IHT Rendezvous: How Much Do You Trust Journalists?

LONDON — Another poll came out this week showing that in the hierarchy of trust, journalists figure near the bottom of the heap.

Some of us take a perverse pride in being down there with the money-changers and the harlots (actually, the latter sometimes rate rather highly in these surveys.)

The comforting theory is that if everybody hates us, we must be doing something right.

The Ipsos MORI poll published on Friday found that among 1,018 British respondents, only one-in-five trusted journalists to tell the truth — on a par with bankers and below real estate agents.

Bizarrely, almost 70 percent trusted television news presenters — ahead of priests and other clergymen.

The only small consolation for the derided scribes was that they came out just ahead of politicians. Only 18 percent of respondents believed politicians could be relied on to tell the truth.

Now, the results may just reflect the current state of British journalism, and indeed of British politics.

In the latest development in a long-running phone-hacking scandal, Scotland Yard on Wednesday arrested six more journalists who previously worked for Rupert Murdoch’s now defunct News of the World.

The scandal already led to a months-long inquiry by Lord Justice Sir Brian Leveson, who concluded with an excoriating critique of the press as a whole for displaying “significant and reckless disregard for accuracy.”

Media-watchers believe, however, that in an era of rapid technological change, the trust issue goes wider than the morally dubious practices of some of the British red-top press.

As my colleague David Carr wrote at the height of the phone-hacking scandal last year: “Journalism’s ills don’t live exclusively on Fleet Street or stop at British shores.”

“Economic pressures have increased the urgency to make news and drive traffic, even as budgets have been cut and experienced news professionals tossed overboard,” David wrote.

He said part of the reason the public had lost confidence was that the product sometimes did not merit it. “If journalism is losing its way, that’s a story that needs to be told over and over,” he wrote.

An American student journal this week quoted Ron F. Smith, author of Ethics in Journalism, as saying the reputation of journalists was continually being questioned.

“Nearly every public opinion poll shows that people have lost respect for journalists and lost faith in the news media,” according to the introduction to his 2003 ethics manual.

Mariah Young, an aspiring journalist who writes for The Bullet, a student newspaper at Virginia’s University of Mary Washington, used the citation to ask whether journalists had lost a once cherished sense of ethics.

In an era of Twitter and the Internet, it was becoming harder for journalists to break news, papers to publish and people to trust the media, Ms. Young concluded.

There was similar soul-searching last month by John Lloyd, a veteran British commentator and Reuters columnist.

“The trend in a lot of the media is toward more scandal, more controversy and more opining,” he wrote, lamenting that news organizations wedded to objective reporting, investigation and rational analysis were now in a minority, “and a lot of them are finding it hard to make a living.”

He called for greater focus on long-term strategic issues such as global warming, dwindling resources and social change. “We should find some way of making this stuff part of a real global conversation — one that is vivid, comprehensible and more democratic,” he wrote.

In a comment to Mr. Lloyd, one anonymous news editor wrote, “Journalism has always attracted the self-righteous, opinionated and egotistical and with the new Facebook generation now in the workforce that bar is already at an all-time high.”

Has journalism really lost its way? Or does the public always get the press it deserves? And is the impact of citizen journalism a plus or a minus? Tell us what you think.

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Robin Roberts: My Dark Days, My Brave Fight

By Sharon Cotliar

02/16/2013 at 09:00 AM EST

Sitting in a white fluffy bathrobe in front of her bathroom mirror, Robin Roberts – still recuperating from a bone marrow transplant just five months earlier – seems at ease with her striking reflection. Just as she was after battling breast cancer in 2007, Roberts is once again bald, but this time she's skipping the wig.

