U.S. for-profit colleges spend big on marketing while slashing other costs

(Reuters) – Google‘s biggest advertiser is neither a bank nor a retailer.

It’s the for-profit University of Phoenix, which has recently been spending nearly $ 400,000 a day on ads, more than any financial firm or retailer, the traditional big spenders on online advertising, according to search analytics firm SpyFu.

That kind of spending may seem surprising coming from a college, but marketing has become vital for the university and its for-profit rivals as enrollments plummet and they fight back against a host of criticisms, including low job-placement rates.

Colleges such as University of Phoenix, the industry leader owned by Apollo Group Inc, will not only have to boost enrollments to reverse their fortunes, analysts say. They will also need to consider cutting tuition fees as well as continue to slash costs and take market share from rivals.

“I have witnessed several versions of this cycle but none as extreme as this,” said Trace Urdan, an analyst with Wells Fargo Securities, who has been covering the U.S. for-profit education industry for about 15 years.

“We are going to see more pointed efforts at marketing and more price competition in an effort to try to capture more market share both from each other as well as from traditional schools,” Urdan said.

Operators of other for-profit colleges, whose ranks include the Washington Post Co’s Kaplan business, DeVry Inc and ITT Educational Services Inc, are also boosting their spending on marketing and are among the 25 biggest advertisers on Google.

But no one is spending like the University of Phoenix, which doubled its spending on Google ads to about $ 380,000 per day on average between October 12 and November 12, compared with $ 170,000 a day in the previous month, according to SpyFu.

Increased marketing alone will not be enough to fatten fast-shrinking profit margins and increase enrollments, however. Lower tuition fees and increased specialization of the type of programs offered, along with further streamlining of operations, will also be necessary, analysts say.

Industry bellwether University of Phoenix, which offers courses at about 230 campuses as well as online, announced plans last month to shut about half its locations and cut 800 jobs in order to save about $ 300 million a year by 2014.

New enrollments in the Apollo system are down nearly 50 percent in the past two years. As of August 31, enrollment totaled about 328,000.

Career Education Corp, which owns American InterContinental University and the Le Cordon Bleu colleges, and Lincoln Educational Services Corp have also announced closures.

LOW-COST MODEL

The $ 25 billion industry, which typically serves adults looking for a career change or a program to enhance job skills, is reeling after government investigations revealed fraud related to financial aid, worryingly high student debt loads and low rates of graduation and job placement.

“Many for-profit colleges make decisions that prioritize their bottom line, even when those decisions limit their students’ opportunities for academic success,” a U.S. Senate report said earlier this year.

Tuition fees, and therefore profits, is one area under pressure as potential students need to be convinced to take out loans in an uncertain job market.

Apollo, whose stock has lost about 65 percent of its value this year, implemented a tuition freeze earlier this year and promised students it will not increase prices through the course of their programs.

Apollo is also looking at different cost models, with a view to serving segments of the population that it cannot serve with current University of Phoenix tuition prices.

“We have certainly seen a lot more competition at the lower end of the price scale, and that’s something we are focusing on,” Apollo spokesman Mark Brennar said, while declining to offer specifics.

Wells Fargo’s Urdan said it is likely that Apollo wants to compete in the low-cost end of the market by building a second brand, which it would likely do by acquiring another college rather than starting from scratch.

As colleges lower their revenue base by cutting tuition fees even as they spend more on marketing, lower margins could become the norm, analysts say. That has spooked investors already worried about sliding enrollments.

The S&P 1500 Education Services index has lost three-quarters of its value since April 2010, including a 50 percent decline in 2012.

Some for-profit colleges already differentiate themselves in the crowded higher-education market by offering programs in a particular field or by targeting students of a particular background, and that trend could accelerate.

American Public Education, for example, is known for enrolling those who work in the military and public services, while Universal Technical Institute offers programs related to the automotive industry.

For-profit colleges play up their links to employers to attract students who may otherwise opt for traditional or community colleges, said Rob Lytle, head of the education practice at advisory firm Parthenon Group.

“They are about getting people workforce employability skills, and I think they are going to be focusing tighter on that,” said Lytle.

(Reporting by A. Ananthalakshmi in Bangalore; Editing by Ted Kerr)

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Van Gogh, John Lennon letters coming to NY auction

NEW YORK (AP) — An upcoming auction of over 300 historical documents includes rare letters written by Vincent van Gogh, George Washington, John Lennon and other iconic figures.

