Alleged WikiLeaks source says he was illegally punished in jail

A key pretrial hearing for Pfc. Bradley Manning, accused of giving classified material to the website WikiLeaks, which then made it public, began Tuesday in a case that highlights the government’s resolve to keep war and diplomatic material secret.

Manning, who has been charged on 22 counts, faces life in prison if convicted of aiding the enemy, the most serious charge. His court-martial is scheduled for February.

A former intelligence analyst in Baghdad in 2009 and 2010, Manning is accused of sending hundreds of thousands of logs about the wars in Iraq and Afghanistan and more than 250,000 diplomatic cables to WikiLeaks.

The hearing at a military court at Ft. Meade outside Baltimore is scheduled to run through Sunday. Manning is expected to testify at some point. It would be the first time he has spoken publicly about the case and the conditions of his detainment since his arrest in 2010.

The defense will argue that all charges should be dismissed because Manning was subjected to “unlawful pretrial punishment,” according to a post on the website of his supporters, the Bradley Manning Support Network.

Manning will get a chance to testify about his treatment. His lawyers argue that he was illegally punished by being put alone in a cell for nine months at the Marine Corps brig in Quantico, Va. Military judges can dismiss all charges if pretrial punishment is particularly egregious, but that rarely happens, though the time in incarceration can be credited toward the sentencing.

“At this extremely important hearing, Bradley’s lawyer David Coombs ... will present evidence that brig psychiatrists opposed the decision to hold Bradley in solitary, and that brig commanders misled the public when they said that Bradley’s treatment was for ‘Prevention of Injury,' " his supporters said.

Manning has offered to take responsibility by pleading guilty to reduced charges. The military has not ruled on that offer.

Manning was in the brig from July 2010 to April 2011. The military argues the treatment there was proper since he classified as a maximum-security detainee. He was later moved to Ft. Leavenworth, Kan., where he was reevaluated and given a medium-security classification.

A United Nations investigator called the conditions of Manning's imprisonment cruel, inhuman and degrading, but stopped short of calling it torture.

ALSO:

Powerball: Test  your knowledge of the game

Eating contestant choked to death on roach parts

Power company officials resign after slow Sandy response

Read More..

Sprint, Chrysler Link Up With 'Velocity' In-Car System

The latest contender in the battle for your dashboard is Sprint’s Velocity, the telecommunications company’s first comprehensive in-car infotainment and telematics architecture aimed at automakers.

Sprint is unveiling Velocity this week at the Los Angeles Auto Show, which is billing itself as the place for hot new automotive tech introductions. Sprint’s lined up Chrysler as its first partner, and we got our hands on the all-new UConnect system featured in the Ram pickup truck and Dodge Viper. But the telecom plans to infiltrate the rest of Chrysler’s line-up and form partnerships with other automakers.

“Sprint Velocity is a whole new platform we built specifically for the automobile industry,” Tom Nelson, director of global wholesale and solutions marketing, told Wired. “It’s a global, end-to-end solution that simplifies the ability for manufacturers and consumers to connect devices to their cars.”

That’s a key development, because only about 4 percent of vehicles worldwide have the ability to connect with mobile devices that drivers bring into their cars. Machina Research expects that to hit 90 percent by 2020. Sprint wants a big piece of that pie.

What Velocity provides to automakers is the core technology on which to build infotainment and telematic systems. That includes remote locking and unlocking, vehicle start, 911 assist and creating a rolling Wi-Fi hotspot through an embedded modem or a tethered smartphone with a data connection. Infotainment and streaming music also is part of the puzzle, along with cloud-connected voice-activated controls for everything from navigation to texting.

Additionally, automakers are increasingly interested in getting information about customers’ cars for diagnostic and repair purposes, adding a more convenient connection between the automaker, the dealer and the driver.

“In the past, automakers had to stitch together all this stuff to create a connected technology in the vehicle,” says Nelson. With Sprint Velocity, “it’s an agile, adaptable and scalable platform.”

