DealBook: Sprint Reaches Deal to Buy Out Clearwire

Sprint announced on Monday that it had reached an agreement to buy the nearly 50 percent stake in Clearwire that it does not already own for $2.97 a share — a bump up from the $2.90 a share that was offered on Thursday.

The improved $2.2 billion offer, Sprint said, represents a premium of 128 percent over Clearwire’s stock price in early October before speculation emerged — following SoftBank‘s investment in Sprint — that Sprint would seek to buy out the wireless network operator.

Sprint already owns 51.7 percent of Clearwire. Buying the rest would give it full control over spectrum that it could use to build out its network.

Sprint is able to do the deal thanks to cash from SoftBank of Japan, which agreed in October to a $20.1 billion transaction to gain majority control of the American telecommunications company, which lags far behind the market leaders, AT&T and Verizon Wireless.

The deal would allow Sprint to expand its Long-Term Evolution network, which is based upon the same data standard used by the newest generation of smartphones. Clearwire owns spectrum that is similar to what SoftBank uses in Japan, potentially giving the newly strengthened Sprint more clout in ordering the latest devices.

The chief executive of Sprint, Dan Hesse, said in a statement: “Today’s transaction marks yet another significant step in Sprint’s improved competitive position and ability to offer customers better products, more choices and better services. Sprint is uniquely positioned to maximize the value of Clearwire’s spectrum and efficiently deploy it to increase Sprint’s network capacity.”

Clearwire’s board approved the offer based on the recommendation of a special committee of directors not appointed by Sprint. Clearwire also has commitments from Comcast, Intel Corp and Bright House Networks, who collectively own 13 percent of the voting shares, to support the deal.

Some of Clearwire’s minority shareholders believed that the company should hold out for a higher price, with one analyst calling for at least $5 a share. One of these investors, Crest Financial, said that it would try to block Sprint’s deal with Softbank if the earlier offer of $2.90 a share went through.

And another, Mount Kellett, had argued that based on what AT&T paid for roughly similar spectrum, Sprint should be paying at least four times as much.

But Sprint argued privately that its previous bid valued the network operator’s spectrum at about the same level that Verizon paid for spectrum that it acquired from cable companies, according to a person briefed on the matter. And Clearwire’s spectrum, Sprint claimed, is less clean and therefore less valuable, meaning that the company was effectively paying more than Verizon did.

Clearwire has struggled to to join the ranks of the biggest American cellphone service providers, despite bringing on big-name investors. Some of its previous stakeholders, including Google and Time Warner Cable, chose to sell off their holdings for a fraction of their purchase prices.

Agreeing to the deal announced Monday will help shore up Clearwire’s finances, at a time when it projected having enough cash to last a year or so and still faces significant debt obligations. Sprint has pledged to provide up to $800 million in interim financing to the network operator.

Citigroup and the law firms of Skadden, Arps, Slate, Meagher & Flom and King & Spalding advised Sprint. The Raine Group acted as financial adviser to SoftBank and Morrison Foerster acted as counsel to SoftBank.

Evercore Partners and the law firm Kirkland & Ellisa advised Clearwire. Centerview Partners acted as financial adviser and Simpson Thacher & Bartlett and Richards, Layton & Finger acted as counsel to Clearwire’s special committee. Blackstone Advisory Partners advised Clearwire on restructuring matters. Credit Suisse acted as financial adviser and Gibson Dunn & Crutcher acted as counsel to Intel.

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Egypt Votes on Constitution; Muslim Brotherhood Expects Approval

Lynsey Addario for The New York Times

A polling site in Cairo on Saturday. Lines were long as a referendum on an Islamist-backed charter got off to an orderly start. More Photos »

CAIRO — Millions of Egyptians voted peacefully on Saturday in a referendum on an Islamist-backed draft constitution, hoping that the results would end three weeks of violence, division and distrust between the Islamists and their opponents over the ground rules of Egypt’s promised democracy.

The Muslim Brotherhood, the main Islamist group aligned with President Mohamed Morsi, predicted a big win for ratification. In the districts that voted Saturday, including the opposition strongholds of Cairo and Alexandria, about 57 percent approved the new constitution, according to preliminary tallies by state media early Sunday morning.

