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  • admin 7:41 PM on May 18, 2012 Permalink  

    Putin gives top job to tank factory worker 

    MOSCOW (AP) — Pres­i­dent Vladimir Putin on Fri­day gave a senior gov­ern­ment post to a tank fac­tory worker who had offered to come to Moscow with fel­low labor­ers to dis­perse oppo­si­tion protests.

    Putin said he would make Igor Khol­man­skikh the pres­i­den­tial envoy to the Ural Moun­tains region, say­ing the job will help him pro­tect the inter­ests of workers.

    Khol­man­skikh, a sec­tion head at the Ural­vagon­za­vod fac­tory that builds bat­tle tanks in the Urals city of Nizhny Tagil, became widely known when he denounced anti-Putin pro­test­ers dur­ing a live TV pro­gram in Decem­ber in which Putin took call-in ques­tions. He said he and col­leagues would help clear the streets of demon­stra­tors if police couldn’t.

    Putin won a third pres­i­den­tial term in March’s vote despite a series of unprece­dented protests against his rule that drew more than 100,000 peo­ple to the streets of Moscow. Dur­ing his cam­paign, Putin cast the mostly middle-class pro­test­ers as rich, cod­dled urban­ites manip­u­lated by the U.S. He focused mostly on his core sup­port base of blue-collar work­ers, farm­ers and state employees.

    Putin’s gov­ern­ment has tough­ened its stance since his vic­tory. A protest of at least 20,000 a day before Putin’s May 7 inau­gu­ra­tion turned into a fierce bat­tle with police as some of the protest par­tic­i­pants tried to march on the Krem­lin. Scores were injured in clashes between stone– and bottle-throwing demon­stra­tors and police who fought back with trun­cheons and tear gas.

    In the next few days, police chased oppo­si­tion activists around the city, round­ing up hun­dreds on the streets and in cafes.

    Seek­ing to main­tain momen­tum, the oppo­si­tion set up a camp in cen­tral Moscow that sur­vived for a week before police dis­persed it Wednes­day. A new camp erected at another square across the cap­i­tal has sur­vived so far, but has faced police raids and detentions.

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    Arti­cle Source: http://hosted.ap.org/dynamic/stories/E/EU_RUSSIA_PUTIN?SITE=NJMOR&SECTION=HOME&TEMPLATE=DEFAULT

     
  • admin 7:41 PM on May 18, 2012 Permalink  

    Diplomats: Nuclear agency chief to visit Tehran 

    VIENNA (AP) — The U.N. nuclear agency chief will fly to Tehran over the week­end to sign a deal meant to allow his orga­ni­za­tion to resume a long– stalled search for evi­dence that Iran worked on devel­op­ing nuclear arms, the agency and diplo­mats said Friday.

    The trip Sun­day by Inter­na­tional Atomic Energy Agency chief Yukiya Amano comes just four days ahead of a key meet­ing between six world pow­ers and Iran where the six hope to wrest con­ces­sions from Tehran meant to reduce con­cerns that it wants such arms.

    An IAEA state­ment announc­ing the Sun­day trip said only that Amano would “dis­cuss issues of mutual inter­est with high Iran­ian offi­cials” dur­ing his one-day visit, which will include a meet­ing with Saeed Jalili. Iran’s chief nuclear nego­tia­tor will also rep­re­sent his coun­try at the meet­ing Wednes­day in Bagh­dad with the six world powers.

    But diplo­mats said the visit was sched­uled to allow both sides to agree on an accord out­lin­ing the mechan­ics of IAEA access to sites, infor­ma­tion and offi­cials it seeks for its inves­ti­ga­tion into whether Tehran secretly con­ducted nuclear weapons research and development.

    The diplo­mats demanded anonymity because their infor­ma­tion was con­fi­den­tial. They cau­tioned that sign­ing such a deal was only the first step, adding that its imple­men­ta­tion was the true test of Iran­ian will­ing­ness to end more than four years of refus­ing to work with the IAEA probe after some ini­tial cooperation.

    Still, if Iran does abide by such a deal and give the IAEA the access it seeks, that could result in putting to rest the dis­pute over whether the Islamic Repub­lic hid such work from the rest of the world. A sec­ond round of talks on the issue had been sched­uled in Vienna after and Iran-IAEA meet­ing last week in the Aus­trian cap­i­tal, and the sur­prise announce­ment that Amano would instead be fly­ing to Tehran strongly sug­gested that a deal was ready to be signed.

    Iran agreed to answer ques­tions on the alle­ga­tions in August 2007, but after sev­eral months of coop­er­a­tion declared the issue closed, say­ing it had ful­filled its com­mit­ments and accus­ing the agency of going beyond its man­date in push­ing for more infor­ma­tion. Since then, Iran has blocked the IAEA inves­ti­ga­tion, insist­ing its nuclear pro­gram is peaceful.

    Tehran could point to any deal reached with Amano as proof of its will­ing­ness to com­pro­mise and demand that the six — the United States, Rus­sia, China, Britain, France and Ger­many — in return tem­per demands that Iran end higher-level enrich­ment of uranium.

    Iran says it is enrich­ing only to cre­ate nuclear fuel, but its crit­ics fear it will use the tech­nol­ogy to arm war­heads. Its refusal to halt enrich­ment has pro­voked U.N. and other sanc­tions, includ­ing U.S. and Euro­pean Union penal­ties meant to crip­ple its oil exports — its main rev­enue source — that are to fully take effect in a few weeks.

    While the six pow­ers pub­licly con­tinue to insist that Iran heed U.N. Secu­rity Coun­cil demands and stop all enrich­ment, diplo­mats have said they now are ready to accept Tehran’s right to make low-enriched ura­nium for energy if it stops pro­duc­ing ura­nium enriched to higher lev­els of 20 per­cent, which could be turned quickly into fis­sile war­head material.

    Alle­ga­tions of secret work on devel­op­ing nuclear weapons have com­pounded con­cerns over Iran’s enrich­ment activ­i­ties, with the IAEA say­ing for the first time in Novem­ber that Iran is sus­pected of con­duct­ing secret exper­i­ments whose sole pur­pose is the devel­op­ment of nuclear arms.

    In a report, it out­lined sus­pected Iran­ian work on high-explosives test­ing and det­o­na­tor devel­op­ment to set off a nuclear charge, as well as com­puter mod­el­ing of a core of a nuclear war­head. It also cited appar­ent prepara­tory work for a nuclear weapons test, and devel­op­ment of a nuclear pay­load for Iran’s Sha­hab 3 inter­me­di­ate range mis­sile — a weapon that can reach Israel.

    Some of the infor­ma­tion was new, includ­ing evi­dence of a large metal cham­ber at Iran’s Parchin mil­i­tary site for nuclear-related explo­sives test­ing. Diplo­mats in recent weeks have said that satel­lite pho­tos show an appar­ent clean-up at that site, ahead of any pos­si­ble IAEA visit — a charge Iran denies.

    Asso­ci­ated Press writer Juer­gen Baetz in Berlin contributed.

