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Elvis and Monroe items to be sold
Possessions that belonged to Elvis Presley and Marilyn Monroe are to be auctioned in Las Vegas.Personal effects including Monroe’s receipts for alcohol and Presley’s pill bottles are among the lots up for sale. Monroe’s bath robe – purported to be the last item of clothing that she wore – has a guide price of up to 6,000 (3,745) at the auction. The event, which includes a whole host of celebrity memorabilia, takes place on the 26 and 27 June. MinutiaeA number of items from Monroe’s final home in California, including two bricks from the house and furnishings are also among the lots. Medical paraphernalia from Elvis Presley’s doctor is also listed in the Julien’s Auctions catalogue, including a nasal douche and his leather bag. A chunky lapis stone ring that belonged to the musical star is expected to fetch 20,000 (12,500). A number of photographic images of actress Monroe are in the sale, along with a fur stole – a garment which became closely associated with the screen star. The minutiae of her life, including signed cheques and a newspaper bill, will also be made available to bidders.

Source:BBC

Stockings ‘no stroke clot help’
Surgical stockings do not cut stroke patients’ risk of developing blood clots, research suggests.Doctors commonly use the stockings as way to minimise the risk of clots forming and travelling to the lungs or heart, where they can be fatal. But a Lancet study, by the University of Edinburgh, found they had little positive effect. The team estimates cutting stocking use could save the NHS around 7m and 320,000 hours of nursing time a year.
It was previously thought the tight stockings helped to increase blood flow through the legs and reduce the formation of clots. Around two thirds of stroke patients are unable to walk on admission to hospital and approximately 15% develop blood clots because of this lack of movement. The Edinburgh team studied over 2,500 stroke patients in the UK, Italy and Australia. All received routine care, including aspirin and assisted exercise, and half were offered surgical stockings as well. After 30 days there was no significant difference in the blood clot rate in the two groups. However, the group given stockings experienced more skin breaks, ulcers and blisters than those without. Compression stockings are still recommended for patients who have undergone surgery and for people travelling on long-haul flights. Call for new guidelinesResearcher Professor Martin Dennis said: “The guidelines on the use of these stockings have been based on evidence collected in surgical patients and not in stroke patients. “We have shown conclusively that compression stockings do not work for stroke patients. “The national guidelines need to be revised and we need further research to establish effective treatments for these patients. “Abandoning this ineffective and sometimes uncomfortable treatment will free up valuable resources in our health services.” Dr Peter Coleman, of the Stroke Association, said: “It is important that all treatments are carefully evaluated, and if studies show they are ineffective in stroke patients, we believe they should be discontinued. “It is still vital, however, that patients are carefully monitored after their stroke to ensure there are no further complications, and to ensure they receive the best possible treatment.” More than 150,000 people a year have a stroke in the UK.

Source:BBC

New appeal over kidnapped Britons
Five British men held hostage in Iraq for almost two years should be released immediately and unconditionally, the UK foreign secretary has said.The civilian contractors were kidnapped by armed militants at the Ministry of Finance in Baghdad. David Miliband’s appeal for their safe return came ahead of Friday’s anniversary of the men’s abduction. They are IT consultant Peter Moore, from Lincoln, and four security guards whose names have not been released. Mr Moore had been working for American management consultancy Bearingpoint, while the others were employed to guard him. Mr Miliband said he was “totally committed” to working for the release of the men and backed their families’ humanitarian appeals.
He said: “I don’t think that any of us can imagine their ordeal nor the anguish that their families and friends have had to suffer during this dreadful time. “We have seen the humanitarian appeals that the families of the men have made. I’d like to support this appeal. “Our thoughts are with them all as they continue to endure the pain of being separated from their loved ones.” Videos of the captives have been released by a group called the Islamic Shiite Resistance in Iraq. One, which was broadcast on Dubai-based TV station Al-Arabiya, warned a hostage would be killed unless British troops withdrew from Iraq. Last year the former Archbishop of Canterbury, Lord Carey, directly appealed to the kidnappers in a video. BBC security correspondent Frank Gardner said a deal with the captors had been “tantalisingly close” in March when, as a sign of goodwill, they released their latest footage of Mr Moore. Progress ‘delayed’The hostage had appeared to be in much better health than previously. But our correspondent added: “Progress has been delayed by a recent spike in violence. Most people believe this could still be a long drawn-out affair.” In his statement, Mr Miliband insisted the government was “totally committed” to working for the safe release of the men. “There is a dedicated team from across government, including people on the ground in Baghdad, working tirelessly with the Iraqi authorities and Coalition partners to help bring this about. “We are grateful to Prime Minister Maliki and all our allies for their support and continue working with them and with anyone who may be able to help.” He added that Iraq today is different to two years ago and there are “signs of progress and reconciliation”. “We call on those holding all hostages to release them immediately and unconditionally and return them safely to their families where they belong,” he said.

Source:BBC

Iraq to arrest 1,000 ‘corrupt’ officials
Iraq’s anti-corruption watchdog says arrest warrants have been issued for some 1,000 allegedly corrupt officials. Few details were disclosed, but the Commission on Public Integrity said at least 50 were senior figures. The commission has previously said the most serious complaints concern the trade ministry, where officials allegedly took bribes for contracts. This week Prime Minister Nouri Maliki accepted the resignation of his trade minister over corruption accusations. The former minister – Abdul Falah Sudani, one of whose brothers has been detained for corruption and who has another brother on the run – offered his resignation on 14 May and parliament has been scrutinising his case. A vote of no confidence is due to take place on Thursday, which could determine whether Mr Sudani – who denies any wrongdoing – will face criminal charges. The anti-corruption committee statement said there were as many as 997 arrest warrants against officials under suspicion and 53 were at director-general level or above. The statement added that 51 officials had been arrested in April and 69 were arrested in May, including 33 last Sunday.

Source:BBC

Serb priest fired for ‘beatings’
The priest in charge of a drug treatment centre where patients were allegedly beaten has been dismissed, the Serbian Orthodox Church said.Branislav Peranovic was no longer in charge of Crna Reka centre, 187 miles (300km) from Belgrade, Bishop Artemije said after video of beatings was shown. The centre remained open on the request of patients, the bishop said, but would be shut if beatings occurred. The church said state authorities had been asked to investigate the violence. Criminal charges against the centre and the priest have been filed by the government’s human rights watchdog, Sasa Jankovic, Reuters news agency reported.
The church’s ruling body, the Holy Synod, had asked Bishop Artemije to shut the centre last week. But in a statement on Wednesday, he said: “We will shut down the facility if the reports about beatings and violence persist.” There had been “numerous pleadings by the patients and their parents” to keep the centre open, he added. About 200 patients are treated at the centre near the city of Novi Pazar. A video of one assault, published by Vreme magazine, shows a man appearing to assault a patient by hitting him with a shovel and punching his face. Archpriest Peranovic had earlier told B92 television a “heavy hand” was needed. “Whoever has a junkie in the house knows what I am talking about.”

