration under the new health care law that require most employers to provide free coverage of birth control, including morning-after pills, to female employees. Some religious institutions and some employers have objected to the requirement and filed lawsuits to block its enforcement.

Morning-after pills, which help prevent pregnancy after sex, were used by 11 percent of sexually active women from 2006 to 2010, the period of the study. That was up from just 4 percent in 2002. Nearly one in four women between the ages of 20 and 24 who had ever had sex have used the pill at some point, the data show.

Morning-after pills are particularly controversial among some conservative groups who contend they can cause abortions by interfering with the implantation of a fertilized egg that the groups regard as a person.

Medical experts say that portrayal is inaccurate, and that studies provide strong evidence that the most commonly used pills do not hinder implantation, but work by delaying or preventing ovulation so that an egg is never fertilized in the first place, or thicken cervical mucus so sperm have trouble moving.

This month, the Obama administration offered a proposal that could expand the number of groups that do not need to provide or pay for birth control coverage. But the proposal did not end the political fight over the issue, which legal experts say may end up in the Supreme Court.

The new data was released by the National Center for Health Statistics and based on interviews with more than 12,000 women from 2006 to 2010. Researchers asked sexually active women if they had ever used emergency contraception, “also known as Plan B, Preven or morning-after pills,” as well as about their use of other forms of birth control.

Over all, 99 percent of sexually active women ages 15 to 44 have used contraception at some point in their lives, or about 53 million women, up slightly from 2002. An earlier report found that 62 percent of all women of reproductive age were currently using some form of birth control.

The new report found that 98.6 percent of sexually active Catholic women had used contraception at some point, but the data did not show how many Catholic women currently use contraception.

Condom use has risen markedly. More than 93 percent of women said they had partners who had used condoms at some point, compared with 82 percent of women in 1995, a likely effect of strong public advocacy for condom use during the AIDS epidemic.

In contrast, women who had used intrauterine devices, or IUDs, at some point in their lives declined to about 8 percent from 10 percent in 1995. The use of birth control pills has remained steady since 1995 at 82 percent.

Eighty-nine percent of white women said they had used birth control pills at some point, compared with 67 percent of Hispanic women, 78 percent of black women and 57 percent of Asian women.

Education played a role in the type of contraception used. Forty percent of women without a high school diploma said they chose sterilization, while just 10 percent of women with a bachelor’s degree said they used that method. Those without a high school diploma were also far more likely to use three-month injectables, like Depo-Provera — 36 percent compared with 13 percent of women with a college degree.

About 12 percent of college graduates said they had used emergency contraception, while 7 percent of women with only a high school degree said they had used it.

Educated women were far more likely to have practiced periodic abstinence based on the menstrual cycle. About 28 percent of women with a master’s degree or higher had practiced this method, while just 13 percent of women without a high school diploma had, the report found.

White women, American-born Hispanic women and black women were most likely to practice withdrawal, with more than half of women in each group saying they have used that method. Just 44 percent of foreign-born Hispanics said they practiced withdrawal.

Read More..

Japanese Economy Contracts and Remains in Recession

TOKYO (AP) — Japan’s economy remained mired in recession late last year, shrinking 0.4 percent in annualized terms for the third straight quarter of contraction on feeble demand at home and overseas.

The government reported Thursday that growth for all of 2012 was 1.9 percent, after a 0.6 percent contraction in 2011 and a 4.7 percent increase in 2010 and a 5.5 percent contraction in 2009.

The figures were worse than expected, as many analysts had forecast the economy may have emerged from recession late last year as the Japanese yen weakened against other major currencies, giving a boost to Japanese export manufacturers.

Prime Minister Shinzo Abe, who took office in late December, is championing aggressive spending and monetary stimulus to help get growth back on track. He has lobbied the central bank to set an inflation target of 2 percent, aimed at breaking out of Japan’s long bout of deflation, or falling prices, that he says are inhibiting corporate investment and growth.

But the Bank of Japan was not expected to announce any major new initiatives from a policy meeting on Thursday. The current central bank governor, Masaaki Shirakawa, is due to leave office on March 19, and Mr. Abe is expected to appoint as his successor an expert who favors his more activist approach to monetary policy.

