EXCLUSIVE-UPDATE 1-Icahn to run board slate for Yahoo-sources

Reuters: [2008-05-15 00:01:00]

NEW YORK, May 14 (Reuters) - Billionaire investor Carl Icahn has elected to move ahead with plans to run a dissident board slate at Yahoo Inc <YHOO.O>, sources familiar with the matter told Reuters on Wednesday.

Icahn, who has amassed a large stake in the Internet company, has lined up at least 12 potential board candidates and could announce the slate as early as Wednesday night, the sources said. The deadline for nominating a dissident slate is Thursday.

Big investors in Yahoo have publicly chastised Yahoo for failing to seal a buyout deal with Microsoft Corp <MSFT.O>, which abruptly ended talks earlier this month after balking at Yahoo's $37 per share asking price. Icahn's move would have the ultimate goal of pressing Yahoo to agree to be sold, assuming Microsoft is still willing to consummate a deal.

Ryan Jacob, portfolio manager of the Jacob Internet Fund, which holds around 150,000 Yahoo shares, said Icahn will probably prevail in his effort to win board seats.

"There's a reasonable chance that Icahn can be successful," said Jacob. "There's a lot of shareholder unhappiness right now, including ours. It's encouraging because there's the chance that they can be more successful in consummating a transaction with Microsoft."

It was unclear if Icahn plans to run a full slate of ten new directors at Yahoo, or a "short slate," for a non-control position. The details have yet to be worked out, sources said.

One industry expert said he would likely have a better chance with a short slate, since it is unlikely that investors would allow a complete takeover of the board and the attendant uncertainty that such a move would have at Yahoo.

"It's handing the company over to an entirely different team," said Bruce Goldfarb, partner in Okapi Partners, a proxy advisory firm. "While a dissident slate would obviously have a mandate to sell the company, investors just don't give up control without a premium. If Microsoft was on board, he'd have a chance."

The move on Yahoo is the latest of a number of proxy battles that Icahn has recently waged. Last month, Motorola Inc <MOT.N> settled a proxy battle with Icahn by agreeing to add two of Icahn's four nominees to its board.

Representatives of Yahoo and Microsoft declined to comment. (Reporting by Dane Hamilton and Kenneth Li; additional reporting by Robert MacMillan, Michelle Gershberg in New York; Dai Wakabayashi in Seattle; Eric Auchard in San Francisco; and Murali Anantharaman in Boston; Editing by Gary Hill) ((Reuters email: dane.hamilton@thomsonreuters.com. 646 223 6161)) Keywords: ICAHN YAHOO/

U.S. West Coast - ANS falls on gov't report

Reuters: [2008-05-15 00:01:00]

    HOUSTON, May 14 (Reuters) - Alaska North Slope crude <ASW-> 
slid more than a $1.00 on Wednesday after a U.S. government 
report said crude and distillate supplies increased last week, 
traders said. 
    ANS finished in a bid-offer spread of $124.17/$124.27 a 
barrel. 
    California crude buyers cut offers by $1.60 per barrel. 
    ANS last sold on May 2 when a 300,000-barrel cargo for July 
delivery traded at the calendar month average for the 
front-month NYMEX West Texas Intermediate contract, according 
to the buyer and seller. 
    ANS previously sold on Feb. 26 at even to WTI under the 
same terms. 
    Trade in ANS is limited as most producers either sell the 
oil under term contracts or take the crude into their own West 
Coast refining systems. 
 (Reporting by Erwin Seba; Editing by Christian Wiessner) 
 ((erwin.seba@reuters.com +1 713 210 8508; Reuters Messaging: 
erwin.seba.reuters.com@reuters.net)) 
Keywords: MARKETS CRUDE WESTCOAST 
    

RPT-POLL-Japan growth likely slowed to 0.6 pct in Jan-March

Reuters: [2008-05-15 00:00:00]

(Repeats Friday story)

*What: Japan's January-March gross domestic product data

*When: 8:50 a.m., May 16 (2350 GMT, May 15)

*Growth forecast at 0.6 percent Q/Q vs 0.9 percent Q/Q in October-December

TOKYO, May 9 (Reuters) - Japanese economic growth likely slowed to 0.6 percent in the first quarter, a Reuters poll found on Friday, and analysts said the second quarter might bring a further slide in growth as a U.S. slowdown hits exports.

