Boeing Closer to Answer on 787s, but Not to Getting Them Back in Air

Issei Kato/Reuters

Safety inspectors looked over a 787 on Friday in Japan. The plane made an emergency landing after receiving a smoke alarm.

With 787 Dreamliners grounded around the world, Boeing is scrambling to devise a technical fix that would allow the planes to fly again soon, even as investigators in the United States and Japan are trying to figure out what caused the plane’s lithium-ion batteries to overheat.

Ray LaHood, the transportation secretary, made it clear on Friday that a rapid outcome was unlikely, saying that 787s would not be allowed to fly until the authorities were “1,000 percent sure” they were safe.

“Those planes aren’t flying now until we have a chance to examine the batteries,” Mr. LaHood told reporters. “That seems to be where the problem is.”

The Federal Aviation Administration on Wednesday took the rare step of grounding Boeing’s technologically advanced 787s after a plane in Japan made an emergency landing when one of its two lithium-ion batteries set off a smoke alarm in the cockpit. Last week at Boston’s Logan Airport, a battery ignited in a parked 787.

The last time the government grounded an entire fleet of airplanes was in 1979, after the crash of a McDonnell Douglas DC-10.

The grounding comes as the United States is going through a record stretch of safe commercial jet flying: It has been nearly four years since a fatal airline crash, with nearly three billion passengers flying in that period. The last airliner crash, near Buffalo, came after a quiet period of two and a half years, which suggests a declining crash rate.

Investigators in Japan said Friday that a possible explanation for the problems with the 787’s batteries was that they were overcharged — a hazard that has long been a concern for lithium-ion batteries. But how that could have happened to a plane that Boeing says has multiple systems to prevent such an event is still unclear.

Given the uncertainty, it will be hard for federal regulators to approve any corrective measures proposed by Boeing. To lift the grounding order, Boeing must demonstrate that any fix it puts in place would prevent similar episodes from happening.

The government’s approach, while prudent, worries industry officials who fear it does not provide a rapid exit for Boeing.

The F.A.A. typically sets a course of corrective action for airlines when it issues a safety directive. But in the case of the 787, the government’s order, called an emergency airworthiness directive, required that Boeing demonstrate that the batteries were safe but did not specify how.

While the government and the plane maker are cooperating, there are few precedents for the situation.

“Everyone wants the airplane back in the air quickly and safely,” said Mark V. Rosenker, a former chairman of the National Transportation Safety Board. “But I don’t believe there will be a corner cut to accomplish that. It will happen when all are confident they have a good solution that will contain a fire or a leak.”

Boeing engineers, Mr. Rosenker said, are working around the clock. “I bet they have cots and food for the engineers who are working on this,” he said. “They have produced a reliable and safe aircraft and as advanced as it is, they don’t want to put airplanes in the air with the problems we have seen.”

The government approved Boeing’s use of lithium-ion batteries to power some of the plane’s systems in 2007, but special conditions were imposed on the plane maker to ensure the batteries would not overheat or ignite. Government inspectors also approved Boeing’s testing plans for the batteries and were present when they were performed.

Even so, after the episode in Boston, the federal agency said it would review the 787’s design and manufacturing with a focus on the electrical systems and batteries. The agency also said it would review the certification process.

The 787 has more electrical systems than previous generations of airplanes. These systems operate hydraulic pumps, de-ice the wings, pressurize the cabin and handle other tasks. The plane also has electric brakes instead of hydraulic ones. To run these systems, the 787 has six generators with a capacity equivalent to the power needed by 400 homes.

Nicola Clark and Christopher Drew contributed reporting.

This article has been revised to reflect the following correction:

Correction: January 19, 2013

An earlier version of this article misstated the response of regulators after small cracks were found in the wings of the Airbus A380, and the year those cracks were found. Regulators required inspections, followed by fixes; they did not order the plane grounded. And the discovery was made in 2012, not two years ago.

