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.

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This post has been revised to reflect the following correction:

Correction: January 19, 2013

An article on Friday about MSD Capital, an investment firm started by Michael S. Dell to manage his fortune, misstated, in some editions, the year its energy hedge fund raised $1 billion from outside investors. It was in 2011, not earlier this year. (Another of the firm's hedge funds, the MSD Torchlight Partners fund, raised $1 billion in 2012).

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.

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Syria Opposition Postpones Formation of Transitional Government

BEIRUT, Lebanon — Opponents of President Bashar al-Assad of Syria once again failed to form a transitional government in exile on Monday, deciding instead to postpone the step while new proposals are drawn up. The development at a conference in Istanbul was apparently a setback to the opposition’s plans to fill the power vacuum created by nearly two years of ever bloodier civil war.

The National Coalition of Syrian Revolutionary and Opposition Forces, the main exile opposition group, gathered in Istanbul on Saturday specifically to try to assemble a transitional government. The organization has won recognition by a number of foreign countries as the sole legitimate representative of the Syrian people, but it has not yet solidified support among rebels fighting on the ground, nor has it begun planning for a post-Assad future.

The Western and Arab nations that pressed Mr. Assad’s adversaries into a reorganization last year have been urging the coalition to select a prime minister, but no candidate has won a consensus.

A statement by the National Coalition on Monday said that it had formed a five-member committee to “lead consultations” with rebel commanders, foreign backers and others seeking Mr. Assad’s ouster, and to draw up proposals for a transitional government within 10 days. After the coalition tried and failed to form a government at a meeting in Cairo last month, it made a similar announcement about creating a committee to work on the idea.

The conflict continued to rage in Syria on Monday, where the government accused rebels of attacking an important power line, blacking out Damascus, the capital, as well as areas to the north and a swath of territory reaching south to the Jordanian border. Power failures have been frequent reminders of the conflict that has engulfed Syria, but the latest one appeared to be the first to affect the entire capital, where Mr. Assad’s forces are still largely in control. The Associated Press reported that power was restored in parts of Damascus on Monday.

The talks over a transitional government were bogged down by a heated debate over a provision in the coalition’s bylaws banning its members from assuming ministerial posts in any future interim government, in an effort to protect the coalition from accusations that its members are merely seeking personal power. Some opposition leaders want to scrap that provision, arguing that it will deny the interim government the benefit of including experienced and respected senior figures, but they met with strong resistance.

“The idea faced an immediate storm of objections and criticism,” said Samir Nachar, a member of the Syrian National Coalition. “We saw that during the meeting, and decided not to change anything.”

Mr. Nachar said the main reason the opposition has failed to shape a transitional government so far is that it is not sure such a government would receive the international recognition and support it would need to function.

“Falling into the trap of forming a paralyzed government will not just be useless, it will be a huge disappointment to Syrians,” he said. “The coalition was promised a lot when it was formed, and none of that materialized.”

Hania Mourtada reported from Beirut, Lebanon, and Alan Cowell from London. Hala Droubi contributed reporting from Dubai, United Arab Emirates.

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N.T.S.B. Rules Out a Cause for Battery Fire on 787 Dreamliner

Federal investigations said Sunday that they had ruled out excessive voltage as the cause of a battery fire on a Boeing 787 in Boston this month, widening the mystery into what led to the grounding of the world’s most technologically advanced jet after a second battery-related problem last week.

With investigators focused on the plane’s lithium-ion batteries, the National Transportation Safety Board said an examination of the data from the plane’s flight recorder indicated that the battery “did not exceed the designed voltage of 32 volts.” The fire aboard a Japan Airlines plane on Jan. 7 at Logan International Airport in Boston occurred after the passengers had gotten off.

Last week, a battery problem on another 787 forced an All Nippon Airways jetliner to make an emergency landing in Japan. That episode prompted aviation authorities around the world to ground the plane, also known as the Dreamliner. The Federal Aviation Administration said last week that it would not lift the ban until Boeing could show that the batteries were safe.

The safety board did not address the grounding issue or provide a timetable for its investigation, which industry experts said could take months.

