PepsiCo to take controversial ingredient out of Gatorade

Responding to consumer concerns, PepsiCo today announced that it will remove brominated vegetable oil, an emulsifier, from citrus-flavored Gatorade.

Mississippi teenager Sarah Kavanagh had launched an online petition in November that drew recent media attention, including a story in the Chicago Tribune on Monday, but the company said the reformulation project was sparked by earlier customer complaints.

“While our products are safe, we are making this change because we know that some consumers have a negative perception of BVO in Gatorade, despite being permitted for use in North American and Latin American countries,” Gatorade spokeswoman Molly Carter said in a statement. “As part of this process, we began working on an alternative ingredient to BVO for the few Gatorade flavors that contain BVO more than a year ago.”

Some countries, including those in the European Union and Japan, do not allow the use of brominated vegetable oil in food. The U.S. Food and Drug Administration’s last review of the chemical, conducted in the 1970s, called for more toxicological testing that was never performed.
 
Kavanagh, whose petition noted that the chemical shares an ingredient, bromine, with some flame retardants, was ecstatic when she heard the news.
 
“When I went to Change.org to start my petition, I thought it might get a lot of support because no one wants to gulp down flame retardant, especially from a drink they associate with being healthy,” she said. “But with Gatorade being as big as they are, sometimes it was hard to know if we’d ever win. This is so, so awesome.”

In an interview, Carter said the company needed a year to make sure the new formulation “would not affect taste or functionality. So we did a lot of sensory testing to make sure we had the right batch and we feel strongly we do.”
 
Carter said BVO will be replaced with sucrose acetate isobutyrate, “one of the flavor emulsifiers we use internationally.”
 
She said she expects the newly formulated drinks to be on shelves over the next few months. Consumers can check for brominated vegetable oil in the list of ingredients and “until then they can drink other (non citrus) flavors that do not contain it.”
 
Carter said there is no current plan to remove BVO from PepsiCo’s Mountain Dew but the company is always evaluating “formulas to ensure they meet the high standards our consumers expect.”

Coca-Cola, which uses the chemical in Orange Fanta and Powerade, said in a statement that the ingredient improves the stability of some products by preventing ingredients from separating.

“While we are confident in the safety of our beverages, we continuously look for ways to improve our products and take consumers’ concerns into account,” the statement said.
 
Change.org said Kavanagh’s petition attracted more than 200,000 supporters and was one of its most popular.
 
“Her campaign is a great example of the shift in power we’re seeing between businesses and their customers,” said Pulin Modi, senior campaigner at Change.org. “Companies like Gatorade can no longer sit back as thousands of consumers are asking for a change -- they’re compelled to do something about it.”

meng@tribune.com
Twitter @monicaeng

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Samsung puts lid on capex for the first time since financial crisis

SEOUL (Reuters) - Samsung Electronics Co turned cautious on spending for the first time since the global financial crisis, keeping its annual investment plan unchanged at 2012 levels, as demand for computer chips wanes and the smartphone market slows.

Samsung, one of the industry's most aggressive spenders, has ramped up capital expenditure every year since 2004 except 2009 to meet soaring demand for its array of consumer electronics and mobile devices. It sold a record 700,000 smartphones a day in the last quarter.

But with the personal computer market shrinking for the first time in 11 years, the global smartphone market growing more slowly, and Apple Inc moving to buy fewer of Samsung's microprocessors used in the iPhone and iPad, the South Korean IT giant is now forced to keep a lid on spending.

"Overall its earnings momentum remains intact, and smartphone shipments will continue to grow even in the traditionally weak first quarter, as Samsung's got a broader product line-up and Apple appears to be struggling in pushing iPhone volumes aggressively," said Lee Se-chul, a Seoul-based analyst at Meritz Securities.

Samsung, which reported a record quarterly and annual profit on Friday, said it would keep 2013 capital expenditure unchanged from 2012.

"The key word for us in investment in 2013 is flexibility. We'll decide as the market demand dictates," Robert Yi, head of Samsung's investor relations, told analysts.

Data from the company shows Samsung started to slow down planned investment in the last quarter.

Samsung said it spent 4.4 trillion won in October-December, pushing its 2012 investment to a record 23 trillion won ($21.5 billion). But the company said in October that it was on course to spend 25 trillion won in 2012.

Analysts had expected a 4-20 percent cut in Samsung's 2013 capital spending.