Read More..

Business Briefing | Medicine: F.D.A. Clears Botox to Help Bladder Control

Botox, the wrinkle treatment made by Allergan, has been approved to treat adults with overactive bladders who cannot tolerate or were not helped by other drugs, the Food and Drug Administration said on Friday. Botox injected into the bladder muscle causes the bladder to relax, increasing its storage capacity. “Clinical studies have demonstrated Botox’s ability to significantly reduce the frequency of urinary incontinence,” Dr. Hylton V. Joffe, director of the F.D.A.’s reproductive and urologic products division, said in a statement. “Today’s approval provides an important additional treatment option for patients with overactive bladder, a condition that affects an estimated 33 million men and women in the United States.”

Read More..

Personal Health: That Loving Feeling Takes a Lot of Work

When people fall in love and decide to marry, the expectation is nearly always that love and marriage and the happiness they bring will last; as the vows say, till death do us part. Only the most cynical among us would think, walking down the aisle, that if things don’t work out, “We can always split.”

But the divorce rate in the United States is half the marriage rate, and that does not bode well for this cherished institution.

While some divorces are clearly justified by physical or emotional abuse, intolerable infidelity, addictive behavior or irreconcilable incompatibility, experts say many severed marriages seem to have just withered and died from a lack of effort to keep the embers of love alive.

---

Jane Brody speaks about love and marriage.

---

I say “embers” because the flame of love — the feelings that prompt people to forget all their troubles and fly down the street with wings on their feet — does not last very long, and cannot if lovers are ever to get anything done. The passion ignited by a new love inevitably cools and must mature into the caring, compassion and companionship that can sustain a long-lasting relationship.

Studies by Richard E. Lucas and colleagues at Michigan State University have shown that the happiness boost that occurs with marriage lasts only about two years, after which people revert to their former levels of happiness — or unhappiness.

Infatuation and passion have even shorter life spans, and must evolve into “companionate love, composed more of deep affection, connection and liking,” according to Sonja Lyubomirsky, a professor of psychology at the University of California, Riverside.

In her new book, “The Myths of Happiness,” Dr. Lyubomirsky describes a slew of research-tested actions and words that can do wonders to keep love alive.

She points out that the natural human tendency to become “habituated” to positive circumstances — to get so used to things that make us feel good that they no longer do — can be the death knell of marital happiness. Psychologists call it “hedonic adaptation”: things that thrill us tend to be short-lived.

So Dr. Lyubomirsky’s first suggestion is to adopt measures to avert, or at least slow down, the habituation that can lead to boredom and marital dissatisfaction. While her methods may seem obvious, many married couples forget to put them into practice.

Building Companionship

Steps to slow, prevent or counteract hedonic adaptation and rescue a so-so marriage should be taken long before the union is in trouble, Dr. Lyubomirsky urges. Her recommended strategies include making time to be together and talk, truly listening to each other, and expressing admiration and affection.

Dr. Lyubomirsky emphasizes “the importance of appreciation”: count your blessings and resist taking a spouse for granted. Routinely remind yourself and your partner of what you appreciate about the person and the marriage.

Also important is variety, which is innately stimulating and rewarding and “critical if we want to stave off adaptation,” the psychologist writes. Mix things up, be spontaneous, change how you do things with your partner to keep your relationship “fresh, meaningful and positive.”

Novelty is a powerful aphrodisiac that can also enhance the pleasures of marital sex. But Dr. Lyubomirsky admits that “science has uncovered precious little about how to sustain passionate love.” She likens its decline to growing up or growing old, “simply part of being human.”

Variety goes hand in hand with another tip: surprise. With time, partners tend to get to know each other all too well, and they can fall into routines that become stultifying. Shake it up. Try new activities, new places, new friends. Learn new skills together.

Although I’ve been a “water bug” my whole life, my husband could swim only as far as he could hold his breath. We were able to enjoy the water together when we both learned to kayak.

