Category: News

Former Democratic Party head Howard Dean joined former Bush adviser Karl Rove for a debate on health care reform in Pennsylvania Tuesday night while other Senators are offering their take on the public option’s role in a health care overhaul.

The Associated Press reports that Dean and Rove sometimes yelled at one another in the hour-plus-long debate in State College, Pennsylvania. “Rove lambasted Democratic proposals as being modeled on broken government programs like Medicare, weighed down by staggering costs. Dean implored that it was imperative that all Americans have the option to obtain affordable health care.” The men were paid $50,000 for their appearance, The AP reports (Armas, 10/27).

Democratic Sen. Blanche Lincoln, of Arkansas, said Tuesday that she can’t support a public option, The Associated Press/ABC News reports. “She didn’t specifically say she’d vote against Reid’s proposal, but she said she’d prefer a program that would include insurance offered by a nonprofit group instead of the government” (DeMillo, 10/27).

Lincoln spoke with the Arkansas Farm Bureau Tuesday, the Arkansas News Bureau reports. “‘In terms of states being able to opt out, I think in my visits with our state officials that they would prefer something they could opt into,’” Lincoln said (Lyon, 10/27).

Sen. Olympia Snowe, R-Maine, told The Associated Press/The Boston Globe that she is “deeply disappointed” that the Senate Majority Leader Harry Reid’s Senate bill doesn’t include her idea for a “trigger” to begin a public option for health care reform only if private insurers can’t rein in costs (10/27).

Others are more cautious with their statements. Sen. Kent Conrad, D-N.D., said Tuesday that he will “reserve judgment” on the public option in Reid’s plan, the Grand Forks (N.D.) Herald reports. “‘But I will reserve judgment until we see the finished product in writing and have the scores from the Congressional Budget Office’ tallying the costs of the revised bill. ‘This is just the next step in a long line of steps’” (Haga, 10/27).

Finally, The Hill reports that White House health czar Nancy-Ann DeParle said at a forum Tuesday that liberal critics of President Obama are wrong on whether Obama is wavering on his support for a government-run public option in reform. “‘The president’s talked about the public plan option every single time he’s talked about health reform and he’s said all along that he thought it was a critical tool to help get choice and competition and hold insurance companies accountable,’ DeParle said” (Young, 10/27).

Sequoia Voting Systems had been one of the “big three” e-voting providers, along with Diebold (Premiere) and ES&S. All three companies were notorious for massive amounts of secrecy and many, many, many reports of faulty machines with weak security. Sequoia’s biggest problem — which showed up in election after election after election after election — was that it seemed to count the votes differently every time. That seems like a rather big flaw. The company also threatened computer security expert Ed Felten after the State of New Jersey asked him to look at Sequoia’s code.

Just last week there were reports that Sequoia had accidentally revealed some of its source code — but this week Sequoia has surprised a lot of people by announcing plans for a new e-voting system which will have open source e-voting software included. The code will be released to the public next month.

This is definitely a big (and surprising) step forward. The Wired link above tries to speculate why — but I’d argue the most obvious reason (not mentioned in that article) is that Sequoia’s two largest competitors, ES&S and Diebold/Premiere merged last month, suddenly making Sequoia a much smaller player in the space (I believe it was already the number three player…). Going open source isn’t just a way to improve its code and improve trust in the machines, but also a way to stand out against a much larger competitor.

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Illinois nursing home patients often receive psychotropic drugs without cause, which poses various health dangers and even death, the Chicago Tribune reports as part of its Compromised Care series. “Frail and vulnerable residents of nursing homes throughout Illinois are being dosed with powerful psychotropic drugs, leading to tremors, dangerous lethargy and a higher risk of harmful falls or even death, a Tribune investigation has found. Thousands of elderly and disabled people have been affected, many of them drugged without their consent or without a legitimate psychiatric diagnosis that would justify treatment, state and federal inspection reports show.”

The Tribune identified about 1,200 such violations at Illinois nursing homes since 2001. The newspaper’s “unprecedented review of more than 40,000 state and federal inspection reports found that nursing homes ranging from ‘five-star’ establishments on the North Shore to run-down facilities in urban neighborhoods have been cited for improperly administering psychotropic drugs.” 

According to the story, the “findings come at a difficult time for Illinois nursing homes, which are already under fire for housing violent felons alongside geriatric patients and for failing to accurately assess the risk posed by the most serious offenders. … The misuse of psychotropics, which some experts say is a nationwide problem in nursing homes, suggests a troubling future for many seniors. … In testimony before Congress two years ago, Food and Drug Administration scientist Dr. David Graham estimated that thousands of nursing home residents die each year because antipsychotic drugs are administered to patients who are not mentally ill” (Roe, 10/27).