Last year began on an upbeat note with annual growth in the first quarter at 6 percent as strong government spending on reconstruction from the March 2011 tsunami disaster helped spur demand. But the economy contracted in the second quarter and deteriorated further as frictions with China over a territorial dispute hurt exports to one of Japan’s largest overseas markets.

Despite the dismal data for last year, many in Japan expect at least a temporary bump to growth from higher government spending on public works and other programs. An index measuring consumer confidence, released this week, jumped to its highest level since 2007, the biggest increase in a single month.

Read More..

India Ink: India's Capital City Celebrates 'Design Week'

Art lovers have the India Art Fair and Francophiles have Bonjour India. And now interior design enthusiasts have a week to call their own in New Delhi.

India Design 2013, organized by Ogaan Publications, the company behind ELLE and ELLE Décor, celebrates design and decoration in India. An exhibition at the NSIC Grounds in the Okhla Industrial Estate will feature speakers like Anita Lal, the founder of Good Earth, a leading luxury home décor chain in India, and Lidewij Edelkoort, an internationally renowned Dutch trend forecaster. The exhibition will run through Sunday.

On this past Monday, over 60 venues all over the city opened up their space for a satellite event called “Style in the City,” including art galleries, restaurants and even salons.

For instance, Nature Morte and the Oberoi Gurgaon have collaborated with Divya Thakur of Design Temple, a graphic and product designer studio, to curate a special exhibition called “Sense and Sensuality.” Everything will be for sale and priced at under 25,000 rupees ($460).

The main action will be at the weekend exhibition, spread over 8,000 square meters. Here are some displays worth seeking out:

Pinakin Patel: Pinakin Patel, a self-taught architect and designer, is known for his modern take on Indian design, like his interpretation of jalli, an ornamental pattern made popular by the Mughals. His stainless steel jhoola (swing) won the coveted Elle Décor International Design Award in 2004, and he is the man behind Hara Villa, prefabricated one-bedroom luxury holiday homes that run completely on solar power.

Sunil Sethi Design Alliance: Sunil Sethi has been in the business of sourcing and representing Indian design for over 25 years, working with the Conran Shop, Armani Casa and Selfridges. In the concept area of the exhibition, he is working in a design alliance with the Italian designer Paola Navone to curate a mesmerizing display of home décor products that show off the best of Indian handmade craftsmanship. Quilts, furniture, tableware, glassware will be combined with over 100,000 flowers.

In the main hall, Mr. Sethi will show “Floored by Art,” featuring limited-edition floor art by some of India’s leading artists, like S.H. Raza, T. Vaikuntham and Bose Krishnamachari, as well by fashion designers like Manish Arora and Rajesh Pratap Singh.

Peter D’Ascoli: Having worked in New York with Diane von Furstenberg as studio director and then Covington Fabrics as creative director, Mr. D’Ascoli moved to New Delhi to open his studio, finding a gap in the Indian market for luxury and bespoke upholstery. Though he sources some of fabrics in Europe and his work displays a definite old world European touch, all his designs, embroideries and weaving techniques are done in India. The D’Ascoli Studio has supplied fabrics to Pierre Frey in Paris, Baker Interiors of America and the celebrity decorator Kathryn Ireland, and it is now working closely with Indian architects and interior designers.

The Klove Studio: The product design studio is best known for its lighting installations, which use hand-blown glass, wood and metal. Inspired heavily by Indian jewelry, the studio turns furniture into pieces of collectible art. For India Design 2013, the company has designed a four-by-three-meter wall installation inspired by a prayer space called Devalaya, one of its most ambitious projects.

Read More..

No. 8 Michigan State routs No. 4 Michigan 75-52

EAST LANSING, Mich. (AP) — Michigan State has muddled through much of its season, finding ways to win games short on style with gritty substance.

The eighth-ranked Spartans, though, showed their potential in an impressive 75-52 win over No. 4 Michigan on Tuesday night in the rivalry's first matchup of top 10 teams.

"The sky is the limit," guard Keith Appling said.

If Michigan State can play anything like it did against the Wolverines, Appling might be right.