“A pat on the back, a squeeze of the hand, a hug, an arm around the shoulder — the science of touch suggests that it can save a so-so marriage,” Dr. Lyubomirsky writes. “Introducing more (nonsexual) touching and affection on a daily basis will go a long way in rekindling the warmth and tenderness.”

She suggests “increasing the amount of physical contact in your relationship by a set amount each week” within the comfort level of the spouses’ personalities, backgrounds and openness to nonsexual touch.

Positive Energy

A long-married friend recently told me that her husband said he missed being touched and hugged. And she wondered what the two of them would talk about when they became empty-nesters. Now is the time, dear friend, to work on a more mutually rewarding relationship if you want your marriage to last.

Support your partner’s values, goals and dreams, and greet his or her good news with interest and delight. My husband’s passion lay in writing for the musical theater. When his day job moved to a different city, I suggested that rather than looking for a new one, he pursue his dream. It never became monetarily rewarding, but his vocation fulfilled him and thrilled me. He left a legacy of marvelous lyrics for more than a dozen shows.

Even a marriage that has been marred by negative, angry or hurtful remarks can often be rescued by filling the home with words and actions that elicit positive emotions, psychology research has shown.

According to studies by Barbara L. Fredrickson, a social psychologist and professor at the University of North Carolina at Chapel Hill, a flourishing relationship needs three times as many positive emotions as negative ones. In her forthcoming book, “Love 2.0,” Dr. Fredrickson says that cultivating positive energy everyday “motivates us to reach out for a hug more often or share and inspiring or silly idea or image.”

Dr. Lyubomirsky reports that happily married couples average five positive verbal and emotional expressions toward one another for every negative expression, but “very unhappy couples display ratios of less than one to one.”

To help get your relationship on a happier track, the psychologist suggests keeping a diary of positive and negative events that occur between you and your partner, and striving to increase the ratio of positive to negative.

She suggests asking yourself each morning, “What can I do for five minutes today to make my partner’s life better?” The simplest acts, like sharing an amusing event, smiling, or being playful, can enhance marital happiness.

---

This post has been revised to reflect the following correction:

Correction: January 18, 2013

The Personal Health column on Tuesday, about making marriages last, misspelled the given name of a professor of psychology at the University of California, Riverside, who studies happiness. She is Sonja Lyubomirsky, not Sonya.

Read More..

With Graph Search, Facebook Bets on More Sharing

SAN FRANCISCO — Facebook’s greatest triumph has been to persuade a seventh of the world’s population to share their personal lives online.

Now the social network is taking on its archrival, Google, with a search tool to mine that personal information, just as people are growing more cautious about sharing on the Internet and even occasionally removing what they have already put up.

Whether Facebook’s more than one billion users will continue to divulge even more private details will determine whether so-called social search is the next step in how we navigate the online world. It will also determine whether Facebook has found a business model that will make it a lot of money.

“There’s a big potential upside for both Facebook and users, but getting people to change their behaviors in relation to what they share will not be easy,” said Andrew T. Stephen, who teaches marketing at the University of Pittsburgh and studies consumer behavior on online social networks.

This week, Facebook unveiled its search tool, which it calls graph search, a reference to the network of friends its users have created. The company’s algorithms will filter search results for each person, ranking the friends and brands that it thinks a user would trust the most. At first, it will mine users’ interests, photos, check-ins and “likes,” but later it will search through other information, including status updates.

“While the usefulness of graph search increases as people share more about their favorite restaurants, music and other interests, the product doesn’t hinge on this,” a Facebook spokesman, Jonathan Thaw, said.

Nevertheless, the company engineers who created the tool — former Google employees — say that the project will not reach its full potential if Facebook data is “sparse,” as they call it. But the company is confident people will share more data, be it the movies they watch, the dentists they trust or the meals that make their mouths water.