But with investigators on a global quest to find out what went wrong, the safety board’s statement could mean that there might not be a rapid resumption of 787 flights. The 787 first entered service in November 2011 after more than three and a half years of production delays. Eight airlines currently own 50 787s, including United Airlines.

On Friday, Japanese safety officials, who are in charge of investigating the second battery problem, suggested that overcharging a battery might have caused it to overheat. Pilots decided to make an emergency landing 20 minutes after takeoff after receiving several alarms about the battery and smelled smoke in the cockpit.

That investigation is conducted by Japan’s transportation safety board. American investigators are helping with the inquiry.

Speaking after the American safety board’s statement on Sunday, a Japanese investigator said their inquiry was not as far along as the American one.

“The N.T.S.B.'s investigation started earlier,” the inspector, Hideyo Kosugi, told Reuters. “We still haven’t taken X-rays or CT-scans of the battery. In our case, both the battery and the surrounding systems are still stored,” at Tokyo’s Haneda Airport.

The GS Yuasa Corporation of Japan, one of the world’s leading lithium-ion battery manufacturers, makes the batteries for the 787, and Thales, of France, makes the control systems for the battery. The battery is part of a complex electrical system that powers the 787. Like many other components and structures, Boeing outsourced much of the manufacturing to partners around the world.

The safety board typically conducts investigations through a process of elimination, and rules out possible causes along the way.

It said that the lithium-ion battery that powered the auxiliary power unit, a small jet engine used on the ground, had been examined in the safety board’s Materials Laboratory in Washington.

The battery was first X-rayed and put through a CT scan. Investigators then disassembled it into its eight individual cells for detailed examination and documentation. Three of the cells were selected for more detailed radiographic examination.

Investigators have also examined several other components that they removed from the airplane, including wire bundles and battery management circuit boards as well as the battery management unit, the controller for the auxiliary power unit, the battery charger and the power start unit.

On Tuesday, investigators will convene in Arizona to test and examine the battery charger and download nonvolatile memory from the auxiliary power unit controller. Several other components have been sent for download or examination to Boeing’s facility in Seattle and to the manufacturer in Japan.

The plane’s charger and start power will be sent to Securaplane, a maker of aircraft avionics and electrical systems, which is based in Tucson, and where they will be tested. The controller for the auxiliary power unit will be test in Phoenix where its maker, Pratt & Whitney Power, is based.

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Well: Holly the Cat's Incredible Journey

Nobody knows how it happened: an indoor housecat who got lost on a family excursion managing, after two months and about 200 miles, to return to her hometown.

Even scientists are baffled by how Holly, a 4-year-old tortoiseshell who in early November became separated from Jacob and Bonnie Richter at an R.V. rally in Daytona Beach, Fla., appeared on New Year’s Eve — staggering, weak and emaciated — in a backyard about a mile from the Richters’ house in West Palm Beach.

“Are you sure it’s the same cat?” wondered John Bradshaw, director of the University of Bristol’s Anthrozoology Institute. In other cases, he has suspected, “the cats are just strays, and the people have got kind of a mental justification for expecting it to be the same cat.”

But Holly not only had distinctive black-and-brown harlequin patterns on her fur, but also an implanted microchip to identify her.

“I really believe these stories, but they’re just hard to explain,” said Marc Bekoff, a behavioral ecologist at the University of Colorado. “Maybe being street-smart, maybe reading animal cues, maybe being able to read cars, maybe being a good hunter. I have no data for this.”

There is, in fact, little scientific dogma on cat navigation. Migratory animals like birds, turtles and insects have been studied more closely, and use magnetic fields, olfactory cues, or orientation by the sun.

Scientists say it is more common, although still rare, to hear of dogs returning home, perhaps suggesting, Dr. Bradshaw said, that they have inherited wolves’ ability to navigate using magnetic clues. But it’s also possible that dogs get taken on more family trips, and that lost dogs are more easily noticed or helped by people along the way.

Cats navigate well around familiar landscapes, memorizing locations by sight and smell, and easily figuring out shortcuts, Dr. Bradshaw said.