Source:BBC

Suu Kyi’s witnesses ‘rejected’
Lawyers for the detained Burmese opposition leader Aung San Suu Kyi say judges have rejected their request to call four defence witnesses.They say only one defence witness is being allowed in her trial on charges of breaking house arrest regulations. This, they say, means a verdict could be reached as soon as Thursday. Ms Suu Kyi has spent the past six years under house arrest. She was put on trial after an American man swam to her home across a lake earlier this month. The BBC’s Jonathan Head, reporting from neighbouring Thailand, says there has been little pretence at fairness by the Burmese authorities during the eight-day trial. Aung San Suu Kyi’s lawyers have been barred from discussions with their client and she was given no time to prepare her testimony. Charges ‘spurious’Now three of the four witnesses summoned by the defence have been rejected by the judges and the prosecution has been allowed to call 14. This, says our correspondent, lends support to US President Barack Obama’s description of the process as a show trial on spurious charges. With only one defence witness now allowed to take the stand, our correspondent says, the government should be able to wrap up the case within one or two days and deliver the expected guilty verdict.
At Wednesday’s closed hearing at Rangoon’s Insein prison, the man at the centre of the case, John Yettaw, 53, said he had swum to Ms Suu Kyi’s home to warn her that her life was in danger. Nyan Win, a spokesman for Ms Suu Kyi’s National League for Democracy, who is also on her legal team and was in court, told AFP: “Yettaw said he came here because God asked him to. He said the reason he came was in his vision he saw that Aung San Suu Kyi was assassinated by terrorists. Because of his vision, he came here to warn Aung San Suu Kyi and also the government.” In a written statement to the court on Tuesday, Ms Suu Kyi blamed Mr Yettaw’s visit on a breach of security and said charging her showed the one-sidedness of the prosecution. The trial has been widely condemned abroad as a ploy to keep her in detention until after the 2010 elections. Faces up to five yearsMs Suu Kyi is the head of the NLD, which disputes the legitimacy of the polls and the conditions in which the military junta want to hold them. Ms Suu Kyi, 63, had been due for release on Wednesday after her latest six-year detention, but was re-arrested this month after Mr Yettaw’s visit. She says she was not immediately aware of the late-night visit, but had been informed later by her assistant. Ms Suu Kyi, a Nobel laureate, faces up to five years in jail if convicted. President Obama called on Tuesday for her “immediate and unconditional” release.

Source:BBC

Will Nigeria oil offensive backfire?
By Andrew Walker
BBC News, Warri
For the past 13 days the Nigerian military has been mounting an offensive in the swampy creeks of the Niger Delta, pursuing oil militants who kidnapped 15 sailors, 18 soldiers and hijacked a petrol tanker belonging to the national oil company.They say the continuing military action is an attempt to rescue their men or confirm if they are dead. The militants started it, they say, and the military is just reacting, according to commander Gen Sarkin Yakin Bello, whose name means “lord of fighting” in the northern Hausa language.
But security and diplomatic sources have told the BBC the military action in Delta State is part of a new “get tough” approach which has been on the army’s drawing board for months in an attempt to deal with key militant leaders from the Movement for the Emancipation of the Niger Delta (Mend). The clock is ticking on the offensive, as it is disrupting business, and may begin to have a bad effect on Nigeria’s already depressed oil industry. The military action could backfire and stir up militancy in the western Niger Delta, observers say. It could also spark ethnic conflict in a race to secure lucrative patronage from government and business in the Delta. Alarming numbersStories are emerging from the area of military brutality against civilians, as soldiers move through villages looking for guns and weapons.
Groups representing the Ijaw people who live in the area have issued alarming numbers for those killed or chased from their homes. The military has denied access to journalists so far. But the Nigerian Red Cross has told the BBC they went to several villages in the creeks and saw a few burned houses, but not the total destruction those fleeing described. Those who fled into the bush have been creeping back to their homes at night and then leaving again at first light, the Red Cross’s Ovocity Egboworo said. “The biggest problem they are facing is a lack of food, as no supplies have been able to get up there for some time now,” he said. Other international aid agencies have decided not to travel to the region for the time being, unconvinced that the humanitarian need outweighs the risk of going into the active conflict zone. Tompolo’s boysIt is certain that this is the largest military operation against the militants since the rise of the armed conflict in 2006.
They are attacking fighters loyal to the man known to be the regional commander, and suspected to be the overall military leader of Mend, Government Tompolo. Mr Tompolo has in recent years established himself as the major powerbroker in the area. Local businessmen say he is the point man for the leaders of the Ijaw community, funnelling money from government patronage and lucrative contracts and members of his family and close circle hold key government positions. If a company wants to move anything in the oil creeks of Escravos and Forcados, home to a great deal of Nigeria’s oil industry, they must pay Mr Tompolo’s “boys” for protection. The militants also make money stealing crude and selling it through bunkering syndicates, an organised crime operation that has links to Nigerian politicians, military figures, and connections to drug and gun runners, analysts say. Before the recent offensive violence against oil infrastructure was actually down, as the militants had reached terms with the state government and the oil companies. The military action seems aimed at dislodging Mr Tompolo from this powerful position. Support?Mr Tompolo is on the run from his base, rumoured to be either in Cameroon, the Nigerian state of Akwa Ibom, or lying low in the Delta State city of Warri, depending on who you talk to.
But leaders from his Ijaw ethnic community have apparently withdrawn their support for him. Ijaw elder Chief Edwin Clark, 76, told the BBC he would not shelter Mr Tompolo. “He is not a monster, but if he came to me I would hand him over to the authorities,” said Mr Clark, who has decided to get out of the region for a couple of weeks. Mr Tompolo still commands large military resources, and while it remains to be seen if he can return to his plum position, it is clear he is not prepared to go without a fight. But Mr Clark says it seems like the government is serious about tackling the militants this time. Big pushLast year the military was given millions of dollars to spend on equipment for fighting in the Niger Delta.
Soldiers of the JTF review weapons allegedly seized from a Mend camp
A report leaked outlined possible military scenarios, including the one currently unfolding. There was also a large military exercise several months ago in Ondo State where the military Joint Task Force (JTF) practised the tactics it would need to fight militants. Following a briefing by Nigeria’s Foreign Minister Ojo Maduekwe, diplomatic sources told the BBC they came away with the impression the militant attack that triggered the current operation had simply put in motion an existing plan. But security sources say the military will have to capture large amounts of weapons for this offensive to be a success, as there is no way they can kill all the militants. Nothing is moving on the creeks now, and militants have continued to attack pipelines shutting in 100,000 barrels per day. So far the military has shown journalists a heap of rusted antique shotguns and a few buckets of bullets. ‘Not the end’A former adviser to both ex-Nigerian President Olusegun Obasanjo and his successor Umaru Yar’Adua on the Niger Delta told the BBC he was afraid the military action would make the situation worse in the long run. “Removing Tompolo will not be the end of it,” said Rev Stephen Davis, Canon Emeritus at Coventry Cathedral’s reconciliation ministry, who recently wrote a report on the possibilities of peace in the Niger Delta. This would open a position other leaders would be prepared to fight over, he argued, raising the spectre of gang warfare in Delta State. It also risked inflaming ethnic tensions between Ijaw and another Delta State ethnic group, the Itsekiri. The two fought a war between 1997 and 2002, and Mr Tompolo’s hold on government patronage came as a direct result of the Ijaw victory. According to Rev Davis, the Mend leader is not the root of the problem, but a symptom of the lack of governance in the Niger Delta. “Tompolo is a toll-gate keeper,” he says. “The real ones driving this conflict are the ones who built the road.”