The things people declare on Facebook will be useful, when someone searches for those interests, Tom Stocky, one of the creators of Facebook search, said in an interview this week. Conversely, by liking more things, he said, people will become more useful in the eyes of their friends.

“You might be inclined to ‘like’ what you like so when your friends search, they’ll find it,” he said. “I probably would never have liked my dentist on Facebook before, but now I do because it’s a way of letting my friends know.”

Mr. Stocky offered these examples of how more information may be desirable: A single man may want to be discovered when a friend of a friend is searching for eligible bachelors in San Francisco or a restaurant that stays open late may want to be found by a night owl.

“People have shared all this great stuff on Facebook,” Mr. Stocky said. “It’s latent value. We wanted a way to unlock that.”

Independent studies suggest that Facebook users are becoming more careful about how much they reveal online, especially since educators and employers typically scour Facebook profiles.

A Northwestern University survey of 500 young adults in the summer of 2012 found that the majority avoided posting status updates because they were concerned about who would see them. The study also found that many had deleted or blocked contacts from seeing their profiles and nearly two-thirds had untagged themselves from a photo, post or check-in.

“These behavioral patterns seem to suggest that many young adults are less keen on sharing at least certain details about their lives rather than more,” said Eszter Hargittai, an associate professor of communication studies at Northwestern, who led the yet unpublished study among men and women aged 21 and 22.

Also last year, the Pew Internet Center found that social network users, including those on Facebook, were more aggressively pruning their profiles — untagging photos, removing friends and deleting comments.

Read More..

The Lede Blog: Bulgarian Politician Faces Off With Gunman During Televised Conference

A man climbed onstage and attempted to fire a gas pistol Saturday at the leader of the country’s ethnic Turkish political party while he was giving a speech at his party’s annual conference in Sofia, the capital of Bulgaria.

The gun misfired, according to a BBC report citing Bulgarian officials, and Ahmed Dogan, the leader of the Movement for Rights and Freedoms, was not harmed. Video of the incident shows Mr. Dogan pushing the gunman’s hand, then diving away as other people at the conference wrestle the man to the floor, then punch and kick him repeatedly. The gun, a small gas pistol, lies nearby at the feet of shocked onlookers.

“A gas pistol is a nonlethal weapon used for self-defense,” The Associated Press reported, “but experts say when fired from close range it can cause life-threatening injuries.”

The gunman was arrested, the news agency said, identifying him as “25-year-old Oktai Enimehmedov, a Bulgarian national and ethnic Turk, from the coastal city of Burgas.” The motive for the attack was not immediately clear. The report said the assailant was also carrying two knives.

Mr. Dogan’s party represents ethnic Turks and other Muslims, according to Reuters, who make up “12 percent of Bulgaria’s 7.3 million-strong population.”

Read More..

The Lede: Live Blog: Inside the Fed's 2007 Deliberations

On Friday the Federal Reserve released the transcripts of its discussions in 2007, the year the housing market, the financial markets, and the broader economy began to unravel. Reporters from The Times are sharing their findings on what the transcripts reveal in the blog entries and tweets below.

Read More..

Flu Season ‘Worse Than Average,’ Officials Say

This year’s flu season is shaping up to be “worse than average and particularly bad for the elderly,” Dr. Thomas R. Frieden, the nation’s top federal disease-control official, said Friday.

But the season appears to have peaked, added Dr. Frieden, the director of the Centers for Disease Control and Prevention, with new cases declining over most of the nation except for the far West.

Spot shortages of flu vaccine and flu-fighting medicine are occurring, but that reflects uneven distribution, not a supply crisis, federal officials said. They urged people seeking flu shots to consult flu.gov and doctors to check preventinfluenza.org for suppliers.

Vaccine-makers will ultimately be able to deliver 145 million doses, 10 million more than projected earlier, the officials said. The Food and Drug Administration has allowed the maker of Tamiflu to release 2 million doses it had in storage.