The scalability and — more importantly — upgradeability of an embedded system is of particular significance because the consumer electronics world moves at a much faster pace than the systems developed and deployed by automakers. One day you’ve got the latest and greatest in in-car connectivity; the next, you’re stuck with an outdated system that barely recognizes your shiny new smartphone or tablet.

Nelson insists Sprint Velocity is device-agnostic, although only two mobile operating systems came up during our conversation: iOS and Android. While Apple and Google’s operating systems dominate the mobile arena, being agnostic allows consumers to bring any device they choose into the car. That’s been an issue for every automaker trying to make a play in the connected-car space.

Further, we’re not hearing anything from Sprint about apps or courting developers, although when asked, there was mention of an SDK. However, that decision will be left to Sprint’s automotive partners to decide, as both security and safety concerns are paramount.

On the plus side for developers, having a new, standardized architecture underpinning a large swath of the automotive world would alleviate some issues about which platforms to focus on. They have to build apps for fewer operating systems, saving time and money.

While this all sounds impressive, it’s important to note that Sprint isn’t the first telecom to play the embedded telematics and infotainment game. Verizon has had a decades-long partnership with General Motors for its OnStar system, and Big Red recently acquired Hughes Telematics — a major player in the in-car connectivity space — to expand its footprint inside vehicles.

“[Sprint is] eager to play a bigger role in this segment as the telcos are looking for new growth segments in an increasingly flat market for traditional mobile phone services,” said Gartner automotive and mobility analyst Thilo Koslowski.

“The money opportunity for the automotive industry lies in providing unique customer experiences regarding consuming, creating, sharing and enriching digital content in the vehicle,” says Koslowski. “This can only be successful if the automotive industry embraces collaboration with technology companies like Sprint.”

But there’s a strong line between a partnership and ceding total control to an outside company, and automakers are intent on maintaining their own branding, ecosystems and user-interface designs. Automakers have to find their own space within these growing mobile ecosystems, and nobody – massive automakers or ambitious telecos – has cracked the code. Sprint Velocity is a step in that direction, but it all hinges on widespread adoption.

Read More..

Judge bows out of ‘pink slime’ suit over ABC ties

SIOUX FALLS, S.D. (AP) — A federal judge has recused himself from presiding over a $ 1.2 billion defamation lawsuit against ABC because his daughter-in-law works as a producer on one of the network’s morning shows.

Judge Lawrence L. Piersol recused himself from hearing the defamation lawsuit filed by South Dakota-based Beef Products Inc. against ABC because his daughter-in-law works as a producer on “Good Morning America.”

The case has been reassigned to Chief Judge Karen Schreier.

Beef Products Inc. sued ABC in September over its coverage of a meat product called lean, finely textured beef. Critics have dubbed the product “pink slime.” The meat processor claims the network damaged the company by misleading consumers into believing the product is unhealthy and unsafe.

Entertainment News Headlines – Yahoo! News

Read More..

Global Update: Investing in Eyeglasses for Poor Would Boost International Economy

BSIP/UIG Via Getty Images

Eliminating the worldwide shortage of eyeglasses could cost up to $28 billion, but would add more than $200 billion to the global economy, according to a study published last month in the Bulletin of the World Health Organization.

The $28 billion would cover the cost of training 65,000 optometrists and equipping clinics where they could prescribe eyeglasses, which can now be mass-produced for as little as $2 a pair. The study was done by scientists from Australia and the Johns Hopkins Bloomberg School of Public Health.

The authors assumed that 703 million people worldwide have uncorrected nearsightedness or farsightedness severe enough to impair their work, and that 80 percent of them could be helped with off-the-rack glasses, which would need to be replaced every five years.

The biggest productivity savings from better vision would not be in very poor regions like Africa but in moderately poor countries where more people have factory jobs or trades like driving or running a sewing machine.