Half of the country will vote next Saturday, but in predominantly rural areas that are expected to heavily favor the charter. The emergence on Sunday of the relatively narrow margin of victory for the charter so far, combined with low turnout — 33 percent, according to the unofficial tallies, down from 41 percent in a referendum on a temporary constitution last year — seemed likely to embolden the non-Islamist opposition that has called for Mr. Morsi to scrap the charter and convene a new constitutional assembly.

A spokesman for the main coalition opposing the charter said that it had found widespread irregularities and that its leaders would speak later on Sunday. In Cairo, the biggest city, about 56 percent voted no, according to an unofficial tally by the Muslim Brotherhood.

Regardless of the results, the orderly balloting and long lines marked yet another turning point for Egypt’s nearly two-year-old revolution. After three weeks of violence and threats of a boycott, millions of voters appeared for the moment to pull back from the brink of civil discord and reaffirm their trust in the ballot box, spending hours in long lines to vote in the sixth national election since the ouster of Hosni Mubarak 22 months ago.

It remained to be seen if the losing side would accept the results, or how long the peace might last. Many who voted yes said they were doing so to end the chaos of the transition rather than to endorse the text of the charter. Despite opposition warnings of chaos, the streets of the capital were free of major protests for the first time in weeks.

And if the constitution is approved by the margins his supporters predict, the smooth vote could fortify Mr. Morsi’s power and legitimacy.

Military officers guarded polling places, and there were few reports of violence. Egyptian state media reported nine injuries in clashes around the Nile Delta town of Dakahleya, and that unknown assailants threw Molotov cocktails near the headquarters of a liberal party that had been part of the opposition under Mr. Mubarak.

As they waited in line to vote, neighbors continued to spar over the contentious process that produced the charter. Some said that it had been unfairly steamrolled by Egypt’s new Islamist leaders over the objections of other parties and the Coptic Christian Church, and that as a result the new charter failed to protect fundamental rights.

Others blamed the Islamists’ opponents for refusing to negotiate, in an effort to undermine democracy because they could not win at the ballot box. Many expressed discontent with political leaders on both sides.

“Neither group can accept its opposition,” said Ahmed Ibrahim, 40, a government clerk waiting to vote in a middle-class neighborhood in the Nasr City area of Cairo. Whatever the outcome, he said, “one group in their hearts will feel wronged, and the other group will gloat over their victory, and so the wounds will remain.”

The referendum once promised to be a day when Egyptians realized the visions of democracy, pluralism and national unity that defined the 18-day revolt against Mr. Mubarak. But then came nearly two years of chaotic political transition in which Islamists, liberals, leftists, the military and the courts all jockeyed for power over an ever-shifting timetable.

The document that Egyptians voted on was a rushed revision of the old Mubarak charter, pushed through an Islamist-dominated assembly in an all-night session, after Christian and secular representatives quit in protest. Many international experts faulted the charter as a missed opportunity, stuffed with broad statements about Egyptian identity but riddled with loopholes regarding the protection of rights.

Mayy El Sheikh and Mai Ayyad contributed reporting.

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Facebook unveils new privacy controls

SAN FRANCISCO (Reuters) – Facebook Inc began rolling out a variety of new privacy controls on Wednesday, the company’s latest effort to address user concerns about who can see their personal information on the world’s largest social network.

New tools introduced on Wednesday will make it easier for Facebook’s members to quickly determine who can view the photos, comments and other information about them that appears on different parts of the website, and to request that any objectionable photos they’re featured in be removed.

A new privacy “shortcut” in the top-right hand corner of the website provides quick access to key controls such as allowing users to manage who can contact them and to block specific people.

The new controls are the latest changes to Facebook’s privacy settings, which have been criticized in the past for being too confusing.

Facebook Director of Product Sam Lessin said the changes were designed to increase users’ comfort level on the social network, which has roughly one billion users.

“When users don’t understand the concepts and controls and hit surprises, they don’t build the confidence they need,” said Lessin.

Facebook, Google Inc and other online companies have faced increasing scrutiny and enforcement from privacy regulators as consumers entrust ever-increasing amounts of information about their personal lives to Web services.

In April, Facebook settled privacy charges with the U.S. Federal Trade Commission that it had deceived consumers and forced them to share more personal information than they intended. Under the settlement, Facebook is required to get user consent for certain changes to its privacy settings and is subject to 20 years of independent audits.