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  • admin 7:41 PM on May 18, 2012 Permalink  

    Largest protests yet in Syria’s biggest city 

    BEIRUT (AP) — Syr­ian forces on Fri­day fired on pro­test­ers hold­ing the largest oppo­si­tion marches yet in Aleppo, a sign of ris­ing anti-régime sen­ti­ment in the country’s biggest city, which has largely remained sup­port­ive of Pres­i­dent Bashar Assad through­out the 15-month uprising.

    The head of the U.N. observer mis­sion in Syria warned that nei­ther his team nor armed action could solve the country’s cri­sis, and called on all sides to dis­cuss a solu­tion. But the régime kept up its assaults on oppo­si­tion areas and protests, while the head of Syria’s largest exile oppo­si­tion group dis­missed the U.N.‘s plan as unrealistic.

    Anti-régime protests in Aleppo have been grow­ing since a raid on dor­mi­to­ries at Aleppo Uni­ver­sity killed four stu­dents and forced the tem­po­rary clo­sure of the state-run school ear­lier this month.

    The May 3 raid was an unusu­ally vio­lent inci­dent for the north­ern city, a major eco­nomic hub, where busi­ness ties and large minor­ity pop­u­la­tions have kept most res­i­dents on the side of the régime — or at least unwill­ing to join the opposition.

    On Thurs­day, some 15,000 stu­dents demon­strated out­side the gates of Aleppo Uni­ver­sity in the pres­ence of U.N. observers, before secu­rity forces broke up the protest.

    Even big­ger num­bers took to the streets Fri­day. Aleppo activist Moham­mad Saeed said it was city’s largest demon­stra­tion yet, with more than 10,000 peo­ple march­ing in the Sala­hed­dine and al-Shaar dis­tricts and nearly as many more else­where in the city.

    The num­ber of pro­test­ers is increas­ing every day,” Saeed said. He added that sev­eral peo­ple were wounded when gov­ern­ment forces fired tear gas and live ammu­ni­tion to dis­perse the rallies.

    It’s a real upris­ing hap­pen­ing in Aleppo these days,” said Rami Abdul-Rahman, head of the Britain-based Syr­ian Obser­va­tory for Human Rights.

    Thou­sands of peo­ple else­where in the coun­try also staged anti-government ral­lies in sol­i­dar­ity with Aleppo. Fri­day is the main day of protests across Syria and this week’s demon­stra­tions were ded­i­cated to “The Heroes of Aleppo University.”

    Oppo­si­tion activists said secu­rity forces opened fire on protests in sev­eral loca­tions, includ­ing the Dam­as­cus sub­urbs and the cen­tral city of Hama. They also said the régime shelled the cen­tral town of Ras­tan, which rebels have con­trolled since January.

    Ama­teur videos posted online Fri­day showed shells whizzing through the air and slam­ming into res­i­den­tial areas in Ras­tan, send­ing up clouds of smoke.

    The Obser­va­tory also reported three peo­ple shot dead by secu­rity forces in the al-Tadamon neigh­bor­hood in south­east Damascus.

    More than 200 U.N. observers are in Syria as part of a peace plan to end the cri­sis. The head of the observer mis­sion cau­tioned Fri­day that nei­ther his mis­sion nor armed force can stop the blood­shed with­out gen­uine talks between the two sides.

    No num­ber of observers can achieve “a per­ma­nent end to the vio­lence if the com­mit­ment to give dia­logue a chance is not gen­uine from all inter­nal and exter­nal actors,” Maj. Gen. Robert Mood told reporters in Damascus.

    Inter­na­tional pow­ers have pinned their hopes on the peace plan for Syria that spe­cial envoy Kofi Annan bro­kered in April. The plan paved the way for the U.N. observers, and it calls for a cease-fire and dia­logue to end the conflict.

    The U.N. esti­mated in March that the vio­lence in Syria has killed more than 9,000 peo­ple. Hun­dreds more have been killed since then as a revolt that began in March 2011 with mostly peace­ful calls for reform has trans­formed into an armed insurgency.

    Both sides have flouted the cease-fire, rais­ing con­cerns that the peace plan is inef­fec­tive and the vio­lence is spin­ning out of control.

    Annan’s spokesman, Ahmad Fawzi, said in Geneva that the envoy would be vis­it­ing Syria soon, but did not give a date. A high-ranking mil­i­tary adviser to U.N. Secretary-General Ban Ki-moon, Babacar Gaye, arrived in Dam­as­cus on Friday.

    But dia­logue seems a dis­tant hope. The oppo­si­tion says it will accept noth­ing less than the régime’s ouster, and the gov­ern­ment brands its oppo­nents as terrorists.

    On Fri­day, the head of Syria’s largest exile oppo­si­tion group, the Syr­ian National Coun­cil, said he had lit­tle hope for Annan’s plan.

    We have no illu­sions on this mis­sion,” Burhan Ghalioun told The Asso­ci­ated Press in Paris, where he is based. “In real­ity, it’s a mis­sion which was done in order to hide the lack of inter­na­tional con­sen­sus. That’s all.”

    Assad says the pop­u­lar will is not behind the country’s upris­ing, and claims that for­eign extrem­ists are dri­ving the unrest to destroy the coun­try. He has pointed to a rise in rebel attacks on mil­i­tary tar­gets as well as sui­cide bomb­ings in major cities to bol­ster his case.

    The most recent bomb­ing, which tar­geted an intel­li­gence build­ing in Dam­as­cus on May 10, killed some 55 peo­ple and has raised fears that extrem­ist groups are exploit­ing the chaos in Syria for their own purposes.

    At the United Nations, Ban said he had such fears.

    The recent ter­ror­ist attacks in Dam­as­cus sug­gest that these attacks were care­fully orches­trated,” he said. “Hav­ing seen the scale and sophis­ti­ca­tion of these ter­ror­ist attacks, one might think that this ter­ror­ist attack was done by a cer­tain group with orga­ni­za­tion and clear intent. I have strongly con­demned these ter­ror­ist attacks.”

    In Dam­as­cus, Mood spoke out against the ris­ing violence.

    I am more con­vinced than ever that no amount of vio­lence can resolve this cri­sis,” he said. “I am con­cerned about the inci­dents where explo­sives, impro­vised devices are tar­get­ing inno­cent civil­ians, inno­cent peo­ple because it is not going to help the situation.”

    Karam reported from Beirut. AP writ­ers John Heil­prin in Geneva, Albert Aji in Dam­as­cus, Syria, Ron DePasquale in New York and Cather­ine Gaschka in Paris con­tributed reporting.

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  • admin 7:41 PM on May 18, 2012 Permalink  

    George Clinton, Black Eyed Peas settle song suit 

    LOS ANGELES (AP) — George Clin­ton and the Black Eyed Peas have set­tled a law­suit in which the funk pio­neer accused the pop group of using his music with­out proper permission.

    The set­tle­ment was reached after medi­a­tion and was reported to a fed­eral judge on Mon­day, records show. The judge has can­celed an upcom­ing trial as attor­neys work to final­ize set­tle­ment doc­u­ments, and no fur­ther details were provided.