Strange, faraway locations would seem problematic, although he and Patrick Bateson, a behavioral biologist at Cambridge University, say that cats can sense smells across long distances. “Let’s say they associate the smell of pine with wind coming from the north, so they move in a southerly direction,” Dr. Bateson said.

Peter Borchelt, a New York animal behaviorist, wondered if Holly followed the Florida coast by sight or sound, tracking Interstate 95 and deciding to “keep that to the right and keep the ocean to the left.”

But, he said, “nobody’s going to do an experiment and take a bunch of cats in different directions and see which ones get home.”

The closest, said Roger Tabor, a British cat biologist, may have been a 1954 study in Germany which cats placed in a covered circular maze with exits every 15 degrees most often exited in the direction of their homes, but more reliably if their homes were less than five kilometers away.

New research by the National Geographic and University of Georgia’s Kitty Cams Project, using video footage from 55 pet cats wearing video cameras on their collars, suggests cat behavior is exceedingly complex.

For example, the Kitty Cams study found that four of the cats were two-timing their owners, visiting other homes for food and affection. Not every cat, it seems, shares Holly’s loyalty.

KittyCams also showed most of the cats engaging in risky behavior, including crossing roads and “eating and drinking substances away from home,” risks Holly undoubtedly experienced and seems lucky to have survived.

But there have been other cats who made unexpected comebacks.

“It’s actually happened to me,” said Jackson Galaxy, a cat behaviorist who hosts “My Cat From Hell” on Animal Planet. While living in Boulder, Colo., he moved across town, whereupon his indoor cat, Rabbi, fled and appeared 10 days later at the previous house, “walking five miles through an area he had never been before,” Mr. Galaxy said.

Professor Tabor cited longer-distance reports he considered credible: Murka, a tortoiseshell in Russia, traveling about 325 miles home to Moscow from her owner’s mother’s house in Voronezh in 1989; Ninja, who returned to Farmington, Utah, in 1997, a year after her family moved from there to Mill Creek, Wash.; and Howie, an indoor Persian cat in Australia who in 1978 ran away from relatives his vacationing family left him with and eventually traveled 1,000 miles to his family’s home.

Professor Tabor also said a Siamese in the English village of Black Notley repeatedly hopped a train, disembarked at White Notley, and walked several miles back to Black Notley.

Still, explaining such journeys is not black and white.

In the Florida case, one glimpse through the factual fog comes on the little cat’s feet. While Dr. Bradshaw speculated Holly might have gotten a lift, perhaps sneaking under the hood of a truck heading down I-95, her paws suggest she was not driven all the way, nor did Holly go lightly.

“Her pads on her feet were bleeding,” Ms. Richter said. “Her claws are worn weird. The front ones are really sharp, the back ones worn down to nothing.”

Scientists say that is consistent with a long walk, since back feet provide propulsion, while front claws engage in activities like tearing. The Richters also said Holly had gone from 13.5 to 7 pounds.

Holly hardly seemed an adventurous wanderer, though her background might have given her a genetic advantage. Her mother was a feral cat roaming the Richters’ mobile home park, and Holly was born inside somebody’s air-conditioner, Ms. Richter said. When, at about six weeks old, Holly padded into their carport and jumped into the lap of Mr. Richter’s mother, there were “scars on her belly from when the air conditioner was turned on,” Ms. Richter said.

Scientists say that such early experience was too brief to explain how Holly might have been comfortable in the wild — after all, she spent most of her life as an indoor cat, except for occasionally running outside to chase lizards. But it might imply innate personality traits like nimbleness or toughness.

“You’ve got these real variations in temperament,” Dr. Bekoff said. “Fish can by shy or bold; there seem to be shy and bold spiders. This cat, it could be she has the personality of a survivor.”

He said being an indoor cat would not extinguish survivalist behaviors, like hunting mice or being aware of the sun’s orientation.

The Richters — Bonnie, 63, a retired nurse, and Jacob, 70, a retired airline mechanics’ supervisor and accomplished bowler — began traveling with Holly only last year, and she easily tolerated a hotel, a cabin or the R.V.