Facebook’s Lessin said some users don’t understand that the information they post on their Timeline profile page is not the only personal information about them that may be viewable by others. Improvements to Facebook’s so-called Activity Log will make it easier for users to see at a glance all the information that involves them across the social network.

Facebook also said it is changing the way that third-party apps, such as games and music players, get permission to access user data. An app must now provide separate requests to create a personalized service based on a user’s personal information and to post automated messages to the Facebook newsfeed on behalf of a user – previously users agreed to both conditions by approving a single request.

The revamped controls follow proposed changes that Facebook has made to its privacy policy and terms of service. The changes would allow Facebook to integrate user data with that of its recently acquired photo-sharing app Instagram, and would loosen restrictions on how members of the social network can contact other members using the Facebook email system.

Nearly 600,000 Facebook users voted to reject the proposed changes, but the votes fell far short of the roughly 300 million needed for the vote to be binding, under Facebook’s existing rules. The proposed changes also would eliminate any such future votes by Facebook users.

(Reporting By Alexei Oreskovic)

Internet News Headlines – Yahoo! News

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A children's choir opens 'SNL' with 'Silent Night'

NEW YORK (AP) — "Saturday Night Live" made a rare departure from its comedic opening to pay tribute to the children and adults killed at a Connecticut elementary school.

Not known for treating anything seriously or tenderly, the show made a fitting exception during the first moments of its show Saturday. Rather than the usual comedic sketch, a children's choir appeared on camera and angelically sang "Silent Night," with the touching refrain, "Sleep in heavenly peace."

Then the members of the New York City Children's Chorus shouted out the NBC show's time-honored introduction: "Live from New York, it's 'Saturday Night!'"

It was the night's sole reference to the tragedy and struck just the right tone.

Later, the chorus returned to join musical guest Paul McCartney in a rendition of his "Wonderful Christmas Time."

Appearing in a sketch in an unbilled cameo, actor Samuel L. Jackson made a distinctive contribution of his own.

Pretending to be miffed at getting interrupted as a guest on the mock talk show "What Up with That?" Jackson said what sounded very much like an F-bomb, followed by the term sometimes shortened to "B.S."

Playing the host of "What Up with That?" Kenan Thompson looked startled by Jackson's vulgarities but kept going.

"C'mon, Sam. That costs money!" he quipped, cracking up the studio audience.

Moments after the show ended, Jackson tried to explain in a Twitter posting.

"I only said FUH," he insisted, adding that Thompson was supposed to cut him off with his second eruption, but "blew it!!"

Jackson's tweet was accompanied by a photo of himself looking mortified.

Besides Jackson, some of the stars dropping by for this special Christmas "SNL" included Alec Baldwin, Tom Hanks, Kristen Wiig, Jimmy Fallon and Tina Fey. The guest host was Martin Short.

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Online: www.nbc.com

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Dr. William F. House, Inventor of Cochlear Implant, Dies

Dr. William F. House, a medical researcher who braved skepticism to invent the cochlear implant, an electronic device considered to be the first to restore a human sense, died on Dec. 7 at his home in Aurora, Ore. He was 89.

The cause was metastatic melanoma, his daughter, Karen House, said.

Dr. House pushed against conventional thinking throughout his career. Over the objections of some, he introduced the surgical microscope to ear surgery. Tackling a form of vertigo that doctors had believed was psychosomatic, he developed a surgical procedure that enabled the first American in space to travel to the moon. Peering at the bones of the inner ear, he found enrapturing beauty.

Even after his ear-implant device had largely been supplanted by more sophisticated, and more expensive, devices, Dr. House remained convinced of his own version’s utility and advocated that it be used to help the world’s poor.

Today, more than 200,000 people in the world have inner-ear implants, a third of them in the United States. A majority of young deaf children receive them, and most people with the implants learn to understand speech with no visual help.

Hearing aids amplify sound to help the hearing-impaired. But many deaf people cannot hear at all because sound cannot be transmitted to their brains, however much it is amplified. This is because the delicate hair cells that line the cochlea, the liquid-filled spiral cavity of the inner ear, are damaged. When healthy, these hairs — more than 15,000 altogether — translate mechanical vibrations produced by sound into electrical signals and deliver them to the auditory nerve.

Dr. House’s cochlear implant electronically translated sound into mechanical vibrations. His initial device, implanted in 1961, was eventually rejected by the body. But after refining its materials, he created a long-lasting version and implanted it in 1969.