    Clin­ton sued the Peas in Decem­ber 2010, claim­ing the group used ele­ments of his 1979 song “(Not Just) Knee Deep” in remixes of their inter­na­tional hit “Shut Up.” The song first appeared on the group’s 2003 album “Ele­phunk,” and it released “Shut Up Remix” the same year. It also was used in another remix included on the deluxe edi­tion of the Peas’ 2009 release, “The E.N.D.,” accord­ing to Clinton’s lawsuit.

    A judge lim­ited the dam­ages Clin­ton could recoup in a rul­ing ear­lier this month, stat­ing the musi­cian hadn’t shown how much he lost or how much the Peas and Uni­ver­sal prof­ited from using Clinton’s music.

    Calls to attor­neys for Clin­ton, mem­bers of the Black Eyed Peas and Uni­ver­sal Music Group were not imme­di­ately returned.

    The group and its label, Uni­ver­sal Music Group, claimed they licensed the music, but Clin­ton says he never granted per­mis­sion. He claimed pro­duc­ers tried to license “(Not Just) Knee Deep” in 2009, but he refused. Clin­ton alleged his sig­na­ture was forged on a release form later pro­vided to his attor­neys and that he has never been paid roy­al­ties on the remixes.

    The musi­cian pre­vi­ously obtained the rights to his music after suing his label in fed­eral court.

    Anthony McCart­ney can be reached at http://twitter.com/mccartneyAP .

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  • admin 7:41 PM on May 18, 2012 Permalink  

    Amid evidence cache in Martin case, questions nag 

    ORLANDO, Fla. (AP) — Pros­e­cu­tors in the Trayvon Mar­tin case dumped a moun­tain of evi­dence on the pub­lic this week. In many crim­i­nal cases, that would bring clar­ity, start answer­ing the basic questions.

    But no one — not pun­dits, attor­neys or the pub­lic — can safely say we’re even close to know­ing exactly how and why neigh­bor­hood watch vol­un­teer George Zim­mer­man shot and killed the 17-year-old in the black hoodie.

    So many aspects of the Feb. 26 alter­ca­tion and shoot­ing in San­ford remain muddy. Who threw the first punch? Why did Zim­mer­man leave his car?

    This cache of record­ings, pho­tos and state­ments is far from all the evi­dence. But it sug­gests there are answers we may never truly get.

    I can’t com­ment on, you know, what George saw or what George was think­ing,” the suspect’s father, Robert, told inves­ti­ga­tors in a March 19 inter­view included in Thursday’s release. “Or what any­body saw or what they were thinking.”

    In some states, “dis­cov­ery” like this isn’t released prior to trial — unless it’s by a defense team hop­ing to score points in the court of pub­lic opin­ion. That is what hap­pened dur­ing the infa­mous 2006 Duke Uni­ver­sity lacrosse rape case, in which North Car­olina offi­cials ulti­mately deter­mined that the local pros­e­cu­tor rushed to judg­ment in charg­ing three stu­dents with rap­ing a stripper.

    In Florida, evi­dence is gen­er­ally con­sid­ered a pub­lic record once the pros­e­cu­tion turns it over to the defense. Among the things pros­e­cu­tors are pro­hib­ited from releas­ing pre­trial: Confessions.

    Zim­mer­man gave sev­eral inter­views to police, includ­ing re-enacting at the scene what he says hap­pened that night. But there is no state­ment from the 28-year-old shooter among the mate­ri­als made pub­lic this week.

    His only pub­lic com­ment so far came dur­ing his deten­tion hear­ing last month, when he apol­o­gized to Martin’s par­ents — but stopped short of admit­ting any crime.

    Tamara Lave, a Uni­ver­sity of Miami law pro­fes­sor, says all this release does is to remind us how mal­leable “facts” can be.

    I think we always want evi­dence to be like we’re Moses climb­ing the tem­ple moun­tain: You read it and get all the ques­tions answered,” says Lave, who worked a decade as a pub­lic defender before enter­ing acad­e­mia. “I think peo­ple are really get­ting to find out how gray evi­dence really is.”

    Per­haps the biggest rev­e­la­tion was the release of pho­tographs show­ing Zim­mer­man with two black eyes, a swollen nose and mul­ti­ple lac­er­a­tions on the back of his close-cropped head.

    Zimmerman’s lawyers have main­tained their client was sim­ply doing his duty when he noticed a stranger in the neigh­bor­hood and began fol­low­ing him. They say Mar­tin was the aggres­sor, knock­ing Zim­mer­man to the ground, then pum­mel­ing him with his fists.

    When Zim­mer­man pulled his 9 mm pis­tol and fired directly into the boy’s chest, the defense says, he was within his rights under Florida’s “stand your ground law.” Under that law, peo­ple are given wide lat­i­tude to use deadly force rather than retreat in a fight if they believe they are in dan­ger of being killed or seri­ously injured, if they weren’t com­mit­ting a crime them­selves and if they are in a place they have the legal right to be.

    Randy McClean, an Orlando-area defense attor­ney, has sifted through most of the evi­dence released thus far. He says it cor­rob­o­rates Zimmerman’s story of a strug­gle that was “at least mod­er­ate in nature.”

    But we still have the issue out there: Who was the ini­tial aggres­sor?” McClean said. “The fact that there was a phys­i­cal alter­ca­tion, and it appears Mar­tin was get­ting the bet­ter of Zim­mer­man in the alter­ca­tion, it does not nec­es­sar­ily excuse Zimmerman’s act. Because if he was the ini­tial aggres­sor, he can’t avail him­self to the stand your ground law.”

    To Martin’s fam­ily, none of that mat­ters. Zim­mer­man shouldn’t have been fol­low­ing their son in the first place, espe­cially after a dis­patcher told him to stand down.

    But, as Lave notes, “You don’t lose the right to self-defense because you act idiotic.”

    Some of the inter­views released illus­trate just how dif­fi­cult it may be to reach the truth.

    On one of the 911 calls, some­one can be heard scream­ing for help just before the gun­shot. When Martin’s mother heard that audio, she declared defin­i­tively that it was his voice; the boy’s father told an inves­ti­ga­tor it wasn’t Trayvon.

    Robert Zim­mer­man was adamant that the voice on the record­ing was HIS son’s.

    The FBI says it per­formed voice recog­ni­tion analy­sis on the record­ing. Because of the poor audio qual­ity, it was deemed inconclusive.

    Accord­ing to doc­u­ments released this week, Martin’s blood showed traces of THC, the psy­choac­tive ingre­di­ent in mar­i­juana. We knew from ear­lier reports that he’d been dis­ci­plined for smok­ing pot, and the amounts found in his blood sam­ple sug­gest he hadn’t indulged in the days lead­ing up to the inci­dent, experts told The Asso­ci­ated Press.

    Despite all this new evi­dence, some aren’t sure the case will ever go to trial.

    Before that can hap­pen, a judge must first sched­ule a hear­ing on whether the stand your ground law applies. Zimmerman’s attor­neys will have to prove his case by a “pre­pon­der­ance of the evi­dence” — a fairly low bar, jurisprudence-wise. It just means that more likely than not, Zim­mer­man acted within the law.