The Spartans (21-4, 10-2 Big Ten) broke a first-place tie in the conference with No. 1 Indiana, which plays at Michigan State next Tuesday after the Spartans try to avoid a letdown Saturday night at Nebraska.

Appling acknowledged he was a little bit surprised by the lopsided victory — the school's largest since beating Michigan by 27 points in 2002 — but shrugged off the significance of it with much of the regular season remaining.

"We just have to take it for what it is and prepare for our next game," Appling said.

The Wolverines (21-4, 8-4) have lost three of four, but the closely contested setbacks on the road against the Hoosiers and at Wisconsin were nothing like the latest when they were held to a season-low points total.

"They bullied us — point blank," said Tim Hardaway Jr., who matched a career low with two points.

Michigan State didn't trail once, led by as many as 16 points in the first half and enjoyed 30-point leads in the second.

"We probably played our best game in three years," Spartans coach Tom Izzo said. "And, they probably played one of their worst."

Michigan coach John Beilein agreed.

"That was the worst we've played in a long, long time and credit Michigan State for that," he said.

Burke scored 18 points for the Wolverines and didn't get much help from his teammate offensively, or defensively.

"It was an embarrassing loss," Burke said.

Hardaway Jr. was held scoreless until making a layup in the opening minute of the second half — after turning down Beilein's suggestion to work on his shot during halftime warmups — and didn't score again. Hardaway was 1 of 11 from the field.

"He's been playing as good as any player in the country," Beilein said. "He had a bad night, credit Michigan State's defense. Tim had a bad night and Tim Hardaway will bounce back like he always has."

Glen Robinson III was 1 of 4 and scored two points to match his season low.

The Wolverines, who pride themselves on taking care of the basketball, had a season-high 16 turnovers and didn't have much success getting the ball away from the turnover-prone Spartans. Michigan made fewer than 40 percent of its shots and scored one fewer point than it did in a three-point loss at Ohio State.

"Maybe we got exactly what we deserve and it's medicine for the future," Beilein said.

Everything went right for Michigan State, which had just eight turnovers and made 48-plus percent of its shots.

Gary Harris scored 17 points, making five 3-pointers, and Derrick Nix had his way on the inside, scoring 14 points as part of a balanced offense.

Appling had 11 points and Branden Dawson scored 10 before leaving the court late in the game because Michigan's Mitch McGary hit him in the face inadvertently with his right arm.

Izzo said Dawson got hit in the nose and had a cut on his lip.

"I do think he's going to be OK," Izzo said.

Matt Costello scored a season-high eight points and fellow freshman Denzel Valentine had seven points to help Michigan State win its second straight in the series after losing three in a row following a run of dominance for the Spartans.

White-clad fans in the stands were fired up before the game even started and they stayed enthusiastic, standing for much of the game, because the home team gave them plenty of reasons to cheer from start to finish.

"The crowd was just awesome," Izzo said. "It kind of reminded me of back in the day."

In the first matchup of 20-win teams in Division I basketball this season, Michigan State showed it might not be a rebuilding this season.

Michigan, meanwhile, has been humbled since being ranked No. 1 last month for the first time since the 1992-92 season.

"It was a big step for us, but don't think that's the real Michigan team because it's not," Izzo said.

___

Follow Larry Lage on Twitter: http://twitter.com/larrylage

Read More..

Well: Getting the Right Dose of Exercise

Phys Ed

Gretchen Reynolds on the science of fitness.

A common concern about exercise is that if you don’t do it almost every day, you won’t achieve much health benefit. But a commendable new study suggests otherwise, showing that a fairly leisurely approach to scheduling workouts may actually be more beneficial than working out almost daily.

For the new study, published this month in Exercise & Science in Sports & Medicine, researchers at the University of Alabama at Birmingham gathered 72 older, sedentary women and randomly assigned them to one of three exercise groups.

One group began lifting weights once a week and performing an endurance-style workout, like jogging or bike riding, on another day.

Another group lifted weights twice a week and jogged or rode an exercise bike twice a week.

The final group, as you may have guessed, completed three weight-lifting and three endurance sessions, or six weekly workouts.