Source:BBC

Pakistan needs ‘shift’ to beat the Taliban
The latest deadly bomb attack in the Pakistani city of Lahore has once again highlighted the threat posed by the Taliban. The militants now face a much more determined government, people and army – but there is a long way to go, argues guest columnist Ahmed Rashid.After a month-long military campaign that has created nearly 1.5 million refugees, some 15,000 troops of the Pakistan army are now well on their way to retaking the Swat valley from the Pakistani Taliban. Twice since 2006 the army has been driven out of the valley by extremists – but this time they appear determined to eliminate the Taliban and secure the valley over the long term so that refugees can quickly and safely return home. However major extremist threats still remain while the civilian government and the army’s need for a long-term strategy against them is being debated. Paradigm shiftThe Swat campaign is the first time that the army has appeared determined to wipe out extremism in one region.
The military campaign has been buoyed by a dramatic shift in public opinion against the extremists, the support of all major political parties and the international community, who have promised major international aid. Without all these factors coming together it is unlikely that the army would have been so determined. However eliminating extremism from the entire country will need a strategic paradigm shift by the government and the army. Such a shift will affect domestic and foreign policy, relations with Pakistan’s neighbours and a different set of national interest priorities.
Some 10% of the country is still under the control of the extremists. The Pakistani and Afghan Taliban – and al-Qaeda – are headquartered not in Swat, but in the Federally Administered Tribal Areas (Fata) adjacent to Afghanistan. Senior Afghan Taliban leaders are also based in Balochistan and Sindh provinces from where they provide logistics for the Taliban’s war against US and Nato forces in Afghanistan. Meanwhile militant groups in Punjab who have fought in Indian-administered Kashmir – frequently at the behest of the military – remain active. Some groups such as Lashkar-e-Taiba – which was accused of carrying out the attacks in Mumbai (Bombay) last year that killed more than 170 people – have set up relief camps for refugees in northern Pakistan as an Islamic charity. Guerrilla attacksThe government’s immediate aims must be to secure Swat so that the refugees can return home and not become a recruiting base for the Taliban.
But it will have to show much better management than it has up until now to help them rebuild their homes and livelihoods. Thousands of troops will have to be based in Swat indefinitely to hold the valley and counter future Taliban guerrilla attacks. Even after victory in Swat, extremism will remain a potent threat to Pakistan, undermining its economy, politics, social development and threatening the entire region. For the US and Nato, Pakistan was once an appendage to their Afghan policy. Now it is their major concern. There can also be no long-term solution to militancy without eliminating the command and control centres of the militants in Fata. So far the fighting there has been largely left to the under-armed and under-trained paramilitary Frontier Corps (FC). Last August, when the FC deployed in Bajaur, the government promised that its actions there heralded the start of a campaign that would retake control of all seven tribal agencies. Instead, nine months later the FC is still battling the militants in Bajaur. That will have to change, but for the regular army to deploy in Fata in sufficient numbers and equipment, major external funding and military aid will be needed – which Washington and Nato countries will have to provide. The army will have to get rid of its aversion to accepting Western training in modern counter-insurgency warfare. However 80% of the army is deployed on the Indian border – and a dramatic improvement in relations with India has to take place before it can feel secure enough to move tens of thousands of troops from that border to Fata. Before giving such assurances the Indians will demand that Islamabad also wind up groups like Lashkar-e-Taiba, which the military continues to regard as a strategic asset. For the army to give up on such groups there will have to be major progress on sorting out the multiple disputes between India and Pakistan – such as the Kashmir question and the sharing of river waters. An equally decisive shift will be needed to deal with the Afghan Taliban leadership in Pakistan, which the army also treats as strategically important. Pakistan’s improved relations with Afghanistan since the advent of the civilian government reflects a major positive shift, but ultimately the Afghan Taliban will have to be given a timeframe to open talks with the Kabul government and leave Pakistan. In order to deal with Fata and the overall threat of extremism, Pakistan will need to make a major shift in its national priorities that will be not so much based on enmity with India, but focused more on domestic threats and the economy. Yet at the same time Pakistan’s neighbours will also have to be more accommodating, changing their attitudes and policies in the region in order to make such a strategic shift by Pakistan both possible and sustainable.
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Source:BBC

Portsmouth agree to takeover bid
Portsmouth have accepted a bid from United Arab Emirates businessman Dr Sulaiman Al Fahim to buy the club.The move follows negotiations led by Portsmouth executive chairman Peter Storrie on behalf of club owner Alexandre Gaydamak. Al Fahim was the initial figurehead of the Abu Dhabi United Group when they took control of Manchester City last year, but is now acting for himself. The club has not released any details of the figures involved in the deal. Portsmouth will now wait for legal and financial formalities to be completed. “A period of formal legal and financial due diligence will commence next week,” said a club statement. “We cannot make any further comment on the future structure of the club until this period has been completed.” Portsmouth added that they hoped the deal will be concluded “as soon as possible” after the talks, which were held in Rome.
Gaydamak, who has been at the club since January 2006, said late last year that he wanted to sell. The Franco-Russian initially bought into Pompey as joint owner when he struck a deal with then-chairman Milan Mandaric. He then bought out Mandaric, who now owns Leicester City, for about 32m. Under Gaydamak’s ownership Portsmouth won the 2008 FA Cup but he says he can “no longer invest the time required to oversee the running of the club”. Since the FA Cup victory, Portsmouth have seen Harry Redknapp depart to manage Tottenham, while his successor Tony Adams lasted just 16 games in charge. Paul Hart replaced Adams at the helm and guided the club to Premier League safety, but his future at the club is still up for discussion. Gaydamak had earlier stated that he had rejected two offers for Pompey, as he wanted to sell to a buyer who would be committed to funding a new stadium and training ground for the club. Al Fahim has previously been linked with an audacious bid for Chelsea.