    If he pre­vails, the pros­e­cu­tor is barred from pro­ceed­ing crim­i­nally,” says Lave, “and the Mar­tin fam­ily from pur­su­ing him civilly.”

    She thinks this case will go to trial. Then, she believes, like many, that the tes­ti­mony of Martin’s girl­friend will be pivotal.

    The girl, whose name was redacted from the released audio files, spoke with assis­tant state attor­ney Bernie De la Rionda on April 2. Dur­ing the 22-minute inter­view, she said in a shak­ing voice that she had been talk­ing with Mar­tin since before he entered a 7-Eleven store to pur­chase his now famous iced tea and Skittles.

    The cell con­nec­tion was bad, and the cou­ple were repeat­edly dis­con­nected. But at one point, Mar­tin told her he noticed a white man sit­ting in a car, watch­ing him.

    He was telling me, like, that man watch­ing him, he going to start walk­ing and then the phone hung up and I called him back again,” the girl said. “And I said, ‘What you doing? And he said he walk­ing and he said this man still fol­low­ing him.”

    It was driz­zling, and the girl said Mar­tin told her he was putting up his hood.

    I told him go to his dad’s house,” she said.

    Mar­tin told her that he was going to run. She could hear the wind blow­ing in the phone’s speaker.

    He was breath­ing hard,” she said. “(his) voice kinda changed. I know he was scared. (his) voice was get­ting kinda low.”

    Sud­denly, she heard Mar­tin say, “Why you fol­low­ing me for?”

    The girl said she could hear another voice, one she described as deep and belong­ing to an “old man.”

    The old man say, ‘What you doing around here?’”

    She asked Mar­tin repeat­edly what was going on, but he didn’t respond. She said she heard some­one say, “Get off,” though she thought it was her boyfriend.

    She heard rustling, then noth­ing. No scream­ing, no gunshot.

    The evi­dence dump included another inter­view with the girl, but the audio qual­ity is so poor as to make it almost unin­tel­li­gi­ble. One thing that did come through: A detec­tive men­tioned that the girl­friend called Mar­tin at 7:12 p.m.

    When police arrived at the scene at 7:17 p.m., Mar­tin was already shot and on the ground.

    She’s the only per­son, for sure, that is a wit­ness who knows what he (Mar­tin) felt and sounded like in those moments,” Lave says of the girl­friend. “All those things can play a role in the out­come of the case.”

    But there are gaps in the file no one can fill.

    Mar­tin can’t describe his feel­ings that evening — whether he was angry, afraid, both.

    Zim­mer­man — who has pleaded not guilty to second-degree mur­der and is in hid­ing — could tes­tify to his own state of mind. But would peo­ple believe any­thing he says?

    Martin’s par­ents say Zim­mer­man racially pro­filed the boy. Some of those who’ve spo­ken to police believe it.

    I don’t know what hap­pened,” one dis­traught woman, who is not iden­ti­fied, says in one the record­ings released this week. “I don’t at all know who this kid was or any­thing else, but I know George. And I know that he does not like black peo­ple. He would start some­thing just to start some­thing. He’s very con­fronta­tional. It’s in his blood, we’ll just say that.”

    Zimmerman’s sup­port­ers say there’s not a racist bone in his body.

    I know that George Zim­mer­man, if sev­eral Asians had bro­ken in places there, and he saw an Asian walk­ing around, he’d prob­a­bly say, ‘Wait a minute. I rec­og­nize most of the peo­ple that live here, and I don’t rec­og­nize that per­son,’” his father told police in the March 19 interview.

    If he con­sents, police could sub­ject the watch­man to a poly­graph test. But, even if it was admit­ted as evi­dence, you can’t depose someone’s heart.

    For his part, Robert Zim­mer­man said he felt as if the case and the pub­lic storm sur­round­ing it were “an avalanche, and I’m stand­ing at the bot­tom of it …”

    With luck, the truth in this chal­leng­ing case won’t be buried there, too.

    Asso­ci­ated Press writer Kelli Kennedy in Miami con­tributed to this report.

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  • admin 7:41 PM on May 18, 2012 Permalink  

    Quebec passes law in effort to end daily protests 

    MONTREAL (AP) — Quebec’s provin­cial gov­ern­ment passed an emer­gency law Fri­day restrict­ing demon­stra­tions and shut­ting some uni­ver­si­ties as the gov­ern­ment seeks to end three months of protests against tuition hikes.Outraged stu­dents reacted by call­ing it an act of war.

    Among the con­tro­ver­sial pro­vi­sions of the law, which passed 68–48, is a require­ment that police to be informed eight hours before a protest and told the route of any demon­stra­tion that includes 50 or more peo­ple. Crit­ics called that an affront to civil rights.

    Hours after the vote thou­sands of pro­test­ers marched in down­town Mon­tréal tocon­demn the leg­is­la­tion, which stu­dents and sup­port­ers say lim­its their abil­ity to demon­strate their dis­ap­proval of the fee hikes.

    They pulled the plug instead of try­ing to develop some­thing con­struc­tive through talks, ” said par­tic­i­pant Felix Siry, 22. “I think this will just make things worse.”

    Police offi­cers in riot gear, and oth­ers on horse­back watched as the loud and ener­getic crowd made its way down­town, chant­ing “No spe­cial law will break us!”

    The crowd was much larger than the hun­dreds who gath­ered Thurs­day night as the gov­ern­ment intro­duced the bill to quell the most sus­tained stu­dent protests in Cana­dian his­tory. But there was none of the vio­lence that erupted Wednes­day when win­dows were smashed, more than 120 peo­ple were arrested and police and pro­test­ers were injured.

    Ear­lier Fri­day, the city of Mon­tréal passed an ordi­nance restrict­ing pro­test­ers from wear­ing masks dur­ing demon­stra­tions, levy­ing fines between $500 and $3,000. The city also said demon­stra­tors will have to pro­vide details of their itin­er­aries beforehand.

    Offi­cials have said they believe pro­test­ers wear­ing masks have been caus­ing the most trou­ble. A sim­i­lar bylaw was under con­sid­er­a­tion in Que­bec City.

    Our cities can no longer become tar­gets,” Mon­tréal Mayor Ger­ald Trem­blay said. “It’s time to reclaim our streets, our neigh­bor­hoods, our cities.” Rights groups also have protested that bylaw, call­ing it a restric­tion on their demo­c­ra­tic right to demonstrate.

    Que­bec Pre­mier Jean Charest said the provin­cial leg­is­la­tion would not roll back the tuition hikes of $254 per year over seven years. Rather, it would tem­porar­ily halt the spring semes­ter at schools par­a­lyzed by walk­outs and push up the sum­mer hol­i­days. Classes would resume ear­lier in August.

    The law imposes harsh fines on pro­test­ers who block stu­dents from attend­ing classes.

    Pro­posed fines range from $1,000 to $5,000 for a stu­dent, $7,000 to $35,000 for a stu­dent leader and between $25,000 and $125,000 for unions or stu­dent fed­er­a­tions if some­one is pre­vented from enter­ing an edu­ca­tional institution.