But during the Good Sam R.V. Rally in Daytona, when they were camping near the speedway with 3,000 other motor homes, Holly bolted when Ms. Richter’s mother opened the door one night. Fireworks the next day may have further spooked her, and, after searching for days, alerting animal agencies and posting fliers, the Richters returned home catless.

Two weeks later, an animal rescue worker called the Richters to say a cat resembling Holly had been spotted eating behind the Daytona franchise of Hooters, where employees put out food for feral cats.

Then, on New Year’s Eve, Barb Mazzola, a 52-year-old university executive assistant, noticed a cat “barely standing” in her backyard in West Palm Beach, struggling even to meow. Over six days, Ms. Mazzola and her children cared for the cat, putting out food, including special milk for cats, and eventually the cat came inside.

They named her Cosette after the orphan in Les Misérables, and took her to a veterinarian, Dr. Sara Beg at Paws2Help. Dr. Beg said the cat was underweight and dehydrated, had “back claws and nail beds worn down, probably from all that walking on pavement,” but was “bright and alert” and had no parasites, heartworm or viruses. “She was hesitant and scared around people she didn’t know, so I don’t think she went up to people and got a lift,” Dr. Beg said. “I think she made the journey on her own.”

At Paws2Help, Ms. Mazzola said, “I almost didn’t want to ask, because I wanted to keep her, but I said, ‘Just check and make sure she doesn’t have a microchip.’” When told the cat did, “I just cried.”

The Richters cried, too upon seeing Holly, who instantly relaxed when placed on Mr. Richter’s shoulder. Re-entry is proceeding well, but the mystery persists.

“We haven’t the slightest idea how they do this,” Mr. Galaxy said. “Anybody who says they do is lying, and, if you find it, please God, tell me what it is.”

Read More..

Well: Holly the Cat's Incredible Journey

Nobody knows how it happened: an indoor housecat who got lost on a family excursion managing, after two months and about 200 miles, to return to her hometown.

Even scientists are baffled by how Holly, a 4-year-old tortoiseshell who in early November became separated from Jacob and Bonnie Richter at an R.V. rally in Daytona Beach, Fla., appeared on New Year’s Eve — staggering, weak and emaciated — in a backyard about a mile from the Richters’ house in West Palm Beach.

“Are you sure it’s the same cat?” wondered John Bradshaw, director of the University of Bristol’s Anthrozoology Institute. In other cases, he has suspected, “the cats are just strays, and the people have got kind of a mental justification for expecting it to be the same cat.”

But Holly not only had distinctive black-and-brown harlequin patterns on her fur, but also an implanted microchip to identify her.

“I really believe these stories, but they’re just hard to explain,” said Marc Bekoff, a behavioral ecologist at the University of Colorado. “Maybe being street-smart, maybe reading animal cues, maybe being able to read cars, maybe being a good hunter. I have no data for this.”

There is, in fact, little scientific dogma on cat navigation. Migratory animals like birds, turtles and insects have been studied more closely, and use magnetic fields, olfactory cues, or orientation by the sun.

Scientists say it is more common, although still rare, to hear of dogs returning home, perhaps suggesting, Dr. Bradshaw said, that they have inherited wolves’ ability to navigate using magnetic clues. But it’s also possible that dogs get taken on more family trips, and that lost dogs are more easily noticed or helped by people along the way.

Cats navigate well around familiar landscapes, memorizing locations by sight and smell, and easily figuring out shortcuts, Dr. Bradshaw said.

Strange, faraway locations would seem problematic, although he and Patrick Bateson, a behavioral biologist at Cambridge University, say that cats can sense smells across long distances. “Let’s say they associate the smell of pine with wind coming from the north, so they move in a southerly direction,” Dr. Bateson said.

Peter Borchelt, a New York animal behaviorist, wondered if Holly followed the Florida coast by sight or sound, tracking Interstate 95 and deciding to “keep that to the right and keep the ocean to the left.”

But, he said, “nobody’s going to do an experiment and take a bunch of cats in different directions and see which ones get home.”