In a separate piece, the Chicago Tribune reports on one such senior’s death. “Just eight hours after he moved into the nursing home, state inspection records show, Lloyd Berkley was approached by four employees, one of whom had a needle behind her back. While three of them held down the 74-year-old man, the fourth injected him with a high amount of the antipsychotic drug Haldol, which quickly sedated him, according to state records.” But hours later, the man fell and injured his head. He died at a hospital. “The worker with the needle, investigators discovered, was not licensed as a nurse and did not have a doctor’s order to give the man the medication. Berkley’s death offers a dramatic example of a common problem in nursing homes: heavily drugged residents falling and suffering injuries — or worse” (Roe and Leonhardt, 10/27).

The Chicago Tribune, in a separate explainer, also includes five things to know about psychotropic drugs from information provided by the Illinois Department of Public Health (10/27).

House Democratic leaders are planning to unveil their version of the health care overhaul that will include a more tempered public insurance plan in which the federal government would negotiate prices with doctors and hospitals, Roll Call reports. No official announcements have been made, and many liberals continued to push for their more “robust” version of the plan that would let the government set prices, rather than negotiating. However, some on the left, like Rep. John Dingell, D-Mich., a long time single-payer advocate, appears to favor moving forward – with or without the robust version of the plan (Newmyer, 10/28).

Meanwhile, Rep. Steny Hoyer, D-Md., the House majority leader, applauded his Senate counterpart for including any version of the public plan in his bill, the Associated Press reports. Hoyer said Tuesday that Reid’s inclusion of the provision may not change the politics in the House, but that it could influence whether the final legislation includes the public plan. He also said he hoped some moderate House Democrats, who want to avoid passing a bill that wouldn’t clear the more conservative Senate, may view Reid’s decision as political cover (Werner, 10/27).

Hoyer “said Tuesday that Democratic leaders want to bring their massive health care overhaul legislation to the floor next week, if they can line up a majority behind a single ‘public option’ proposal,” CQ Politics reports. He also said he would keep his promise to Republicans to make the bill publicly available for 72 hours before bringing it to a vote (10/27).

According to The Hill, a recent count by Democrats showed that 47 members of their caucus would vote against the more liberal option that allows the government to set prices, more than enough to kill the bill if it is also opposed by all Republicans. “The no list includes lawmakers who have said they would support the Medicare-based plan, but oppose the bill for other reasons, such as the income surtax it includes. It also includes several lawmakers who oppose the bill because they believe it will allow taxpayer dollars to fund abortions.” Some Democrats think the leadership could still address those issues and rally the needed votes for the robust option (Allen and Soraghan, 10/27).

House Speaker Nancy Pelosi appears to be using one standard strategy for unifying her caucus around the controversial public option: changing its name, CBS News reports. “It’s not really a public option, it’s a consumer option,” she said. “As we’re mandating that people buy insurance we are saying to them, you have leverage, you have another choice. This is your consumer option.” Last year, lawmakers tried to rebrand the “bailout” of banks as the “Troubled Asset Relief Program” (Jackson, 10/27).

“A day after Senate Majority Leader Harry Reid proposed an ‘opt-out’ public option plan, health-care insurers’ stocks climbed Tuesday,” Dow Jones Newswires/The Wall Street Journal reports. “Led by Centene Corp.’s (CNC) 6% gain, fueled by an upside earnings surprise, all major carriers were in the black.” But “there may have been more to Tuesday’s action in health-insurer stocks. A fear of added costs incurred due to H1N1 vaccinations for swine flu seemed to subside as Centene still managed to beat Street estimates by a penny when it reported third-quarter earnings Tuesday” (Britt, 10/27).

Portfolio reports: “It’s not a bad time for insurance companies to come down with a case of the swine flu. The cost of treating and preventing the flu is adding to medical claims, which means health insurers are reporting lower earnings this quarter even as Washington lawmakers accuse them of having inflated profit.” Amerigroup Corp. and UnitedHealth Group Inc. have both recently blamed swine flu for low profits (Chase, 10/27).

Meanwhile, The Wall Street Journal reports that “WellPoint Inc.’s third-quarter earnings fell 11% amid declining enrollments and asset write-downs, but results were better-than expected” (Stynes, 10/28).

A Nevada case causes concern for pharmacies about possible liability for actions taken by customers who may abuse drugs. The Wall Street Journal reports on the case of Patricia Copening, who pleaded guilty to reckless driving after her car swerved off a highway and struck and killed a 21-year-old and injured a 33-year-old. “In Ms. Copening’s car, police found prescription bottles and loose pills, 167 in total, of hydrocodone, Soma and other drugs,” according to the Journal article. Before the incident, the Nevada controlled-substance task force had sent letters to 14 pharmacies in the Las Vegas area warning that Copening could be abusing drugs. The Nevada Supreme Court is now reviewing whether pharmacies that supplied the drugs to her could be held accountable by the injured man and the dead man’s family. “The case, Sanchez vs. Wal-Mart Stores et al, asks whether drugstores must use information at their disposal to protect the public from potentially dangerous customers. The Nevada case is part of a broader movement under way to place more responsibility for patients’ prescription-drug use on pharmacies.”