    The Que­bec Bar Asso­ci­a­tion said it had seri­ous con­cerns about the law and said the scale of the restraints on fun­da­men­tal free­dom wasn’t justified.

    Oppo­si­tion Parti Québé­cois leader Pauline Marois called Fri­day “one of the dark­est days of Que­bec democ­racy,” and said Charest should hold elec­tions because of the unpop­u­lar­ity of the law.

    Mar­tine Des­jardins, one stu­dent leader, blamed the gov­ern­ment for “let­ting the con­flict dete­ri­o­rate” and said it was seek­ing to “drown the con­flict in the tribunals.”

    Stu­dent leader Gabriel Nadeau-Dubois called the law the “mur­der of the right to demonstrate.”

    He said his group would chal­lenge the law before the courts and called on pro­test­ers to take part in a march in great num­bers next Tues­day, which will mark the 100th day of protests.

    But embat­tled Edu­ca­tion Min­is­ter Michelle Courch­esne said before the vote that despite the leg­is­la­tion, talks would go on and an agree­ment could still be reached with the students.

    Even if there is a spe­cial leg­is­la­tion tonight, tomor­row, there can still be an agree­ment after the law,” she said.

    She stressed that the law doesn’t pre­vent stu­dents from protest­ing, and said she remained open to a dia­logue with students.

    Some of the loud­est cheers early on Fri­day were reserved for one man who stood on a garbage can and burned what looked like a copy of the gov­ern­ment bill.

    The con­flict has caused con­sid­er­able social upheaval in the French-speaking province known for hav­ing more con­tentious protests than else­where in Canada — and the country’s the low­est tuition rates.

    The U.S. con­sulate in Mon­tréal last month warned vis­i­tors and U.S. expa­tri­ates to be wary of demonstrations.

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  • admin 7:41 PM on May 18, 2012 Permalink  

    Chicago protesters break away from nurses’ rally 

    CHICAGO (AP) — Hun­dreds of pro­test­ers broke away from a large rally and began march­ing through Chicago streets Fri­day, taunt­ing police and shout­ing about every­thing from bank bailouts to nuclear power — a pre­lude to even big­ger demon­stra­tions expected after the start of a NATO summit.

    Police said there was one arrest for aggra­vated bat­tery of a police offi­cer. Offi­cers were also seen try­ing to arrest a man who scaled a bridge tower and pulled down part of a NATO ban­ner. Ear­lier, police hand­cuffed a man at the end of a noisy but largely peace­ful rally orga­nized by the nation’s largest nurses union.

    Mem­bers of National Nurses United were joined by mem­bers of the Occupy move­ment, unions and vet­er­ans at the rally, where they demanded a “Robin Hood” tax on banks’ finan­cial trans­ac­tions. The event drew sev­eral thou­sand peo­ple and fea­tured a per­for­mance by for­mer Rage Against the Machine gui­tarist Tom Morello, an activist who has played at many Occupy events.

    Deb Holmes, a nurse at a hos­pi­tal in Worces­ter, Mass., said she was advo­cat­ing for the tax but also protest­ing pro­pos­als to cut back nurses’ pensions.

    We’ve worked 30 years for them and don’t want to get rid of them,” she said.

    The rally –orig­i­nally sched­uled to coin­cide with the start of the G-8 eco­nomic sum­mit before that meet­ing was moved from Chicago to Camp David — drew a broad spec­trum of causes, from anti-war activists to Occupy pro­test­ers and Cathy Christeller’s non­profit Chicago Women’s AIDS project.

    Chris­teller, the agency’s exec­u­tive direc­tor, said there is com­mon ground among all pro­test­ers, even against the back­drop of the NATO summit.

    The whole … idea we should slash the (social) safety net insti­tuted here and in Europe — it’s a dis­as­ter,” she said. “It ignores the source of the eco­nomic down­turn, and it’s mak­ing peo­ple suf­fer unnec­es­sar­ily. This brings us together.”

    After the rally, a group planned to protest envi­ron­men­tal dam­age by march­ing to BP, Exelon Energy and the Cana­dian con­sulate to deliver a “cease-and-desist” let­ter. But those plans were scrapped when a much larger group of pro­test­ers started march­ing and chant­ing spon­ta­neously, said Craig Rouskey, an activist with Occupy San Fran­cisco and Ris­ing Tide, an envi­ron­men­tal group.

    He said he aban­doned the march because it “got hijacked” by pro­test­ers who lacked a clear message

    It became less about envi­ron­men­tal­ism and more about tak­ing the streets,” he said. “That is impor­tant, but I just like a more suc­cinct message.”

    Police on foot, bicy­cle and horse­back fol­lowed the marchers, who tried to evade police as they wound through city streets, at one point even weav­ing between stopped cars.

    The march began to break up after about 90 minutes.

    Jen­nifer Lacy, a free­lance video­g­ra­pher and edi­tor from Chicago who took pic­tures of the spec­ta­cle with her cell phone, gave police high marks for their tolerance.

    I think the police are han­dling them­selves very well,” she said. “It seems like they have it all orga­nized, and it doesn’t seem their tem­pers are going to be eas­ily flared. I think they’re mind­ful we’re going to be on the world stage.”

    But Ben Meyer, a Chicago lawyer who was observ­ing the protest for the National Lawyers’ Guild, denounced what he called an exces­sive police pres­ence at the rally, which included dozens of offi­cers milling through the crowd and lin­ing the perime­ter, some of whom were video­tap­ing the rally.

    It’s frus­trat­ing the state needs to come out and show this much force for a nurses’ rally,” he said. “They have every­one from the super­in­ten­dent on down here. It’s just ridiculous.”

    Mean­while, lawyers for NATO sum­mit pro­test­ers said police on Fri­day released four of nine activists arrested Wednes­day on accu­sa­tions that they had or planned to make Molo­tov cocktails.

    The lawyers said police, with their guns drawn, raided a South Side apart­ment build­ing where activists were stay­ing. The Chicago Police Depart­ment refused to comment.

    One of those pro­test­ers, Occupy activist Dar­rin Annussek of Philadel­phia, denied there were Molo­tov cock­tails in the apart­ment or that raw mate­ri­als had been com­piled to make them.

    No way,” said Annussek, who was released with­out being charged. “If I had seen any­thing that even resem­bled (a Molo­tov cock­tail), I would have left.”

    He claims that dur­ing 18 hours in cus­tody, police never told him why he was arrested, read him his rights or allowed him to make a phone call. He said he remained hand­cuffed to a bench, even after ask­ing to use a restroom.

    There were guards walk­ing by mak­ing state­ments into the door along the lines of ‘hip­pie,’ ‘com­mu­nist,’ ‘pinko,’” a tired-looking Annussek told reporters just after his release.

    It is all part of a fear and intim­i­da­tion cam­paign … with the intent of keep­ing these peo­ple off the streets,” said Sarah Gel­somino of the Chicago chap­ter of the National Lawyers Guild.

    Secu­rity has been high through­out the city in prepa­ra­tion for the sum­mit, where del­e­ga­tions from about 60 coun­tries, includ­ing 50 heads of state, will dis­cuss the war in Afghanistan and Euro­pean mis­sile defense.