The closest, said Roger Tabor, a British cat biologist, may have been a 1954 study in Germany which cats placed in a covered circular maze with exits every 15 degrees most often exited in the direction of their homes, but more reliably if their homes were less than five kilometers away.

New research by the National Geographic and University of Georgia’s Kitty Cams Project, using video footage from 55 pet cats wearing video cameras on their collars, suggests cat behavior is exceedingly complex.

For example, the Kitty Cams study found that four of the cats were two-timing their owners, visiting other homes for food and affection. Not every cat, it seems, shares Holly’s loyalty.

KittyCams also showed most of the cats engaging in risky behavior, including crossing roads and “eating and drinking substances away from home,” risks Holly undoubtedly experienced and seems lucky to have survived.

But there have been other cats who made unexpected comebacks.

“It’s actually happened to me,” said Jackson Galaxy, a cat behaviorist who hosts “My Cat From Hell” on Animal Planet. While living in Boulder, Colo., he moved across town, whereupon his indoor cat, Rabbi, fled and appeared 10 days later at the previous house, “walking five miles through an area he had never been before,” Mr. Galaxy said.

Professor Tabor cited longer-distance reports he considered credible: Murka, a tortoiseshell in Russia, traveling about 325 miles home to Moscow from her owner’s mother’s house in Voronezh in 1989; Ninja, who returned to Farmington, Utah, in 1997, a year after her family moved from there to Mill Creek, Wash.; and Howie, an indoor Persian cat in Australia who in 1978 ran away from relatives his vacationing family left him with and eventually traveled 1,000 miles to his family’s home.

Professor Tabor also said a Siamese in the English village of Black Notley repeatedly hopped a train, disembarked at White Notley, and walked several miles back to Black Notley.

Still, explaining such journeys is not black and white.

In the Florida case, one glimpse through the factual fog comes on the little cat’s feet. While Dr. Bradshaw speculated Holly might have gotten a lift, perhaps sneaking under the hood of a truck heading down I-95, her paws suggest she was not driven all the way, nor did Holly go lightly.

“Her pads on her feet were bleeding,” Ms. Richter said. “Her claws are worn weird. The front ones are really sharp, the back ones worn down to nothing.”

Scientists say that is consistent with a long walk, since back feet provide propulsion, while front claws engage in activities like tearing. The Richters also said Holly had gone from 13.5 to 7 pounds.

Holly hardly seemed an adventurous wanderer, though her background might have given her a genetic advantage. Her mother was a feral cat roaming the Richters’ mobile home park, and Holly was born inside somebody’s air-conditioner, Ms. Richter said. When, at about six weeks old, Holly padded into their carport and jumped into the lap of Mr. Richter’s mother, there were “scars on her belly from when the air conditioner was turned on,” Ms. Richter said.

Scientists say that such early experience was too brief to explain how Holly might have been comfortable in the wild — after all, she spent most of her life as an indoor cat, except for occasionally running outside to chase lizards. But it might imply innate personality traits like nimbleness or toughness.

“You’ve got these real variations in temperament,” Dr. Bekoff said. “Fish can by shy or bold; there seem to be shy and bold spiders. This cat, it could be she has the personality of a survivor.”

He said being an indoor cat would not extinguish survivalist behaviors, like hunting mice or being aware of the sun’s orientation.

The Richters — Bonnie, 63, a retired nurse, and Jacob, 70, a retired airline mechanics’ supervisor and accomplished bowler — began traveling with Holly only last year, and she easily tolerated a hotel, a cabin or the R.V.

But during the Good Sam R.V. Rally in Daytona, when they were camping near the speedway with 3,000 other motor homes, Holly bolted when Ms. Richter’s mother opened the door one night. Fireworks the next day may have further spooked her, and, after searching for days, alerting animal agencies and posting fliers, the Richters returned home catless.

Two weeks later, an animal rescue worker called the Richters to say a cat resembling Holly had been spotted eating behind the Daytona franchise of Hooters, where employees put out food for feral cats.