More than a decade would pass before the Food and Drug Administration approved the cochlear implant, but when it did, in 1984, Mark Novitch, the agency’s deputy commissioner, said, “For the first time a device can, to a degree, replace an organ of the human senses.”

One of Dr. House’s early implant patients, from an experimental trial, wrote to him in 1981 saying, “I no longer live in a world of soundless movement and voiceless faces.”

But for 27 years, Dr. House had faced stern opposition while he was developing the device. Doctors and scientists said it would not work, or not work very well, calling it a cruel hoax on people desperate to hear. Some said he was motivated by the prospect of financial gain. Some criticized him for experimenting on human subjects. Some advocates for the deaf said the device deprived its users of the dignity of their deafness without fully integrating them into the hearing world.

Even when the American Academy of Ophthalmology and Otolaryngology endorsed implants in 1977, it specifically denounced Dr. House’s version. It recommended more complicated versions, which were then under development and later became the standard.

But his work is broadly viewed as having sped the development of implants and enlarged understanding of the inner ear. Jack Urban, an aerospace engineer, helped develop the surgical microscope as well as mechanical and electronic aspects of the House implant.

Karl White, founding director of the National Center for Hearing Assessment and Management, said in an interview that it would have taken a decade longer to invent the cochlear implant without Dr. House’s contributions. He called him “a giant in the field.”

After embracing the use of the microscope in ear surgery, Dr. House developed procedures — radical for their time — for removing tumors from the back portion of the brain without causing facial paralysis; they cut the death rate from the surgery to less than 1 percent from 40 percent.

He also developed the first surgical treatment for Meniere’s disease, which involves debilitating vertigo and had been viewed as a psychosomatic condition. His procedure cured the astronaut Alan B. Shepard Jr. of the disease, clearing him to command the Apollo 14 mission to the moon in 1971. In 1961, Shepard had become the first American launched into space.

In presenting Dr. House with an award in 1995, the American Academy of Otolaryngology-Head and Neck Surgery Foundation said, “He has developed more new concepts in otology than almost any other single person in history.”

William Fouts House was born in Kansas City, Mo., on Dec. 1, 1923. When he was 3 his family moved to Whittier, Calif., where he grew up on a ranch. He did pre-dental studies at Whittier College and the University of Southern California, and earned a doctorate in dentistry at the University of California, Berkeley. After serving his required two years in the Navy — and filling the requisite 300 cavities a month — he went back to U.S.C. to pursue an interest in oral surgery. He earned his medical degree in 1953. After a residency at Los Angeles County Hospital, he joined the Los Angeles Foundation of Otology, a nonprofit research institution founded by his brother, Howard. Today it is called the House Research Institute.

Many at the time thought ear surgery was a declining field because of the effectiveness of antibiotics in dealing with ear maladies. But Dr. House saw antibiotics as enabling more sophisticated surgery by diminishing the threat of infection.

When his brother returned from West Germany with a surgical microscope, Dr. House saw its potential and adopted it for ear surgery; he is credited with introducing the device to the field. But again there was resistance. As Dr. House wrote in his memoir, “The Struggles of a Medical Innovator: Cochlear Implants and Other Ear Surgeries” (2011), some eye doctors initially criticized his use of a microscope in surgery as reckless and unnecessary for a surgeon with good eyesight.

Dr. House also used the microscope as a research tool. One night a week he would take one to a morgue for use in dissecting ears to gain insights that might lead to new surgical procedures. His initial reaction, he said, was how beautiful the bones seemed; he compared the experience to one’s first view of the Grand Canyon. His wife, the former June Stendhal, a nurse, often helped.

She died in 2008 after 64 years of marriage. In addition to his daughter, Dr. House is survived by a son, David; three grandchildren; and two great-grandchildren.

The implant Dr. House invented used a single channel to deliver information to the hearing system, as opposed to the multiple channels of competing models. The 3M Company, the original licensee of the House implant, sold its rights to another company, the Cochlear Corporation, in 1989. Cochlear later abandoned his design in favor of the multichannel version.

But Dr. House continued to fight for his single-electrode approach, saying it was far cheaper, and offered voluminous material as evidence of its efficacy. He had hoped to resume production of it and make it available to the poor around the world.