“Abuse of prescription drugs has risen dramatically over the past two decades, along with a surge in the number of controlled-substance prescriptions being written. … At the same time, pharmacists have much more patient information at their disposal, thanks to pharmacy computer systems and a proliferation of state online prescription-tracking databases. The availability of patient information is only expected to increase as electronic health records are adopted by more and more doctors. As a result, consumers, government officials and pharmacies themselves are increasingly asking what a pharmacy is legally and ethically obligated to do with this newly available information. This week, the National Association of Boards of Pharmacy is convening a task force to discuss pharmacies’ roles in prescription-tracking programs” (Merrick, 10/28).

Starting at 9:30, Energy Secretary Steven Chu will host a Clean Energy Economy Forum with stakeholders from around the country. Assistant to the President for Energy and Climate Change Carol Browner and other top Administration officials will also be featured speakers at the forum, which will include a focus on science, innovation, and job creation in the emerging clean energy economy.

Watch live here at WhiteHouse.gov, or watch and take part in the live chat through Facebook. The White House will be monitoring the chat, taking questions, and incorporating feedback from chat participants during the event. 

Watch live here at WhiteHouse.gov 
Watch, discuss and engage through Facebook

In case you haven’t been paying attention around here the last few weeks, the BlackBerry Storm2 is now available for purchase. That is, of course, if you really want to spend $279 and then mail-in a $100 rebate for a mediocre phone. Personally I can think of a dozen and a half phones I would rather have at that price point. What you really should do is what a week or two until the Motorola Droid hits. That’s the VZW phone to have, not the Storm2.

With his announcement regarding support for the public option, Senate Majority Leader Harry Reid’s plans to move health legislation to the Senate floor face big challenges.

The Hill reports that Reid is short of the votes to pass a government-run public option in the Senate bill. Several moderate Democrats — among them Sens. Ben Nelson, of Nebraska; Evan Bayh, of Indiana; and Blanche Lincoln, of Arkansas — decline to say if they’ll support a motion to begin debate on the bill. “They are waiting for a cost estimate from the Congressional Budget Office (CBO) and a chance to review the bill before making a decision” (Bolton and Rushing, 10/27).

CongressDaily: Divisions among moderate Senate Democrats became obvious on Tuesday, but “Reid asked [them] to stick with him on a vote to let debate begin on the healthcare bill, regardless of whether or not they favor a public insurance plan in the measure that would allow states to opt out” (Edney, 10/28).

The Los Angeles Times: “Reid needs all 58 Democrats and the two independents who caucus with the Democrats, or some Republican defectors. He is gambling that there are enough carrots and sticks lying around Capitol Hill to line up the votes he needs. A senior Democrat said that there were about 10 Democratic senators whose support had yet to be nailed down” (Hook and Levey, 10/28).

The New York Times: “Senator Max Baucus, Democrat of Montana, who supports a public plan but shepherded a health bill through the Finance Committee without it because he thought it could never win 60 votes, said he could not predict how senators might line up. ‘I don’t know. I don’t know. I don’t know,’ Mr. Baucus said when asked if he had changed his view of the public plan’s chances. ‘I just really don’t know.’ … The Senate Republican leader, Mitch McConnell of Kentucky, said that in his view a vote to debate the legislation would be tantamount to supporting it, which he said would raise taxes and increase health care costs” (Herszenhorn and Pear, 10/27).

The Associated Press: “Sen. Tom Carper, D-Del., said he may seek changes on the Senate floor, a move likely to be welcomed by moderates. He backs a government role in states where one or two insurers control the market and premiums are high, along the same lines as a plan supported by Sen. Olympia Snowe, R-Maine” (Alonso-Zaldivar, 10/28).

The Boston Globe: “Carper’s idea, which he joked he might christen ‘the 60-vote option,’ might bring along Maine’s junior senator, Republican Susan Collins, who said yesterday she could not support Reid’s opt-out proposal. ‘I don’t see the opt-out as being any kind of compromise at all,’ Collins said” (Wangsness and Milligan, 10/28). 

Politico runs down a list of some of the more prominent moderates in the Senate and where they stand on the legislation. One of “the toughest votes” is Sen. Joe Lieberman of Connecticut, an independent who caucuses with the Democrats (Raju and Frates, 10/28).

The Washington Post: Lieberman “told reporters that he was ‘inclined to support’ a procedural motion to bring the measure to the floor. But he remains opposed to a government-run insurance plan in any form — even with an ‘opt-out’ provision for states that Reid said Monday he will include in the legislation.” And, unless the public-option provision is removed, he said “he probably will align with Republicans to block the measure” (Murray and Montgomery, 10/28).