The exercise, which was supervised by researchers, was easy at first and meant to elicit changes in both muscles and endurance. Over the course of four months, the intensity and duration gradually increased, until the women were jogging moderately for 40 minutes and lifting weights for about the same amount of time.

The researchers were hoping to find out which number of weekly workouts would be, Goldilocks-like, just right for increasing the women’s fitness and overall weekly energy expenditure.

Some previous studies had suggested that working out only once or twice a week produced few gains in fitness, while exercising vigorously almost every day sometimes led people to become less physically active, over all, than those formally exercising less. Researchers theorized that the more grueling workout schedule caused the central nervous system to respond as if people were overdoing things, sending out physiological signals that, in an unconscious internal reaction, prompted them to feel tired or lethargic and stop moving so much.

To determine if either of these possibilities held true among their volunteers, the researchers in the current study tracked the women’s blood levels of cytokines, a substance related to stress that is thought to be one of the signals the nervous system uses to determine if someone is overdoing things physically. They also measured the women’s changing aerobic capacities, muscle strength, body fat, moods and, using sophisticated calorimetry techniques, energy expenditure over the course of each week.

By the end of the four-month experiment, all of the women had gained endurance and strength and shed body fat, although weight loss was not the point of the study. The scientists had not asked the women to change their eating habits.

There were, remarkably, almost no differences in fitness gains among the groups. The women working out twice a week had become as powerful and aerobically fit as those who had worked out six times a week. There were no discernible differences in cytokine levels among the groups, either.

However, the women exercising four times per week were now expending far more energy, over all, than the women in either of the other two groups. They were burning about 225 additional calories each day, beyond what they expended while exercising, compared to their calorie burning at the start of the experiment.

The twice-a-week exercisers also were using more energy each day than they had been at first, burning almost 100 calories more daily, in addition to the calories used during workouts.

But the women who had been assigned to exercise six times per week were now expending considerably less daily energy than they had been at the experiment’s start, the equivalent of almost 200 fewer calories each day, even though they were exercising so assiduously.

“We think that the women in the twice-a-week and four-times-a-week groups felt more energized and physically capable” after several months of training than they had at the start of the study, says Gary Hunter, a U.A.B. professor who led the experiment. Based on conversations with the women, he says he thinks they began opting for stairs over escalators and walking for pleasure.

The women working out six times a week, though, reacted very differently. “They complained to us that working out six times a week took too much time,” Dr. Hunter says. They did not report feeling fatigued or physically droopy. Their bodies were not producing excessive levels of cytokines, sending invisible messages to the body to slow down.

Rather, they felt pressed for time and reacted, it seems, by making choices like driving instead of walking and impatiently avoiding the stairs.

Despite the cautionary note, those who insist on working out six times per week need not feel discouraged. As long as you consciously monitor your activity level, the findings suggest, you won’t necessarily and unconsciously wind up moving less over all.

But the more fundamental finding of this study, Dr. Hunter says, is that “less may be more,” a message that most likely resonates with far more of us. The women exercising four times a week “had the greatest overall increase in energy expenditure,” he says. But those working out only twice a week “weren’t far behind.”

Read More..

Media Decoder Blog: Comcast Buys Rest of NBC in Early Sale

8:53 p.m. | Updated Comcast gave NBCUniversal a $16.7 billion vote of confidence on Tuesday, agreeing to pay that sum to acquire General Electric’s remaining 49 percent stake in the entertainment company. The deal accelerated a sales process that was expected to take several more years.

Brian Roberts, chief executive of Comcast, said the acquisition, which will be completed by the end of March, underscored a commitment to NBCUniversal and its highly profitable cable channels, expanding theme parks and the resurgent NBC broadcast network.

“We always thought it was a strong possibility that we’d some day own 100 percent,” Mr. Roberts said in a telephone interview.

He added that the rapidly changing television business and the growing necessity of owning content as well as the delivery systems sped up the decision. “It’s been a very smooth couple of years, and the content continues to get more valuable with new revenue streams,” he said.

Comcast also said that NBCUniversal would buy the NBC studios and offices at 30 Rockefeller Center, as well as the CNBC headquarters in Englewood Cliffs, N.J. Those transactions will cost about $1.4 billion.