By contrast, Taiwanese rival TSMC is planning to raise its capital expenditure to $9 billion this year, aimed in part at winning Apple orders away from Samsung.

Shares in Samsung fell 2.1 percent as of 0250 GMT, lagging a 1.1 percent decline in the wider market.

RECORD EARNINGS

Samsung had poured money into factories to boost production of chips and panels used in Apple products and its Galaxy range devices, pushing its operating profit to 8.84 trillion won in the last quarter. The 89 percent increase from a year earlier was in line with its earlier estimate.

Profit at its mobile devices division, which makes phones, tablets and cameras, more than doubled to 5.44 trillion won in the quarter from a year earlier, lifted by a broader offering of smartphones - from the very cheap to the very expensive.

The division accounted for 62 percent of Samsung's overall fourth-quarter profit, up from 55 percent a year earlier.

Samsung is also seeing strong sales of its Note phablet, which analysts expect to help Samsung get through any seasonal weakness better than rivals.

Samsung, which doesn't provide a breakdown of smartphone sales, is estimated to have sold around 63 million smartphones in the last quarter, including 15 million Galaxy S IIIs and 7 million Note IIs.

The company also said 2012 operating profit rose 86 percent to an all-time high of 29 trillion won.

SAMSUNG VS APPLE

Samsung sold 213 million smartphones last year and enlarged its share of the global market to 30.4 percent from around 20 percent in 2011, a report by market research firm Strategy Analytics showed on Friday. The sharp increase reflects Samsung's aggressive marketing of its wide product range.

Apple's share of the market rose slightly to 19.4 percent from 19.0 percent in 2011, according to the report.

Globally, sales of smartphones surged 42.7 percent last year to 700 million, Strategy Analytics said.

Samsung said on Friday it expects the global smartphone segment to shrink in January-March from the seasonally strong fourth quarter, and that growth of the overall handset market will slow to the mid single-digits this year.

The forecast is in line with industry estimates, with signs of a slowdown having already emerged.

Apple shipped 47.8 million iPhones in the three months ended December, a record that nonetheless disappointed many analysts accustomed to years of outperformance. The Cupertino, California-based company also missed Wall Street's revenue forecast for a third straight quarter as iPhone sales lagged expectations.

Apple shares have dropped by more than a third since mid-September as investors fret that its days of hyper growth are over and its devices are no longer as 'must-have' as they were.

By contrast, shares in Samsung have risen 12 percent in the same period as the company once seen as quick to copy the ideas of others now sets the pace in innovation.

At the world's biggest electronics show in Las Vegas this month, Samsung unveiled a prototype phone with a flexible display that can be folded almost like paper, and a microchip with eight processing cores, creating a buzz that these may be used in the next Galaxy range.

"It's very probable to us that the Exynos 5 Octa (processor) will find its way into the Galaxy S4," UBS analyst Nicolas Gaudois wrote in a recent note.

"It also looked as if the curved display is close enough to finished product. We came away even more convinced that displays will provide significant differentiation to Samsung devices, and application processors will materially grow over time," Gaudois said. ($1 = 1066.2000 Korean won)

(This story corrects 19th paragraph to show Apple's 2012 smartphone market share rose slightly according to Strategy Analytics.)

(Reporting by Miyoung Kim; Editing by Ryan Woo)

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After beating Federer, Murray reaches Aussie final

MELBOURNE, Australia (AP) — Andy Murray was sucking in deep breaths, trying to recover from his exhausting win over Roger Federer. Pain was very much on his mind.

The U.S. Open champion defeated Federer 6-4, 6-7 (5), 6-3, 6-7 (2), 6-2 in a four-hour Australian Open semifinal Friday night. It was Murray's first victory against the 17-time major winner at a Grand Slam event.

But with the clock about to strike midnight, Murray was already thinking about Sunday's final against two-time defending champion Novak Djokovic, who is on a 20-match winning streak at Melbourne Park. This will be a rematch of their U.S. Open final.

"Every time we play each other it's normally a very physical match," Murray said. "I'll need to be ready for the pain. I hope it's a painful match — that'll mean it's a good one."

Murray had a 10-9 record against Federer, but had lost his three previous Grand Slam matches to the Swiss star. One of those defeats came at Wimbledon last year. Murray says the disappointment of that loss triggered his run to the gold medal at the London Olympics, and then his drought-breaking triumph at the U.S. Open.