Then, on New Year’s Eve, Barb Mazzola, a 52-year-old university executive assistant, noticed a cat “barely standing” in her backyard in West Palm Beach, struggling even to meow. Over six days, Ms. Mazzola and her children cared for the cat, putting out food, including special milk for cats, and eventually the cat came inside.

They named her Cosette after the orphan in Les Misérables, and took her to a veterinarian, Dr. Sara Beg at Paws2Help. Dr. Beg said the cat was underweight and dehydrated, had “back claws and nail beds worn down, probably from all that walking on pavement,” but was “bright and alert” and had no parasites, heartworm or viruses. “She was hesitant and scared around people she didn’t know, so I don’t think she went up to people and got a lift,” Dr. Beg said. “I think she made the journey on her own.”

At Paws2Help, Ms. Mazzola said, “I almost didn’t want to ask, because I wanted to keep her, but I said, ‘Just check and make sure she doesn’t have a microchip.’” When told the cat did, “I just cried.”

The Richters cried, too upon seeing Holly, who instantly relaxed when placed on Mr. Richter’s shoulder. Re-entry is proceeding well, but the mystery persists.

“We haven’t the slightest idea how they do this,” Mr. Galaxy said. “Anybody who says they do is lying, and, if you find it, please God, tell me what it is.”

Read More..

Digital Daredevil Behind Megaupload Has a New Venture

AUCKLAND — At 6:48 a.m. Sunday, the Internet tycoon Kim Dotcom opened his new file-storage Web site to the public — one year to the minute after the police raided the mansion he rents in New Zealand.

The raid was part of a coordinated operation with the F.B.I. that also shut down Megaupload, the file-sharing business he had founded.

Mr. Dotcom faces charges in the United States of pirating copyrighted material and money laundering and is awaiting an extradition hearing in New Zealand. But on Sunday, his focus was on the new site, which was already straining under heavy traffic within two hours of its introduction. In the first 14 hours of the site’s operation, more than half a million people registered to use it, Mr. Dotcom said.

“This should not be seen as the mocking of any government or Hollywood,” Mr. Dotcom, 39, said Sunday at a news conference at the Auckland mansion. “This is us being innovators and executing our right to run a business.”

The event marking the introduction of Mega, held at the same property that had been raided by the police, was designed to be a spectacle. As Mr. Dotcom addressed a large crowd of journalists and guests, actors dressed as armed police officers rappelled down the sloping roof of the main house and shouted that all those present would be detained. A helicopter emblazoned with “F.B.I.” hovered overhead.

Mr. Dotcom, a German citizen and permanent resident of New Zealand who was born Kim Schmitz, was arrested Jan. 20, 2012. During the raid on his home that day, the police seized vehicles worth about 6 million New Zealand dollars, or $5 million, and froze about 11 million dollars in bank accounts, according to a news release issued at the time.

Over the past year, Mr. Dotcom has become an ever-prominent figure in New Zealand as the legal and political saga surrounding his case has played out in the public sphere.

In June, a High Court judge ruled that the police had used the wrong type of search warrants to enter Mr. Dotcom’s property, meaning that the raid had been illegal. In September, Prime Minister John Key of New Zealand apologized to Mr. Dotcom after it was disclosed that the country’s intelligence agency had acted illegally by spying on him, even though he holds a permanent resident’s visa.

Mega, Mr. Dotcom’s new Web site, is a file-storage and sharing system that encrypts files on one’s computer before they are uploaded to the site’s servers. Files can then be downloaded and decrypted. This means that files on Mega’s servers cannot be read by anyone, including by the company itself, without the user’s decryption key.

The allegation that Mr. Dotcom’s previous venture, Megaupload, knew its users were illegally uploading copyrighted material — and indeed sought to encourage the practice — is a crucial part of the U.S. Department of Justice’s indictment against the site and those who operated it.

In contrast, the new site appears to distance Mega intentionally from any legal responsibility for the content on its servers, although the terms and conditions of the site do explicitly forbid uploading copyrighted material.

“What he’s trying to do is give himself a second-string argument,” Charles Alexander, a lawyer in Sydney who specializes in intellectual property law, told The Associated Press. “‘Even if I was wrong before, this one’s all right because how can I control something if I don’t know that it’s there?”’ he imagined the new company thinking. “I can understand the argument; whether it would be successful or not is another matter.”