Neither the institute nor Dr. House made any money on the implant. He never sought a patent on any of his inventions, he said, because he did not want to restrict other researchers. A nephew, Dr. John House, the current president of the House institute, said his uncle had made the deal to license it to the 3M Company not for profit but simply to get it built by a reputable manufacturer.

Reflecting on his business decisions in his memoir, Dr. House acknowledged, “I might be a little richer today.”

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As Gold Is Spirited Out of Afghanistan, Officials Wonder Why

Zalmai for The New York Times

A Kabul jewelry shop. Officials are concerned about gold being flown out of Afghanistan.

KABUL, Afghanistan — Packed into hand luggage and tucked into jacket pockets, roughly hewed bars of gold are being flown out of Kabul with increasing regularity, confounding Afghan and American officials who fear money launderers have found a new way to spirit funds from the country.

Most of the gold is being carried on commercial flights destined for Dubai, according to airport security reports and officials. The amounts carried by single couriers are often heavy enough that passengers flying from Kabul to the Persian Gulf emirate would be well advised to heed warnings about the danger of bags falling from overhead compartments. One courier, for instance, carried nearly 60 pounds of gold bars, each about the size of an iPhone, aboard an early morning flight in mid-October, according to an airport security report. The load was worth more than $1.5 million.

The gold is fully declared and legal to fly. Some, if not most, is legitimately being sent by gold dealers seeking to have old and damaged jewelry refashioned into new pieces by skilled craftsmen in the Persian Gulf, said Afghan officials and gold dealers.

But gold dealers in Kabul and current and former Kabul airport officials say there has been a surge in shipments since early summer. The talk of a growing exodus of gold from Afghanistan has been spreading among the business community here, and in recent weeks has caught the attention of Afghan and American officials. The officials are now puzzling over the origin of the gold — very little is mined in Afghanistan, although larger mines are planned — and why so much appears to be heading for Dubai.

“We are investigating it, and if we find this is a way of laundering money, we will intervene,” said Noorullah Delawari, the governor of Afghanistan’s central bank. Yet he acknowledged that there were more questions than answers at this point. “I don’t know where so much gold would come from, unless you can tell me something about it,” he said in an interview. Or, as a European official who tracks the Afghan economy put it, “new mysteries abound” as the war appears to be drawing to a close.

Figuring out what precisely is happening in the Afghan economy remains as confounding as ever. Nearly 90 percent of the financial activity takes place outside formal banks. Written contracts are the exception, receipts are rare and statistics are often unreliable. Money laundering is commonplace, say Western and Afghan officials.

As a result, with the gold, “right now you’re stuck in that situation we usually are: is there something bad going on here or is this just the Afghan way of commerce?” said a senior American official who tracks illicit financial networks.

There is reason to be suspicious: the gold shipments track with the far larger problem of cash smuggling. For years, flights have left Kabul almost every day carrying thick wads of bank notes — dollars, euros, Norwegian kroner, Saudi Arabian riyals and other currencies — stuffed into suitcases, packed into boxes and shrink-wrapped onto pallets. At one point, cash was even being hidden in food trays aboard now-defunct Pamir Airways flights to Dubai.

Last year alone, Afghanistan’s central bank says, roughly $4.5 billion in cash was spirited out through the airport. Efforts to stanch the flow have had limited impact, and concerns about money laundering persist, according to a report released last week by the United States Special Inspector General for Afghanistan Reconstruction.

The unimpeded “bulk cash flows raise the risk of money laundering and bulk cash smuggling — tools often used to finance terrorist, narcotics and other illicit operations,” the report said. The cash, and now the gold, is most often taken to Dubai, where officials are known for asking few questions. Many wealthy Afghans park their money and families in the emirate, and gold dealers say more middle-class Afghans are sending money and gold — seen as a safeguard against economic ruin — to Dubai as talk of a postwar economic collapse grows louder.

But given Dubai’s reputation as a haven for laundered money, an Afghan official said that the “obvious suspicion” is that at least some of the apparent growth in gold shipments to Dubai is tied to the myriad illicit activities — opium smuggling, corruption, Taliban taxation schemes — that have come to define Afghanistan’s economy.

There are also indications that Iran could be dipping into the Afghan gold trade. It is already buying up dollars and euros here to circumvent American and European sanctions, and it may be using gold for the same purpose.