"You know, I've obviously lost some tough matches against him in Slams," Murray said. "So to win one, especially the way that it went tonight, yeah, was obviously nice."

Murray ended a 76-year drought for British men at the majors when he beat Djokovic in five sets in the final at Flushing Meadows.

He's hoping the step-by-step manner in which he has crossed career milestones off his to-do list will continue Sunday. He lost four major finals, including two in Australia, before winning a Grand Slam title. He lost three times to Federer in a major before beating him. Even then, he wasted a chance to serve out in the fourth set Friday night as Federer rallied.

"Those matches ... have helped obviously mentally," he said. "I think going through a lot of the losses that I've had will have helped me as well. Obviously having won against Novak before in a Slam final will help mentally."

Djokovic will not be the only defending champion this weekend playing for another title. Victoria Azarenka will face China's Li Na on Saturday night for the women's crown.

Azarenka hasn't added a major title since her breakthrough in Australia last year. She's coming off a semifinal victory over American teenager Sloane Stephens in which she had to answer a torrent of questions over her nine-minute medical timeout after wasting five match points and then dropping serve in the next-to-last game.

Li, who is seeded sixth, lost the 2011 Australian final before claiming her first major title months later at the French Open. She made the final with less commotion, beating No. 2 Maria Sharapova in straight sets.

The first title of the 2013 Australian Open, women's doubles, was decided Friday when top-seeded Sara Errani and Roberta Vinci of Italy beat unseeded Australians Ashleigh Barty and Casey Dellacqua 6-2, 3-6, 6-2.

That was a prelude to the night match, where 15,000 people packed Rod Laver Arena, including the great Laver himself, to see if Federer could reach a sixth Australian final. The 31-year-old Swiss has won four of his 17 titles at Melbourne Park.

He showed flashes of his customary genius, but also rare bursts of anger. Murray showed his frustration as well. The crowd started to turn on him after he challenged a call in the eighth game of the fourth set, booing each time he complained to the umpire. His unforced error into the net on the next point prompted a huge cheer.

In the 12th game of the fourth set, Federer appeared to yell across the net after Murray stopped momentarily behind the baseline during the rally.

Murray shrugged it off and seemed to dig in. He'd won that point but lost the game and was taken to another tiebreaker, which he lost.

"We were just checking each other out for bit," Federer said. "That wasn't a big deal for me — I hope not for him."

Murray said "stuff like that happens daily in tennis," and added that it was "very, very mild in comparison to what happens in other sports."

When Federer got break point with Murray serving for the match at 6-5, the applause was so prolonged Murray had to wait to serve. And when Federer got the break to force a tiebreaker, the crowd stood and roared as Murray slammed a ball into the court in anger.

The crowd cheered for every Murray error in tiebreaker. One man yelled, "Andy, don't choke."

He didn't.

Rather than wilting under the pressure in the fifth set, Murray hit his stride. He allowed Federer only four points in the first three games of the fifth set, bolting to a 3-0 lead and carrying it through to the end.

"It's big. I never beat Roger in a Slam before. It definitely will help with the confidence," Murray said. "Just knowing you can win against those guys in big matches definitely helps."

Federer could see improvement in Murray's approach in the tough situations.

"With the win at the Olympics and the U.S. Open, maybe there's just a little bit more belief," Federer said. "Or he's a bit more calm overall."

Djokovic already owns three Australian titles and is aiming to be the first man in the Open era to win three in a row. The 25-year-old Serb was nearly flawless in his 89-minute disposal of No. 4-ranked David Ferrer in Thursday night's semifinal, and said he was hoping Murray and Federer would go to five sets.

"Obviously, Novak goes in as the favorite, I would think, even though Andy beat him at the U.S. Open," Federer said. "Novak is the double defending champion here. He's done really well again this tournament. Obviously a tough match again, and give a slight edge to Novak just because of the last couple of days."

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Veteran showman Dick Van Dyke reflects on lifetime’s work

(Reuters) – From “Mary Poppins” to “Night at the Museum” and his own long-running TV comedy, Dick Van Dyke has done it all during a show business career spanning seven decades.

On Sunday, Van Dyke, 87, gets a lifetime achievement award from the Screen Actors Guild in Los Angeles, just a year after his 1960s “Dick Van Dyke Show” co-star Mary Tyler Moore received the same honor.

Reuters spoke to Van Dyke about his career, his thoughts on today’s comedies and being a newlywed in his 80s.

Q: Was it really as much fun working on “The Dick Van Dyke Show” as it seemed?