"Whatever," the Good Morning America anchor says with a shrug. "I'm thankful I have a pretty-good-shaped head." And the 30 lbs. she's lost from her 5'10" frame during her month-long hospital stay? "It's been hard to put back on, a first in my life," she admits. "But I gained a pound last week in New Orleans. Woo-hoo!" And when Charlie Gibson, an old friend and former GMA cohort, drops by her Manhattan apartment and asks how she is, she replies as if nothing eventful has happened: "I'm good. How are you?" she says casually. "No, I wasn't being polite," Gibson replies. "I really want to know, 'How are you?' "

That's the question millions have been asking ever since the anchor left GMA last August to undergo a bone marrow transplant for a rare blood-and-bone-marrow disease called myelodysplastic syndrome, which can lead to a fast-growing form of leukemia.

"Every day I feel more like my old self. I didn't think I would," Roberts says, noting that she was so weak when she left the hospital in October, she could barely walk. While some shaky moments persist – "I've still got chemo brain and my vision is blurry" – Roberts is eager to return to her GMA anchor chair at last on Feb. 20, exactly five months after her transplant. "You feel so bad for so long, you just want to feel normal. And now I do."

She also has a new sense of perspective after fighting for her life for a second time. While Roberts, 52, projected an upbeat, brave persona in blog posts and tweets during her recovery, "it's important people know I'm not always like that," she says. "But I choose to be happy and not string together the bad days." Says her sister and bone marrow donor Sally-Ann: "We've been through a lot the last few months," including the death of their beloved mom, Lucimarian. "I marvel at Robin's strength."

It's a strength that was tested in April, when Roberts's doctor told her over the phone he suspected she had MDS. After looking it up on the Internet, "I was literally on the floor," she recalls. "I collapsed." But as GMA viewers know, she soon picked herself up and decided to go ahead with the grueling process of a bone marrow transplant; luckily her sister was a perfect match. Just as she was about to begin treatment, another life-altering event intervened: Roberts had to race home to Pass Christian, Miss., during Hurricane Isaac to say goodbye to her ailing mother, who died just hours after Roberts reached her on Aug. 30. The trip came at a pivotal moment for the terrified Roberts. "I don't care how old you are; when you're sick, you want your mom," she says, choking up. "And I wanted my mom."
 

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UN warns risk of hepatitis E in S. Sudan grows

GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.

U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.

Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.

He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.

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G20 defuses talk of "currency war", no accord on debt

MOSCOW (Reuters) - The Group of 20 nations declared on Saturday there would be no 'currency war' and deferred plans to set new debt-cutting targets in an indication of concern about the fragile state of the world economy.

Japan's expansive policies, which have driven down the yen, escaped criticism in a statement thrashed out in Moscow by financial policymakers from the G20, which groups developed and emerging markets and accounts for 90 percent of the world economy.

After late night talks, finance ministers and central bankers agreed on wording closer than expected to a joint statement issued last Tuesday by the Group of Seven rich nations backing market-determined exchange rates.

A draft communique seen by delegates on Friday had steered clear of the G7's call for economic policy not to be targeted at exchange rates. But the final version included a G20 commitment to refrain from competitive devaluations and stated monetary policy would be directed at price stability and growth.

"The language has been strengthened since our discussions last night," Canadian Finance Minister Jim Flaherty told reporters. "It's stronger than it was, but it was quite clear last night that everyone around the table wants to avoid any sort of currency disputes."

The communique did not single out Japan for aggressive monetary and fiscal policies that have seen the yen drop 20 percent, a trend that may now continue.

"The market will take the G20 statement as an approval for what it has been doing -- selling of the yen," said Neil Mellor, currency strategist at Bank of New York Mellon in London. "No censure of Japan means they will be off to the money printing presses."

The statement reflected a substantial, but not complete, endorsement of Tuesday's statement by the G7 nations - the United States, Japan, Britain, Canada, France, Germany and Italy.

"We all agreed on the fact that we refuse to enter any currency war," French Finance Minister Pierre Moscovici told reporters.

NO FISCAL TARGETS

The text also contained a commitment to credible medium-term fiscal strategy, but stopped short of setting specific goals.

A debt-cutting pact struck in Toronto in 2010 will expire this year if leaders fail to agree to extend it at a G20 summit of leaders in St Petersburg in September.