Source:BBC

Ruthless Nadal into round three
FRENCH OPENVenue: Roland Garros Date: 24 May – 7 June Coverage: Live on BBC Red Button, live streaming and daily text commentary on BBC Sport website, updates on BBC Radio 5 Live plus second week commentary on BBC 5 Live Sports Extra. TV coverage on Eurosport.
World number one Rafael Nadal will play Lleyton Hewitt in the third round of the French Open after powering past Teimuraz Gabashvili 6-1 6-4 6-1.After taking the first set comfortably, the Spaniard was made to work harder for the second but still prevailed. Gabashvili showed spirit but was ultimately powerless to prevent Nadal sealing the match in straight sets. Seventh seed Gilles Simon is also through after a 7-5 6-0 6-1 win over American Robert Kendrick. But Wednesday saw two players bow out of their last French Open. Russian Marat Safin mixed flashes of brilliance with moments of petulance as he lost a five-set epic against wildcard Josselin Ouanna 7-6 (7-2) 7-6 (7-4) 4-6 3-6 10-8. “Terrible first serve… and of course, backhand didn’t do anything,” was the verdict of the 29-year-old, who will retire at the end of the season. “Basically nothing today… “It’s a terrible way to finish with the French Open but anyway… it’s OK. It’s not so sad. It doesn’t get me emotional.” Fabrice Santoro also played his last singles match at Roland Garros, losing 6-3 6-1 3-6 6-4 to Belgium’s Christophe Rochus on his 20th appearance at his home Grand Slam. “At match point, I had this feeling that I was turning a page, even though I still have 10 tournaments that I’ll play,” said the 36-year-old, who will also quit at the end of the year. In other results on Wednesday, David Ferrer of Spain edged a five-set thriller against German Nicolas Kiefer 6-3 5-7 6-4 3-6 6-2, while eighth-seeded Spaniard Fernando Verdasco comfortably beat German Philipp Petzschner 6-1 6-1 6-3. Chilean Fernando Gonzalez, seeded 12th, scored a similarly emphatic victory over Rui Machado, beating the Portuguese 6-3 6-2 6-3, but his compatriot Nicolas Massu was beaten 6-1 6-1 6-2 by the 17th-seeded Swiss Stanislas Wawrinka. Number 10 seed Nikolay Davydenko has to wait before finishing his match against Argentine Diego Junqueira, but the Russian has the advantage with the score 4-6 6-3 6-0 2-2. Australia’s former world number one Hewitt is next up for Nadal after a comfortable 6-4 6-3 6-1 straight-sets win over 88th-ranked Andrey Golubev of Kazakhstan. “It’s always very tough to play against Lleyton,” added Nadal. “I will have to play well to have chances to win.” Gabashvili began extremely well against Nadal, immediately earning three break points, but the defending champion quickly refocused and claimed the next five to avert danger.
Whilst the result was never in doubt, particularly when Nadal rushed to a 4-0 third-set advantage, the Russian still provided moments of resistance to take away some pride from what was essentially an impressive Nadal procession to round three. Nadal’s victory means he has now bettered Chris Evert’s record of 30 successive wins at Roland Garros, as he chases five successive French Open titles. Evert set her sequence between 1974 and 1981, although she didn’t play from 1976-1978. “I came here to get a result without thinking about these records,” said Nadal. “The important thing is to play my best tennis and be there on the final Sunday. “I played better today than the first day – I won in three sets so that’s good and I am happy to be in the third round.”

Source:BBC

Slumdog child star gets new home
Slumdog Millionaire director Danny Boyle and the trust he set up have bought a new home for one of the child stars of his Oscar-winning movie.The filmmaker, who is currently in Mumbai, has told Azharuddin Ismail, 9, he will be re-housed after his family was made to leave the slums. Boyle, who has been criticised for not helping the child actors enough, blamed the press for raising expectations. “Inevitably, the tension and pressure is media generated,” he said. ‘Emergencies’He said he hoped a new home would also be found for Rubina Ali, who played Latika, before the monsoon rains in June. “They were given access to a world, an extraordinary and glamorous world, and they understandably want their lives to be completely transformed,” he said. Soon after the movie was finished, Boyle and producer Christian Colson set up the Jai Ho trust, which was aimed to help the children financially until they turned 18. “The homes are a concern. That is one of the reasons why we built the trust,” Boyle said.
“We have been trying to accelerate the process of re-housing the families, and one of the reasons we set up the trust is to deal with emergencies like this,” said Colson. A director for the trust said the apartment for Ismail, who played the young Salim, was “comfortable, in a good neighbourhood [and] near his school”. In February, the state housing authority said it would give the two children apartments, but the families had not heard from them, said Ali’s father Rafiq Qureshi. “It has been five to six months. Everything is available in Mumbai if you have the money,” he said. “If you really want to get us a house you can get us a house in two days.” Earlier this month, the authorities tore the children’s slum homes down. Since then Rubina has been staying with relatives and Azhar was living in a makeshift shanty with his parents.

Source:BBC

US warship becomes Florida reef
A series of controlled explosions has sunk a World War II US troop ship to create an artificial reef off Florida.The General Hoyt S Vandenberg sank in less than two minutes after experts detonated explosives off Key West. The ship, 523ft long (160m), settled on the bottom of the Florida Keys National Marine Sanctuary. Officials hope the reef will attract divers, boosting the economy by 8m (5m). They also say fish, coral and other marine life will be drawn to it. “The sinking of the Vandenberg is the best thing to happen in Key West in years,” said Mark Rossi, a local businessman who serves as Key West’s city commissioner. The ship was last used by the US Air Force to track missiles and spacecraft. Workers have spent months stripping the vessel of contaminants such as asbestos, wiring, paint and other potentially toxic substances and debris.

Source:BBC

UN supports Sri Lanka aid effort
The United Nations Human Rights Council has offered support to Sri Lanka’s humanitarian efforts as it recovers from its war with Tamil Tiger rebels.However, the emergency session resolution did not mention granting UN aid agencies full access to the 300,000 displaced people in army-run camps. Human rights groups said it ignored claims of abuse by the army and rebels. Sri Lanka and its allies had argued it was wrong to criticise a member state just days after it ended a 25-year war. The final resolution, passed by 29 votes to 12 with six abstentions, welcomes what it calls Sri Lanka’s continued commitment to the protection of human rights. It also urges the international community to provide financial assistance towards Sri Lanka’s reconstruction. Human rights groups reacted with dismay. ‘Domestic’ matterThey see this as yet another sign that the council – supposed to be the world’s top human rights watchdog – is now so politicised that it is virtually meaningless, reports the BBC’s Imogen Foulkes in Geneva. The resolution condemned the rebel group for using civilians as human shields, but said the war was a “domestic” matter. The UN High Commissioner for Human Rights had told the session that “an independent and credible international investigation” should be sent to Sri Lanka. The commissioner said it should examine allegations that the Tigers prevented civilians from leaving the conflict zone, and that government forces used heavy artillery there, and killed rebels trying to surrender. European countries, Canada, Chile and Mexico had supported such an investigation, as well as access to the camps. Aid accessHowever, the council recommended that Sri Lanka provide aid groups with “access as may be appropriate” to refugee camps. The military has so far refused to release refugees from the camps, saying they must be screened to weed out any Tamil rebels who may be hiding among them. Meanwhile, the army said it had killed 11 suspected Tamil Tigers near the south-eastern town of Ampara. The clash happened as troops searched for any remaining rebels, the Associated Press news agency reported.

Source:BBC

Concerns grow over GM Europe jobs
Concerns are growing over the future of GM Europe jobs outside Germany as German ministers are meeting to pick their preferred bidder for the firm.With the German government promising billions of euros of support for the buyer of GM Europe’s main Opel and Vauxhall business, its choice is key. UK unions fear Berlin will back a buyer that puts saving German jobs first, at the possible cost of British cuts. The Belgian government has also expressed concern for its Opel workers. ‘Working very hard’Tony Woodley, joint general secretary of the British Unite union, said the UK government was not doing enough to save workers at Vauxhall, Opel’s UK arm, which employs 5,500 people mainly at plants in Luton and Ellesmere Port.