The property of an anonymous American collector is being offered by Profiles in History in an online and phone auction on Dec. 18.

Among the highlights is a two-page letter from Washington to an Anglican clergyman.

Another top item is a signed van Gogh letter, written in 1890, to Joseph and Marie Ginoux, who were proprietors of the Cafe de la Gare in Arles, France, where the Dutch post-impressionist artist lived for a time.

Each of those letters is estimated to bring $ 200,000 to $ 300,000.

A handwritten letter from John Lennon to Eric Clapton has a pre-sale estimate of $ 20,000 to $ 30,000.

The collection will be exhibited Dec. 3-9 at Douglas Elliman’s Madison Avenue art gallery.

Washington‘s letter was written on Aug. 15, 1798, to the Rev. Jonathan Boucher, amid an undeclared naval war with France. Washington thanks Boucher for sending him his “View of the Causes and Consequences of the American Revolution,” a book of 13 discourses Boucher preached.

“Peace, with all the world is my sincere wish, I am sure it is our true policy — and am persuaded it is the ardent desire of the Government,” the former president and Founding Father wrote.

In a Jan. 20, 1890, four-page letter, handwritten in French to his friends Monsieur and Madame Ginoux, van Gogh wishes the ailing proprietress a speedy recovery.

“Illnesses are there to make us remember again that we are not made of wood,” the artist wrote. “That’s what seems the good side of all this to me. Then afterwards one goes back to one’s everyday work less fearful of the annoyances, with a new store of serenity.” Van Gogh died less than seven months later.

He suffered from acute anxiety and bouts of depression throughout his life. Madame Ginoux and the cafe were frequent subjects of his work.

The eight-page letter from Lennon is a draft he wrote to Clapton on Sept. 29, 1971, and signed “John and Yoko.” The whereabouts of the final version is unknown.

Lennon writes candidly about his admiration for the great British guitarist and suggests forming a “‘nucleus’ group (Plastic Ono Band) . — and of course had YOU!!! In mind as soon as we decided.” He writes that drummer Jim Kelnter, artist Klaus Voormann, pianist Nicky Hopkins and producer Phil Spector “all agreed so far” to join.

“Anyway, the point is, after missing the Bangla-Desh concert, we began to feel more and more like going on the road, but not the way I used with the Beatles — night after night of torture. We mean to enjoy ourselves, take it easy, and maybe even see some of the places we go to! We have many ‘revolutionary’ ideas for presenting shows that completely involve the audience .”

Other luminaries whose papers will be sold include Lou Gehrig, Louis Pasteur, Sigmund Freud, Charles Darwin, Marie Curie, Giuseppe Verdi, Peter Tchaikovsky, Cole Porter, King Henry II and Napoleon I.

The December auction is the first of several sales that will be held over two years. The entire collection contains 3,000 items.

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Online:

Information on how to bid is available on www.profilesinhistory.com.

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Flu Can Kill Quickly, Taking Lives of Healthy Children

In just eight months at his new school in Rifle, Colo., Austin Booth made a name for himself as a star athlete, honor student and a popular classmate with a promising future.

But within six days after he contracted the flu last January, Austin was dead. He was 17. His parents had never even considered giving a flu shot to their otherwise healthy teen.

“It was flu season and we knew other kids who were sick and we didn’t think that much about it,” said his mother, Regina Booth, 42. “He was a healthy teenager.”

“He was just one of those kids that excelled at everything,” she said. “And he was the type of kid who made friends instantly.”

“It was pretty tough — and it seems like just yesterday,” said Booth, who is 38 weeks pregnant and now annually immunizes her four other children, aged 3 to 16.

“Now that we are expecting a new baby, it protects us and the baby,” she said.

Debunking Four of the Most Common Flu Shot Myths

Between 3,000 and 49,000 Americans die of influenza each year, according to the Centers for Disease Control and Prevention.More than 200,000 are hospitalized annually with flu-related complications like pneumonia.

In the past four years, the CDC has changed its recommendations and now urges all Americans six months and older get a flu shot. Children under the age of 9, who are getting immunized for the first time, should get two doses, one month apart.

Booth said she still cannot believe how sudden her son’s death was. On Tuesday night, he had started and played a full basketball game. By Wednesday night, he was coughing up blood and was rushed to the hospital with pneumonia.