Mr. Roberts called the 30 Rockefeller Center offices “iconic” and said it would have been “expensive to replicate” studios elsewhere for the “Today” show, “Saturday Night Live,” “Late Night With Jimmy Fallon” and other programs produced there. “We’re proud to be associated with it,” Mr. Roberts said of the building.

With the office space comes naming rights for the building, according to a General Electric spokeswoman. So it is possible that one of New York’s most famous landmarks, with its giant red G.E. sign, could soon be displaying a Comcast sign instead.

When asked about a possible logo swap on the building, owned by Tishman Speyer, Mr. Roberts told CNBC, that is “not something we’re focused on talking about today.” Nevertheless, the sale was visible in a prominent way Tuesday night: the G.E. letters, which have adorned the top of 30 Rock for several decades, were not illuminated for an hour after sunset. But the lights flickered back on later in the evening.

Comcast, with a conservative, low-profile culture, had clashed with the G.E. approach, according to employees and executives in television. Comcast moved NBCUniversal’s executive offices from the 52nd floor to the 51st floor — less opulent space that features smaller executive offices and a cozy communal coffee room instead of General Electric’s lavish executive dining room.

Comcast took control of NBCUniversal in early 2011 by acquiring 51 percent of the media company from General Electric. The structure of the deal gave Comcast the option of buying out G.E. in a three-and-a-half to seven-year time frame. In part because of the clash in corporate cultures, television executives said, both sides were eager to accelerate the sale.

Price was also a factor. Mr. Roberts said he believed the stake would have cost more had Comcast waited. Also, he pointed to the company’s strong fourth-quarter earnings to be released late Tuesday afternoon, which put it in a strong position to complete the sale.

Comcast reported a near record-breaking year with $20 billion in operating cash flow in the fiscal year 2012. In the three months that ended Dec. 31, Comcast’s cash flow increased 7.3 percent to $5.3 billion. Revenue at NBCUniversal grew 4.8 percent to $6 billion.

“We’ve had two years to make the transition and to make the investments that we believe will continue to take off,” Mr. Roberts said.

The transactions with General Electric will be largely financed with $11.4 billion of cash on hand, $4 billion of subsidiary senior unsecured notes to be issued to G.E. and a $2 billion in borrowings.

Even with the investment in NBCUniversal, Comcast said it would increase its dividend by 20 percent to 78 cents a share and buy back $2 billion in stock in 2013.

When it acquired the 51 percent stake two years ago, Comcast committed to paying about $6.5 billion in cash and contributed all of its cable channels, including E! and some regional sports networks, to the newly established NBCUniversal joint venture. Those channels were valued at $7.25 billion.

The transaction made Comcast, the single biggest cable provider in the United States, one of the biggest owners of cable channels, too. NBCUniversal operates the NBC broadcast network, 10 local NBC stations, USA, Bravo, Syfy, E!, MSNBC, CNBC, the NBC Sports Network, Telemundo, Universal Pictures, Universal Studios, and a long list of other media brands.

Mr. Roberts and Michael J. Angelakis, vice chairman and chief financial officer for the Comcast Corporation, led the negotiations that began last year with Jeffrey R. Immelt, chief executive of General Electric, and Keith Sharon, the company’s chief financial officer. JPMorgan Chase, Goldman Sachs, Centerview Partners and CBRE provided financial and strategic advice.

The sale ends a long relationship between General Electric and NBC that goes back before the founding days of television. In 1926, the Radio Corporation of America created the NBC network. General Electric owned R.C.A. until 1930. It regained control of R.C.A., including NBC, in 1986, in a deal worth $6.4 billion at the time.

In a slide show on the company’s “GE Reports” Web site titled “It’s a Wrap: GE, NBC Part Ways, Together They’ve Changed History,” G.E. said the deal with Comcast “caps a historic, centurylong journey for the two companies that gave birth to modern home entertainment.”

Mr. Immelt has said that NBCUniversal did not mesh with G.E.’s core industrial businesses. That became even more apparent when the company became a minority stakeholder with no control over how the business was run, according to a person briefed on G.E.’s thinking who could not discuss private conversations publicly.