Without the equivalent of reading glasses, “lots of skilled crafts become very difficult after age 40 or 45,” said Kevin Frick, a Johns Hopkins health policy economist and study co-author. “You don’t want to be swinging a hammer if you can’t see the nail.”

If millions of schoolchildren who need glasses got them, the return on investment could be even greater, he said, but that would be in the future and was not calculated in this study.

Read More..

A Struggling CNN Casts Its Eyes on Jeffrey Zucker

In the days to come, when Time Warner appoints a new leader of CNN Worldwide for the first time in a decade, that person will face an identity crisis unlike any other in corporate America.

Though CNN over all is on track to have its most profitable year ever, its flagship channel in the United States is seemingly rudderless, run by layers of producers and executives — many with competing visions. Its low prime-time ratings are the stuff of punch lines and a journalism school case study in the damage wrought by the digital age.

Then again, CNN also has tremendous potential, an enviably popular Web site and countless people rooting for it to succeed.

Throughout a four-month search for the person to succeed Jim Walton, the departing president, attention has centered on Jeffrey Zucker, the former chief executive of NBCUniversal, who was replaced when Comcast took over the company last year. Mr. Zucker produces Katie Couric’s syndicated daytime talk show.

Several news executives close to Mr. Zucker said this week that they believed he had been chosen to run CNN, and they expected the appointment to be announced soon. People close to the Time Warner chief executive, Jeffrey L. Bewkes, also identified Mr. Zucker. A Time Warner spokesman declined to comment.

In considering candidates to run one of the world’s best-known, but beleaguered, news organizations, Mr. Bewkes and his deputy Phil Kent have also been considering their own legacies. They are cautious about not undermining CNN’s journalistic heart and soul, even as they strive to resuscitate the channel’s prime-time lineup, according to people who have met with them about the search. That means the channel’s programming will remain nonpartisan in nature.

“They want someone who has programming and management and cable expertise; someone who can be credible to the staff and to the business community,” one person said. “They know that this is a pretty tall order.”

Mr. Zucker could check off all those boxes. As a young NBC News producer, he helped start what became a 16-year winning streak for the “Today” show. He had mixed results as he moved up the rungs of NBC, but he can point to cable programming successes even as the NBC broadcast network struggled. He did not respond to requests for comment, and people with knowledge of the search insisted on anonymity to preserve friendships and business relationships.

But many others in and around CNN spoke on the record about the challenges ahead. Getting the top-heavy 4,000-person company — spread among New York, Washington, Atlanta and bureaus around the world — to row in the same direction will be one of the toughest tasks, many said.

CNN’s many channels and sites net roughly $600 million in annual profits, through advertising revenue and subscriber fees. But the channel is leaving ad dollars on the table, as one executive put it, because its prime-time ratings are lagging, and it is putting future fee increases at risk by appearing irrelevant in the eyes of some cable subscribers.

One problem dates back to CNN’s creation in 1980: when there is a lack of news, there is a lack of viewers. Kiran Chetry, a CNN morning anchor from 2007 to 2011, said her time there was like being on a news treadmill: “We were running, sweating, doing the work, but never getting anywhere ratings-wise,” she said. This stemmed, she said, from uncertainty about “what we were, who our audience was and how we best served them.”

As Fox News and, later, MSNBC put on confrontational political programs with partisan points of view, CNN sold itself as proudly nonpartisan, but it fell from first to second to third place in the cable news wars along the way. This should have been an “up” year for the channel, thanks to the presidential election; but through mid-November the channel had drawn 412,000 viewers at any given time, down 16 percent from the previous 12 months.

Bill Carter contributed reporting.

Read More..

Congress returns as 'fiscal cliff' talks slow

WASHINGTON – Congress returned in a lame duck session with no signs of quick compromise to prevent a tax hike for most Americans early next year.

Talks between the White House and Republican leaders in the House continued behind closed doors. Current tax rates expire Dec. 31.