“They intubated him as he struggled to breathe,” said his mother. “It was the last time I talked to him.”

His father Carl, who worked on an oil rig and couldn’t be reached, was never able to see his son conscious again. Austin was airlifted to St. Mary’s Hospital in Grand Junction and at first, doctors thought he would survive.

But soon, his condition got worse — even on “every antibiotic in the world” — and Austin had to be taken off the ventilator and manually “bagged.” Tests showed the teen positive for the virulent infection MRSA.

“Doctor’s said it was a perfect storm of pneumonia and MRSA,” said Booth. “He fought Thursday until Monday, but it was more than his body could handle.”

Hundreds of Austin’s new friends showed up for his funeral. The basketball team retired his #2 jersey and Austin was recognized with a school bench and a memory stone.

“We had never gotten the flu shot — not any of us,” she said. “We thought, we don’t need it, we are healthy. If we get the shot it will make us sick.”

Dr. William Schaffner, professor and chairman of preventive medicine at Vanderbilt University in Nashville, said that people are fooled into thinking that influenza, a serious respiratory infection, is just like a cold.

“People use the word ‘flu‘ very casually to refer to a whole variety of winter illnesses, including a stuffy nose, and that tends to trivialize it,” said Schaffner. “It is a serious viral infection — it wreaks havoc on all the body’s systems.”

“Although it can be mild and often is, it is often very, very serious and can strike an otherwise normal child and put them in intensive care, usually within 48 hours.”

The most serious complications occur among older people, but each year children die of the disease — and “it’s potentially preventable,” according to Schaffner.

“While it is an imperfect vaccine, it is the best influenza vaccine at the present time,” he said. Though it does not always prevent infection, because viruses change each year, it can “turn a more serious flu into a milder one, so you won’t die.”

With 120 million doses given each year in the U.S. alone, it is a “wonderfully safe” vaccine, whose only side effects can be a sore arm or, rarely, a day of fever. It cannot give a person the flu. “That’s an urban myth,” said Schaffner.

The vaccine is covered by insurance carriers and only costs about $ 30 out of pocket. But only about half of all children are immunized.

Advocacy efforts by the nonprofit organization Families Fighting the Flu were part the gradual change of the CDC recommendation toward universal immunization.

About 100 American children die each year from the flu, according to its executive director, Laura Scott. “It’s devastating.”

“The more people who get vaccinated, the less disease there is that spreads,” said Scott. “You can build a cocoon around your family. Even if you don’t have the infant vaccinated, you still have to vaccinate everyone around that baby.”

Julie Moise of Kansas City, Mo., lost her 7-month-old son Ian to the flu in 2003. He got sick just 10 days after he had received his first of two flu shots. Her other children had full doses of the vaccine and never got sick.

Moise, a 41-year-old flight attendant, said she was initially “unconcerned” when Ian was diagnosed with the flu by his pediatrician. But by the end of the first day, he was “panting.” The doctor reassured her that was normal in a child with a fever.

“His panting turned into more of a sigh and I thought that was a good thing,” said Moise. “But later the doctor told me that happens when people’s organs are shutting down.”

Moise, too, was bedridden with the flu and called her husband to come home from work and help. She called the doctor’s office again.

“Glen walks in the door and the phone rings — it’s the nurse,” she said. “He told her, ‘I don’t like his coloring, let’s take him to the emergency room.’ Then Ian stopped breathing.”

Moise, who is trained in CPR, attempted to save Ian while they rushed to the ER. They stopped at a nearby fire station and rescue workers also tried unsuccessfully to revive the baby. He died that afternoon at the hospital.

“The message is: First of all, take the flu seriously,” she said. “We didn’t think healthy children die of the flu. It’s a preventable disease … And it doesn’t discriminate. It can hit anyone.”

After their son’s death, the Moises founded Ian’s Rainbow Flu Foundation to raise awareness.

Those who have survived influenza say its effects can be devastating.

Luke Duvall, now 20, came down with the flu in October 2009, and it took him a whole year to recover fully.

One-third of his Atkins, Ark., high school was hit hard with that strain of the flu.

Duvall was rushed to the hospital by ambulance. He nearly collapsed in the shower because he couldn’t breathe.

“My blood pressure was so low that they couldn’t draw blood and I almost crashed in the ambulance on the road,” he said. “They had to pull over and stabilize me.”