A: “It was just absolutely wonderful. (Co-star) Morey Amsterdam used to say it was like going to a party every morning. It was the perfect improv group. I think it was the best five years of all of our lives.”

Q: Do you have a favorite episode?

A: “‘Coast-to-Coast Big Mouth,’ where Mary gives away that Alan Brady, Dick’s boss (played by show creator Carl Reiner) is bald, is one that comes to mind. I tend to like the ones that I had the most fun on, and I think the one I recall immediately is ‘Where Did I Come From?,’ the story of Richie’s birth, and all the hijinks that happen with the nervous father. A lot of crazy things happened, a lot of slapstick, which, of course, I love to do. It was a farce, but I just had so much fun on that one.”

Q: How have sitcoms changed since “The Dick Van Dyke Show’s” run from 1961-66?

A: “I think the big change is that 10 minutes of every 30 are commercials. We had 28 minutes to tell our story. Today they get 20 minutes. It’s just a one-line joke and a canned laughter, and a one-line joke and a canned laughter. I won’t say it’s bad, it’s just that I have trouble understanding it.

“It seems to me that relationships are what’s missing. I think back to ‘All in the Family,’ when you knew what those relationships were and the comedy that came out of that. Today it’s just one line after another, and they seem to try to cover too much in the way of story in a short time. Then I think they signal when they’re trying to be funny, and the minute I catch someone trying to be funny, then I won’t laugh.”

Q: What do you watch on television?

A: “I have to admit, I don’t get the comedies today. Maybe it’s just my vintage. Actually I stick pretty much with the news, and I love ‘Jeopardy!’ I watch Al Jazeera. They have news that you can’t find anywhere else. They do great documentaries, too.”

Q: Do children tend to recognize you from your earlier roles in film classics such as “Mary Poppins” (1964), or for your more recent work in the 2006 family film “Night at the Museum“?

A: “It’s just thrilling. I get little kids who recognize me from ‘Mary Poppins,’ and it just delights me because it’s our third generation. I was in the market the other day and a woman said to her daughter, ‘Honey, that’s the man who played Bert.’ And she ran over to her little brother and said, ‘I just met Bert’s grandpa!’ So to be recognized by kids is just wonderful. Kids have all seen ‘Mary Poppins,’ almost every family has a copy of it, and the children have come up and sung all the words from the songs of ‘Mary Poppins‘ for me. It’s amazing.”

Q: You’re a member of the barbershop quartet, Dick Van Dyke and the Vantastix. Where do you perform?

A: “We sing mostly at fundraisers and benefits. We also sing the opening theme song from “The Dick Van Dyke Show.” Morey Amsterdam wrote the lyrics, but I don’t think they’ve ever been published. I sing with guys half my age in the group, so they keep me young. A couple years ago we sang at Ford’s Theater for the president, so that was a big thrill for us.”

Q: You married makeup artist Arlene Silver last February. You two met at the SAG awards seven years ago. How’s married life treating you?

A: “Absolutely wonderful! She sings and dances, so there is a lot of that going on around our house. She’s a joy and she just lights up my life!”

(Reporting by Jill Jacobs in New York; Editing by Eric Kelsey and Eric Beech)

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Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

___

Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

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Stevie Wonder to perform Super Bowl weekend

NEW ORLEANS (AP) — Stevie Wonder is the latest in a parade of entertainers that will perform in New Orleans Super Bowl weekend.

The Rock 'n' Roll Hall of Fame singer is headlining an outdoor concert near the Wyndham Riverfront Hotel on Feb. 2, the evening before the big game.

A spokeswoman for the event said Friday that Bud Light is sponsoring the concert. It will include performances by Texas blues guitarist Gary Clark Jr. and others.

Also that night, Justin Timberlake is appearing in his first concert in more than four years during "DIRECTV Super Saturday Night," an invitation-only concert being held after DIRECTV's "Celebrity Beach Bowl" that will include a performance by Miami rapper Pitbull.

"Celebrity Beach Bowl" is a star-studded flag football match that will include rapper Snoop Dogg and actor Neil Patrick Harris.

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Wrigley rooftops offer Cubs billboard revenue

Rooftop owners around Wrigley Field have come up with an idea they hope will get things moving on the ball park's renovation. ( Source: WGN - Chicago)

The rooftop clubs outside Wrigley Field unveiled a plan Friday to put digital signs on their buildings and give the revenue to the Chicago Cubs.