Emboldened by his re-election, President Obama took his case for raising taxes on the wealthiest Americans to the public on Monday. He warned that the threat of higher taxes on middle-class Americans could dampen the Christmas shopping season.

"The President has called on Congress to take action and stop holding the middle class and our economy hostage over a disagreement on tax cuts for households with incomes over $250,000 per year," the White House said in a statement.

Quiz: How much do you know about the fiscal cliff?

The White House got a boost from billionaire investor Warren Buffett, who said the wealthy – himself included – should pay more. Noting the nation’s growing gap in income disparity, Buffett dismissed the Republican argument that tax hikes would hamper investments.

“In recent years, my gang has been leaving the middle class in the dust,” Buffett said. “So let’s forget about the rich and ultrarich going on strike and stuffing their ample funds under their mattresses if — gasp — capital gains rates and ordinary income rates are increased.”

Key Republicans, including House Speaker John A. Boehner, have signaled they are willing to put new tax revenues on the table, creating the outlines of a possible deal. Several Republican lawmakers used the Sunday talk shows to distance themselves from their party’s anti-tax pledge, publicly breaking with conservative stalwart Grover Norquist, although they insisted any agreement must include spending cuts.

A so-called grand bargain of tax hikes and spending cuts has eluded Washington in the past, but both political parties are wary of rattling the financial markets and sparking a crisis in consumer spending. Wall Street has signaled a bold deficit-reduction plan is needed to prevent a credit downgrade.

PHOTOS: 2016 presidential possibilities

No talks between the president and congressional leaders have been scheduled. The parties had agreed to meet this week to put the framework of a two-part deal on the table.

If Republicans continue to fight higher tax rates for the wealthy, Boehner will face pressure to propose an alternative way to raise new revenue – either by closing individual loopholes or capping deductions in a way that produces new money.

“Congressional and White House staff continue to work to find common ground that is consistent with the ‘balanced approach’ the White House says it wants – with significant spending cuts, and without job-killing small business tax hikes,” said a senior House leadership aide.

Follow Politics Now on Twitter and Facebook

Lisa.Mascaro@latimes.com

CParsons@latimes.com

Twitter: @LisaMascaroinDC

Read More..

Elon Musk Wants to Build 80,000-Person Mars Colony

Elon Musk doesn’t just want to send a person to Mars — he wants to send 80,000. According to Space.com, the billionaire founder and CEO of the private spaceflight company SpaceX spilled details about his hopes for a future Mars colony during a talk at the Royal Aeronautical Society in London on Nov. 16.

Earlier this year, SpaceX became the first private U.S. company to deliver cargo to the International Space Station. Musk has never been shy about his ambitions to take human colonists to another planet, mentioning in the past that he wants to provide flights to Mars for about $500,000 a person. But now he’s talking about building a small-city-sized settlement on the Red Planet, starting with a 10-person crew in the coming decades to begin establishing and building infrastructure.

That first flight would be expensive and risky but “once there are regular Mars flights, you can get the cost down to half a million dollars for someone to move to Mars,” Musk told Space.com. ”Then I think there are enough people who would buy that to have it be a reasonable business case.” Musk added that he sees the future 80,000-person colony as a public-private enterprise costing roughly $36 billion.

Science-fiction inspired plans are one thing. Musk still has many challenges ahead of him before such a scheme could become reality, including figuring out exactly how to deal with radiation on the way to Mars, how to land humans on the planet’s surface, and how to keep them alive once there. Wired Magazine Editor Chris Anderson interviewed Musk in the November issue, where he outlines a few ways that could help us get there:

Chris Anderson: How were you drawn to space as your next venture?