“Why is our government waiting for the German government to determine what’s going to happen to our plants?” he said. UK Business Secretary Lord Mandelson countered that he was working “very hard” on the issue of Vauxhall’s future, and had received reassurances from the three main bidders for GM Europe over their commitment to the UK jobs. However, he did admit that job cuts may be likely in the longer term as Opel and Vauxhall needed to “consolidate”. Lord Mandelson has already said the UK government is considering giving financial support to the eventual buyer. German meetingGerman Chancellor Angela Merkel is meeting representatives of General Motors (GM), GM Europe’s parent, and US government officials on Wednesday night to discuss the four bids for Opel and its Vauxhall arm.
A decision is not expected until Thursday at the earliest. The three main bids have come from Italian carmaker Fiat, Canadian car parts firm Magna, and Belgian investment firm RJH. A fourth late bid was made on Tuesday by China’s Beijing Automotive Industry Corporation. The German government has pledged the most financial support for whoever is eventually chosen to take over Opel because the firm is headquartered in Germany, where it employs 25,000 of its 50,000 workers across Europe. The Belgian government, fearing for the future of Opel’s plant in Antwerp, has called for more of a say in the choice of a preferred bidder. European Commission President Jose Manuel Barroso said Belgian Prime Minister Herman Van Rompuy had written to him to ask the EU executive to help coordinate rescue efforts by European governments for General Motors’ plants across Europe. “It’s not just a German problem, it’s a European problem,” said Mr Barroso. Bankruptcy fearsThe sale of Opel and Vauxhall comes as GM is struggling to avoid having to go into US bankruptcy protection before a 1 June deadline set by the American government.

Its hopes to avoid bankruptcy protection were dealt a blow on Tuesday when its bondholders turned down a debt for equity swap that would have greatly reduced its debt burden. GM spokesperson Julie Gibson said she was not aware of any plans to revisit the deal with bondholders. “I don’t think that is on the cards,” she said. The failure to do a deal “was a disappointment, but not a surprise,” she added. A White House spokesman said on Wednesday that all GM’s stakeholders – staff, management and bond holders – “would have to make sacrifices if we are going to see GM continue”.

Source:BBC

Marcel Marceau debt auction ends
A controversial auction of mime artist Marcel Marceau’s belongings has raised almost 500,000 euros (439,500).The proceeds of the two-day Paris sale are being used to clear the debts Marceau accrued funding his show in the years before he died in 2007. Among more than 900 lots auctioned were Marceau’s trademark white sailor-suit and battered silk opera hat. Some items were bought by a group of fans who wanted his belongings put in a museum to preserve his legacy.
A petition in support of their project gathered more than 3,000 signatures, including those of many entertainment personalities. But art expert Morgane Communal told the BBC that Marceau fans had nothing to worry about. “It’s not really a shame about the sale because the French state has bought some of the works, and people who can’t afford to buy anything will be able to see his stuff in museums,” he said. “He won’t be forgotten – quite the contrary.” A top hat and its single red flower worn by Marceau sold for 3,201 euros, while his white sailor-suit with striped shirt and jacket fetched 5,700 euros. ‘Surreal’ mindMarceau, who was 84 when he died, is credited with reviving the art of mime with a cast of characters including Bip the Clown. His career began after World War II, when he toured his mime act all over Europe and the US.
But towards the end of his life he racked up steep debts to finance his show. His family say that auctioning off all his possessions was the only way they could pay back the money he owed. Auctioneer Rodolphe Tessier said nothing was done about his debts during his lifetime so the sale was brought about by a court order. “It’s not the usual auction here that would have been requested by his heirs,” he said. “That’s why, exceptionally, we have the entire collection of Mr Marceau’s belongings. So at the same time it is unfortunate and exceptionally rare.” As well as his costumes, Marceau’s paintings are also up for auction. Yvan Boascher, a friend of Marceau, says his drawings reveal how his off-stage personality was very similar how he appeared on stage. “His paintings reflect for me the madness of his mind, whatever was going on in his head was not classical. He was surreal,” he said. The two-day sale is due to end on Wednesday.

Source:BBC

Clinton gives North Korea warning

US Secretary of State Hillary Clinton says North Korea will face consequences for its “provocative and belligerent” actions towards its neighbours.As the UN Security Council discusses a response to North Korea’s nuclear test, Mrs Clinton reaffirmed US commitments to allies Japan and South Korea. Russian Foreign Minister Sergei Lavrov said that while world powers should be firm, they should not inflame tensions. He said they needed to avoid punishment “for the sake of punishment” alone. On Wednesday, North Korea said it had abandoned the truce that ended the Korean war, two days after it conducted an underground nuclear test. It blamed its decision on South Korea joining a US-led initiative to search ships for nuclear weapons, calling it a “declaration of war”. The United Nations Security Council is working on a strong resolution condemning North Korea’s actions, including possible punitive measures. ‘Sabre-rattling’The White House accused North Korea of seeking attention.
“We’re certainly concerned and take any threat seriously, but my sense is they’re trying to get renewed attention through sabre-rattling and bluster and threats,” White House spokesman Robert Gibbs said. Mrs Clinton condemned the North’s violation of UN Security Council resolutions and commitments made during six-nation nuclear disarmament talks. “North Korea has made a choice… There are consequences to such actions,” she said, but also held out hope that North Korea would return to talks. “There will be an opportunity for North Korea to come back into a framework of discussion within the six-party process and that we can begin once again to see results from working with the North Koreans toward denuclearisation,” she told reporters in Washington. Mrs Clinton said she was pleased by a unified international condemnation of North Korea that included Russia and China, North Korea’s only major ally. Earlier Russia’s foreign minister called for a strong UN resolution to condemn Monday’s nuclear test, but said the stand-off could only be solved through talks. “I repeat again, we must stand up for the non-proliferation regime and at the same time we must not forget that problems can be resolved only through talks,” Mr Lavrov said. Diplomats from the five permanent Security Council member countries – plus Japan and South Korea – have been meeting behind closed doors to agree a new resolution against North Korea. ‘War declaration’On Monday, North Korea fanned tensions in the Korean peninsula by conducting a powerful underground nuclear test.
It has also fired six short-range missiles in recent days. Then on Wednesday, it said that it no longer considered itself bound by the terms of a truce which ended the war between the two Koreas. That agreement has preserved a tense peace for more than five decades. In a statement to the North’s official news agency, KCNA, the military said its actions followed South Korea’s announcement on Tuesday that it would definitely join the Proliferation Security Initiative (PSI) – a US-led campaign to search ships carrying suspicious cargoes to prevent trafficking of weapons of mass destruction. “Any hostile act against our peaceful vessels, including search and seizure, will be considered an unpardonable infringement on our sovereignty,” a spokesman for the North’s army told KCNA. “We will immediately respond with a powerful military strike.” Last month North Korea launched a long-range rocket over Japanese airspace, angering the international community. Pyongyang said the rocket carried a satellite, but several nations viewed it as cover for a missile test. The UN Security Council condemned the rocket launch, and in retaliation, North Korea announced it was quitting long-running six-nation negotiations on its nuclear disarmament. It also said it would reopen its main nuclear plant at Yongbyon, which was closed in July 2007 as part of a disarmament deal. A few years ago there was real hope of reaching a settlement, when North Korea agreed in February 2007 to abandon its nuclear ambitions in return for aid and diplomatic concessions. But the negotiations stalled as it accused its negotiating partners – the US, South Korea, Japan, China and Russia – of failing to meet agreed obligations.