A weaker first-quarter expansion, at an annualised rate of 2.5 percent, would be due to a fall in capital spending, although relatively firm consumption and exports helped to keep the world's second-largest economy running above its potential.

"We will be able to confirm with the January-March data that economic activity remained firm at least until the first quarter, although the downside risk is high for the April-June quarter," said Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute.

In January-March, corporate capital spending will likely log its first fall in three quarters, although housing investment is expected to have recovered somewhat from a slump caused by changes in building codes, which led to congestion in construction approvals last year.

"Capital investment in the manufacturing sector is likely to show a large decline in light of growing uncertainty in the outlook for the U.S. and European economies as well as falling profitability due to surging raw material costs," said Hideki Matsumura, senior economist at Japan Research Institute.

The relatively strong growth expected for Japan in the first quarter contrasts with that forecast for the United States, which has been suffering the fallout of the subprime mortgage debacle since last year.

The U.S. economy grew at an annual rate of 0.6 percent in the first quarter. Although that matched the preceding quarter and topped a forecast of 0.2 percent, many analysts say fears of a recession remain.

Shinke said Japan's exports have been stronger than expected as robust shipments of goods to emerging economies made up for lacklustre demand in the United States.

Although Japan's trade surplus in March marked the smallest year-on-year increase in three years partly due to a sharp rise in import bills as oil prices surged, exports in the financial year that ended on March 31 rose 9.9 percent, marking the sixth straight year of growth.

External demand is predicted to have boosted first-quarter growth by 0.5 percentage point, the Reuters poll of 36 analysts found.

The median forecast in the poll for GDP growth was unchanged from a smaller survey of 17 economists conducted last week. [ID:nT26424]

The analysts forecast private consumption, which accounts for more than half of economic activity, grew 0.6 percent in January-March, picking up from 0.2 percent in October-December and matching the biggest growth since the first quarter of 2007.

Many analysts said, however, that private consumption may be inflated as the data is not adjusted to account for the extra day in February in leap years.

Japan's economy grew a robust 0.9 percent, or an annualised 3.5 percent, in the October-December quarter, helped by firm exports and corporate capital investment.

Following are forecasts in percentages for preliminary GDP data for January-March, including the headline growth rate in price-adjusted real terms, private consumption and other components.

JAN-MAR GDP ANNUALISED CONSUMPTION HOUSING ---------------------------------------------------------------- Mitsubishi UFJ Sec 0.2 0.8 0.4 -0.1 UBS 0.4 1.6 0.3 0.0 Norinchukin Research 0.5 1.9 0.3 1.5 Daiwa SMBC 0.5 1.9 0.5 -3.8 Merrill Lynch 0.5 2.0 0.3 5.0 Japan Research 0.5 2.1 0.3 2.2 Mitsui Sumitomo AM 0.5 2.1 0.6 3.0 Deutsche Securities 0.5 2.1 0.5 5.6 Calyon 0.5 2.1 0.3 0.8 Mitsubishi UFJ Bank 0.5 2.1 0.7 2.2 JP Morgan 0.5 2.2 0.5 2.4 Mitsubishi Research 0.6 2.3 0.5 -0.9 Goldman Sachs 0.6 2.3 0.6 4.6 Barclays Capital 0.6 2.4 0.6 5.0 Daiwa SB Investments 0.6 2.5 0.6 -0.8 BNP Paribas 0.6 2.5 0.8 8.4 Mizuho Securities 0.6 2.5 n/a n/a