The next morning he was flown to Little Rock, where he stayed for 34 days, much of the time in a coma and on a respirator. “At one time, they had 20 IVs pumping all kinds of things into me,” he said.

Duvall spent 17 days in rehab because he had lost 36 of his 157 pounds. “I had to relearn how to walk and how to drink and eat,” he said. “I had to relearn daily functions like dressing myself.”

All this, according to Duvall, because one student who boarded a football bus for a game had the flu and infected the entire team.

“He was a star athlete,” he said. “If he had just had the vaccine, all of this would have stopped. It would have ended there. You don’t just get it for yourself, but for those around you. It’s a cycle that keeps going.”

ABC News information specialist Nicholas Tucker contributed to this report.

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One in 10 workers underemployed

28 November 2012 Last updated at 08:21 ET

Penny Cook has asked her part-time employer for more hours but has been refused

One in 10 of all workers in the UK is now officially underemployed, according to a study from the Office For National Statistics (ONS).

It says 3.05 million workers want to work more hours each week, out of a total workforce of 29.41 million.

The number of workers in this position has shot up by 980,000 in the four years since the start of the economic recession in 2008.

Most of the underemployment is concentrated among part-time workers.

Continue reading the main story

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This problem of underemployment seems to particularly affect the poorer parts of society”

End Quote

The main reason for the growth of underemployment has been the economic downturn of the past few years.

“During this period many workers moved from full-time to part-time roles and many of those returning to work after a period of unemployment could only find part-time jobs,” the statistical office said.

“Of the extra one million underemployed workers in 2012 compared with 2008, three-quarters were in part-time posts.”

The ONS said 1.9 million of the underemployed were in part-time jobs and this meant, in turn, that 24% of all part-timers wanted more work.

By contrast, only 5.5% of full-time staff said they wanted to work more hours.

Each quarter, as part of its Labour Force Survey (LFS), the ONS asks respondents a series of questions about their willingness and ability to work more hours.

Someone is counted as underemployed if they are working fewer hours than they would like.

Continue reading the main story

The growth of underemployment has gone alongside a big fall in the real value of earnings, the ONS said, which have been outstripped by inflation in recent years.

Jane Tomlinson, a part-time worker from Oxford, told the BBC what it had been like to be underemployed for the past year.

“I work only 15 hours a week paid work for a charity as communications manager,” she said.

“I don’t actually want a full-time job, but I need more than 15 hours a week, so I pick up a bit of copywriting work here and there as I can find it.

“But month to month it’s really tough as I make only just enough to pay the bills. Thank goodness my husband has a job,” she added.

‘Half-time salaries’

Caroline Parre, an academic from Birmingham, said for the past three years the recession had prevented her hours being extended.

Continue reading the main story

“Start Quote

With part-timers we can contract and expand our workforce relative to increases and decreases in orders received,”

End Quote Colin Johnson An employer from Lincoln

“Recruited to set up a research centre, the expectation had always been the part-time job would convert into full-time employment. The recession has changed that hope,” she said.

“There is danger in the situation: to enable the success of the venture I have, voluntarily, worked full-time hours on a part-time salary, in the hope and belief that efforts would be rewarded.

“Efforts, of course, are not rewarded, and employers find themselves in the happy position of paying full time workers half-time salaries,” she pointed out.

But a spokeswoman for the Department for Work and Pensions (DWP) said the figures showed that three quarters of all part-time staff appeared to be content.

“Part-time working suits millions of people and gives others the skills and experience to find a different job or take advantage of longer hours when they are available,” she said.

“For many people it is an important step to full-time work and coming off benefits.”

This was backed up by Colin Johnson, who runs a mail order company in Lincoln and who told the BBC his staff were happy to work part-time.

“All of my employees are technically part-time. Some are working mums who work around schooling,” he said.

“With part-timers we can contract and expand our workforce relative to increases and decreases in orders received, and we can dovetail staff to deal with peaks on the phone.

“Prior to this way of working we would have out-sourced, so these are new jobs,” he added.

Self-employed

The ONS explained that most of the rise in underemployment took place between 2008 and 2009, when the recession first gripped the UK economy.

ONS statistician Jamie Jenkins: “Underemployment has gone up by one million people since the economic crisis”

Since then it has still been rising, though more slowly then before.