European Economic and Monetary Affairs Commissioner Olli Rehn said he expected concrete debt targets to be agreed at the September meeting.

"We have a common view on the need to have a credible medium-term plans for fiscal consolidation, which is also essential so we have foundation for sustainable growth," he told Reuters.

The United States says it is on track to meet its Toronto pledge but argues that the pace of future fiscal consolidation must not snuff out demand. Germany and others are pressing for another round of binding debt-cutting goals.

Backing in the communique for the use of domestic monetary policy to support economic recovery reflected the U.S. Federal Reserve's commitment to monetary stimulus through quantitative easing, or QE, to promote recovery and jobs.

QE entails large-scale bond buying -- $85 billion a month in the Fed's case -- that helps economic growth but creates money, much of which has leaked into emerging markets, threatening to destabilize them.

That was offset in the communique by a commitment to minimize "negative spillovers" of the resulting financial flows that emerging markets fear may pump up asset bubbles and ruin their export competitiveness.

"Major developed nations (should) pay attention to their monetary policy spillover," Vice Finance Minister Zhu Guangyao was quoted by state news agency Xinhua as saying in Moscow.

"Major developed countries' implementation of excessively relaxed currency policy has an influence on the world economy."

Russia, this year's chair of the G20, said the group had failed to reach agreement on medium-term budget deficit levels and also expressed concern about ultra-loose policies that it and other big emerging economies say could store up trouble for later.

Finance Minister Anton Siluanov said a rebalancing of global growth required more than an adjustment of exchange rates.

"Structural reforms in all countries, either with a positive or negative balance of payments, should play a bigger role," he said in an address to Saturday's talks.

The G20 put together a huge financial backstop to halt a market meltdown in 2009 but has failed to reach those heights since. At successive meetings, Germany has pressed the United States and others to do more to tackle their debts. Washington in turn has urged Berlin to do more to increase demand.

On currencies, the G20 text reiterated its commitment last November, "to move more rapidly toward mores market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, and avoid persistent exchange rate misalignments".

It said disorderly exchange rate movements and excess volatility in financial flows could harm economic and financial stability.

(Additional reporting by Gernot Heller, Lesley Wroughton, Maya Dyakina, Tetsushi Kajimoto, Jan Strupczewski, Lidia Kelly, Katya Golubkova, Jason Bush, Anirban Nag and Michael Martina. Writing by Douglas Busvine. Editing by Timothy Heritage/Mike Peacock)

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Meteorite Fragments Are Said to Rain Down on Siberia; 500 Injuries Reported

MOSCOW — Bright objects, apparently debris from a meteorite, streaked through the sky in western Siberia early on Friday, accompanied by a boom that damaged buildings across a vast area of territory. Around 500 people were reported to have been injured, most from breaking glass.

Emergency officials had reported no deaths by Friday afternoon but said that 14 people had been hospitalized.

Russian experts believe the blast was caused by a 10-ton meteor known as a bolide, which created a powerful shock wave when it reached the Earth’s atmosphere, the Russian Academy of Sciences said in a statement. Scientists believe the bolide exploded and evaporated at a height of around 20 to 30 miles above the Earth’s surface, but that small fragments may have reached the ground, the statement said.

The governor of the Chelyabinsk district reported that a search team had found an impact crater on the outskirts of a city about 50 miles west of Chelyabinsk. An official from the Interior Ministry told the Russian news agency Interfax that three large pieces of meteorite debris had been retrieved in the area and that 10,000 police officers are searching for more.

A small asteroid, known as 2012 DA14, is expected to pass close to Earth later on Friday, NASA reported on its Web site. Aleksandr Y. Dudorov, a physicist at Chelyabinsk State University, said it was possible that the meteorite may have been flying alongside the asteroid.

“What we witnessed today may have been the precursor of that asteroid,” said Mr. Dudorov in a telephone interview. Video clips from the city of Chelyabinsk showed an early morning sky illuminated by a brilliant flash, followed by the sound of breaking glass and multiple car alarms. Meteorites typically cause sonic booms as they enter the Earth’s atmosphere. On Friday, the force was powerful enough to shatter dishes and televisions in people’s homes.