The Wall Street Journal: “Mr. Lieberman says he fears the public option won’t be self-sustaining. ‘I think that a lot of people may think that the public option is free. It’s not,’ Mr. Lieberman said. ‘It’s going to cost the taxpayers and people that have health insurance now, and if it doesn’t, it’s going to add terribly to our national debt’” (Adamy, Yoest and Hitt, 10/28).

Insurers and the Chamber of Commerce are stepping up lobbying against a health care overhaul with new television ads.

“The health insurance industry, which had been taking a relatively tempered approach to health care legislation, has stepped up its opposition to the overhaul efforts as it has become clear that the final product will not be to its liking,” Roll Call reports. America’s Health Insurance Plans “has started running television spots in 10 states, including the home state of Senate Majority Leader Harry Reid (D-Nev.), warning senior citizens that their benefits could be slashed.” AHIP also “blasted” Reid’s decision to include a public option in Senate health legislation (Roth, 10/28).

The Associated Press: “Looking to build pressure on moderate Democrats, the U.S. Chamber of Commerce says it will begin airing new TV ads in seven states and on national cable television attacking the emerging legislation, including a government-run insurance option. … The ad is slated to start Wednesday” (10/27).

Meanwhile, other news organizations examine the complexities which some advocacy groups and their lobbyists are confronting.

The New York Times profiles Billy Tauzin and Karen Ignagni, chief lobbyists for the pharmaceutical and insurance industries respectively. “The story of these two lobbyists — a Republican who found favor with a Democratic White House and a Democrat on the outs — illustrates the complexities Mr. Obama faces in the health care endgame. The president had some early success in bringing industry on board. But as the experiences of Mr. Tauzin and Ms. Ignagni suggest, keeping it there will be easier said than done” (Stolberg, 10/27). 

Meanwhile, “Republicans in Congress are taking aim at AARP’s financial ties to the health-insurance industry just as the advocacy group is taking a more prominent role supporting an overhaul of the nation’s health-care system,” The Wall Street Journal reports. The House Republican Conference has been circulating talking points among lawmakers and staffers, saying AARP wants an overhaul because its business arm would benefit from legislation in both the House and the Senate” (Zhang, 10/27).

The doctor’s lobby is also being scrutinized by lawmakers. “After a humiliating defeat in the Senate, the venerable American Medical Association faces a revolt from both its member doctors and one-time political allies as it struggles to influence an overhaul of the nation’s health system,” The Washington Post reports. “The group had pinned its hopes on winning a $247 billion, 10-year reprieve from scheduled reimbursement cuts for physicians who treat Medicare patients in return for supporting the White House push for broader changes in health care coverage. When the pay boost was sidetracked last week in the Senate, it undercut the doctors’ leverage – just as final negotiations on the broader health bill intensify” (Davis, 10/28).

LONDON (Reuters) – U.S. buyout house TPG sold its stake in Debenhams Plc (DEB.L) to an unnamed hedge fund, a source familiar with the situation said on Wednesday, netting some 100 million pounds ($163.7 million).

TPG [TPG.UL] sold its remaining stake of more than 120 million shares — some 9 percent of the department store chain’s stock — at 81.6 pence a share, a slight discount to their market price, down 2 percent at 82.65p by 1111 GMT, the source said on Wednesday.

Some said the sale could be a precursor to a bid for Debenhams.

“A bid for the group currently valued at 1.1 billion pounds looks possible,” said Manoj Ladwa, senior trader at ETX Capital. “Though the deal looks good on paper, the question has to be asked where the buyer will come from?”

But one banker said the stake was unlikely to lead to a bid, given the difficulties raising finance in debt markets.

TPG declined to comment.

Debenhams last week bucked the gloomy economic outlook to report profits before tax, goodwill and one-off items up 14 percent to 125.2 million pounds. It has also reduced its weighty debt burden, a throw-back to its private equity-owned days, by almost half over the last year to under 500 million pounds. [ID:nLL67265]

Och Ziff, the hedge fund which owns a stake in privately-owned budget fashion retailer Peacocks, has been mooted as a possible buyer in press reports. No-one at Och Ziff was available for comment.

TPG is the second of Debenhams’s original private equity backers to fully exit the business, following Merrill Lynch Private Equity. Only CVC retains a small stake in the business. (Additional reporting by Victoria Howley and Jon Hopkins; Editing by David Holmes) ($1=.6107 Pound)

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Nixon Peabody LLP has named David Martland as head of its M&A and private company transactions practice. He joined Nixon Peabody in 2003, and succeeds Philip Taub, who was named chair of the business and finance department.