“By adding significant new capital to our balanced capital allocation plan, we can accelerate our share buyback plans while investing in growth in our core businesses,” Mr. Immelt said in a statement. He added: “For nearly 30 years, NBC — and later NBCUniversal — has been a great business for G.E. and our investors.”

Read More..

North Korea Conducts Nuclear Test

Ahn Young-Joon/Associated Press

South Korean army soldiers patroled along a barbed-wire fence at the Imjingak Pavilion, near the demilitarized zone of Panmunjom, in Paju, South Korea, on Tuesday.

WASHINGTON — North Korea confirmed on Tuesday that it had conducted its third, long-threatened nuclear test, according to the official KCNA news service, posing a new challenge for the Obama administration in its effort to keep the country from becoming a full-fledged nuclear power.

The KCNA said it used a “miniaturized and lighter nuclear device with greater explosive force than previously” and that the test “did not pose any negative impact on the surrounding ecological environment.”

The test led to a crescendo of international condemnation Tuesday, with President Obama calling it a “highly provocative act” that demands “swift and credible action by the international community” against North Korea. Russia, Britain, South Korea and the United Nations similarly swiftly condemned the blast. The United Nations Security Council scheduled an emergency meeting at 9 a.m. New York time to take up the matter.

Preliminary estimates by South Korea suggested the test was much more powerful than the previous two conducted by the North.

Kim Min-seok, a spokesman for South Korea’s Defense Ministry, said Tuesday’s blast generated an explosive yield of between six and seven kilotons, far greater than the yield of less than one kiloton detected in the North’s 2006 test and an estimated yield of two to six kilotons in its 2009 test. But it appeared less powerful than the first bomb the United States dropped on Japan, in Hiroshima in 1945, which had an explosive yield of 15 kilotons.

The test is the first under the country’s new leader, Kim Jong-un, and an open act of defiance to the Chinese, who urged the young leader not to risk open confrontation by setting off the weapon. In a statement issued several hours after the blast, China expressed its “staunch opposition” to the test but called for “all parties concerned to respond calmly.” And it was unclear how China would act at the United Nations Security Council as it convenes Tuesday.

The nuclear test came the same day President Obama is to use his State of the Union address to call for drastically reducing nuclear arms around the world, potentially bringing the number of deployed American weapons to roughly 1,000 from the current 1,700.

Even before Pyongyang conducted Tuesday’s test, the Obama administration had already threatened to take additional action to penalize the North through the United Nations. But the fact is that there are few sanctions left to apply against the most unpredictable country in Asia. The only penalty that would truly hurt the North would be a cutoff of oil and other aid from China. And until now, despite issuing warnings, the Chinese have feared instability and chaos in the North more than its growing nuclear and missile capability, and the Chinese leadership has refused to participate in sanctions.

Mr. Kim, believed to be about 29, appears to be betting that even a third test would not change the Chinese calculus.

The test set off a scramble among Washington’s Asian allies to assess what the North Koreans had done.

The United States sent aloft aircraft equipped with delicate sensors that may, depending on the winds, be able to determine whether it was a plutonium or uranium weapon. The Japanese defense minister, Itsunori Onodera, said Japan had ordered the dispatch of an Air Self-Defense Force jet to monitor for radioactivity in Japanese airspace.

Japan’s new prime minister, Shinzo Abe, told Parliament that the country was considering “its own actions, including sanctions, to resolve this and other issues.”

But the threat may be largely empty, because trade is limited and the United States and its allies have refrained from a naval blockade of North Korea or other steps that could revive open conflict, which has been avoided on the Korean Peninsula since an armistice was declared 60 years ago.

It may take days or weeks to determine independently if the test, was successful. American officials will also be looking for signs of whether the North, for the first time, conducted a test of a uranium weapon, based on a uranium enrichment capability it has been pursuing for a decade. The past two tests used plutonium, reprocessed from one of the country’s now-defunct nuclear reactors. While the country has only enough plutonium for a half-dozen or so bombs, it can produce enriched uranium well into the future.

David E. Sanger reported from Washington, and Choe Sang-hun reported from Seoul, South Korea. Jane Perlez contributed reporting from Beijing, Hiroko Tabuchi from Tokyo, and Chris Buckley and Gerry Mullany contributed from Hong Kong.

Read More..