“I saw a flash in the window, turned toward it and saw a burning cloud, which was surrounded by smoke and was going downward — it reminded me of what you see after an explosion,” said Maria Polyakova, 25, head of reception at the Park-City Hotel in Chelyabinsk, which is 950 miles east of Moscow. A video made outside a building in Chelyabinsk captured the astonished voices of witnesses who were uncertain what it was they had just seen.

“Maybe it was a rocket,” said one man, who rushed outside onto the street along with his co-workers when the object hit, far out of sight. A man named Artyom, who spoke to the Moscow FM radio station, said the explosion was enormous.

“I was sitting at work and the windows lit up and it was as if the whole city was illuminated, and I looked out and saw a huge streak in the sky and it was like that for two or three minutes and then I heard these noises, like claps,” he said. “And then all the dogs started barking.”

He said that there was a blast that caused balconies to shake and windows to shatter. He said he did not believe it was a meteorite. “We are waiting for a second piece, that is what people are talking about now,” the man said.

The object was visible from the city of Nizhniy Tagil, around 220 miles north of Chelyabinsk, where so many people called an emergency assistance number that it stopped working, the Novy Region news service reported.

The government response on Friday was huge. Seven airplanes were deployed to search for places where meteorites might have fallen and more than 20,000 people dispatched to comb the area on foot, according to the Ministry of Emergency Situations. There were also 28 sites designated to monitor radiation. No unusual readings had been detected, the ministry reported.

The area around Chelyabinsk is also home to “dozens of defense factories, including nuclear factories and those involved in production of thermonuclear weapons,” said Vladimir Lipunov, an astrophysicist at the Shternberg State Astronomy Institute.

“No one needs to be told what the Urals is,” Mr. Lipunov told the NTV television station. “A second hit in the same area is unlikely and everything could have been much, much worse.”

Siberia stretches the length of Asia, and there is a history of meteor and asteroid showers there. In 1908 a powerful explosion was reported near the Tunguska River in central Siberia, its impact so great that trees were flattened for 25 miles around. Generations of scientists have studied that event, analyzing particles that were driven into the Earth’s surface as far away as the South Pole. A study published in the 1980s concluded the object weighed a million tons.

In the United States, NASA alluded to the Tunguska incident when it said that it was watching closely an asteroid 150 feet in diameter expected to whiz past Earth on Friday at a distance of around 17,200 miles, the closest for many decades.

In a statement on its Web site, NASA said on Friday that there was no risk that the asteroid, 2012 DA14, would collide with Earth. But it would pass within “the belt of satellites in geostationary orbit, which is 22,200 miles above Earth’s surface.”

The asteroid is set to pass Earth at around 2:25 p.m. Eastern time, NASA said. “At the time of closest approach, the asteroid will be over the eastern Indian Ocean, off Sumatra,” the agency said.

“Asteroid 2012 DA14 will not impact Earth, but if another asteroid of a size similar to that of 2012 DA14 were to impact Earth, it would release approximately 2.5 megatons of energy in the atmosphere and would be expected to cause regional devastation,” NASA said. The asteroid will not be visible to the naked eye, the agency added.

Referring to the “Tunguska Event,” NASA said the impact of an asteroid just smaller than 2012 DA14 “is believed to have flattened about 825 square miles of forest in and around the Podkamennaya Tunguska River in what is now Krasnoyarsk Krai, Russia.”

Viktor Klimenko contributed reporting from Moscow, and Alan Cowell from London.

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Oscar Pistorius Weeps in Court as Prosecutors Seek Murder Charges

By Andrea Billups

02/15/2013 at 08:15 AM EST

Oscar Pistorius

Antonie de Ras/Reuters/Landov

Oscar Pistorius, the South African track star known as the Blade Runner, put his head in his hands and wept Friday as prosecutors said they would seek a charge of premeditated murder in the shooting of his girlfriend, model Reeva Steenkamp, the New York Times reports.