Yahya, a dealer in Kabul, said other gold traders were helping Iran buy the precious metal here. Payment was being made in oil or with Iranian rials, which readily circulate in western Afghanistan. The Afghan dealers are then taking it to Dubai, where the gold is sold for dollars. The money is then moved to China, where it was used to buy needed goods or simply funneled back to Iran, said Yahya, who like many Afghans uses a single name.

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Gunman Kills 20 Schoolchildren in Connecticut

Andrew Sullivan for The New York Times

Naomi Collins of Waterbury, Conn., added a candle to the memorial outside St. Rose of Lima Church. More Photos »

A 20-year-old man wearing combat gear and armed with semiautomatic pistols and a semiautomatic rifle killed 26 people — 20 of them children — in an attack in an elementary school in central Connecticut on Friday. Witnesses and officials described a horrific scene as the gunman, with brutal efficiency, chose his victims in two classrooms while other students dove under desks and hid in closets.

Hundreds of terrified parents arrived as their sobbing children were led out of the Sandy Hook Elementary School in a wooded corner of Newtown, Conn. By then, all of the victims had been shot and most were dead, and the gunman, identified as Adam Lanza, had committed suicide. The children killed were said to be 5 to 10 years old.

A 28th person, found dead in a house in the town, was also believed to have been shot by Mr. Lanza. That victim, one law enforcement official said, was Mr. Lanza’s mother, Nancy Lanza, who worked at the school. She apparently owned the guns he used.

The principal had buzzed Mr. Lanza in because she recognized him as the son of a colleague. Moments later, she was shot dead when she went to investigate the sound of gunshots. The school psychologist was also among those who died.

The rampage, coming less than two weeks before Christmas, was the nation’s second-deadliest school shooting, exceeded only by the 2007 Virginia Tech massacre, in which a gunman killed 32 people and then himself.

Law enforcement officials said Mr. Lanza had grown up in Newtown, and he was remembered by high school classmates as smart, introverted and nervous. They said he had gone out of his way not to attract attention when he was younger.

The gunman was chillingly accurate. A spokesman for the State Police said he left only one wounded survivor at the school. All the others hit by the barrage of bullets from the guns Mr. Lanza carried — the rifle was similar to a weapon used widely by troops in Afghanistan and Iraq — died, suggesting that they were shot at point-blank range. One law enforcement official said the shootings occurred in two classrooms in a section of the single-story Sandy Hook Elementary School.

Some who were there said the shooting occurred during morning announcements, and the initial shots could be heard over the school’s public address system. The bodies of those killed were still in the school as of 10 p.m. Friday.

The New York City medical examiner’s office sent a “portable morgue” to Newtown to help with the aftermath of the shootings, a spokeswoman, Ellen Borakove, confirmed late Friday.

Law enforcement officials offered no hint of what had motivated Mr. Lanza. It was also unclear, one investigator said, why Mr. Lanza — after shooting his mother to death inside her home — drove her car to the school and slaughtered the children. “I don’t think anyone knows the answers to those questions at this point,” the official said. As for a possible motive, he added, “we don’t know much for sure.”

F.B.I. agents interviewed his brother, Ryan Lanza, in Hoboken, N.J. His father, Peter Lanza, who was divorced from Nancy Lanza, was also questioned, one official said.

Newtown, a postcard-perfect New England town where everyone seems to know everyone else and where there had lately been holiday tree lightings with apple cider and hot chocolate, was plunged into mourning. Stunned residents attended four memorial services in the town on Friday evening as detectives continued the search for clues, and an explanation.

Maureen Kerins, a hospital nurse who lives close to the school, learned of the shooting from television and hurried to the school to see if she could help.

“I stood outside waiting to go in, but a police officer came out and said they didn’t need any nurses,” she said, “so I knew it wasn’t good.”

In the cold light of Friday morning, faces told the story outside the stricken school. There were the frightened faces of children who were crying as they were led out in a line. There were the grim faces of women. There were the relieved-looking faces of a couple and their little girl.

Reporting on the Connecticut shootings was contributed by Al Baker, Charles V. Bagli, Susan Beachy, Jack Begg, David W. Chen, Alison Leigh Cowan, Robert Davey, Matt Flegenheimer, Joseph Goldstein, Emmarie Huetteman, Kristin Hussey, Thomas Kaplan,  Elizabeth Maker, Patrick McGeehan, Sheelagh McNeill, Michael Moss, Richard Pérez-Peña, Jennifer Preston, William K. Rashbaum, Motoko Rich, Ray Rivera, Liz Robbins, Emily S. Rueb, Eric Schmitt, Michael Schwirtz, Kirk Semple, Wendy Ruderman, Jonathan Weisman, Vivian Yee and Kate Zernike.