Elon Musk: In 2002, once it became clear that PayPal was going to get sold, I was having a conversation with a friend of mine, the entrepreneur Adeo Ressi, who was actually my college housemate. I’d been staying at his home for the weekend, and we were coming back on a rainy day, stuck in traffic on the Long Island Expressway. He was asking me what I would do after PayPal. And I said, well, I’d always been really interested in space, but I didn’t think there was anything I could do as an individual. But, I went on, it seemed clear that we would send people to Mars. Suddenly I began to wonder why it hadn’t happened already. Later I went to the NASA website so I could see the schedule of when we’re supposed to go. [Laughs.]

Anderson: And of course there was nothing.

Musk: At first I thought, jeez, maybe I’m just looking in the wrong place! Why was there no plan, no schedule? There was nothing. It seemed crazy.

Anderson: NASA doesn’t have the budget for that anymore.

Musk: Since 1989, when a study estimated that a manned mission would cost $500 billion, the subject has been toxic. Politicians didn’t want a high-priced federal program like that to be used as a political weapon against them.

Anderson: Their opponents would call it a boondoggle.

Musk: But the United States is a nation of explorers. America is the spirit of human exploration distilled.

Anderson: We all leaped into the unknown to get here.

Musk: So I started with a crazy idea to spur the national will. I called it the Mars Oasis missions. The idea was to send a small greenhouse to the surface of Mars, packed with dehydrated nutrient gel that could be hydrated on landing. You’d wind up with this great photograph of green plants and red background—the first life on Mars, as far as we know, and the farthest that life’s ever traveled. It would be a great money shot, plus you’d get a lot of engineering data about what it takes to maintain a little greenhouse and keep plants alive on Mars. If I could afford it, I figured it would be a worthy expenditure of money, with no expectation of financial return.

Read the rest of the interview.

Image: SpaceX

Source: Space.com

Read More..

Berry’s ex says he was threatened before fight

LOS ANGELES (AP) — Halle Berry‘s ex-boyfriend claims the actress’s fiance threatened to kill him during a Thanksgiving confrontation that left him with a broken rib, bruised face and under arrest.

Gabriel Aubry‘s claims are included in court filings that led a judge Monday to grant a restraining order against actor Olivier Martinez, who is engaged to the Oscar-winning actress.

Aubry, 37, was arrested on suspicion of misdemeanor battery after his confrontation with Martinez on Thursday, but he states in the civil court filings that he was not the aggressor and that he was threatened and attacked without provocation. Martinez told police that Aubry had attacked first, the filings state.

A representative for Martinez could not be immediately reached for comment.

Aubry’s filing claims Martinez threatened him the day before the fight at an event at his daughter’s school that he and the actors attended. Aubry, a model, has a 4-year-old daughter with Berry and the former couple have been engaged in a lengthy custody battle.

The proceedings have been confidential, but Aubry states a major aspect of the case was Berry’s wish to move to Paris and take her daughter with her. The request was denied Nov. 9, Berry’s court filings state, and Aubry shares joint custody of the young girl.

Aubry claims Martinez told him, “You cost us $ 3 million,” while he was punched and kicked him in the driveway of Berry’s home. Aubry had gone to the home to allow his daughter to spend Thanksgiving with her mother, the filings state. Aubry claims Martinez threatened to kill him if Aubry didn’t move to Paris.

Berry was not in the driveway during the confrontation and neither was their daughter, the documents state.

Photos of Aubry’s face with cuts and a black eye were included in his court filing.

A judge set a hearing for Dec. 17 to consider whether a three-year restraining order should be granted. Aubry has a Dec. 13 court date for the possible battery case, which has not yet been filed by prosecutors.

___

Anthony McCartney can be reached at http://twitter.com/mccartneyAP .

Entertainment News Headlines – Yahoo! News

Read More..

Panel Lukewarm on Hepatitis C Screening for Baby Boomers

An influential advisory committee has given only lukewarm support to a government recommendation that all baby boomers be tested for hepatitis C.

In a draft opinion Monday, the United States Preventive Services Task Force said that clinicians may “consider offering” hepatitis C screening to adults born between 1945 and 1965.