Pistorius, 26, appearing in a Pretoria courtroom, is accused of shooting Steenkamp, 30, whose body was found in a pool of blood in his gated home in Pretoria on Thursday. She was reportedly shot four times. He did not enter a plea on the murder charges and police said they would oppose any application for bail.

Pistorius rose to fame and became a national hero as a world-class sprinter while running in the London Olympics on carbon fiber blades. He was born without fibula bones and had amputations below the knees when he was an infant. He was the first Paralymic champion to run with able-bodied athletes in an Olympic games, making his debut last summer in London.

The murder charge has shocked South Africans who held the athlete up as a national hero. A grim Pistorious sat with his jaw clenched in the courtroom. At one point, his father Henke reached out to him, but Pistorius just walked on, teary-eyed.

Steenkamp had posted Valentine's Day messages of love on her Twitter account just hours before her death. "It should be a day of love for everyone," she Tweeted. Her family said they had no clue of trouble between the couple before her death.

Reeva Steenkamp and Oscar Pistorius

Gallo Images / REX USA

Police told reporters said they were interviewing witnesses, including neighbors. A 9 mm handgun was removed from the home by police.

Initial news accounts suggest that Pistorius, a gun enthusiast, had reportedly mistaken Steenkamp for an intruder. But police countered that story by disclosing previous police complaints of domestic problems at his home.

The court case will resume on Tuesday. Pistorius competed in the 2012 Olympics, running in the 400-meter race, where he reached the semi-finals. He also competed as a part of his country's 4x400 meter relay team. He has previously won two gold medals and a silver at the Paralympic Games, also held in London.

• With reporting by MIKE BEHR

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Study: Fish in drug-tainted water suffer reaction

BOSTON (AP) — What happens to fish that swim in waters tainted by traces of drugs that people take? When it's an anti-anxiety drug, they become hyper, anti-social and aggressive, a study found. They even get the munchies.

It may sound funny, but it could threaten the fish population and upset the delicate dynamics of the marine environment, scientists say.

The findings, published online Thursday in the journal Science, add to the mounting evidence that minuscule amounts of medicines in rivers and streams can alter the biology and behavior of fish and other marine animals.

"I think people are starting to understand that pharmaceuticals are environmental contaminants," said Dana Kolpin, a researcher for the U.S. Geological Survey who is familiar with the study.

Calling their results alarming, the Swedish researchers who did the study suspect the little drugged fish could become easier targets for bigger fish because they are more likely to venture alone into unfamiliar places.

"We know that in a predator-prey relation, increased boldness and activity combined with decreased sociality ... means you're going to be somebody's lunch quite soon," said Gregory Moller, a toxicologist at the University of Idaho and Washington State University. "It removes the natural balance."

Researchers around the world have been taking a close look at the effects of pharmaceuticals in extremely low concentrations, measured in parts per billion. Such drugs have turned up in waterways in Europe, the U.S. and elsewhere over the past decade.

They come mostly from humans and farm animals; the drugs pass through their bodies in unmetabolized form. These drug traces are then piped to water treatment plants, which are not designed to remove them from the cleaned water that flows back into streams and rivers.

The Associated Press first reported in 2008 that the drinking water of at least 51 million Americans carries low concentrations of many common drugs. The findings were based on questionnaires sent to water utilities, which reported the presence of antibiotics, sedatives, sex hormones and other drugs.

The news reports led to congressional hearings and legislation, more water testing and more public disclosure. To this day, though, there are no mandatory U.S. limits on pharmaceuticals in waterways.

The research team at Sweden's Umea University used minute concentrations of 2 parts per billion of the anti-anxiety drug oxazepam, similar to concentrations found in real waters. The drug belongs to a widely used class of medicines known as benzodiazepines that includes Valium and Librium.

The team put young wild European perch into an aquarium, exposed them to these highly diluted drugs and then carefully measured feeding, schooling, movement and hiding behavior. They found that drug-exposed fish moved more, fed more aggressively, hid less and tended to school less than unexposed fish. On average, the drugged fish were more than twice as active as the others, researcher Micael Jonsson said. The effects were more pronounced at higher drug concentrations.