Representatives of the clubs said it is a better alternative to the team's plan to put up signs in the outfield that could potentially block the views from the rooftops and hurt their businesses.

"We believe this is common sense plan is a win-win for the community, rooftops, City Hall and the Cubs," said Beth Murphy, owner of Murphy's Rooftop.

The rooftop owners said they expect their businesses to contribute more than $185 million to the local economy in the next 20 years, $70 million of which would be earmarked for the Cubs. A sign detailing their estimates ended with the words, "Destroying one business to benefit another is not the answer."

Dennis Culloton, a spokesman for the Ricketts family, said that the rooftop owners should discuss their plan with the team "instead of holding press conferences."

A representative of the team, Cubs marketing specialist Kevin Saghy, tried to attend the press conference but was asked to leave the room during the video presentation of the rooftop plan. Saghy brought a tape recorder but did not wear any credentials to indicate he was a Cubs representative.

"A deadline is fast approaching for the team and the city of Chicago to move forward," Culloton said.

Culloton also said the team would bring in more money from advertising atop the back wall of the bleachers than ads on the rooftop buildings.

"Inside the ballpark is going to be infinitely more valuable than advertising outside the ballpark," Culloton said.

Culloton also reiterated the call of Cubs Chairman Tom Ricketts for the city to free up the team to run the ballpark without a slew of restrictions.

"The Ricketts family and the Chicago Cubs want the right to run their business so they can continue to be good stewards of Wrigley Field and in doing so save the beloved ballpark for future generations," he said.

Ryan McLaughlin, a spokesman for the rooftop owners, said Cubs representatives were familiar with the general outline of the plan before today's press conference. Murphy presented it a community meeting Wednesday with Ald. Thomas Tunney, 44th, neighborhood groups and Cubs representatives present, he said.

Tunney suggested Friday the rooftop plan could be a part of the overall effort to rehab Wrigley.

"The advertising proposal from the rooftops can be part of the larger picture for preserving Wrigley," Tunney said in a prepared statement.

"I remain committed to working with the Cubs and small businesses in the neighborhood.  Most importantly, we will continue to engage our residents in discussions concerning Wrigley Field and their quality of life."

asachdev@tribune.com

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Girl: 'My sister's on fire'

3 children were injured, 1 critically after a fire started inside their apartment. (WGN - Chicago)

By Carlos Sadovi and Rosemary Regina Sobol




Tribune reporters

2:20 p.m. CST, January 24, 2013

Hearing screams in the hallway, Vanessa King stepped out of her apartment to see her neighbor rushing down the stairs while cradling a little girl crying from burns over half her body.

"He put a blanket around her. He was holding her. He was telling her it was going to be OK," King said.

The neighbor, Clyde Harden, carried the 4-year-old girl into an ambulance that took her to Comer Children's Hospital, where she remained in critical condition today.

The girl was with her 9-year-old brother and 16-year-old sister when her bunk bed caught fire around 7:15 p.m. Wednesday in a four-flat in the 1000 block of West 76th Street, officials said.

The 16-year-old was in a back bedroom doing her homework when the boy ran to her room, neighbors said. "He ran back there to tell her [their sister] was on fire," said Sandra Gray, who lives downstairs. "She came downstairs and was knocking on everyone's door. She was screaming, 'My sister's on fire.' "

Gray said she and her husband and a neighbor ran up and saw the bottom bunk bed on fire. "All I saw was that the bed was on fire and the baby was burned," Gray said. "You could see the bed on fire."

She said the 16-year-old tried to pull the little girl from the bed and burned her hands. Gray's husband and the neighbor finally put the fire out as firefighters and paramedics arrived, she said. Gray said the girl was conscious but badly burned.

Harden, who rushed up with Gray, said he grabbed hold of the girl and helped put out the fire. “I believe that she was sheltered by God already,” he told reporters on the scene. “Somebody was there for her.”

Though an official cause has not been determined, authorities are looking into the possibility that someone inside the home had been playing with a lighter or matches, according to Fire Department spokesman Larry Langford.

King said she was struggling with how to talk to her 5-year-old daughter about her friend’s injury, saying her girl had nightmares through the night.

King said her daughter told her that "my friend needs to get her skin back. The doctor is going to take care and God is going to take care of her."

csadovi@tribune.com

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RIM shares rise on report of Lenovo interest

TORONTO (Reuters) - Shares of Research In Motion Ltd rose 3 percent on Thursday after a report quoted China's Lenovo Group as saying a bid for the BlackBerry maker was among the options for boosting its mobile business.