Source:BBC

DNA ‘proves Argentine’s incest’
An Argentine man accused of incest fathered seven children with his daughter, officials have said.DNA tests showed that Armando Lucero, 67, was the father of the children, according to Ricardo Puga of the Mendoza provincial legislature. The alleged incest with the 35-year-old woman started when she was eight. Officials are waiting for the results of psychological tests on Mr Lucero, also accused of raping two of his other daughters. He remains in custody. Mr Lucero faces a maximum penalty of 50 years in prison. His daughter’s seven children are aged between two and 19. They all lived together, with Mr Lucero’s second wife and stepmother, AFP news agency reported. The daughter, who has not been publically named, went to local authorities for help after her father threatened to sexually abuse one of her daughters.

Source:BBC

Barcelona 2-0 Man Utd
By Phil McNulty
Chief football writer in Rome
Manchester United’s attempt to make history and become the first club to defend the Champions League ended in failure against Barcelona in Rome’s Stadio Olimpico.Manager Sir Alex Ferguson’s hopes of repeating last year’s triumph against Chelsea barely got off the ground as they ended well beaten by a Barcelona side inspired by the genius of Argentine superstar Lionel Messi. United started the final, played in stifling heat, as if retaining their crown would be little more than a formality, creating a host of early chances against the nervous-looking Catalans, with Cristiano Ronaldo a constant threat. But once Samuel Eto’o scored at Edwin van der Sar’s near post in the 10th minute after escaping Nemanja Vidic, the credits were rolling on their bid to add the Champions League to the Premier League for the second successive season.

Barcelona’s peerless midfield pair of Andres Iniesta and Xavi ruled midfield with a display of passing perfection, starving United of further opportunities to strike at a defence weakened by injuries and suspension. Xavi hit the post with a free-kick and Thierry Henry was denied by Van der Sar before Messi crowned a glorious personal performance with a stunning header to clinch victory with 20 minutes remaining. He made a mockery of his tiny stature to rise and head home Xavi’s cross – and in that magical moment any hopes United harboured of a recovery were snuffed out. If the showdown between Messi and Ronaldo was billed as the spectacular sub-plot within this showpiece, there was only one winner as Barcelona’s playmaker terrorised United throughout. Ronaldo, for all his obvious frustrations that ended almost inevitably in a yellow card for a late barge on Carles Puyol, never stopped running but this was not to be his night or United’s.
Ferguson warned in the build-up that Iniesta – arguably the game’s most influential performer – and Xavi could put opponents “on a carousel” with their passing, and his prediction proved ominously correct as United were on a rough ride after the optimism of those opening 10 minutes. Once Barcelona had settled after the early goal, there was no way back for United as several changes in formation failed to produce a spark and Wayne Rooney was unable to exert any influence on events, first from the left flank and then from the centre. And as Barcelona’s name was carved on the giant trophy at the final whistle, with the celebrations of the Catalan fans a sharp contrast to the subdued Manchester United supporters, there was no doubting their right to claim Europe’s elite trophy for the third time.

Ryan Giggs took the place of the suspended Darren Fletcher in the United line-up – and for the first 10 minutes they penned a nervous Barcelona back in their own territory. The game was only two minutes old when Barcelona keeper Victor Valdes fumbled Ronaldo’s free-kick, and only the crucial intervention of former United defender Gerard Pique prevented Ji-Sung Park turning in the rebound. Ronaldo was then twice narrowly off target before Barcelona made their first serious incursion into United territory. And it was to devastating effect as they turned the opening exchanges upside down to take the lead.
Barcelona will credit the brilliance of Eto’o, but it was a cheap shot from United’s viewpoint as the Cameroon striker was allowed to escape by Vidic and keeper Van der Sar’s effort to block the effort at his near post was flimsy, to put it kindly. It was against the run of play, but gave Barcelona a visible injection of confidence and adrenalin, allowing Messi to pull the strings up front and Xavi and Iniesta to take control of midfield. Iniesta may have been an injury doubt prior to this final, but there was little evidence of fitness problems as he produced a virtuoso demonstration of the modern midfield arts, leaving United to chase in vain in an attempt to regain possession for the latter stages of the opening half. In one magical moment, all three of Vidic, Michael Carrick and Rooney were foiled in an attempt to take the ball away from Messi, with the Argentine eventually forcing a foul. Rooney was a peripheral figure, pushed to the margins of the game on the left flank. He was too important a figure to be starved of possession and influence in this system, and it was no surprise when Ferguson pushed him inside as half-time approached. Ferguson made another switch during the interval, sending on Carlos Tevez for the ineffective Anderson, a positive move that reflected United’s failure to build on their early domination. It was not a quick fix as Barcelona simply continued in their imperious stride after the break, Thierry Henry tricking his way inside Rio Ferdinand only to be denied by the legs of Van der Sar.

Xavi then almost doubled Barcelona’s lead with a 20-yard free-kick following Vidic’s foul on Messi. He beat Van der Sar with his curling effort, but it rebounded off an upright to safety. United were struggling to get a clear sight of Barcelona’s goal, and in a bid to remedy this problem Ferguson sent on Dimitar Berbatov for Park with 25 minutes remaining. The change had no chance to take effect before Barcelona deservedly went two up five minutes later. Xavi was the creator with a cross that looked too high for Messi, but he expertly soared to send a header over Van der Sar. United looked to mount an instant response, with Valdes blocking crucially from Ronaldo, but there was no way back and it was Barcelona who looked more likely to add to their lead. Van der Sar saved well from Puyol as Barcelona dominated until the final whistle – and not even the most partisan Manchester United follower can doubt that Pep Guardiola deserved to round off a dream first season in charge by adding the Champions League to the La Liga title and the Spanish Cup. Barcelona: Valdes, Puyol, Toure Yaya, Pique, Sylvinho, Xavi, Busquets, Iniesta (Pedrito 90), Messi, Eto’o, Henry (Keita 72). Subs Not Used: Pinto, Caceres, Muniesa, Gudjohnsen, Bojan. Booked: Pique. Goals: Eto’o 10, Messi 70. Man Utd: Van der Sar, O’Shea, Ferdinand, Vidic, Evra, Anderson (Tevez 46), Carrick, Giggs (Scholes 75), Park (Berbatov 66), Ronaldo, Rooney. Subs Not Used: Kuszczak, Rafael Da Silva, Evans, Nani. Booked: Ronaldo, Scholes, Vidic. Att: 72,700 Ref: Massimo Busacca (Switzerland). BBC Sport Player Rater man of the match: Barcelona’s Andres Iniesta 8.39 (on 90 minutes). Please note that you can still give the players marks out of 10 on BBC Sport’s Player Rater after the match has finished.