PRESS RELEASE

In ternational law firm Nixon Peabody LLP has named David A. Martland as leader of the firm’s Mergers & Acquisitions and Private Company Transactions practices, which includes approximately 70 attorneys firmwide. Mr. Martland succeeds the practice’s previous leader, Philip Taub, who was recently named chair of the firm’s Business and Finance Department.

“David has helped expand our global business group through hard work, a strong focus on team effort, and a commitment to top-flight client service,” said Mr. Taub, chair of Nixon Peabody’s Business and Finance Department. “His ability to see the big picture and think strategically enables us to develop creative and effective legal solutions for our clients even in this challenging business environment.”

Mr. Martland, who is based in the firm’s Boston office, joined Nixon Peabody in 2003. He counsels private and public companies and a variety of private equity funds on the full range of corporate matters.

Mr. Martland has been recognized for exceptional standing in the legal community in Chambers USA: America’s Leading Lawyers for Business since 2006. He has been selected by his peers for inclusion in Best Lawyers in America since 2007. Mr. Martland has also been recognized every year since 2004 as a “Massachusetts Super Lawyer” and since 2007, as a “New England Super Lawyer” in Business and Corporate Law based on peer surveys by Boston magazine.

Mr. Martland earned his J.D. from Yale Law School where he was a Senior Editor of the Yale Law Journal. He received his bachelor’s degree from Princeton University.

About Nixon Peabody
Nixon Peabody LLP is recognized as a “Global 100” law firm—one of the largest in the world. With 800 attorneys collaborating across major practice areas in 17 cities, including Boston, Chicago, London, Los Angeles, New York, Paris, Rochester, San Francisco, Shanghai, Silicon Valley, and Washington, DC, the firm’s size, diversity, and advanced technological resources enable it to offer comprehensive legal services to individuals and organizations of all sizes in local, state, national, and international matters. Nixon Peabody LLP was recognized as one of FORTUNE magazine’s “100 Best Companies To Work For®” three years in a row. The firm has also been named to the Human Rights Campaign’s 2010 “Best Places To Work For LGBT Equality” list.

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Triton Pacific Capital Partners has acquired a majority stake in MyPrint Corp., an Irvine, Calif.-based provider of managed print and promotional marketing programs. No financial terms were disclosed.

PRESS RELEASE

Triton Pacific Capital Partners, LLC, a well established private equity firm headquartered in Los Angeles, today announced that it has acquired a majority interest in MyPrint Corporation, a leading provider of managed print and promotional marketing programs located in Irvine, Calif.

“The MyPrint acquisition continues the successful investment strategy Triton Pacific has carried out since its inception, focusing on opportunities where a combination of capital, strategic guidance and operational expertise can accelerate growth in an already well-positioned business,” said Triton Pacific’s Managing Partner Craig Faggen.

Targeting companies within basic industries, including healthcare services, software/IT, business services, consumer products, financial services, light manufacturing, logistics, and value-added distribution, Triton Pacific has established a set of well-honed business insights used to identify strong portfolio companies.

“For more than 25 years, MyPrint has established itself as a leading provider of printed and promotional brand collateral to a diverse client base. By applying their unique insight into customer needs, combined with a significant investment in its proprietary eTools technology, MyPrint is now positioned as a leading business process outsourcing (BPO) company,” said Tom Scott, a partner at Triton Pacific.

“We believe that MyPrint offers customers a unique value proposition with measurable ROI and we look forward to working with them on the many new and exciting growth opportunities that lay ahead,” added Fred Thiel, managing partner and head of Triton Pacific Capital Partners’ Software and IT group. “The functionality of MyPrint’s eTools offering is unique among other participants within the value-added commercial printing, promotional products and fulfillment industries.”

B. Riley & Co., Inc. served as the exclusive advisor to MyPrint Corporation on the transaction. Paul Donnelly, who led the deal team for B. Riley, commented, “We have advised multiple businesses in this sector and firmly believe that with the capital infusion and strategic support of Triton Pacific, MyPrint is a unique platform with great prospects for continued growth. Triton Pacific was selected among a number of potential financial and strategic investors and we are confident that they will be an excellent partner for the business going forward.”

“In Triton Pacific, MyPrint has found a private equity partner with an impressive track record of acquiring and building successful companies,” commented Jeff Carlson, MyPrint’s president. “We are all excited about the opportunities to work closely with the Triton Pacific team in growing MyPrint to the next level.”

About MyPrint Corporation

MyPrint provides clients with managed print and promotional marketing programs by combining its proprietary e-commerce platform, eTools, with print manufacturing and fulfillment capabilities. Customers across a variety of industries benefit from MyPrint’s integrated online ordering, commercial print manufacturing, direct mail services, digital print-on-demand, fulfillment, inventory management, and reporting capabilities. The company has particular expertise supporting large franchised businesses, and has demonstrated success providing solutions to clients in the restaurant, financial services, multi-level marketing, healthcare, and consumer services markets. For more information visit www.myprint.com.