Lehman Brothers 0.6 2.5 2.4 14.8 BNP Paribas 0.6 2.5 0.8 8.4 Mitsubishi Securities 0.6 2.6 0.6 2.8 HSBC Securities 0.6 2.6 0.5 3.0 RBS 0.7 2.6 0.7 1.8 Daiwa Research 0.7 2.8 0.6 1.7 Credit Suisse 0.7 2.8 0.5 2.0 Nomura Securities 0.7 2.8 0.3 6.0 Nikko Citigroup 0.7 2.8 0.5 4.8 Informa Global Markets 0.7 2.9 0.6 5.0 ABN Amro 0.7 2.9 0.5 0.5 Dai-ichi Life Research 0.8 3.1 0.6 3.4 Shinkin Central Bank 0.8 3.1 0.5 4.6 Meiji-Yasuda 0.8 3.1 0.4 5.8 Morgan Stanley 0.8 3.2 0.6 3.9 Mizuho Research 0.8 3.3 0.7 6.4 Mitsubishi UFJ Research 0.8 3.4 0.6 0.8 NLI Research 0.9 3.8 0.6 4.4 Shinko Research 0.9 3.8 0.6 4.5 ---------------------------------------------------------------- Median 0.6 2.5 0.6 3.0 High 0.9 3.8 2.4 14.8 Low 0.2 0.8 0.3 -3.8

CAPEX EXTERNAL DEMAND* DEFLATOR --------------------------------------------------------------- Mitsubishi UFJ Sec -0.8 0.2 -1.4 UBS -0.9 0.4 -1.5 Norinchukin Research -0.8 0.5 -1.2 Daiwa SMBC -0.5 0.4 -1.5 Merrill Lynch -2.5 0.5 -2.1 Japan Research -2.2 0.7 -2.0 Mitsui Sumitomo AM -1.3 0.3 -1.2 Deutsche Securities 0.2 0.3 -0.7 Calyon 0.1 0.3 -1.2 Mitsubishi UFJ Bank -0.5 0.3 -1.4 JP Morgan -1.8 0.4 -0.5 Mitsubishi Research -1.0 0.4 -1.6 Goldman Sachs -0.8 0.4 -1.2 Barclays Capital -1.6 0.4 -0.5 Daiwa SB Investments -1.4 0.6 -1.7 BNP Paribas -2.1 0.5 -1.4 Mizuho Securities n/a n/a n/a Lehman Brothers -3.9 2.0 -1.6 BNP Paribas -2.1 0.5 -1.4 Mitsubishi UFJ Sec -1.4 0.5 -1.4 HSBC Securities -0.8 0.5 -1.4 RBS -1.5 0.4 -1.4 Daiwa Research -0.2 0.5 -1.5 Credit Suisse 0.0 0.5 -1.4 Nomura Securities -1.4 0.5 -1.2 Nikko Citigroup -1.0 0.4 -1.5 Informa Global Markets -1.1 0.4 -1.5 ABN Amro -1.2 0.5 -1.8 Dai-ichi Life Research -0.7 0.5 -1.5 Shinkin Central Bank -0.2 0.4 -1.4 Meiji-Yasuda -0.7 0.4 -1.6 Morgan Stanley -1.4 0.6 -1.5 Mizuho Research -1.0 0.4 -1.5 UFJ Research -1.5 0.6 -1.7 NLI Research 0.3 0.5 -1.6 Shinko Research -0.6 0.6 -1.5 --------------------------------------------------------------- Median -1.0 0.5 -1.5 High 0.3 2.0 -0.5 Low -3.9 0.2 -2.1

*percentage point of contribution to the overall growth rate. (Reporting by Shigeo Kodama, Akiko Takeda and Yuzo Saeki; Editing by Hugh Lawson) ((yuzo.saeki@thomsonreuters.com; +81 3 6441-1831; Reuters Messaging: yuzo.saeki.reuters.com@reuters.net)) Keywords: JAPAN ECONOMY/GDP POLL

US Republicans respond to election 'wake-up call'

Reuters: [2008-05-14 23:54:00]

By Thomas Ferraro

WASHINGTON, May 14 (Reuters) - Republican leaders in the U.S. House of Representatives, stung by a third election defeat in as many months, scrambled on Wednesday to regain the confidence of voters as well as some of their own members.

Gathered on the steps of the Capitol building, they showcased a package of largely old proposals to reach out to families, including ones to cut the rising price of gas, make health care more affordable and crack down on street gangs.

"Our members are concerned but they are ready for the message we are rolling out this week," said Roy Blunt of Missouri, the Republican whip in the House.

Democrats mocked a new Republican slogan -- "Change you deserve" -- by noting the phrase is used to market an antidepressant.