That falls short of the recommendation made in August by the Centers for Disease Control and Prevention that all adults in that age group should get a one-time test to see if they are infected.

The task force is made up of outside experts appointed by the government, and its recommendations can in some cases carry more weight than those of the C.D.C. Had hepatitis C screening for baby boomers received a stronger recommendation from the task force, health plans would have been required to pay for it under the 2010 Affordable Care Act, with no charge to the patient.

Some advocates of wider screening said they feared the new opinion would be used by insurers to deny reimbursement for testing and would slow efforts to ferret out hidden cases of hepatitis C at a time when more effective and tolerable treatments are being developed.

The recommendation “could derail the hard work that the C.D.C. has put in in proving the case that it’s smart for baby boomers to get a one-time hepatitis C test,” said Martha B. Saly, director of the National Viral Hepatitis Roundtable, a coalition of more than 200 groups dedicated to eradicating hepatitis. Some drug companies, which would benefit from wider screening, are associate members of the round table.

Dr. Kirsten Bibbins-Domingo, of the University of California, San Francisco, and a member of the task force, said differences in the recommendations were merely a matter of degree. “I would say our findings are compatible,” she said.

The C.D.C. declined to comment, saying the opinion was still a draft.

About 3 million Americans are infected with hepatitis C, but 45 percent to 85 percent of them do not know it, according to the C.D.C. The virus can cause scarring of the liver and liver cancer, though typically not until decades after the initial infection, and not in everyone. About 15,000 people a year die from hepatitis C.

The C.D.C. used to recommend screening only for people most likely to be infected: intravenous drug users or people who got blood transfusions before 1992 when testing of donated blood for the virus began.

But a lot of cases were missed because people did not remember risky behaviors from decades ago or did not tell their doctors.

So in August the C.D.C. recommended that all baby boomers be tested. Although only about 3 percent of this age group is infected, they account for about three quarters of all cases. Screening them would detect more than 800,000 infections, which could then potentially be treated, averting many cases of liver disease and about 120,000 deaths.

But the task force said there were no clinical trials or studies directly proving that screening asymptomatic adults would reduce liver disease or deaths.

It noted that the C.D.C. recommendation was based partly on computer models that might have overestimated how many people with hepatitis C would develop liver cirrhosis or die, and therefore overstated the number of cases or deaths that could be prevented.

The task force concluded that there would be at least a small benefit from screening baby boomers and gave the recommendation a grade of C, meaning “for most individuals without signs or symptoms there is likely to be only a small benefit from this service.”

The task force provoked controversy in the past with recommendations against screening for prostate cancer and against routine mammograms for women under 50.

In 2004, the task force recommended against hepatitis C screening of adults not considered at high risk.

The draft, posted on the task force Web site, will be open for comment until Dec. 24. The evidence behind the recommendation is being published in The Annals of Internal Medicine.

Read More..

DealBook: Lehman Estate to Sell Archstone for $6.5 Billion

The deal that helped sink Lehman Brothers is now playing an important role in paying off the failed investment bank’s creditors.

It was the deal that helped sink Lehman Brothers. Now, it will play an important role in paying off the failed investment bank’s creditors.

The Lehman estate agreed on Monday to sell Archstone, a sprawling apartment complex company, to its two biggest real estate rivals — Equity Residential, a company run by the investor Samuel Zell, and AvalonBay Communities — for about $6.5 billion in cash and stock.

The sale will dispose of the Lehman estate’s single biggest asset as it continues efforts to wind itself down and pay off the firm’s legions of creditors. And it will end the estate’s plans to take Archstone public, which had been expected to raise $3.45 billion in an offering on the New York Stock Exchange.

While the acquisition of Archstone by Lehman came just as the housing market was slipping from its lofty peak, its sale follows a recovery from the market’s lows. Residential apartment values have surpassed their 2007 peak, and occupancy rates are strong. Still, the market for rental apartments has taken a breather.