The older Tamiflu is perfectly good, said Dr. Margaret A. Hamburg, the commissioner of the F.D.A., who joined Dr. Frieden on a telephone news conference. “It’s not outdated, it just has older labeling,” she said. “Repackaging it would take weeks,” she added, so her agency told the company not to bother.

Weekly recorded deaths from flu and pneumonia are still rising, and are well above the “epidemic” curve for the first time. But how severe a season ultimately proves depends on how long high weekly death rates persists. Flu deaths often aren’t recorded until March or April, well after new infections taper off.

Dr. Frieden said the season appeared to resemble the “moderately severe” season of 2003-2004, which also had an early start and was dominated by an H3N2 strain. In such seasons, 90 percent of all deaths occur among those over 65. Flu hospitalization rates are “quite high” now, Dr. Frieden said, and most of those hospitalized are elderly.

Last year’s flu season was unusually mild. At the end of the season last year, 34 children had died.

So far this year, the C.D.C.'s count of pediatric flu deaths, which includes premature infants and teenagers up to age 17 — has risen to 29, although this is acknowledged to be an undercount as it is only of lab-confirmed influenza cases reported to the agency.

Henry L. Niman, a flu-watcher who follows state death registries and news reports, counts about 40 pediatric deaths so far and predicted that the total would ultimately be close to the 153 of the 2003-04 season, but much less than in the 2009-2010 “swine flu” pandemic, when 282 children died. That flu was a strain never seen before and many more children caught it. The elderly had surprising resistance to getting it, presumably because similar flus that circulated 40 or more years ago had given them some immunity. But among those elderly who did catch it, the death rates were high.

Dr. Frieden suggested that the elderly avoid contact with sick children. “Having a grandparent baby-sit a sick child may not be a good idea,” he said.

Read More..

Flu Season ‘Worse Than Average,’ Officials Say

This year’s flu season is shaping up to be “worse than average and particularly bad for the elderly,” Dr. Thomas R. Frieden, the nation’s top federal disease-control official, said Friday.

But the season appears to have peaked, added Dr. Frieden, the director of the Centers for Disease Control and Prevention, with new cases declining over most of the nation except for the far West.

Spot shortages of flu vaccine and flu-fighting medicine are occurring, but that reflects uneven distribution, not a supply crisis, federal officials said. They urged people seeking flu shots to consult flu.gov and doctors to check preventinfluenza.org for suppliers.

Vaccine-makers will ultimately be able to deliver 145 million doses, 10 million more than projected earlier, the officials said. The Food and Drug Administration has allowed the maker of Tamiflu to release 2 million doses it had in storage.

The older Tamiflu is perfectly good, said Dr. Margaret A. Hamburg, the commissioner of the F.D.A., who joined Dr. Frieden on a telephone news conference. “It’s not outdated, it just has older labeling,” she said. “Repackaging it would take weeks,” she added, so her agency told the company not to bother.

Weekly recorded deaths from flu and pneumonia are still rising, and are well above the “epidemic” curve for the first time. But how severe a season ultimately proves depends on how long high weekly death rates persists. Flu deaths often aren’t recorded until March or April, well after new infections taper off.

Dr. Frieden said the season appeared to resemble the “moderately severe” season of 2003-2004, which also had an early start and was dominated by an H3N2 strain. In such seasons, 90 percent of all deaths occur among those over 65. Flu hospitalization rates are “quite high” now, Dr. Frieden said, and most of those hospitalized are elderly.

Last year’s flu season was unusually mild. At the end of the season last year, 34 children had died.

So far this year, the C.D.C.'s count of pediatric flu deaths, which includes premature infants and teenagers up to age 17 — has risen to 29, although this is acknowledged to be an undercount as it is only of lab-confirmed influenza cases reported to the agency.