About Triton Pacific Capital Partners

Founded in 2001, Triton Pacific Capital Partners, LLC, with headquarters in Los Angeles, California, is an established private equity firm that acquires controlling interests in profitable entrepreneurial companies. Triton Pacific was recently named to the Inc. 5000 as one of the fastest growing private companies in the U.S. The company seeks to partner with management of established, profitable companies that have compelling, differentiated business propositions. Through its Value Enhancement Program(SM), Triton Pacific employs its time-tested business model in conjunction with a well-developed arsenal of proprietary in-house resources. The firm is able to offer its portfolio companies growth capital, strategic guidance and operational expertise designed to enable companies to their businesses with the ultimate goal of accelerating growth and maximizing value. Today, Triton Pacific maintains a controlling investment in 16 private equity companies with an enterprise value in excess of $200 million. More information can be found at www.tritonpacific.com.

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Accel-KKR has agreed to acquire the assets and liabilities of customer service software provider KANA Software Inc. (OTC BB: KANA), for approximately $48.9 million.

PRESS RELEASE

KANA Software, Inc. (OTCBB: KANA), a world leader in innovative customer service solutions, today announced that it has entered into a definitive agreement with an affiliate of Accel-KKR, a technology-focused private equity firm, which will buy substantially all of KANA’s assets and liabilities for a cash purchase price to KANA of approximately $48.9 million (which represents an enterprise value of $50.1 million), subject to adjustment based on closing net working capital, net indebtedness, transaction expenses and other adjustments described below. The transaction is subject to specified closing conditions. After the transaction is completed, KANA’s current operating business, which includes software, services and licensing, will operate as a privately-held company under its current KANA brand.

At that time, the OTC Bulletin Board-listed entity will be renamed and will continue to be publicly traded under a new trading symbol with the net cash proceeds from the transaction and more than $400 million of net operating loss (NOLs) carry-forwards.

The Board of Directors of KANA has unanimously approved the asset purchase agreement and has recommended to the company’s stockholders that they adopt and approve the agreement. In connection with the execution of the asset purchase agreement, KANA Directors, officers and major shareholders have signed voting agreements with Accel-KKR to vote approximately 22 percent of the company’s outstanding shares in favor of the transaction.

“This is a transaction that brings optimal value to our shareholders, our customers and our company,” said Michael S. Fields, KANA’s Chief Executive Officer. “We intend to focus on completing this transaction promptly.”

The KANA Board of Directors issued the following statement: “With the assistance of the company’s financial advisor, Pagemill Partners, the company conducted a thorough process and received this proposal from Accel-KKR. After extensive negotiations, careful due diligence and in-depth consultation with our financial advisors, the Board has unanimously concluded that this transaction is in the best interests of our stockholders.”

The renamed publicly traded company’s strategic plan will be to enhance stockholder value by pursuing opportunities to acquire one or more profitable businesses. The publicly traded company will not compete with the privately held KANA. The public company believes that the current economic and business environment, though challenging, should nevertheless allow it to secure a business platform that provides growth opportunities and can also utilize the NOLs.

In the event that the renamed public company has not invested at least half of the proceeds of the asset sale within six months of closing the asset sale, the company anticipates soliciting the vote of stockholders on a proposal to continue seeking acquisition candidates; and if this proposal is not approved by stockholders, the company intends to return at least half of its cash to stockholders at that time, through a dividend, issuer tender offer or other distribution. The company’s stockholder rights plan, which is triggered if a stockholder acquires more than 4.9 percent of the company’s outstanding stock, will remain in effect to protect the company’s ability to utilize its NOLs.

“KANA is pleased that a world-class investor like Accel-KKR has such confidence in the software business of this company,” continued Mr. Fields. “We believe strongly that Accel-KKR’s financial strength and deep domain expertise will be critical to enabling the privately held KANA to extend its current technology leadership to global market leadership in our sector.”

Jason Klein, Managing Director at Accel-KKR said, “Accel-KKR is excited about partnering with KANA’s management and employees to help the company expand its existing position in the global multi-channel customer service market. We look forward to investing in KANA and helping the company better serve its customers in industries as diverse as retail, technology, telecommunications, health care, insurance, financial services and the public sector.”

The proposed transaction is expected to close within 90 days and is subject to agreed-upon closing conditions, including the absence of any material adverse change in the company’s business or results of operations prior to closing and the receipt of certain consents from third parties. Further, the transaction is subject to the approval of the asset purchase agreement by holders of a majority of the outstanding shares of the company’s common stock. The purchase price to be paid by Accel-KKR is subject to adjustments based on the company’s net working capital at closing, its indebtedness (net of its cash), and transaction expenses, and based on other matters. KANA anticipates that, following adjustments that are currently expected, the renamed public company will have cash at closing of between $40 million and $44 million. However, the actual amount could be less, depending on the company’s cash, debt and net working capital at closing, and final transaction expenses. Certain proceeds may be held in escrow following closing, pending resolution of certain specified contingencies.