According to the ONS analysis, the problem is worst among the lowest paid, young workers and those in low-skilled jobs, such as labourers, cleaners and catering staff.

The shortage of work has also led to a big rise in the level of underemployment reported by the self-employed.

They are now even more likely to report being underemployed than those who work for others.

However the precise reasons for individuals being underemployed can vary.

The ONS said these reasons could include:

• employers only being able to offer a few hours of work each week


• workers, such as bar staff, being in jobs where they are only required for a few hours a day


• personal circumstances changing so that someone now wants to work more hours then before


• people settling for a part-time job as second-best when they would much rather have a full-time one

Labour market economist John Philpott said: “Approaching one in five economically active people are struggling in today’s ‘no or not enough work’ economy.

“Add in the effect of falling real take-home pay for the vast majority of people in work and it becomes clear how much distress is being suffered.”

The TUC’s general secretary, Brendan Barber, said: “Being underemployed carries a huge pay penalty that puts a real strain on people’s finances.

“Long periods of underemployment can cause longer term career damage, which is particularly worrying for the one in five young people currently trapped in it.”

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US rabbi says jailed American in good health

HAVANA (AP) — A prominent New York rabbi and physician visited an American subcontractor serving a long jail term in Cuba and said the man is in good health, despite his family’s concerns about a growth on his right shoulder.

Rabbi Elie Abadie, who is also a gastroenterologist, told The Associated Press in an exclusive interview following Tuesday’s 2 1/2-hour visit at a military hospital in Havana that he personally examined Alan Gross and received a lengthy briefing from a team of Cuban physicians who have attended him.

He said the 1 1/2-inch growth on Gross’s shoulder appeared to be a non-cancerous hematoma that should clear up by itself.

“Alan Gross does not have any cancerous growth at this time, at least based on the studies I was shown and based on the examination, and I think he understands that also,” Abadie said.

Abadie said the hematoma, basically internal bleeding linked to the rupture of muscle fiber, was likely caused by exercise Gross does in jail. He said the growth ought to eventually disappear on its own.

Gross’s plight has put already chilly relations between Cuba and the United States in a deep freeze. The Maryland native was arrested in December 2009 while on a USAID-funded democracy building program and later sentenced to 15 years in jail for crimes against the state.

He claims he was only trying to help the island’s small Jewish community gain Internet access.

Gross’s health has been an ongoing issue during his incarceration. The 63-year-old, who was obese when arrested, has lost more than 100 pounds while in jail.

Abadie, a rabbi at New York’s Edmund J. Safra Synagogue, said Gross’s weight is appropriate for a man his age and height.

Photos that Abadie and a colleague provided to AP of Tuesday’s meeting with Gross showed him looking thin, but generally appearing to be in good spirits.

In one photo, Gross holds up a handwritten note that says “Hi Mom.”

“He definitely feels strong. He is in good spirits. He feels fit, to quote him, physically. But of course, like any other person who is incarcerated or in prison, he wants to be free. He wants to be able to go back home,” Abadie said.

Gross’s family has repeatedly appealed for his release on humanitarian grounds, noting his health problems and the fact that his adult daughter and elderly mother have both been battling cancer.

Jared Genser, counsel to Alan Gross, said late Tuesday that Rabbi Abadie is not Gross’s physician and he would like an oncologist of his choosing to evaluate him.

“While we are grateful Rabbi Abadie was able to see Alan, we have asked an oncologist to review the test results to determine if they are sufficient to rule out cancer. More importantly, if Alan is so healthy, we cannot understand why the Cuban government has repeatedly denied him an independent medical examination by a doctor of his choosing as is required by international law,” said Genser.

Gross and his wife recently filed a $ 60 million lawsuit against his former Maryland employer and the U.S. government, saying they didn’t adequately train him or disclose risks he was undertaking by doing development work on the Communist-run island.

They filed another lawsuit against an insurance company they say has reneged on commitments to pay compensation in case of his wrongful detention.

Separately, a lawyer for Gross has written the United Nations’ anti-torture expert, saying Cuban officials’ treatment of his client “will surely amount to torture” if he continues to be denied medical care.

Rumors have been swirling in U.S. media that Cuba might soon release Gross as a gesture of good will or in the hopes of winning concessions from the administration of President Barack Obama, but Abadie said that those reports appeared to be false.

“As far as I know there is no truth to it,” he said.