Henry L. Niman, a flu-watcher who follows state death registries and news reports, counts about 40 pediatric deaths so far and predicted that the total would ultimately be close to the 153 of the 2003-04 season, but much less than in the 2009-2010 “swine flu” pandemic, when 282 children died. That flu was a strain never seen before and many more children caught it. The elderly had surprising resistance to getting it, presumably because similar flus that circulated 40 or more years ago had given them some immunity. But among those elderly who did catch it, the death rates were high.

Dr. Frieden suggested that the elderly avoid contact with sick children. “Having a grandparent baby-sit a sick child may not be a good idea,” he said.

Read More..

DealBook: Michael Dell’s Empire in a Buyout Spotlight

The computer empire of Michael S. Dell spreads across a campus of low-slung buildings in Round Rock, Tex.

But his financial empire — estimated at $16 billion — occupies the 21st floor of a dark glass skyscraper on Fifth Avenue in Manhattan.

It is there that MSD Capital, started by Mr. Dell 15 years ago to manage his fortune, has quietly built a reputation as one of the smartest investors on Wall Street. By amassing a prodigious portfolio of stocks, companies, real estate and timberland, Mr. Dell has reduced his exposure to the volatile technology sector and branched out into businesses as diverse as dentistry and landscaping.

Now, Mr. Dell is on the verge of making one of the biggest investments of his life. The 47-year-old billionaire and his private equity backers are locked in talks to acquire Dell, the company he started with $1,000 as a teenager three decades ago, in a leveraged buyout worth more than $20 billion. MSD could play a role in the Dell takeover, according to people briefed on the deal.

The private equity firm Silver Lake has been in negotiations to join with Mr. Dell on a transaction, along with other potential partners like wealthy Asian investors or foreign funds. Mr. Dell would be expected to roll his nearly 16 percent ownership of the company into the buyout, a stake valued at about $3.5 billion. He could also contribute additional personal money as part of the buyout.

That money is managed by MSD, among the more prominent so-called family offices that are set up to handle the personal investments of the wealthy. Others with large family offices include Bill Gates, whose Microsoft wealth financed the firm Cascade Investment, and New York’s mayor, Michael R. Bloomberg, who set up his firm, Willett Advisors, in 2010 to manage his personal and philanthropic assets.

“Some of these family offices are among the world’s most sophisticated investors and have the capital and talent to compete with the largest private equity firms and hedge funds,” said John P. Rompon, managing partner of McNally Capital, which helps structure private equity deals for family offices.

A spokesman for MSD declined to comment for this article. The buyout talks could still fall apart.

In 1998, Mr. Dell, then just 33 years old — and his company’s stock worth three times what it is today — decided to diversify his wealth and set up MSD. He staked the firm with $400 million of his own money, effectively starting his own personal money-management business.

To head the operation, Mr. Dell hired Glenn R. Fuhrman, a managing director at Goldman Sachs, and John C. Phelan, a principal at ESL Investments, the hedge fund run by Edward S. Lampert. He knew both men from his previous dealings with Wall Street. Mr. Fuhrman led a group at Goldman that marketed specialized investments like private equity and real estate to wealthy families like the Dells. And Mr. Dell was an early investor in Mr. Lampert’s fund.

Mr. Fuhrman and Mr. Phelan still run MSD and preside over a staff of more than 100 overseeing Mr. Dell’s billions and the assets in his family foundation. MSD investments include a stock portfolio, with positions in the apparel company PVH, owner of the Calvin Klein and Tommy Hilfiger brands, and DineEquity, the parent of IHOP and Applebee’s.

Among its real estate holdings are the Four Seasons Resort Maui in Hawaii and a stake in the New York-based developer Related Companies.

MSD also has investments in several private businesses, including ValleyCrest, which bills itself as the country’s largest landscape design company, and DentalOne Partners, a collection of dental practices.

Perhaps MSD’s most prominent deal came in 2008, in the middle of the financial crisis, when it joined a consortium that acquired the assets of the collapsed mortgage lender IndyMac Bank from the federal government for about $13.9 billion and renamed it OneWest Bank.