"Democrats, not drugs, is what the American people need," said Steny Hoyer of Maryland, the majority leader in the House.

With opinion polls showing voters favor Democrats on a host of issues, the party is expected to further swell its ranks in Congress in November, when Americans vote for a new president as well as all 435 seats in the House and a third of the 100-member Senate.

Last week, former House Speaker Newt Gingrich warned fellow Republicans that they must "chart a bold course of real change or they are going to suffer decisive losses" in November.

Democrats picked up another House seat on Tuesday when they won a conservative district in Mississippi previously held by Republicans.

"It was another wake-up call," House Republican leader John Boehner said. "We have to show Americans that we can ... fix the problems that they deal with every day."

Last week, in a special election to fill another vacant House seat, Democrats prevailed in a Louisiana district that Republicans had held for years.

In March, Democrats won a special election to fill the seat vacated by former House Speaker Dennis Hastert, an Illinois Republican who decided to retire early rather than serve out his two-year term in the new Democrat-controlled House.

EXPANDED MAJORITY

With the election on Tuesday of Travis Childers in Mississippi, Democrats will expand their House majority, controlling it 236 to 199.

Vice President Dick Cheney campaigned against Childers and Republican ads tried to link him to Democratic presidential front-runner Barack Obama, viewed by many Mississippians as too liberal.

Rep. Chris Van Hollen of Maryland, who heads the Democratic congressional campaign committee, said the Republican strategy failed.

"What happened in Mississippi yesterday was a day of reckoning for the failed policies of the Bush administration," Van Hollen said.

House Republicans showed some distance from President George W. Bush on Wednesday by helping Democrats pass a farm bill that the unpopular president has threatened to veto.

Hoyer opened his weekly news conference by saying: "I am pleased to be the majority leader of an ever-expanding majority."

David Wasserman, who tracks House races for the nonpartisan Cook Political Report, warned against reading too much into the three special elections won by Democrats.

"Things are so in flux," Wasserman said.

Nonetheless, he estimated Democrats will gain from five to 15 House seats in November's election. (Additional reporting by Richard Cowan and Donna Smith; Editing by John O'Callaghan) ((Reuters messaging: thomas.ferraro@reuters.com; 202 898-8391)) Keywords: USA CONGRESS/REPUBLICANS

UPDATE 2-U.S. says will speed military help to Lebanon

Reuters: [2008-05-14 23:54:00]

(Adds more details on Dempsey visit, paragraphs 8-9)

WASHINGTON, May 14 (Reuters) - The United States plans to speed assistance to Lebanon's army but has no plans to increase current military aid to respond to the latest crisis, the U.S. State Department said on Wednesday.

"I know there are a number of things in the pipeline for them and my understanding is that we will be trying to move some of those things through the pipeline in an expedited fashion," said State Department spokesman Tom Casey, who provided no further details.

"There is no new aid, or no new aid program for the Lebanese military. What we have is an ongoing program," Casey told reporters.

Since mid-2006, the United States has given Lebanon about $1.3 billion in assistance, of which State Department officials said about $400 million was military aid.

"We have an ongoing military assistance program for Lebanon and that is something that has been active over the past couple of years and has been designed to help the Lebanese military to provide security for the entirety of the country," said Casey.

"We intend to give them the kind of help they need to carry out their mission," he added.

Army Lt. Gen. Martin Dempsey, head of the U.S. military's Central Command which is responsible for the Middle East, visited Lebanon on Wednesday and met army commander Lt. Gen. Michel Sleiman and Defense Minister Elias Murr.

"The discussions focused on the continued assistance to the Lebanese Armed Forces so it can maintain peace and stability, and safeguard the Lebanese people," the U.S. embassy in Lebanon said in a statement.

Last May, the United States sent ammunition to Lebanon as its army struggled to defeat a group of heavily armed Islamist militants inside a Palestinian refugee camp. (Reporting by Sue Pleming and Andrew Gray, editing by David Alexander and Alan Elsner)

((sue.pleming@reuters.com; 202 898 8393, Reuters Messaging: sue.pleming.reuters.com@reuters.net)) Keywords: LEBANON USA/MILITARY