Abadie said he met with senior Cuban officials who expressed their desire to resolve the case “as quickly as possible,” but would not say specifically who he spoke with or what they offered.

“They claim that they are more than willing to sit at the table,” he said.

Cuban officials have strongly implied they hope to trade Gross for five Cuban agents sentenced to long jail terms in the United States, one of whom is already free on bail.

Abadie said Gross made clear that he does not want his case linked to that of the agents, known in Cuba as “The Five Heroes,” because he does not believe he is guilty of espionage.

But Abadie said Gross is hoping for a “constructive and productive” dialogue between U.S. and Cuban officials to resolve his case.

___

Follow Paul Haven on Twitter: http://www.twitter.com/paulhaven.

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Card firms’ block on WikiLeaks did not break rules: EU

BRUSSELS (Reuters) – A block on processing donations for WikiLeaks by Visa Europe and other credit card companies is unlikely to have violated EU anti-trust rules, the European Commission said on Tuesday.

DataCell, a company that collected donations for WikiLeaks, complained to the Commission about Visa Europe, MasterCard Europe and American Express Co after they stopped processing donations for WikiLeaks in December 2010. Their decisions followed criticism by the United States of WikiLeaks’ release of thousands of sensitive U.S. diplomatic cables.

“On the basis of the information available, the Commission considers that the complaint does not merit further investigation because it is unlikely that any infringement of EU competition rules could be established,” said a spokesman for the Commission, the EU executive.

He added, however, that the Commission would look at new information from DataCell before taking a final decision.

WikiLeaks founder Julian Assange has been staying in Ecuador’s embassy in central London since June to avoid extradition to Sweden to face rape and sexual assault allegations.

Assange said there were no lawful grounds for the card companies’ actions, which he said had cost Wikileaks 95 percent of its revenue and threatened his organization’s existence.

(Reporting by Foo Yun Chee and Adrian Croft; Editing by Louise Heavens)

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New Zealand becomes Middle Earth as Hobbit mania takes hold

WELLINGTON (Reuters) – New Zealand‘s capital city was rushing to complete its transformation into a haven for hairy feet and pointed ears on Tuesday as stars jetted in for the long-awaited world premiere of the first movie of the Hobbit trilogy.

Wellington, where director Peter Jackson and much of the post production is based, has renamed itself “the Middle of Middle Earth“, as fans held costume parties and city workers prepared to lay 500 m (550 yards) of red carpet.

A specially Hobbit-decorated Air New Zealand jet brought in cast, crew and studio officials for the premiere.

Jackson, a one-time printer at a local newspaper and a hometown hero, said he was still editing the final version of the “Hobbit, an Unexpected Journey” ahead of Wednesday’s premiere screening.

The Hobbit movies are based on J.R.R. Tolkien’s book and tell the story that leads up to his epic fantasy “The Lord of the Rings“, which Jackson made into three Oscar-winning films about 10 years ago.

It is set 60 years before “The Lord of The Rings” and was originally planned as only two movies before it was decided that there was enough material to justify a third.

New Zealand fans were getting ready to claim the best spots to see the film’s stars, including British actor Martin Freeman, who plays the Hobbit Bilbo Baggins, Hugo Weaving, Cate Blanchett, and Elijah Wood.

“It’s been a 10-year wait for these movies, New Zealand is Tolkien’s spiritual home, so there’s no way we’re going to miss out,” said office worker Alan Craig, a self-confessed Lord of the Rings “nut”.

The production has been at the centre of several controversies, including a dispute with unions in 2010 over labor contracts that resulted in the government stepping in to change employment laws, and giving Warner Brothers increased incentives to keep the production in New Zealand.

“The Hobbit did come very close to not being filmed here,” Jackson told Radio New Zealand.

He said Warners had sent scouts to Britain to look at possible locations and also matched parts of the script to shots of the Scottish Highlands and English forests.

“That was to convince us we could easily go over there and shoot the film … and I would have had to gone over there to do it but I was desperately fighting to have it stay here,” Jackson said.

Last week, an animal rights group said more than 20 animals, including horses, pigs and chickens, had been killed during the making of the film. Jackson has said some animals used in the film died on the farm where they were being housed, but that none had been hurt during filming.

The films are also notable for being the first filmed at 48 frames per second (fps), compared with the 24 fps that has been the industry standard since the 1920s.