The OneWest purchase has been wildly successful. Steven Mnuchin, a former Goldman executive who led the OneWest deal, has said that the bank is expected to consider an initial public offering this year. An I.P.O. would generate big profits for Mr. Dell and his co-investors, according to people briefed on the deal.

Another arm of MSD makes select investments in outside hedge funds. Mr. Dell invested in the first fund raised by Silver Lake, the technology-focused private equity firm that might now become his partner in taking Dell private.
MSD’s principals have already made tidy fortunes. In 2009, Mr. Fuhrman, 47, paid $26 million for the Park Avenue apartment of the former Lehman Brothers chief executive Richard S. Fuld. Mr. Phelan, 48, and his wife, Amy, a former Dallas Cowboys cheerleader, also live in a Park Avenue co-op and built a home in Aspen, Colo.

Both are influential players on the contemporary art scene, with ARTNews magazine last year naming each of them among the world’s top 200 collectors. MSD, too, has dabbled in the visual arts. In 2010, MSD bought an archive of vintage photos from Magnum, including portraits of Marilyn Monroe and Mahatma Gandhi, and has put the collection on display at the University of Texas, Mr. Dell’s alma mater.

Just as the investment firms Rockefeller & Company (the Rockefellers, diversifying their oil fortune) and Bessemer Trust (the Phippses, using the name of the steelmaking process that formed the basis of their wealth) started out as investment vehicles for a single family, MSD has recently shown signs of morphing into a traditional money management business with clients beside Mr. Dell.

Last year, for the fourth time, an MSD affiliate raised money from outside investors when it collected about $1 billion for a stock-focused hedge fund, MSD Torchlight Partners. A 2010 fund investing in distressed European assets also manages about $1 billion. The Dell family is the anchor investor in each of the funds, according to people briefed on the investments.

MSD has largely remained below the radar, though its name emerged a decade ago in the criminal trial of the technology banker Frank Quattrone on obstruction of justice charges. Prosecutors introduced an e-mail that Mr. Fuhrman sent to Mr. Quattrone during the peak of the dot-com boom in which he pleaded for a large allotment of a popular Internet initial public offering.

“We know this is a tough one, but we wanted to ask for a little help with our Corvis allocation,” Mr. Fuhrman wrote. “We are looking forward to making you our ‘go to’ banker.”

The e-mail, which was not illegal, was meant to show the quid pro quo deals that were believed to have been struck between Mr. Quattrone and corporate chieftains like Mr. Dell — the bankers would give executives hot I.P.O.’s and the executives, in exchange, would hold out the possibility of giving business to the bankers. (Mr. Quattrone’s conviction was reversed on appeal.)

The MSD team has also shown itself to be loyal to its patron in other ways.

On the MSD Web site, in the frequently asked questions section, the firm asks and answers queries like “how many employees do you have” and “what kind of investments do you make.”

In the last question on the list, MSD asks itself, “Do you use Dell computer equipment?” The answer: “Exclusively!”

Michael J. de la Merced contributed reporting.

---

This post has been revised to reflect the following correction:

Correction: January 18, 2013

An earlier version of this article misstated when an energy hedge fund raised money from outside investors. It was in 2011, not earlier this year.

A version of this article appeared in print on 01/18/2013, on page B1 of the NewYork edition with the headline: Michael Dell’s Empire In a Buyout Spotlight.

Read More..

As Rescue Operation Continues in Algeria, Fate of Hostages Remains Unclear

British Petroleum, via European Pressphoto Agency

The remote In Amenas natural gas field in Algeria, the site of a terrorist attack and the taking of hostages on Wednesday.

BAMAKO, Mali — Dozens of foreign hostages may still be held by Islamist extremists who have defied demands to surrender in a besieged Algerian gas-field complex, Algeria’s state-run news agency reported Friday, and the United States said for the first time that American citizens were among them.