Pagemill Partners served as financial advisor to the Board and rendered an opinion as to the fairness, from a financial point of view, to the company’s stockholders. Fenwick & West LLP is serving as legal counsel to the company. Accel-KKR is advised by Kirkland & Ellis LLP.

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Yeah ok it isn’t that Apple Tablet. But this is a picture, taken around 1990, of the Apple Pen Mac, a little known and never launched Apple tablet project. As far as we can tell there is no other image of this device anywhere on the Internet, and very few references to it at all.

The Pen Mac was a fully functional Mac computer (it even played the Mac startup chime) with a pen based touch screen. The screen itself was identical to the Mac Portable, but with the addition of pen touch. And of course the case was a lot smaller than the Mac Portable. The Pen Mac was supposedly not much more than one inch thick. Users could plug in a keyboard and mouse or easier input.

Holding the Pen Mac in the picture is Glam CEO Samir Arora, who told me about the device over dinner a couple of weeks ago. Arora worked at Apple on the project, eventually going to a spinout company, Rae Technology, which was designing applications for the Pen Mac. Rae Technology eventually morphed into NetObjects.

The Pen Mac project was led by Paul Mercer but was eventually axed in favor of the Newton. Then Apple CEO John Sculley wanted a PDA, not a tablet. From a 2006 NY Times article:

Google launched a Google Labs project earlier this year called "Similar Images," as an extension to Google Image Search. It allows users to search for images using pictures instead of words. The project has now graduated from Labs and is now a part of Google Images.

The most popular images in Google’s search results will have a link to "find similar images." The feature is pretty self-explanatory, but that doesn’t stop Google from explaining it anyway.

"So, let’s say you want to find images of Ancient Egypt," says Google. "Google Images will provide you with a rich variety of results, including pyramids, maps, relics, drawings and other types of images. Instead of poring through hundreds of images, now you can simply click ‘Find similar images’ to narrow down the results to the results to the type you want."

It should be noted that Similar Images is still rolling out gradually, so there is a good chance you are not seeing it yet. Rest assured, however, you will.

In addition to the launch of the Similar Images feature, Google has also announced the availability of Product Ideas for Google Images. This is a place where Google users can post comments that will be seen by Google’s Images team. It’s a good place to leave feedback and suggestions for the company regarding its Images product.

Similar pages already exist for iGoogle, Google Docs, Google Reader, Google Mobile, Custom Search, Google Apps, SketchUp, Google Health, and SideWiki. If you have ideas for how to make Google products better, but are unsure of how to go about letting the company know, these are good places to start.

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> Google Presents New Image Search Options

> Yahoo Refines Image Search

Hi friends, some of you might be wondering what happened to me? A couple of reasons kept me from updating the blog quite frequently. My initial plan was to update thrice a week and I was able to do only one post for the past 3-4 weeks. I think I’ll be able to blog more regularly hereafter. One good thing which happened in the past couple of weeks is I joined Wilton’s cake decorating course and today is the last class of the first course. So you can expect some posts on cake decorating in the following weeks. I’m planning to take the other 3 courses too.

Now for the round up; I thank all the participants for sending in your entries for the Wholegrain Baking – Oats Event. Renu, congratulations for winning this month’s giveaway. Please send me an e-mail with your address, so that I can mail your gift.