The second film “The Hobbit: The Desolation of Smaug” will be released in December next year, with the third “The Hobbit: There and Back Again” due in mid-July 2014.

(Editing by Paul Tait)

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Married Cancer Researchers Both Get Breast Cancer

Fighting cancer is never easy. But as Dr. Oliver Bogler undergoes his second month of chemotherapy for breast cancer, he says he is grateful that his wife can relate. Five years ago, she was also going through her second month of chemotherapy, also for breast cancer.

Oliver and his wife Irene are both cancer researchers at MD Anderson Cancer Center at the University of Texas. They met 20 years ago while doing cancer research at the Ludwig Institute for Cancer Research in San Diego. The two connected over their passion for research.

Irene, now 52, was the first in their family to face cancer. It was 2007, she was 46, and they had two children under the age of seven at the time.

“I think you feel numb, a little bit shocked, but within a few days I was in at Anderson having tests and making determinations on treatments,” says Irene. She went through chemotherapy, a mastectomy and radiation, in that order. During that time, Irene says she remembers Oliver giving her unconditional support.

“Oliver was great,” says Irene, “he obviously didn’t understand the personal experience but he understood the process.”

The two have also drawn from their extensive background in cancer research: They know what to expect when facing cancer head-on.

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“Even though you’re a laboratory researcher, you do over time, meet cancer patients,” says Irene, “so you are sort of immersed in that.” Never before, however, have the two researchers met a couple who have developed the same kind of breast cancer at the same age.

Oliver, 46 years old, is now undergoing chemotherapy and is looking ahead to his own radical mastectomy in March.

“First of all, we don’t have a history of cancer” in the family, says Oliver’s brother Daniel. “Second of all,” he says, “breast cancer is an extremely unusual thing for a man.”

Breast cancer is very rare in men. “Of all the cases of breast cancer, 99 percent are women and one percent are men,” according to Oliver’s doctor and men’s breast cancer specialist at the MD Anderson Cancer Center, Dr. Sharon Giordano. The Boglers are the first couple Giordano has ever seen who have both had breast cancer — and she has seen over 100 male breast cancer patients.

“These two people who do nothing but work against cancer all their lives — what have they done to deserve this? Why does lightning have to strike twice on their little family?” asks Daniel. He does, however, say, “If it has to happen to anyone, he’s someone who’s intimately familiar with cancer and he’s at the best place to get the best care.”

“I am probably not going to die of this in the next five or 10 years,” says Oliver, “I have to tell you, it would have been better to go to the doctor sooner but I couldn’t imagine this happening twice in our family. Having a wife who had [breast cancer], I thought it would be weird saying I had it too.”

Giordano says a lot of the time men have a delayed diagnosis because they don’t think they could be at risk for breast cancer. “Men on average have an advanced disease because you have to have a lump to identify it. They don’t examine their nipples and think breast cancer.”

Members of Oliver’s family say they wondered if the cancer research could have been a reason Irene and Oliver both had the same cancer.

“It’s not Irene’s genes or Oliver’s genes, so you do wonder why,” says Daniel. “We asked Oliver about that when he was diagnosed; we thought maybe while feeding his cells and growing his cultures.”

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ConAgra to buy Ralcorp for $5 billion

(Reuters) – Long-time suitor ConAgra Foods Inc finally sealed a deal to buy Ralcorp Holdings Inc for $ 5 billion to become the biggest private label food company in North America.

Ralcorp shareholders will receive $ 90 per share in cash, representing a premium of 28.2 percent to the stock’s Monday close, ConAgra said.

Ralcorp shares were trading at $ 88.50 before the bell. They closed at $ 70.23 on the New York Stock Exchange on Monday.

The deal is valued at $ 6.8 billion including debt, ConAgra said in a statement on Tuesday.

Ralcorp last year rejected several ConAgra offers, including a $ 94 per share bid that valued the company at $ 5.2 billion, and chose instead to spin off its Post cereal business.

With Tuesday’s deal, the combined market value of Ralcorp and Post Holdings Inc is about $ 6.12 billion.

Activist investor Corvex Management, Ralcorp’s largest shareholder, in August demanded that the food manufacturer either sell itself, buy another company or change its strategy after a series of earnings disappointments.

ConAgra said the deal, which was approved by the boards of both companies, will add to earnings in the first year.

ConAgra’s shares closed at $ 28.29 on the New York Stock Exchange on Monday.