Source:BBC

Hamas backers jailed in Texas
Two founder members of what was once the biggest Muslim charity in the US have each been jailed for 65 years.Shukri Abu Baker, 50, and Ghassan Elashi, 55, were convicted of channelling funds to the Palestinian militant group, Hamas. Three other members of the Holy Land Foundation were jailed for between 15 and 20 years by a Dallas court. The charity was found guilty last year of sending 12m (7.4m) to fund social programmes controlled by Hamas. The five men were convicted in November on charges ranging from money laundering to supporting terrorism. Hamas was designated a terrorist organisation by the US government 14 years ago, making it illegal to give the group money or other support.
The defendants said they were only interested in helping the needy. Their supporters said no money had been used to fund violence, and the case was a by-product of what it called the anti-Islamic sentiment following the 11 September attacks of 2001. Shukri Abu Baker told the judge in Dallas on Wednesday: “I did it because I cared, not at the behest of Hamas.” But prosecutors argued that the humanitarian aid sent by the charity allowed Hamas to divert money to militant activities. OrphansJurors had reached their guilty verdict last year after eight days of deliberations following a retrial of the Texas-based Holy Land Foundation for Relief and Development. It was the largest terrorism financing trial since the 9/11 attacks. The indictment against the group said it sponsored Palestinian orphans and families in the West Bank and Gaza whose relatives had died or been imprisoned as a result of Hamas attacks on Israel. The charity was shut down and had its assets frozen in 2001.

Source:BBC

Taliban blamed for Lahore attack

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Pakistan’s government has blamed Taliban fighters for a bomb attack in Lahore which killed 23 people and left hundreds more injured.A group of men shot at police officers before detonating a powerful car bomb, damaging buildings belonging to the police and intelligence agency the ISI. Rescuers are searching the rubble and warn that the death toll could rise. Officials said the Taliban carried out the attack in revenge for a military offensive against them in Swat valley. Interior Minister Rehman Malik told reporters: “Enemies of Pakistan who want to destabilise the country are coming here after their defeat in Swat. “There is a war, and this is a war for our survival.” ‘Attack on the state’At least one ISI agent, 12 police officers and one child were reported killed in the attack, at about 1030 local time (0530 GMT). Local officials have speculated that the military intelligence agency could have been the target.
The ISI’s offices were damaged by the bombing, and a police emergency-response building was flattened. The BBC’s Owen Bennett-Jones, in Lahore, says it is not clear which organisation the perpetrators were attacking – but it is clear that they were attacking the Pakistani state. A least two arrests were made, but police officials later told the BBC that those detained appear to have been innocent bystanders. Meanwhile, the military says it expects the main town in the Swat valley, Mingora, to be cleared of Taliban insurgents within two or three days. The military said two other areas away from Swat which have also seen heavy fighting – Mohmand and Sultanwas – were now safe enough for residents to return home. Sustained violenceLahore, in Punjab province near the Indian border, is known as Pakistan’s cultural capital and is far from the Swat valley.
But in March militants laid siege to a police compound in the city, killing eight people, and weeks earlier the Sri Lanka cricket team was attacked there. The BBC’s Shoaib Hasan, in Pakistan, says Lahore is facing a sustained campaign of violence unlike any it has seen before. He says security officials believe the city is under attack because it is seen as a stable home for Pakistan’s Punjab-dominated army. The army is claiming sweeping victories against Taliban insurgents in the Swat valley, near the Afghan border – saying more than 1,000 militants have been killed in the past month. Militants had threatened revenge attacks in Pakistan’s cities after the military stepped up its operations in the Swat valley. Global condemnationAfter the latest attack, television footage showed rescue workers sifting through the debris, pulling half-conscious police officers from the rubble. Bulldozers and other heavy lifting equipment have been brought in as many people are feared trapped under the debris. Officials told reporters a car pulled up near the police headquarters and a group of gunmen got out and opened fire. When police returned fire, the gunmen’s car exploded. BBC News website readers in the city described hearing a huge explosion. Zubair Bukhari, who was in his office about 500m away from the blast, said it rocked the entire building. “Glass windows shattered to pieces and the ceiling came down on the floor,” he said. Another reader, Matthias Gattermeier, said: “I ran out of the building and saw a surreal huge ring of white smoke rise into air.” Politicians from around the world have condemned the attack and offered condolences to Pakistan. US ambassador Anne Patterson said the attacks “show the lengths extremist elements are willing to go to as they attempt to force their agenda on to a people who only wish to go about their daily lives in peace”.

Source:BBC

NEW YORK – Now that Taylor Swift has entered the realm of superstardom, life is changing around her.
A trip to the mall is now defined by points and stares. She can’t go to a restaurant without gawking by fellow diners. And like other celebrities, she finds almost every move monitored by paparazzi.
But you won’t hear Swift complain. She considers the loss of any privacy a small price to pay for living her dream.
At 19, the country singer-songwriter is one of the biggest stars in music. Her sophomore album, “Fearless,” has sold more than 3 million copies; her self-titled debut went double-platinum; and she’s on a best-selling tour. This Sunday, “Dateline NBC” devotes a special to her, taking fans backstage to show Swift’s life behind the performances.
Swift talked about how her world is changing — but she’s remaining the same — in a recent interview.
AP: Has success been overwhelming?
Swift: Well, it’s really fun. I wanted this, since the time I was a little girl. I’ve always just wished that maybe someday people would care about the words that I wrote. I’m so lucky that my songs are basically my diary put to music. I’m so lucky that I get to write my own music and write my own stories, so every single time I look down in the audience and I see somebody singing the words back to me, it makes it all worth it.
AP: Your music is autobiographical. Does being under the microscope make you more gun-shy about revealing so much?
Swift: You know I don’t really rebel in a lot of areas in my life. … But the one place where I’m allowed to rebel, and the one place where I’m allowed to not worry about censoring myself is my music. I don’t need to edit names out of songs and I don’t need to edit details out of my songs because I’ve always been able to be honest with my music. That’s the one place where I’m never ever going to change how I do things.
AP: You’re touring with Kellie Pickler. What’s it like being on the road with one of your best friends?
Swift: We are just absolutely such close friends and almost like sisters at this point. She and I will like sit in the dressing room ’til 2 or 3 a.m. just talking and painting our nails. It’s so much fun to just have another person out on tour with you that you know you’re so close with and you’ve known you for a really long time, to the point where you really just feel like they’re family.
AP: You were recently on “CSI” and show a dramatic flair in your videos. Do you want to develop your acting?
Swift: My favorite thing in the world is telling stories, and most of what I do is telling stories through music. But when I get to tell a story through music videos or “CSI,” that’s fun for me, too … It’s all about finding the story that I want to tell, so I’m definitely open to acting roles, it just depends on the story.
AP: These days, are you less likely to date someone in the public eye? (Swift had a public romance and breakup with Joe Jonas.)
Swift: When I’m thinking about going on a date with some guy or considering liking him, it really doesn’t matter what they do or how that affects my career. … When you strategize a relationship too much, like, “We’re not gonna be public about it, and we’re gonna say this in interviews,” when you think it all out, I think that complicates the relationship and I think that’s unfair for the relationship. I don’t look for boyfriends, I don’t really scour the awards shows for who I’m going to date (laughs), but I think love happens when you’re not looking for it, and when it happens, I’m not going to be the one to overthink it.
AP: You’re friends with Miley Cyrus and Selena Gomez. What kind of camaraderie do you have with them?
Swift: I’ve always approached this from the place where I don’t compete with other girls. I don’t compete with other people in the industry, I compete with myself. If I looked at every other girl in the entertainment industry as competition, my life would be really lonely. I wouldn’t have some of the coolest friends that I’m so glad I’ve gotten to know over the last couple of years. … It’s really awesome to get to hang out with those girls and to call them friends.
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NBC is owned by General Electric Co.
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On the Net:

http://www.taylorswift.com

http://www.msnbc.msn.com/id/3032600/

NEW YORK – The future of Chrysler hangs in the balance as it heads to court Wednesday to ask a bankruptcy judge for permission to sell the bulk of its assets to a group headed by Italy’s Fiat in hopes of saving itself from liquidation.
Attorneys for Chrysler LLC maintain that the deal with Fiat Group SpA is the company’s only hope to avoid being sold off piece by piece, but the agreement remains controversial with more than 100 objections to the sale filed by the automaker’s dealers, bondholders, former employees and others.
However, if the deal doesn’t close by June 15, Fiat could back out.
Also Wednesday, fellow U.S.-based automaker General Motors Corp. is set to announce the results of a debt swap offer that could decide whether it can restructure out of court or will follow its Auburn Hills, Mich.-based rival into Chapter 11 bankruptcy protection.
Detroit-based GM gave the holders of some 27 billion of its bonds until midnight Tuesday to exchange their debt for a 10 percent stake in a new GM, and said it will announce the results Wednesday morning. If bondholders representing 90 percent of GM’s unsecured debt — about 24 billion — didn’t agree to the exchange, GM has said it will file for bankruptcy protection. Bondholders have balked at the proposal from the start, saying it gives them too small a stake for the amount they are owed.
Automakers worldwide are struggling as the global recession has reduced demand for new vehicles. But GM and Chrysler have been particularly hobbled by promises to cover the health and pension costs of tens of thousands of unionized retirees — along with recent record-high gasoline prices that reduced demand for their low-mileage trucks and SUVs.
On Tuesday, Chrysler avoided a possible roadblock to its sale when a U.S. district judge ruled that a legal review of its bankruptcy proceedings wasn’t needed before the sale hearing could take place.
Judge Thomas Griesa denied a withdrawal motion from attorneys representing a pair of Indiana state pension funds and a state construction fund. The funds had argued that a review was needed because of the unprecedented involvement of the Treasury Department in the case and its use of federal bailout funds for bankruptcy financing.
Chrysler released a statement late Tuesday saying that it was pleased with Griesa’s decision and looked forward to Wednesday’s hearing in bankruptcy court.
Last week, attorneys for the funds asked U.S. Judge Arthur Gonzalez, the bankruptcy judge overseeing Chrysler’s case, to postpone the sale hearing in order to give the district court time to rule, but that motion was denied.
Chrysler attorney Thomas Cullen said during Tuesday’s hearing that the agreement with Fiat represents the best deal Chrysler could get to save itself, noting that the company also looked to other automakers and its lenders for help but didn’t get any.
“The government was our bank of last resort,” Cullen said. “We desperately, desperately needed that financing or we would have needed to liquidate.”
The funds also have filed a motion objecting to the sale, saying it puts the interests of other parties ahead of those of the funds and other secured debt holders.
Glenn Kurtz, an attorney for the funds, accused the government of trying to unfairly speed Chrysler through the bankruptcy process, pushing aside the rights of bondholders.
“The rule of law should apply even if there are adverse social consequences,” Kurtz told the court.
When Chrysler filed for bankruptcy on April 30, the government estimated the company would exit bankruptcy in 30 to 60 days. The automaker is nearing the end of the process and is expected to emerge from court protection closer to the 30-day timetable, said a person familiar with the matter. The person was not authorized to speak publicly on the matter and spoke on condition of anonymity.
Griesa noted that the funds will have the right to appeal Gonzalez’s ruling on the sale motion if they don’t like it. Kurtz said after Tuesday’s hearing that he fully expects the sale motion to end up in district court.
The three funds, which include the Indiana State Teachers retirement Fund and Indiana State Police Pension Trust, along with the Indiana Major Moves Construction Fund, hold a combined 42.5 million of the total 6.9 billion in secured debt. They bought the bonds in July 2008 and paid 43 cents on the dollar, Kurtz told the court.
In the days leading up to its Chapter 11 filing, Chrysler reached an agreement with the majority of its bondholders in which they would receive a combined 2 billion in a deal worth 29 cents on the dollar. But some of the bondholders, including a group represented by Kurtz’s firm White & Case, refused to support it, saying that as secured lenders they deserved more.
On the day Chrysler filed for bankruptcy protection, President Barack Obama singled out the lenders group as a reason why Chrysler was forced to file for bankruptcy protection, saying that they were seeking an “unjustified taxpayer-funded bailout.”
The group later dissolved after its members decided that it had become too small to be effective.
It’s doubtful that GM will have any more luck in dealing with its bondholders.
A committee representing GM’s biggest bondholders — mostly big banks and other institutional investors — has opposed that automaker’s debt-for-equity swap from the start. Smaller, “retail” bondholders — individual investors like retirees and families — have also railed against the terms of the exchange.
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Associated Press Writer Ken Thomas in Washington contributed to this report.

DETROIT – General Motors Corp. says not enough of its bondholders agreed to swap their debt for company stock, meaning the troubled automaker is almost certainly headed for bankruptcy protection.
GM has until Monday to finish restructuring or file for Chapter 11. But the company said Wednesday that its offer to exchange 27 billion in unsecured debt for 10 percent of the company’s stock had failed.
GM has received 19.4 billion in federal loans. The Monday deadline was set by the goverment and includes debt reduction, labor cost cuts and plant closures.

HONG KONG – From one talent show contestant to another: well done.
Kelly Clarkson, the winner of the debut season of “American Idol” in 2002, says she’s a fan of surprise British singing star Susan Boyle, adding to a growing number of celebrity admirers that already include Oprah Winfrey and Demi Moore.
Boyle, the 47-year-old church volunteer with a powerful voice, overcame a dowdy image to become an Internet sensation after her performance on the talent show “Britain’s Got Talent” was posted on YouTube.
“I think it’s awesome. I’m bawling whenever I hear her sing,” Clarkson told The Associated Press in Hong Kong, saying Boyle’s rendition of “I Dreamed a Dream” from the musical “Les Miserables” sounded beautiful.
Clarkson was in Hong Kong promoting her new album, “All I Ever Wanted.”
The 27-year-old singer said she still tries to catch “American Idol” when she can and defended the show against criticism that it has welcomed candidates with previous record deals or experience in other talent contests. “Idol” rules only require that contestants not be under a record or management contract when they audition.
“I personally think if someone has been affiliated with the industry, who cares? That just means they’ve been working hard and trying to get in the door,” Clarkson said. “Regardless, you’re going to be an amateur talent. It’s not like you’ve had a huge record deal and toured the world. It’s not like they’re going to be some huge threat.”
But she said the show’ success has put more pressure on contestants.
During the taping of the first season, “No one knew what to expect. No one knew if it was going to be successful,” Clarkson said. “But now people know the stakes.”