Twelve Algerian and foreign workers have been killed since Algerian special forces began an assault against the kidnappers, the state news agency reported, citing an unnamed security official. It was the highest civilian death toll Algerian officials have provided in the aftermath of the assault, which freed captives and killed kidnappers but also left some hostages dead.

The Algerian news agency has said that the country’s special forces were still seeking to reach a “peaceful solution” with the remnants of a “terrorist group” that was still holding hostages in the refinery area of the gas field in remote eastern Algeria. It also gave a new sense of how many people may have been at the facility when the militants seized it on Wednesday, asserting that nearly 650 had managed to leave the site since then, including 573 Algerians and most of the 132 foreigners it said had been abducted.

But that still left many people unaccounted for, adding to the global concern about the fate of the hostages, who come from as many as 10 different nations. Previous estimates of the foreign casualties have ranged from 4 to 35.

In Washington, the State Department spokeswoman, Victoria Nuland, said that not all Americans had been freed and that Secretary of State Hillary Rodham Clinton had spoken for the third consecutive day by telephone with top Algerian leaders about American concerns for their safety.

“We have American hostages,” Ms. Nuland told reporters, offering the government’s first update on what is known about the Americans since officials confirmed on Thursday that seven or Americans had been inside the gas-field complex.

Ms. Nuland also rebuffed a reported offer made by the kidnappers to exchange two Americans for two prominent figures imprisoned in the United States — Omar Abdel Rahman, a sheik convicted of plotting to bomb New York landmarks, and Aafia Siddiqui, a Pakistani woman convicted of shooting two American soldiers in Afghanistan. It was impossible to confirm that offer, which was reported by the Washington-based SITE Intelligence Group, a service that tracks jihadist activity on the Internet.

Intensifying the uncertainties, a spokesman for the militants, who belong to a group called Al Mulathameen, said Friday that they planned further attacks in Algeria, according to a report by the Mauritanian news agency ANI, which maintains frequent contact with militant groups in the region. The spokesman called upon Algerians to “keep away from the installations of foreign companies, because we will suddenly attack where no one would expect it,” ANI reported.

A Pentagon official said an Air Force C-130 had left Algeria for an unidentified base in Europe, carrying a number of the rescued hostages but no Americans. The official said a second, larger evacuation plane, a C-17, was still on the ground in Algeria, and it was unclear how many rescued hostages would be boarded or when it would depart.

A separate hostage situation of sorts appeared to be evolving at a village in Mali, the neighboring country where a French military intervention to stop radical Islamists may have been the catalyst for the Algerian gas-field seizure by the Al Mulathameen group.

A senior French official in Paris said Malian Islamist fighters, threatened by French and Malian soldiers, had occupied the village, Diabaly, and were threatening to use residents as human shields if attacked.

“We do not want a blood bath,” the French official said, and the troop commanders had chosen not to engage so far in house-to-house fighting.

The Algerian military operation at the gas field began on Thursday without consultation with the foreign governments whose citizens worked at the gas field facility. It has been marked by a fog of conflicting reports, compounded by the remoteness of the facility, near a town called In Amenas hundreds of miles across the desert from the Algerian capital, Algiers, and close to the Libyan border.

Algeria’s state radio, citing an official source, reported on Friday that 18 militants had been killed, the first precise death count offered by state media. The state news agency also suggested that hundreds of civilians “had been freed,” though many of the employees inside the sprawling facility may have simply been on site at the time of the militant assault and were not necessarily being held by the kidnappers.

Adam Nossiter reported from Bamako and Alan Cowell and Scott Sayare from Paris. Reporting was contributed by Rick Gladstone from New York; Elisabeth Bumiller, Julia Werdigier and John F. Burns from London;Steven Erlanger from Paris, Eric Schmitt, Thom Shanker, David E. Sanger and Michael R. Gordon from Washington; Martin Fackler and Hiroko Tabuchi from Tokyo; and Mayy El Sheikh from Cairo.

Read More..