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School shooting postpones Cruise premiere in Pa.

NEW YORK (AP) — The U.S. premiere of the Tom Cruise action movie "Jack Reacher" is being postponed following the deadly Connecticut school shooting.

Paramount Pictures says "out of honor and respect for the families of the victims" the premiere won't take place Saturday in Pittsburgh, where "Jack Reacher" was filmed.

The premiere would've been Cruise's first U.S. media appearance since his split from Katie Holmes over the summer. It was to be more contained with select outlets covering and a location away from Hollywood or New York.

A proclamation ceremony for Cruise had been planned with Pennsylvania Gov. Tom Corbett and Pittsburgh Mayor Luke Ravenstahl.

No new date for the premiere has been set. The movie opens Dec. 21.

Friday's massacre at a Newtown, Conn., elementary school killed 20 children and several adults.

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Microsoft Battles Google by Hiring Political Brawler Mark Penn

SEATTLE — Mark Penn made a name for himself in Washington by bulldozing enemies of the Clintons. Now he spends his days trying to do the same to Google, on behalf of its archrival Microsoft.

Since Mr. Penn was put in charge of “strategic and special projects” at Microsoft in August, much of his job has involved efforts to trip up Google, which Microsoft has failed to dislodge from its perch atop the lucrative Internet search market.

Drawing on his background in polling, data crunching and campaigning, Mr. Penn created a holiday commercial that has been running during Monday Night Football and other shows, in which Microsoft criticizes Google for polluting the quality of its shopping search results with advertisements. “Don’t get scroogled,” it warns. His other projects include a blind taste test, Coke-versus-Pepsi style, of search results from Google and Microsoft’s Bing.

The campaigns by Mr. Penn, 58, a longtime political operative known for his brusque personality and scorched-earth tactics, are part of a broader effort at Microsoft to give its marketing the nimbleness of a political campaign, where a candidate can turn an opponent’s gaffe into a damaging commercial within hours. They are also a sign of the company’s mounting frustration with Google after losing billions of dollars a year on its search efforts, while losing ground to Google in the browser and smartphones markets and other areas.

Microsoft has long attacked Google from the shadows, whispering to regulators, journalists and anyone else who would listen that Google was a privacy-violating, anticompetitive bully. The fruits of its recent work in this area could come next week, when the Federal Trade Commission is expected to announce the results of its antitrust investigation of Google, a case that echoes Microsoft’s own antitrust suit in the 1990s. A similar investigation by the European Union is also wrapping up. A bad outcome for Google in either one would be a victory for Microsoft.

But Microsoft, based in Redmond, Wash., has realized that it cannot rely only on regulators to scrutinize Google — which is where Mr. Penn comes in. He is increasing the urgency of Microsoft’s efforts and focusing on their more public side.

In an interview, Mr. Penn said companies underestimated the importance of policy issues like privacy to consumers, as opposed to politicians and regulators. “It’s not about whether they can get them through Washington,” he said. “It’s whether they can get them through Main Street.”

Jill Hazelbaker, a Google spokeswoman, declined to comment on Microsoft’s actions specifically, but said that while Google also employed lobbyists and marketers, “our focus is on Google and the positive impact our industry has on society, not the competition.”

In Washington, Mr. Penn is a lightning rod. He developed a relationship with the Clintons as a pollster during President Bill Clinton’s 1996 re-election campaign, when he helped identify the value of “soccer moms” and other niche voter groups.

As chief strategist for Hillary Clinton’s unsuccessful 2008 campaign for president, he conceived the “3 a.m.” commercial that raised doubts about whether Barack Obama, then a senator, was ready for the Oval Office. Mr. Penn argued in an essay he wrote for Time magazine in May that “negative ads are, by and large, good for our democracy.”

But his approach has ended up souring many of his professional relationships. He left Mrs. Clinton’s campaign after an uproar about his consulting work for the government of Colombia, which was seeking the passage of a trade treaty with the United States that Mrs. Clinton, then a senator, opposed.