    Pro­test­ers and police were gear­ing up for Sun­day, when even more demon­stra­tions are expected. Esti­mates of how many might show up have var­ied widely, from a cou­ple thou­sand to more than 10,000.

    Asso­ci­ated Press writ­ers Don Bab­win, Jason Keyser, Shan­non McFar­land, Jim Suhr, Michael Tarm and Tammy Web­ber con­tributed to this report.

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  • admin 7:41 PM on May 18, 2012 Permalink  

    France’s Hollande sticking to early Afghan pullout 

    WASHINGTON (AP) — In his first visit to the Oval Office, French Pres­i­dent Fran­cois Hol­lande declared he will with­draw all French com­bat troops from Afghanistan by year’s end, mak­ing clear to Pres­i­dent Barack Obama the time­line for end­ing the U.S.-led war will not trump a cam­paign pledge that helped Hol­lande gain his new job.

    Obama nod­ded along on Fri­day, know­ing what was com­ing, but did not oth­er­wise directly respond. Head­ing into a NATO sum­mit on the course of the war and beyond, the White House has sought to empha­size the war coali­tion will remain firm even as nations pull back. And Hol­lande assured Obama that France was not out to cut and run.

    We will con­tinue to sup­port Afghanistan in a dif­fer­ent way. Our sup­port will take a dif­fer­ent for­mat,” Hol­lande said. “I’m pretty sure I will find the right means so that our allies can con­tinue with their mis­sion and at the same time I can com­ply to the promise I made to the French people.”

    France’s dec­la­ra­tion has sig­nif­i­cance far beyond its bor­ders. Hollande’s move means France, one of the top con­trib­u­tors of troops to the war, will be remov­ing the com­bat forces a full two years before the time­line agreed to by allies in the coali­tion. That could shift more of the bur­den to those allies and give them rea­son to has­ten their own exit.

    Hol­lande later told reporters that some “resid­ual” num­ber of France’s cur­rent 3,300 troops will remain in Afghanistan after this year to pro­vide train­ing and to bring home equip­ment. But he alluded to the reac­tion that France’s fast-track with­drawal may get from its NATO allies when they gather in Chicago Sun­day and Monday.

    Our deci­sion will be taken,” he said. “I can’t tell you that it will be applauded, but it will be taken.”

    One high-ranking French diplo­mat, speak­ing only on con­di­tion of anonymity to pro­vide details of closed-door talks, told the AP that France had not got­ten any seri­ous push­back from Amer­i­can offi­cials about Hollande’s early pull­out plan other than they did not want Paris to “pros­e­ly­tize” the quick pull­out idea among other NATO allies in Afghanistan.

    The United States and its allies plan to end the com­bat mis­sion in Afghanistan at the end 2014. Afghanistan will move into the com­bat lead in 2013. The United States has about 90,000 troops in Afghanistan, far more than any part­ner nation, and is on pace to shrink that num­ber to 68,000 by the end of September.

    Obama and Hol­lande had never met, and their first inter­ac­tions were closely watched given both the his­toric impor­tance of the U.S-France rela­tion­ship and the crises of war and eco­nomic strife con­fronting both leaders.

    The mild-mannered Hol­lande, who has lit­tle inter­na­tional expe­ri­ence, ousted the more brash Nico­las Sarkozy and was sworn into office just days ago.

    Now, in a hurry, Obama and Hol­lande will begin shap­ing a rela­tion­ship that could prove one of the U.S. president’s most impor­tant ones should he win a sec­ond term. Beyond their White House talks, Obama and Hol­lande are meet­ing at the G-8 sum­mit Fri­day and Sat­ur­day in Mary­land before shift­ing to the NATO con­fer­ence in Obama’s home town.

    On the econ­omy, Hol­lande and Obama both under­scored that they want Europe to embrace a new approach to its debt cri­sis: more growth, less bud­get cut­ting. Obama’s admin­is­tra­tion sees such a bal­anced approach as essen­tial to sta­bi­liz­ing the euro­zone and pre­vent­ing its eco­nomic chaos, par­tic­u­larly in Greece, from spilling more broadly.

    Pres­i­dent Hol­lande and I agree that this is an issue of extra­or­di­nary impor­tance, not only to the peo­ple of Europe but also to the world econ­omy,” Obama said. He said man­ag­ing the fis­cal cri­sis in Europe must be cou­pled with a “strong growth agenda.”

    Hol­lande, elected May 6, is insist­ing on rethink­ing a Euro­pean aus­ter­ity treaty. But he also is try­ing to con­vince Obama and other lead­ers at the Group of Eight eco­nomic sum­mit that his posi­tion will not worsen the debt crisis.

    The French pres­i­dent also spoke for him­self and Obama in send­ing a mes­sage to Greece, where fears remain that the debt-riddled coun­try may have to aban­don the 17-member cur­rency union, which could jolt the global econ­omy. Greece is set to hold elec­tions on June 17 to end a polit­i­cal deadlock.

    We share the same views — Greece must stay in the euro­zone,” Hol­lande said. Ahead of the elec­tion, he said, both he and Obama “wanted to send a mes­sage to that effect to the Greek people.”

    Hol­lande is try­ing to defend France’s inter­ests while build­ing a rela­tion­ship with Obama, widely pop­u­lar in France but seen by some in Hollande’s camp as too friendly with the recently ousted pres­i­dent, the con­ser­v­a­tive Sarkozy.

    Obama and Hol­lande traded some light-hearted thoughts about pres­i­den­tial life and Amer­i­can fast food. Both offered expected assur­ances of their alliance.

    France is an inde­pen­dent coun­try and cares about its inde­pen­dence,” Hol­lande said, “but in old friend­ship with the United States of America.”

    Hol­lande also met later with British Prime Min­is­ter David Cameron for the first time before address­ing French expa­tri­ates at the French Embassy — where he sug­gested that Obama’s loom­ing elec­tion race made the Amer­i­can leader more acces­si­ble on Hollande’s push for more growth-friendly policies.

    He also hinted of his sup­port for Obama in the elec­tion this fall.

    I think that we will begin a coop­er­a­tion and part­ner­ship with Pres­i­dent Obama that — I hope for him, and for us — will last a long time,” Hol­lande said.

    On the war, a senior U.S. offi­cial said the early com­bat exits of Dutch and Aus­tralian troops are the model for a prob­a­ble agree­ment with France. In those cases train­ers or other sup­port forces are sup­plant­ing front-line com­bat forces. Such an agree­ment is likely to emerge from NATO dis­cus­sions this week­end, the offi­cial said.

    Polls show most French, and many other Euro­peans, want their coun­tries out of Afghanistan, as do most Amer­i­cans. Sens­ing the polit­i­cal winds, Sarkozy had pre­pared to break with NATO’s in-together, out-together mind­set and announced dur­ing the cam­paign that he’d pull out com­bat troops by the end of 2013, a year early.

    Hol­lande, vying for elec­tion, promised to with­draw them even one year before that.