Even with the collapse of its Wall Street parent, Archstone has been held in high regard among investors and analysts for the high quality of its properties and the abilities of its management team. The company, based in Englewood, Colo., owns or has a stake in 181 developments with 57,948 apartment units, as of Sept. 30. Its apartments are largely in metropolitan areas in the Northeast, California and southeast Florida.

“Archstone is a highly sophisticated and very well thought-of manager of apartment assets,” said Craig Leupold, the president of Green Street Advisors, a research firm. “If it’s not the highest-quality portfolio around, it’s certainly up there.”

More than four years ago, it was a millstone around the neck of a foundering Lehman. In 2007, the Wall Street firm teamed up with Tishman Speyer to buy Archstone for more than $23 billion, having triumphed in a contest for one of the nation’s premier apartment landlords. The deal was led by Mark Walsh, then Lehman’s head of real estate and considered one of the smartest investors on Wall Street, fond of complex transactions that yielded big profits.

But it meant taking on huge amounts of debt as the housing boom was showing signs of deflating, leaving Lehman significantly weakened as the market turmoil was escalating in 2008. Lehman filed for bankruptcy on Sept. 15 of that year.

During the bankruptcy and as Lehman emerged with a liquidation plan earlier this year, Archstone was identified as an asset that could yield a significant payday for creditors. Even as the Lehman estate sold off other high-quality holdings, including the asset manager Neuberger Berman, it held onto Archstone. It also sold off about $3.6 billion worth of lower-quality assets from the Archstone business.

The stock component of the transaction announced on Monday will give make the Lehman estate the single biggest investor in Equity Residential, with a 9.8 percent stake, and in AvalonBay, with a 13.2 percent stake.

The business attracted suitors, and one of the most persistent was Equity Residential, which had long followed the path set by Mr. Zell: serial deal-making that made it one of the biggest apartment investors in the country.

Another was AvalonBay, an apartment company known for developing properties rather than buying them.

Both companies began talking to the Lehman estate as far back as the summer of 2011, though the talks were in fits and starts, according to people with direct knowledge of the process.

Among the primary concerns within the Lehman real estate team was fetching the highest possible value for Archstone. And that meant buying out the other partners in Archstone: Bank of America and Barclays.

Lehman spent about $2.88 billion to acquire their stakes earlier this year to simplify matters for any new owner.

Yet at the same time, the estate also began an initial offering process for Archstone in case the sales talks broke down. An I.P.O. would have been one of the biggest staged this year, trailing only the likes of Facebook.

In recent weeks, talks between Lehman and the real estate investors picked up steam, these people said. The partnering of Equity Residential and AvalonBay proved especially reassuring, as it reduced the risks that either company would have taken on.

So while Lehman periodically updated Archstone’s offering documents — the most recent update was filed with regulators just last week — teams worked around the clock to secure a transaction.

The Lehman team finally breathed a sigh of relief when most of the major legal paperwork was signed around 1:30 a.m. on Monday.

Under the terms of the deal, Equity Residential and AvalonBay will pay $2.685 billion in cash and about $3.8 billion in stock. That represents a roughly 17 percent premium to what Lehman had valued the company earlier this year. The two companies will also assume Archstone’s roughly $9.5 billion in debt.

Equity Residential, which is run by Mr. Zell, will own about 60 percent of Archstone’s assets and liabilities. AvalonBay will own the remainder.

In return, the Lehman estate will become the single biggest shareholder in each company, holding a 9.8 percent stake in Equity Residential and a 13.2 percent stake in AvalonBay.

“The sale of Archstone to Equity Residential and Avalon Bay is a very positive outcome for our creditors,” Owen Thomas, the chairman of Lehman’s board of directors, said in a statement.

But the Lehman real estate team’s work is not finished: the estate still owns several major properties in New York City and on the West Coast that must be sold.

Read More..