"Our first thought is, this is like a person diagnosed with ADHD," said Jonsson, referring to attention deficit-hyperactivity disorder. "They become asocial and more active than they should be."

Tomas Brodin, another member of the research team, called the drug's environmental impact a global problem. "We find these concentrations or close to them all over the world, and it's quite possible or even probable that these behavioral effects are taking place as we speak," he said Thursday in Boston at the annual meeting of the American Association for the Advancement of Science.

Most previous research on trace drugs and marine life has focused on biological changes, such as male fish that take on female characteristics. However, a 2009 study found that tiny concentrations of antidepressants made fathead minnows more vulnerable to predators.

It is not clear exactly how long-term drug exposure, beyond the seven days in this study, would affect real fish in real rivers and streams. The Swedish researchers argue that the drug-induced changes could jeopardize populations of this sport and commercial fish, which lives in both fresh and brackish water.

Water toxins specialist Anne McElroy of Stony Brook University in New York agreed: "These lower chronic exposures that may alter things like animals' mating behavior or its ability to catch food or its ability to avoid being eaten — over time, that could really affect a population."

Another possibility, the researchers said, is that more aggressive feeding by the perch on zooplankton could reduce the numbers of these tiny creatures. Since zooplankton feed on algae, a drop in their numbers could allow algae to grow unchecked. That, in turn, could choke other marine life.

The Swedish team said it is highly unlikely people would be harmed by eating such drug-exposed fish. Jonsson said a person would have to eat 4 tons of perch to consume the equivalent of a single pill.

Researchers said more work is needed to develop better ways of removing drugs from water at treatment plants. They also said unused drugs should be brought to take-back programs where they exist, instead of being flushed down the toilet. And they called on pharmaceutical companies to work on "greener" drugs that degrade more easily.

Sandoz, one of three companies approved to sell oxazepam in the U.S., "shares society's desire to protect the environment and takes steps to minimize the environmental impact of its products over their life cycle," spokeswoman Julie Masow said in an emailed statement. She provided no details.

___

Online:

Overview of the drug: http://www.nlm.nih.gov/medlineplus/druginfo/meds/a682050.html

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Buffett, Brazil's 3G team up for $23 billion Heinz buyout

(Reuters) - Warren Buffett and Brazilian financier Jorge Paulo Lemann are teaming up to buy ketchup maker H.J. Heinz Co for $23.2 billion, in what could be the first step of a wave of mergers for the food and beverage industry.

Analysts and people close to the deal said Heinz could be a good starting point to consolidate similar staple food companies, particularly given the larger ambitions of Lemann's private equity firm 3G Capital.

Including debt assumption, Heinz valued the transaction, which it called the largest in its industry's history, at $28 billion. Buffett's Berkshire Hathaway and 3G will pay $72.50 per share, a 19 percent premium to the stock's previous all-time high.

Heinz shares initially rose slightly above the offer price, although Buffett cautioned he had no intention of raising his bid and the stock fell back below that mark by midday. The stock has been on a tear, almost doubling over the last four years, though analysts said the price seemed fair.

They also said the deal could be the first step in a broader wave of mergers for the food and beverage industry.

"Maybe for the consumer staples group in general this may start some talk about consolidation. Even corporate entities are flush with cash, interest rates are low, it would seemingly make sense," Edward Jones analyst Jack Russo said.

Companies like General Mills and Campbell Soup - itself long seen as a potential Heinz merge partner - rose on the news.

Any acquisition could help Heinz further diversify and broaden its international profile. It already dominates the ketchup business, with a nearly 26 percent share of the global market and a 59 percent share domestically, according to Euromonitor International.

The company actually generates the largest portion of its sales in Europe, though its traditional North American consumer products business is the most profitable.

But its real growth engine has been the Asia/Pacific region, where sales increased nearly 11 percent in the last fiscal year, in part on demand for sauces and infant foods in China.