(Reporting by Siddharth Cavale in Bangalore; Editing by Sriraj Kalluvila)

(This story was refiled to correct the month to August from October in the seventh paragraph)

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Mexican beauty queen killed in shootout

CULIACAN, Mexico (AP) — A 20-year-old state beauty queen died in a gun battle between soldiers and the alleged gang of drug traffickers she was traveling with in a scene befitting the hit movie “Miss Bala,” or “Miss Bullet,” about Mexico’s not uncommon ties between narcos and beautiful pageant contestants.

The body of Maria Susana Flores Gamez was found Saturday lying near an assault rifle on a rural road in a mountainous area of the drug-plagued state of Sinaloa, the chief state prosecutor said Monday. It was unclear if she had used the weapon.

“She was with the gang of criminals, but we cannot say whether she participated in the shootout,” state prosecutor Marco Antonio Higuera said. “That’s what we’re going to have to investigate.”

The slender, 5-foot-7-inch brunette was voted the 2012 Woman of Sinaloa in a beauty pageant in February. In June, the model competed with other seven contestants for the more prestigious state beauty contest, Our Beauty Sinaloa, but didn’t win. The Our Beauty state winners compete for the Miss Mexico title, whose holder represents the country in the international Miss Universe.

Higuera said Flores Gamez was traveling in one of the vehicles that engaged soldiers in an hours-long chase and running gun battle on Saturday near her native city of Guamuchil in the state of Sinaloa, home to Mexico’s most powerful drug cartel. Higuera said two other members of the drug gang were killed and four were detained.

The shootout began when the gunmen opened fire on a Mexican army patrol. Soldiers gave chase and cornered the gang at a safe house in the town of Mocorito. The other men escaped, and the gunbattle continued along a nearby roadway, where the gang’s vehicles were eventually stopped. Six vehicles, drugs and weapons were seized following the confrontation.

It was at least the third instance in which a beauty queen or pageant contestants have been linked to Mexico’s violent drug gangs, a theme so common it was the subject of a critically acclaimed 2011 movie.

In “Miss Bala,” Mexico’s official submission to the Best Foreign Language Film category of this year’s Academy Awards, a young woman competing for Miss Baja California becomes an unwilling participant in a drug-running ring, finally getting arrested for deeds she was forced into performing.

In real life, former Miss Sinaloa Laura Zuniga was stripped of her 2008 crown in the Hispanoamerican Queen pageant after she was detained on suspicion of drug and weapons violations. She was later released without charges.

Zuniga was detained in western Mexico in late 2010 along with seven men, some of them suspected drug traffickers. Authorities found a large stash of weapons, ammunition and $ 53,300 with them inside a vehicle.

In 2011, a Colombian former model and pageant contestant was detained along with Jose Jorge Balderas, an accused drug trafficker and suspect in the 2010 bar shooting of Salvador Cabanas, a former star for Paraguay‘s national football team and Mexico’s Club America. She was also later released.

Higuera said Flores Gamez’s body has been turned over to relatives for burial.

“This is a sad situation,” Higuera told a local radio station. She had been enrolled in media courses at a local university, and had been modeling and in pageants since at least 2009.

Javier Valdez, the author of a 2009 book about narco ties to beauty pageants entitled “Miss Narco,” said “this is a recurrent story.”

“There is a relationship, sometimes pleasant and sometimes tragic, between organized crime and the beauty queens, the pageants, the beauty industry itself,” Valdez said.

“It is a question of privilege, power, money, but also a question of need,” said Valdez. “For a lot of these young women, it is easy to get involved with organized crime, in a country that doesn’t offer many opportunities for young people.”

Sometimes drug traffickers seek out beauty queens, but sometimes the models themselves look for narco boyfriends, Valdez said.

“I once wrote about a girl I knew of who was desperate to get a narco boyfriend,” he said. “She practically took out a classified ad saying ‘Looking for a Narco’.”

The stories seldom end well. In the best of cases, a beautiful woman with a tear-stained face is marched before the press in handcuffs. In the worst of cases, they simply disappear.

“They are disposable objects, the lowest link in the chain of criminal organizations, the young men recruited as gunmen and the pretty young women who are tossed away in two or three years, or are turned into police or killed,” Valdez said.

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Associated Press Writer E. Eduardo Castillo contributed to this report

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