    Asso­ci­ated Press writ­ers Anne Gearan in Wash­ing­ton and Angela Charl­ton in Paris con­tributed to this report.

    Fol­low Ben Feller at http://twitter.com/BenFellerDC

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  • admin 7:41 PM on May 18, 2012 Permalink  

    Stocks fall on Europe worries; Facebook debuts 

    It’s going to take more than Facebook’s ini­tial pub­lic offer­ing to push the stock mar­ket higher.

    Face­book shares rose 23 cents above their $38 offer­ing price. It seemed like every­thing else fell.

    The Dow Jones indus­trial aver­age has been in a slump over the past two weeks as traders saw an esca­lat­ing risk that Greece could leave the euro, caus­ing more dis­rup­tions in mar­kets. Remem­ber the go-go days of May 1, 2012? The Dow was up 8.7 per­cent for the year. After Fri­day, it’s up just 1.2 percent.

    On Fri­day the Dow Jones indus­trial aver­age dropped 73.11 points, to close at 12,369.38. It fell 3.5 per­cent for the week. The Dow has now declined on 12 of the last 13 trad­ing days.

    Nine of the 10 indus­try groups in the Stan­dard Poor’s 500 index fell. Finan­cials dropped the most, 1.1 percent.

    First, Face­book.

    Trad­ing for the year’s most eagerly awaited ini­tial pub­lic offer­ing was delayed about 30 min­utes because of a glitch at Nas­daq. Nas­daq said the prob­lem was with send­ing mes­sages about whether trades had been exe­cuted. It was almost two-and-a-half hours before it said its trade mes­sages were work­ing normally.

    The glitch sent shares of Nas­daq OMX Group Inc., par­ent com­pany of the Nas­daq mar­ket, down 4.4 percent.

    Face­book shares were priced at $38 and ini­tially traded as high as $45. They closed at $38.23.

    Europe was the big­ger worry for investors. The Fitch rat­ings agency dropped Greece to the low­est pos­si­ble grade for a coun­try not in default Thurs­day. Fitch said Greece’s depar­ture from the euro “would be prob­a­ble” if elec­tions next month do not reverse polit­i­cal trends in Greece, which have brought in politi­cians opposed to the terms of Europe’s bailout.

    Also, rat­ings agency Moody’s down­graded 16 Span­ish banks late Thurs­day, three days after down­grad­ing Italy’s, not­ing they are vul­ner­a­ble to huge losses on gov­ern­ment debt.

    Rep­re­sen­ta­tives of the G-8 are meet­ing this week­end at Camp David, look­ing for assur­ances that lead­ers in Europe can con­tain dam­age if Greece leaves the euro.

    Despite all the atten­tion on the Face­book IPO, I think there’s still lots of under­ly­ing uncer­tainty sur­round­ing this Euro­pean debt sit­u­a­tion,” said Scott Wren, senior equity strate­gist for Wells Fargo Advi­sors in St. Louis. “This Greek sit­u­a­tion isn’t good. I think it’s going to get worse before it gets bet­ter. Prob­a­bly the same with Spain.”

    Bor­row­ing costs for Italy rose slightly to 5.76 per­cent on Fri­day. The yield on Spain’s 10-year bond fell slightly to 6.2 per­cent, a level that’s still very high by his­toric standards.

    Euro­pean shares edged lower, fol­low­ing sev­eral days of big losses. Britain’s FTSE 100 fell 0.1 per­cent, Germany’s DAX lost 0.6 per­cent and France’s CAC-40 fell 0.1 percent.

    The seri­ous investors remain very con­cerned about the devel­op­ments in Europe,” said Jim Rus­sell, regional invest­ment direc­tor for US Bank Wealth Man­age­ment in Cincin­nati. “We think Face­book is a lit­tle bit of a sideshow. Great com­pany. But maybe one that’s val­ued on the high side of most people’s tastes.”

    The Stan­dard Poor’s 500 index fell 9.64 points to close at 1,295.22. The Nas­daq com­pos­ite index fell 34.90 points, or 1.2 per­cent, to close at 2,778.79.

    Hewlett-Packard fell 2.7 per­cent — the biggest decline among the Dow’s 30 stocks — after it said it might elim­i­nate up to 30,000 jobs because of dwin­dling demand for per­sonal computers.

    Gap fell 2.3 per­cent even though it issued higher guid­ance for the year.

    There were bright spots. Salesforce.com jumped 8.8 per­cent after the maker of web-based busi­ness soft­ware reported better-than-expected earn­ings and raised its guid­ance for the year. Foot Locker rose 8.3 per­cent after its quar­terly profit jumped 36 per­cent, sprint­ing past Wall Street pre­dic­tions and set­ting a com­pany record for quar­terly earnings.

    Yahoo rose 3.7 per­cent after Dow Jones’ tech web­site AllThingsD.com reported that the web por­tal is close to a deal to sell a large part of its stake in China’s Alibaba Group. Many investors view the Alibaba stake as Yahoo’s most valu­able asset.

    Oil prices fell $1.08 to $91.48. Along with stocks, oil has dropped rapidly in recent days because slow­ing economies use less of it.

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  • admin 7:41 PM on May 18, 2012 Permalink  

    Questions and answers on blockbuster Facebook IPO 

    NEW YORK (AP) — Tak­ing a com­pany pub­lic isn’t as sim­ple as col­lect­ing Face­book friends.

    Even if the com­pany is Facebook.

    When its stock started trad­ing Fri­day under the sym­bol FB, buy­ers quickly bid the price up 6 per­cent. Yet by the time trad­ing ended at 4 p.m. East­ern time, Facebook’s stock had squeaked out a gain of just 23 cents above its ini­tial $38 offer­ing price.

    Even at that price, the 8-year-old social media com­pany is worth $104 bil­lion, more than such giants as Dis­ney and Kraft. The stock riches that flowed to Face­book and its early investors totaled nearly $16 billion.

    As with any ini­tial offer­ing, Facebook’s IPO fol­lows lots of nego­ti­a­tion — over price, paper­work, sell­ing and buy­ing. Here are some ques­tions and answers about its pub­lic debut:

    Q: So why did Face­book go public?

    A: For the same rea­son many other fast-growing com­pa­nies do: to raise money. Sell­ing stock to the pub­lic gives com­pa­nies money to run their busi­nesses, expand and buy other com­pa­nies. Some­times com­pa­nies go pub­lic even if they have no plans for the money. Face­book says it wants to estab­lish a pub­lic mar­ket for its shares in case it needs to raise money from investors in the future.

    Q: What hap­pens in an IPO?

    A: The com­pany sells own­er­ship stakes to the pub­lic for the first time. Face­book sold 421 mil­lion shares. That rep­re­sented a 15 per­cent stake in the com­pany. The sale raised $16 billion.

    Q: Who owned Face­book shares before the IPO?

    A: Well-connected investors, employ­ees and top insid­ers like com­pany direc­tors. They sold 241 mil­lion shares, or more than half the total sold. The com­pany sold shares at $38 each. At that price, those early own­ers pock­eted $9 bil­lion, or an aver­age of $230 mil­lion each. The com­pany will get $7 billion.