BUFFETT HUNTING GROWTH

The surprise purchase satisfies, at least in part, Buffett's hunt for growth through acquisition. He was frustrated in 2012 by the collapse of at least two unnamed deals in excess of $20 billion and said he might have to do a $30 billion deal this year to help fuel Berkshire's growth engine.

In a regulatory filing late on Thursday, Berkshire said it was providing $12.12 billion in equity, including common stock, warrants and preferred shares with a liquidation preference of $8 billion and a 9 percent dividend.

Barclays Capital's Jay Gelb the deal's valuation appeared high at 19 times Heinz's expected 2014 earnings per share, but that it would enhance Berkshire's consumer portfolio.

Berkshire Hathaway already has a variety of food assets, including Dairy Queen ice cream chain, chocolatier See's Candies and food distributor McLane. Buffett, famed for a love of cheeseburgers, joked he was well acquainted with Heinz's products already and that this was "my kind of deal."

It does represent an unusual teaming of Berkshire with private equity, though; historically, Buffett's purchases have been outright his own. He and 3G founder Jorge Paulo Lemann have known each other for years, and Buffett said Lemann approached him with the Heinz idea in December.

One Berkshire investor said he had mixed feelings about the deal because of the limited growth prospects domestically.

"We're a little hesitant on the staple companies because they don't have any leverage in the United States," said Bill Smead, chief investment officer of Smead Capital Management in Seattle. But at the same time, he said, Buffett was likely willing to accept a bond-like steady return even if it was not necessarily a "home run."

A second investor, Michael Yoshikami of Destination Wealth Management in Walnut Creek, California, said he liked the purchase because it provided cash flow for other deals.

"This is a better use of cash than current money market instruments," said Yoshikami, the firm's CEO and chairman of its investment committee.

3G EXPANDS

For 3G, a little-known firm with Brazilian roots, the purchase is something of a natural complement to its investment in fast-food chain Burger King, which it acquired in late 2010 and in which it still holds a major stake.

Historically, 3G was more of an investor than an acquirer. Its biggest shareholdings include Delphi Automotive, Newell Rubbermaid and Anadarko Petroleum.

Lemann, a globe-trotting financier with Swiss roots, made his money in banking and gained notoriety for helping to pull together the deals that ultimately formed the beer brewing giant AB InBev. Forbes ranks him as the world's 69th-richest billionaire, with a fortune of $12 billion.

3G's Alex Behring runs the fund out of New York. He appeared at a Pittsburgh news conference on Thursday with Heinz management to discuss the deal - and to reassure anxious local crowds that the company will remain based there and will continue to support local philanthropy.

But at the same time, Behring said it was too soon to talk about cost cuts at the company. Unlike Berkshire, which is a hands-off operator, 3G is known for aggressively controlling costs at its operations.

PITTSBURGH ROOTS

Also to be determined is whether CEO Bill Johnson would stay on. Only the fifth chairman in the company's history, Johnson is widely credited with Heinz's recent strong growth.

"I am way too young to retire," he told the news conference, adding that discussions had not yet started with 3G over the details of Heinz's future management.

The company, known for its iconic ketchup bottles, Heinz 57 sauces as well as other brands including Ore-Ida frozen potatoes, has increased net sales for the last eight fiscal years in a row.

Heinz said the transaction would be financed with cash from Berkshire and 3G, debt rollover and debt financing from J.P. Morgan and Wells Fargo. Buffett told CNBC that Berkshire and 3G would be equal equity partners.

That would imply roughly $6 billion to $7 billion of new debt needs to be raised.

Heinz shares soared 19.9 percent, or $12.02, to $72.50 on the New York Stock Exchange.

A week ago the stock hit a long-term high of $61 a share - near records it set in 1998 - having risen almost 5 percent this year and nearly 12 percent since the beginning of 2012.

The Heinz Endowments, a pillar in Pennsylvania philanthropy, said the sale of the company would have virtually no impact on their work. Heinz shares represent just over 1 percent of the endowment's $1.4 billion in holdings.