Bars & Brownies

Aarthi’s Oatmeal and Peanut Bars

Divya’s Oatmeal Granola Bars

Meeso’s Oatmeal and Dates Bars

NC’s Oat Bran Banana Brownies

Renu’s Vegan Oatmeal Dates Bars

Sadhana/Muskaan’s Oat Flour & Banana Bars

Madhuram’s Oat Flour and Beet Brownies

Madhuram’s Chewy Granola Bars

Cookies

Emma’s Vegan Oatmeal and Craisin Cookies

Emma’s Vegan Oatmeal Drizzles

Lata’s Oatmeal, Apple and Raisin Cookies

Priya’s Quick Oatmeal Cookies

Priya’s Vegan Oat Flour and Sesame Cookies

Priya’s Vegan Oat Flour Crackers

Sadhana/Muskaan’s Oat Flour & Almond Cookies

Shoba’s Oatmeal Raisin Cookies

Sweatha’s Vegan Flourless Oatmeal Cookies

Madhuram’s Oatmeal Coconut Cookies

Madhuram’s Wholesome Oatmeal Breakfast Cookies

Quick Breads

Divya’s Fat Free Oatmeal Banana Muffins

Priya’s Pretty Oatmeal Scones

Sadhana & Muskaan’s Oats, Apple & Raisin Bread

Sadhana & Muskaan’s Oats, Fruits and Nuts Scones

Madhuram’s Pear and Oat Bran Muffins

Spice’s Banana Oat & Wheat Muffins

Madhuram’s Oatmeal Peanut Butter Muffins

Yeast Breads

Divya’s Oatmeal and Wheat Yeast Bread

Priya’s Oat Flour and Spinach Swirl Buns

Priya’s Veagan Savory Oats Buns

Others

Saritha’s Oatmeal and Apple Cake

Emma’s Vegan Homemade Granola

Priya’s Oats and Veggie Patties

Sadhana & Muskaan’s Vegan Brown Rice Patties

Shanthi’s Oats and Apple Crunch

Winner

A new database operated by a New York nonprofit will help insurers determine their rates for out-of-network care and give consumers a heads-up on what to expect their policy to pay when they seek such care, the New York Times reports. The program, which will be operated by the new nonprofit FAIR Health with support from Syracuse University and other states universities, was announced Tuesday by New York Attorney General Andrew Cuomo, whose office investigated the insurance industry’s existing out-of-network pricing system (Abelson, 10/27).

The old database was operated by UnitedHealth, and Cuomo’s investigation was prompted by complaints that it routinely caused insurers to shortchange physicians, leaving patients to foot more of the bills, the Minneapolis Star Tribune reports. Cuomo’s inquiries led to a settlement with insurers that requires them to put up $100 million to fund the new project. UnitedHealth chipped in $50 million for the project; the other $50 million was shared between other major insurers (Yee, 10/27). 

Cuomo said that the new database “will bring much-needed transparency, accountability and fairness to a broken consumer reimbursement system,” according to the Associated Press. “Before you leave your house you will be able to look up the exact procedure you’re going to have and you will know what the cost is, so when you get to the doctor’s office, there will be no surprises for you or the doctor.” Insurers lauded that change, saying it would “shed light on the exorbitant prices that out-of-network providers are charging” (Kates, 10/27).

The development comes amid a broader trend towards greater transparency in health care pricing, especially through Internet resources. “It’s long been hard for health-care consumers to learn how much doctor visits or hospital stays will cost them. That’s now beginning to change, as a growing array of Web sites try to lift the veil on pricing,” the Wall Street Journal reports. Doctors and hospitals have traditionally declined to publicize how much they are paid for their services, but consumers have become more cost-conscious as health care costs rise (Mathews, 10/28).

Age issues emerge in the health care reform debate as lawmakers struggle with how much young and old people should pay for insurance. Meanwhile, lawmakers and different groups try to woo seniors.

NPR reports: “The rules for how health insurers use age to set premium rates vary widely from state to state. … In trying to draft new national standards, the key congressional committees agree that older people should pay more. But they differ widely on just how much more.” NPR also examines the cost of premiums and compares the insurance market to a pool party, in which insurers and policy makers try to get people of all ages to join in the pool. It notes: “The bill passed by the Senate Finance Committee would allow insurers to charge older adults four times the amount it charges younger people. The House bill and the Senate health committee bill make a different choice: They would limit what insurers can charge older adults to two times the amount. The insurance industry strongly prefers the higher 4-to-1 multiple” (Varney, 10/27).

In a separate piece, NPR reports on seniors’ powerful political sway: “Nearly all seniors already have health insurance through the Medicare program, but they are among the most sought-after groups in the political struggle to pass or kill a health overhaul bill. Democrats have stuffed their bills with sweeteners intended to woo the over-65 crowd. Among those sweeteners is a gradual closing of the ‘doughnut hole,’ the quirk in the Medicare drug benefit that requires patients to continue to pay premiums even while paying the full cost of their medicines. The bills would also eliminate copayments on preventive care. And the Senate Finance bill would pay for annual ‘wellness’ checkups for every Medicare patient. Currently, the program only pays for a single physical when a senior first enrolls in the program. Republicans, however, have been hammering for months the fact that much of the bill would be financed by cutting future Medicare spending” (Rovner, 10/28).

The Net Neutrality argument is fairly nebulous for the average user but this image from a Reddit reader shows the effects of the law in a way everyone can understand. If you’re tired of paying tiered pricing for stuff like cable and Internet access, how would you like to pay tiered pricing for the websites you visit. Want to watch Hulu? Add $10. Need eBay, even for a month? $5, please.

While this is obviously a worst case scenario, this sort of bundling is a favorite pastime of most stream providers. For years voicemail was a privilege, not a right, and there are still grannies out there renting phones from the phone company. While month-to-month the costs might not seem like much, this sort of thing adds up to delicious profit. [via reddit]