    Q: Who bought the shares?

    A: In an IPO, there are two buy­ers. The first are the invest­ment banks that helped the com­pany file IPO doc­u­ments with reg­u­la­tors and con­tacted pen­sion funds, mutual funds and other big insti­tu­tions to gauge a price for the shares. These invest­ment banks are called under­writ­ers. In Facebook’s case, 33 banks helped; Mor­gan Stan­ley took the lead role. The under­writ­ers guar­an­teed the com­pany that they would buy all the shares at the IPO price.

    Q: When did the under­writ­ers buy the shares?

    A: Before the shares started trad­ing pub­licly. Facebook’s under­writ­ers sold the sell­ers’ shares Thurs­day night. But first, the under­writ­ers had to nego­ti­ate a price with a sec­ond group of buy­ers — the insti­tu­tions that had promised to buy shares from them. They did that Thurs­day, set­tling on a price of $38.

    Q: Is this nego­ti­ated price the IPO price?

    A: Yes. But that’s not what the under­writ­ers paid the com­pany and insid­ers. After set­tling on an IPO price, the under­writ­ers sub­tracted a com­mis­sion for their work. A doc­u­ment Face­book filed with reg­u­la­tors didn’t say how much it would pay. But with big IPOs like Facebook’s, the com­mis­sion is typ­i­cally 3 per­cent. At $38, this means Mor­gan Stan­ley and the other under­writ­ers would get $1.14 off for each share. They’d pay $36.86 a share. Under­writ­ers have five days to trans­fer the money to the com­pany and other sellers.

    Q: What do under­writ­ers do with their shares?

    A: They sell them to big insti­tu­tions, along with some favored indi­vid­ual investors, before pub­lic trad­ing starts. In Facebook’s case, all the under­writ­ers’ shares were sold by Fri­day morn­ing before the stock exchanges opened at 9:30 a.m. in New York.

    Q: Why didn’t Face­book begin trad­ing then?

    A: The new own­ers who want to sell their shares had to call their traders first. And the traders had to call “mar­ket mak­ers” at the Nas­daq stock mar­ket, where Facebook’s shares are listed. Mar­ket mak­ers are firms that agree to hold shares in a com­pany so buy­ers and sell­ers can eas­ily trade them. The mar­ket mak­ers deter­mine a price between what most buy­ers and sell­ers are demand­ing. That took two hours on Fri­day morn­ing, after which the first Face­book shares began exchang­ing hands.

    Q: So Face­book is now worth more than $100 bil­lion. What’s that mean, exactly?

    A: This is the company’s “mar­ket value.” It’s what investors think the whole com­pany would be worth if all its shares were trad­ing. The 421 mil­lion Face­book shares sold in the IPO at $38 works out to $16 bil­lion. Apply­ing the same price to the rest of the shares yields $88 bil­lion. Add the two fig­ures, and you get $104 billion.

    Q: Who owns the 85 per­cent of shares not sold in the IPO?

    A: Top exec­u­tives and direc­tors col­lec­tively own nearly half. Mark Zucker­berg, the founder and CEO, holds 504 mil­lion shares — about one-fifth of the shares that weren’t sold in the IPO. At the IPO price, his unsold shares are worth $19 bil­lion. Zucker­berg also con­trols spe­cial shares that give him 56 per­cent of vot­ing rights on share­holder proposals.

    Q: Did Zucker­berg sell in the IPO?

    Yes, he sold 30 mil­lion shares, pock­et­ing $1.15 bil­lion. He said he sold to help pay taxes.

    Q: How many shares do top exec­u­tives and direc­tors own?

    A: Not count­ing Zucker­berg, they own 578 mil­lion shares, or nearly a quar­ter of the shares not sold in the IPO. David Ebers­man, the chief finan­cial offi­cer, owns 2.4 mil­lion shares worth $91 mil­lion at the IPO price. Sheryl Sand­berg, the chief oper­at­ing offi­cer, owns 1.9 mil­lion worth $72 mil­lion. Nei­ther sold stock in the IPO. Among top exec­u­tives, only Zucker­berg sold.

    Q: What about other employees?

    A: It’s unclear in Facebook’s IPO doc­u­ment how much of the com­pany is owned by employ­ees. The doc­u­ment dis­closed only shares held by top exec­u­tives. But it did list “restricted stock units” — equiv­a­lent to 403 mil­lion shares — given to staffers. If all the units are turned into stock, they’d be worth $15 bil­lion at the IPO price. The com­pany also has given staffers 117 mil­lion options con­vert­ible to shares. They’re worth $4.5 bil­lion at the IPO price. The options, plus the restricted units, rep­re­sent 19 per­cent of shares. Most of the stock under­ly­ing the restricted units can’t be sold for six months.

    Q: Are there other sell­ing restric­tions for pre-IPO owners?

    A: Yes, so-called “lock-up” peri­ods, when old own­ers can’t sell range from a month to a year. Mail.ru Group, a Russ­ian inter­net com­pany that sold $745 mil­lion worth of shares in the IPO, still owns 35 mil­lion shares. Those are worth $1.3 bil­lion at the IPO price. The IPO doc­u­ment isn’t clear on the pre­cise amount. But the com­pany can’t sell those shares for a year. Maili.ru orig­i­nally invested in Face­book in 2009.

    Q: Are there other big early investors with unsold stock?

    A: James Breyer and Accel Part­ners, a ven­ture cap­i­tal fund where he’s a part­ner, invested in Face­book in 2005. They still hold 152 mil­lion shares worth $5.8 bil­lion. In the IPO, they sold 49 mil­lion shares worth $1.9 billion.

    Q: Who are the other early investors who sold?

    A: Peter Thiel, the ven­ture cap­i­tal­ist and a Face­book direc­tor, sold 17 mil­lion shares for $646 mil­lion. He had invested $500,000 in the com­pany in 2004. That means he made $645.5 mil­lion in profit from his sale, before taxes and fees. He still owns about 28 mil­lion shares worth $1.1 bil­lion. Another is DST Global Ltd., a Lon­don firm. DST and its affil­i­ates sold 46 mil­lion shares, pock­et­ing $1.7 bil­lion. One of the ear­li­est investors, Reid Hoff­man, a co-founder of Corp. who invested in Face­book in 2004, sold stock worth $36 mil­lion. Other sell­ers include Gold­man Sachs. It got $1.1 bil­lion for its shares.

    Q: Where does Face­book IPO rank among IPOs?

    A: In terms of money raised, it was the third-biggest U.S. IPO in his­tory, edg­ing out ATT Wire­less. That company’s IPO in 2000 raised $10.6 bil­lion accord­ing to Renais­sance Cap­i­tal, an IPO advi­sory firm. The biggest IPO was Visa Inc. in 2008. It raised $17.8 billion.

    AP Busi­ness Writer Bar­bara Ortu­tay in New York con­tributed to this report.

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    Arti­cle Source: http://hosted.ap.org/dynamic/stories/U/US_FACEBOOK_IPO_QA?SITE=VTBRA&SECTION=HOME&TEMPLATE=DEFAULT

     
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