"We are looking at all opportunities -- RIM and many others," Lenovo Chief Financial Officer Wong Wai Ming told Bloomberg in an interview at the World Economic Forum's annual meeting in Davos, Switzerland. "We'll have no hesitation if the right opportunity comes along that could benefit us."

Wong said Lenovo has spoken to RIM and its bankers about various combinations or strategic ventures, the Bloomberg report said.

Any bid for RIM, which Canadian Prime Minister Stephen Harper has described as a national "crown jewel," would face a rigorous review by the government to determine whether the deal would bring a "net benefit" to Canada.

Earlier this week, RIM shares surged to a 13-month high after Chief Executive Thorsten Heins said RIM may consider strategic alliances with other companies after next week's launch of devices powered by a new operating system.

In an interview with a German newspaper on Monday, Heins said RIM's review could potentially lead to the sale of its handset business or the licensing of its software to rival smartphone companies.

Analysts expressed skepticism about a Lenovo bid for RIM.

"Anybody who's serious about buying a company doesn't go talking it up...It sounds to me like a comment made more for publicity's sake than a serious approach for RIM," said Charter Equity analyst Ed Snyder. "It is a very long shot at the best. There's so many hurdles. One is regulatory of course."

Earlier this week, Canada's Industry Minister Christian Paradis told Reuters that the Canadian government might go to the extent of even reviewing a sale of RIM's handset business, following the comments made by RIM's CEO.

"I think third parties are always interested in making acquisitions, but to conclude that they (Lenovo) are going to buy RIM is a stretch," said RBC Capital Markets analyst Paul Treiber.

ALL OPTIONS EXAMINED

RIM announced a far-reaching strategic review last May under which it was expected to examine all options, from software licensing deals to an outright sale of the company.

After the comments from Lenovo, a RIM spokesman said the company had nothing new to report on its strategic review at this time.

"We continue to examine all available options to create new opportunities, focusing on areas where we will be more effective partnering rather than going it alone, and ultimately maximizing value for all stakeholders," said RIM spokesman Nick Manning.

The company, once a pioneer in the smartphone industry, has struggled in recent years as its aging line-up of devices lost market share to Apple Inc's iPhone and devices based on Google Inc's Android operating system.

RIM hopes its new touch-screen and keyboard devices, powered by its new BlackBerry 10 operating system, will help it claw back market share.

Shares of RIM were up 3.1 percent at $17.88 in midday trading on the Nasdaq. The Toronto-listed shares were up 3.5 percent at C$17.90. RIM is a volatile stock, and moves of 3 percent and more are not uncommon.

A spokesman for Lenovo said the comments made during the Bloomberg interview were consistent with previous statements on Lenovo's M&A strategy.

"Lenovo is very focused on growing its business, both organically and through M&A. When inorganic ideas arise, we explore them to see if there is a strategic fit," Lenovo spokesman Brion Tingler said in an e-mail.

RIM shares are down almost 90 percent from an all-time high of over C$148 in 2008, but the stock has rallied in the last four months as the launch of the BlackBerry 10 devices nears. Its shares have nearly tripled in value since dipping as low as C$6.22 in late September.

(Reporting by Euan Rocha in Toronto and Sinead Carew in New York; Editing by Frank McGurty and Leslie Gevirtz)

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Azarenka eludes chokehold, gains Australian final

MELBOURNE, Australia (AP) — Sloane Stephens sat for nine minutes, mostly staring at the court and trying to forget the curious timing of Victoria Azarenka's medical timeout. She may have been the only one trying to ignore it.

The 19-year-old American had just saved five match points and broken Azarenka. But she knew she had to hold serve to stay in her first Grand Slam semifinal whenever Azarenka — the No. 1 player and defending Australian Open champion — returned to Rod Laver Arena.

The restless murmuring in the crowd gave way to slow claps. Why had Azarenka chosen that very moment for a medical break?

Azarenka eventually hustled onto the court, and Stephens won only three more points, losing 6-1, 6-4.

"I almost did the choke of the year," Azarenka said in a frank admission during an on-court interview. "At 5-3, having so many chances, I couldn't close it out."