“Google should be prepared for everything but the kitchen sink thrown at them,” said a former colleague who worked closely with Mr. Penn in politics and spoke on condition of anonymity. “Actually, they should be prepared for the kitchen sink to be thrown at them, too.”

Hiring Mr. Penn demonstrates how seriously Microsoft is taking this fight, said Michael A. Cusumano, a business professor at M.I.T. who co-wrote a book about Microsoft’s browser war.

“They’re pulling out all the stops to do whatever they can to halt Google’s advance, just as their competition did to them,” Professor Cusumano said. “I suppose that if Microsoft can actually put a doubt in people’s mind that Google isn’t unbiased and has become some kind of evil empire, they might very well get results.”

Nick Wingfield reported from Seattle and Claire Cain Miller from San Francisco.

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Russia Steps Back From Envoy’s Comments on Syria

MOSCOW — The Russian Foreign Ministry distanced itself on Friday from comments by its Middle East envoy, who was widely quoted a day earlier as saying that rebels in Syria may defeat the forces of President Bashar al-Assad, and said Russia’s insistence on a political solution to the Syrian crisis will never change.

“We have never changed our position and will not change it,” said the Foreign Ministry spokesman, Aleksandr K. Lukashevich, at a briefing. He rejected a comment made by a State Department spokesman on Thursday that Moscow had “woken up” and changed its position as dynamics shifted on the battlefield, saying “we have never been asleep.”

Mr. Lukashevich said that Russia is not carrying out any discussions with the United States about Mr. Assad’s future, shooting down widespread speculation that Russia could help arrange the president’s safe passage out of Syria. He said he had restated Russia’s insistence on a negotiated solution “hundreds of times” in recent months.

“In the given situation, we are not talking about the fate of leaders, we are talking about the fate of people,” he said.

Mr. Lukashevich was seeking to calm speculation sparked on Thursday, when Deputy Foreign Minister Mikhail Bogdanov told the Public Chamber, a Kremlin advisory group, that it was “impossible to rule out a victory of the Syrian opposition,” in comments that were immediately made public by Russian wire services.

The statement appeared to signal a turn in the nearly two-year-old conflict and was seen in the West as evidence that the Syrian president, Bashar al-Assad, was losing politically as well as militarily

An earlier statement from the Foreign Ministry which was published on its Web site on Friday, said that Mr. Bogdanov “has not given any announcements or special interviews to journalists in recent days,” suggesting that his comments were given informally and not meant for publication.

It also framed his comments about rebel gains differently, saying he was simply repeating — and not confirming — the rebels’ claims about military advances.

“In this context, Mr. Bogdanov once more underlined the principled Russian position about the necessity of a political solution” to the crisis, the statement said. It did not deny that Mr. Bogdanov made the extensive comments, which were disseminated by Russian news agencies which were present at the hearing.

Fyodor Lukyanov, editor of Russia in Global Affairs, said that to the best of his knowledge, the comments represented an “expert assessment” of events on the ground in Syria, but weren’t intended for publication.

“The only conclusion we can make is that the Russian Foreign Ministry is very realistic about what is happening there,” he said. “There are no illusions about the trend. But we can understand the Russian position has not changed.”

In his briefing on Friday, Mr. Lukashevich also said Russia has been working with Ukraine to ensure the safety of Ankhar Kochneva, a Ukrainian journalist and translator who was captured two months ago by a Syrian militant group. Her captors have threatened to kill her unless they receive a ransom of $50 million, according to Ukrainian news sources.

In a video posted on the Internet last month, Ms. Kochneva was filmed saying she worked for Russian intelligence services, although it is not clear whether she spoke voluntarily.

Mr. Lukashevich noted that Ms. Kochneva’s captors had posted a video on YouTube on Thursday threatening to attack Russian and Ukrainian diplomatic missions and he said Russia will take all necessary measures to protect its diplomats. A spokesman at the Russian Embassy in Damascus told Interfax on Thursday that he saw no sharp deterioration in conditions and it is not yet necessary to evacuate personnel.

Ukraine has announced it is beefing up security at its facility in Damascus, and a Foreign Ministry spokesman this week called on the Syrian government to “take more active and effective measures to secure the release of the kidnapped Ukrainian woman.”

“We’re expecting concrete results,” said the spokesman, Oleksandr Dykusarov, according to the Interfax news service.

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