U.S. prosecutors declined to comment on the new site, The A.P. reported, referring only to a court document that cites promises Mr. Dotcom made while seeking bail, including one that he would not start a Megaupload-style business until the criminal case was resolved.

“Legally it’s probably the most scrutinized Internet start-up in history,” Mr. Dotcom said. “Every pixel on the site has been checked for, you know, all kinds of illegal — potential legal challenges. We have a great team of very talented lawyers that are experts in intellectual property and Internet law, and they have worked together with us to create Mega.”

The Motion Picture Association of America, which has filed complaints about alleged copyright infringement by Megaupload, told The A.P. that it was skeptical that Mr. Dotcom’s new site was harmless. “We are still reviewing how this new project will operate, but we do know that Kim Dotcom has built his career and his fortune on stealing creative works,” it said in a news release.

The Mega site offers 50 gigabytes of storage free; additional storage and bandwidth can be purchased at three tiers of monthly fees.

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IHT Rendezvous: Can Armstrong Be Redeemed? How About Galliano?

LONDON — While Lance Armstrong was (not quite) baring his soul to Oprah Winfrey this week, a very different celebrity, the disgraced London fashion designer John Galliano, was taking a small step on the path to redemption.

Two years after he was ousted from Dior in the wake of his arrest for a drunken, anti-Semitic rant in a Paris bar, Mr. Galliano is to make a modest comeback at the New York design studio of Oscar de la Renta.

As Eric Wilson writes over at On the Runway, many had speculated that the man described as “the prince of romantic glamor” would never work in the fashion industry again after his downfall in 2011.

However, with the support of fashion luminaries like Anna Wintour and Grace Coddington of Vogue, he appears set for rehabilitation.

“As far as a comeback strategy, working for Mr. de la Renta in a casual capacity, practically an intern, is, in effect, a way of testing the waters,” Mr. Wilson writes.

The downfall of Mr. Galliano, born in Gibraltar and raised in London,  came after two patrons of a bar in the Marais district of Paris accused him of making an anti-Semitic slur.

An online video later surfaced that showed a previous incident in which a bleary Mr. Galliano told fellow customers in the same bar, “I love Hitler” and, “People like you would be dead.” “Your mothers, your forefathers” would all be “gassed,” he said.

All the more surprising, then, that among those who welcomed the 52-year-old designer’s return was Abraham H. Foxman, leader  of the Anti-Defamation League, the American anti-Semitism watchdog group.

Mr. Foxman said on Friday, “Mr. Galliano has worked arduously in changing his worldview and dedicated a significant amount of time to researching, reading and learning about the evils of anti-Semitism and bigotry.”

The Anti-Defamation League had met the designer on numerous occasions and said it hoped to work with him in the future as a spokesman against bigotry.

A Paris court fined Mr. Galliano €6,000, or $8,000, for racial insults after he offered his apologies, and last year President François Hollande of France stripped him of the Légion d’Honneur that he was awarded in 2009.

The designer’s behavior was widely blamed on drug and alcohol addiction, which he’s sought treatment for over the last two years.

“Under intense pressure to produce at least eight full collections a year, Galliano — like so many other artists — reached for sustenance and oblivion,” Suzy Menkes, the I.H.T.’s fashion editor, wrote in November.

Another celebrity who has admitted to turning to drugs, but for very different reasons, is Lance Armstrong, the disgraced American cycling superstar.

Summing up the response among cycling and anti-doping officials, my colleague Ian Austen wrote: “Many characterized Armstrong’s interview with Oprah Winfrey as being more self-serving than revelatory.”

Has Mr. Armstrong done enough to pave the way for an eventual comeback or were his television appearances indeed self-serving? And what about Mr. Galliano? Should his repentance for his unpardonable remarks lead to a second chance at success? Does either celebrity — or both — deserve redemption? Tell us what you think.

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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.

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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.”

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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.

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Jane Brody speaks about love and marriage.

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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.

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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.

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