The crowd that had cheered wildly for Stephens, only 25 hours after she ousted an injured Serena Williams, gave Azarenka tepid applause as she left the court. She'll face 2011 finalist Li Na in the final Saturday night. Given the support Li enjoyed in her 6-2, 6-2 win over No. 2-ranked Maria Sharapova, there's no question which player the crowd will favor in the title match.

Azarenka's immediate post-match remarks suggest she panicked after failing to convert five match points, her forehand misfiring. She had little trouble finishing the match after she came back, and the No. 29-seeded Stephens had cooled off.

"I just felt a little bit overwhelmed. I realized I'm one step away from the final and nerves got into me for sure," Azarenka said.

The 23-year-old Belarusian said she was later compelled to explain that she misunderstood the question in the on-court interview, and she wanted to dispel the perception that her medical timeout amounted to little more than gamesmanship.

"I understand the point of people maybe not understanding what I said; me not understanding what I've been asked," she said during an official news conference more than two-thirds devoted to questions on her medical timeout. "So I'm just glad that I'm here, you know, to make everything clear.

"You know, I think you cannot really judge by (a) few words. The situation had to be explained."

Medical staff said Azarenka had timeouts for treatment of left knee and rib injuries. The rib needed to be manipulated because it was affecting her breathing. Tournament director Craig Tiley said Azarenka hadn't broken any rules.

Azarenka hadn't helped herself in a second television interview after the match when she said she couldn't breathe.

"I had chest pains," she said. "It was like I was getting a heart attack."

She tried to allay any negative perception with her explanation that the choking was related to shortness of breath from the rib injury, not her faltering game.

"When you cannot breathe you start to panic," she said. "I was really panicking, not because I couldn't convert my match point. That's not the case. I mean, I'm experienced enough to go over those emotions. But when you cannot breathe, when something's really blocking you, the stress — that was the stress I was talking about.

"What I said — that I was stressed out and choked — was not because I couldn't finish my shot. It was just so stressing me out the pain that I had that, maybe it was overreaction, but I just really couldn't breathe."

Azarenka had retired during previous Grand Slam matches, including a fourth-round match against Serena Williams at the 2009 Australian Open. But with a second major title so close, and the fact she needed to reach the final to retain the No. 1 ranking, she desperately didn't want to quit this time.

For her part, Stephens seemed sympathetic. She had to wait through a medical timeout Wednesday when Williams received treatment for a sore back — the 15-time major winner injured herself after leading by a set and a break. Another rival earlier in the tournament took a long break between sets for other reasons.

"I mean, when you take a medical break or timeout, obviously it's for a reason," she said. "I mean, just another something else that happens. If it was one of my friends, I would say, 'Oh, my God, that sounds like a PP, which is a personal problem. Other than that, it's just unfortunate."

Besides, Stephens said, it didn't affect the outcome of the match.

"No, not at all. She played obviously a really good match," she said. "First set she played awesome; got close in the second. It didn't go my way, but I wouldn't say at all what happened affected the match."

Novak Djokovic dispensed with No. 4-seeded David Ferrer 6-2, 6-2, 6-1 in the night match, saying he "played perfectly" to reach his third consecutive Australian Open title match. Then he dispensed some medical advice of his own.

The Serb, who won the Australian titles in 2008, 2011 and 2012, wore a white shirt with a red cross on the back, pretending to be a doctor to treat Henri Leconte during a legends doubles match at Rod Laver Arena.

He's relaxed now that he has an extra day to prepare for Sunday's final. Djokovic will next play the winner of Friday's semifinal between No. 2 Roger Federer, a four-time Australian Open champion, and No. 3 Andy Murray, the U.S. Open champion.

Djokovic lost only seven points in 11 service games against Ferrer, and hit 30 crisp, clean winners in an almost flawless performance.

"I cannot remember the last time I played so well," Djokovic said. "I've played many great matches, but this one stands out. Hopefully, I can play the same level on Sunday."

He played confidently in the first two sets, and was sublime in the third. Even Ferrer, who has now lost five Grand Slam semifinals and never reached a championship match, was surprised.

After hitting a forehand a fraction wide of the line and losing his challenge in a review, Ferrer double-faulted to give Djokovic match point. The errors were a measure of just how much pressure Djokovic was applying.

Right after his semifinal, Djokovic started playing mind games leading to the final.

"Federer-Murray, when they're playing it's always very close," he said, confirming he'd be closely watching the match. "I wouldn't give the role of the favorite to either of them. I expect to enjoy it. Whoever I play against, I'm going to be ready."

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