The deal is also a potential boon for new U.S. Secretary of State John Kerry, whose wife, Teresa, is the widow of H.J. Heinz Co heir John Heinz. Kerry's most recent financial disclosures from his time in the U.S. Senate show a position in Heinz shares of more than $1 million, although the precise size is unclear.

Centerview Partners and BofA Merrill Lynch were financial advisers to Heinz, with Davis Polk & Wardwell LLP the legal adviser. Moelis & Company was financial adviser to the transaction committee of Heinz's board and Wachtell, Lipton, Rosen & Katz served as its legal adviser.

Lazard served as lead financial adviser. J.P. Morgan and Wells Fargo also served as financial advisers to the investment consortium. Kirkland & Ellis LLP was legal adviser to 3G Capital, and Munger, Tolles & Olson LLP was legal adviser to Berkshire Hathaway.

(Additional reporting by Olivia Oran and IFR's Stephen Carter in New York and Drew Singer in Pittsburgh; Editing by Maureen Bavdek and Leslie Gevirtz)

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Britain Says Equine Drug May Have Entered Food Chain

LONDON — A crisis over horse meat in European food products deepened Thursday when British officials said tests showed that a powerful equine drug, potentially harmful to human health, may have entered the food chain in small quantities.

Until now, the crisis had been seen primarily as an issue of fraud after products containing horse meat were labeled beef, with politicians insisting that, even if millions of products sold as beef contained up to 100 percent horse meat, food safety was not at issue.

But on Thursday came the first admission that a banned substance, phenylbutazone – known as bute – could have entered the food chain in horse meat.

The British Food Standards Agency said that it had checked the carcasses of 206 horses slaughtered in Britain between January 30 and February 7. “Of these, eight tested positive for the drug,” it said in a statement.

Because there is little demand for horse meat in Britain, the carcasses are thought to have been exported to France where they were likely to have been used by the meat industry. The British and French authorities were trying to trace the meat but as yet have not identified any products directly affected.

The scandal has already plunged the British food industry into crisis with millions of products being withdrawn from supermarket freezer counters, initially in Britain and Ireland. But other countries, including Sweden and Germany, have been affected too.

Officials in Britain tried to reassure the public.  "Horse meat containing phenylbutazone presents a very low risk to human health,” Britain’s chief medical officer, Dame Sally Davies, said in a statement Thursday.

"Phenylbutazone, known as bute, is a commonly used medicine in horses. It is also prescribed to some patients who are suffering from a severe form of arthritis. At the levels of bute that have been found, a person would have to eat 500- 600 100 one hundred percent horse meat burgers a day to get close to consuming a human’s daily dose,” she said.

“And it passes through the system fairly quickly, so it is unlikely to build up in our bodies,” she added.

"In patients who have been taking phenylbutazone as a medicine there can be serious side effects but these are rare. It is extremely unlikely that anyone who has eaten horse meat containing bute will experience one of these side effects."

The widening scandal began when beef products on sale in several European Union countries were found to contain horse meat. Suppliers have said that the questionable meat originated at processing plants in Romania.

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Kim Kardashian & Kanye West Involved in Security Breach at JFK

By Tim Nudd

02/14/2013 at 08:00 AM EST

Kim Kardashian and Kayne West

Splash News Online

Sorry, Kim Kardashian and Kanye West. You'll have to endure the normal hassles of air travel, too.

The couple, returning from Brazil, were involved in a security breach at New York's John F. Kennedy International Airport on Tuesday morning, when a TSA employee allowed them to skip a security checkpoint while transferring flights.

"An airline employee escorted the two travelers through a non-public area in order to provide expedited access to their domestic flight," a TSA spokesman said, according to New York's Daily News.

The spokesman said the employee was to blame – not Kardashian, 32, and West, 35.

The couple, who are expecting a baby, had returned from Carnival in Brazil and were transferring to a flight to Los Angeles. They made the connection but were forced to disembark and be screened privately, delaying the flight for an hour.

TMZ.com first reported the incident.

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