Judge to let Hostess liquidation proceed

Hostess Brands Inc. on Wednesday won permission from a U.S. bankruptcy judge to begin shutting down, and expressed optimism it will find new homes for many of its iconic brands, which include Twinkies, Drake's cakes and Wonder Bread.

U.S. Bankruptcy Judge Robert Drain in White Plains, New York authorized management, led by restructuring specialist Gregory Rayburn, to immediately begin efforts to wind down the 82-year-old company, a process expected to take one year.

"It appears clear to me that the debtors have taken the right course in seeking to implement the wind-down plan as promptly as possible," Drain said near the end of a four-hour hearing.

The judge authorized Hostess to begin the liquidation process one day after his last-ditch mediation effort between the Irving, Texas-based company and its striking bakers' union broke down.

Roughly 15,000 workers were expected to lose their jobs immediately, and most of the remaining 3,200 would be let go within four months.

"This is a tragedy, and we're well aware of it," Heather Lennox, a lawyer for Hostess, told the judge. "We are trying to be as sensitive as we can possibly be under the circumstances to the human cost of this."

Lennox said Hostess has received a "flood of inquiries" from potential buyers for several brands that could be sold at auction, and expects initial bidders within a few weeks.

Joshua Scherer, a partner at Perella Weinberg Partners, which is advising Hostess, said the company was in "active dialogue" over its Drake's brand with one "very interested" party that had toured a New Jersey plant on Tuesday.

He said that regional bakeries, national rivals, private equity firms and others have also expressed interest in various brands and that more than 50 nondisclosure agreements have been signed.

"These are iconic brands that people love," Scherer said.

While prospective buyers were not identified at the hearing, bankers have said rivals including Flowers Foods Inc. and Mexico's Grupo Bimbo SAB de CV were likely to be interested in some of the brands.

Representatives of neither company responded on Wednesday to requests for comment.

Scherer said Hostess could be worth $2.3 billion to $2.4 billion in a normal bankruptcy, an amount equal to its annual revenue. It also has about $900 million of secured debt and faces up to about $150 million of administrative claims.

Scherer expects a discount in this case because plants have already been closed and Hostess' value could fall further if the liquidation were dragged out.

"I've had buyers tell me, 'Josh, the longer it takes, the less value I'm going to be able to pay you,' " he said.

Hostess decided to liquidate on Nov. 16, saying it was losing about $1 million per day after the Bakery, Confectionery, Tobacco and Grain Millers Union, representing close to one-third of its workers, went on strike a week earlier.

The bakers union walked out after Drain authorized Hostess to impose pay and benefit cuts, which the International Brotherhood of Teamsters, Hostess' largest union, had accepted.

Hostess has about 33 plants, plus three it decided to close after the strike began, as well as 565 distribution centers and 570 bakery outlet stores.

Many of the 3,200 workers expected to stay on will help shut these properties and prepare them for sale. Hostess expects to need only about 200 employees by late March.

Rayburn, a former chief restructuring officer for the bankrupt phone company WorldCom Inc., said that letting 15,000 workers go now helps preserve their ability to obtain unemployment benefits.

"I need to maximize the value of the estate, but I need to do the best I can for my employees," he said.

Hostess filed for Chapter 11 protection on Jan. 11, its second bankruptcy filing in less than three years.

The case is In re: Hostess Brands Inc. et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-22052.

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Jesse Jackson Jr. resigns, acknowledges federal probe

Chicago Tribune reporter Rick Pearson discusses the resignation of Rep. Jesse Jackson Jr. (D-Ill.). (Posted on: Nov. 21, 2012.)

Rep. Jesse Jackson Jr., the ambitious political heir to a powerful Chicago family whose once promising future collapsed amid federal ethics investigations and a diagnosis of mental illness, resigned Wednesday from the South Side congressional seat he held for 17 years.

Jackson's downfall represents perhaps the last major political casualty in the long-running corruption scandal that sent former Gov. Rod Blagojevich to prison in March on charges he tried to sell the Senate seat of President Barack Obama.

Jackson's political star was on the rise until allegations surfaced in late 2008 that his supporters offered to raise as much as $6 million for Blagojevich in return for the governor appointing him to the Senate seat vacated by the president-elect. Though Jackson was never charged in that case, a House ethics panel investigation into his actions was ultimately eclipsed by a federal criminal probe based in Washington, D.C., into alleged misuse of campaign dollars.

Jackson's resignation letter to House Speaker John Boehner, R-Ohio, was Jackson's first acknowledgment of the ongoing federal corruption investigation.

"I am doing my best to address the situation responsibly, cooperate with the investigators, and accept responsibility for my mistakes, for they are my mistakes and mine alone," Jackson said in the two-page letter. "None of us is immune from our share of shortcomings or human frailties, and I pray that I will be remembered for what I did right."

Jackson's Washington legal team, which recently added former federal prosecutor Dan Webb, a Chicago partner at Winston & Strawn LLP, indicated that while Jackson's political fate has been settled, there's more to come in a court of law.

"We hope to negotiate a fair resolution of the matter but the process could take several months," they said in the statement.

Despite admitting "my share of mistakes," Jackson said his deteriorating health — and treatment for bipolar depression — kept him from serving as a "full-time legislator" and was the reason for his resignation.

Jackson's decision to step down came little more than two weeks after his re-election to another two-year term despite a lack of campaigning. He disappeared from the public eye in June after taking a medical leave from the House for what aides had initially described as exhaustion.

Jackson formed a political tag-team with his wife, Ald. Sandi Jackson, 7th, who over the years has received hundreds of thousands of dollars as a paid political consultant to her husband. Despite her role on the City Council, the couple maintained an upscale home in Washington and sent their children to school there. Sandi Jackson has refused to discuss her husband's political future or the investigation into his campaign spending. She could not immediately be reached for comment Wednesday.

Jackson's resignation immediately launched a field of possible successors —to be nominated and elected in special elections early next year — that could involve more than a dozen Democratic contenders, some of them political has-beens and others up-and-comers representing a new generation of leadership.

Under state law, Gov. Pat Quinn has five days to set dates for primary and general elections, which must be held by mid-March.

Some Democrats quickly offered to broker a nominee to avoid several African-American contenders splitting the vote in the heavily Democratic and majority black 2nd Congressional District, which could allow a white candidate to win. The district stretches from the South Side through the suburbs and as far as Kankakee.

Jackson's decision to leave office brought to an end a monthslong, consuming political game over the 47-year-old congressman's ability to serve his constituents.

In the congressman's public absence during the re-election campaign, both his father, civil rights leader the Rev. Jesse Jackson Sr., and Sandi Jackson sought to maintain the family's political power by offering generic statements about his health, thanking voters for their prayers and promising a return to Congress when his health permitted.

Ald. Carrie Austin, 34th, whose far South Side ward is in Jackson's district, said she wasn't surprised Jackson stepped down but was disappointed with him for misleading his constituents.

"He's lost the love and concern of the residents in his district," Austin said. "We gave him the benefit of the doubt because of his sickness, and it didn't have anything to do with that."

Jackson was first elected to Congress in 1995 in a special election to replace former Rep. Mel Reynolds, who was convicted on charges including sexual misconduct with a 16-year-old campaign aide and federal bank fraud.

In Washington, Jackson steadily moved up the ladder in a legislative chamber where seniority is a valued commodity to become Illinois' lone representative on the powerful House Appropriations Committee.

At home, he began building a local political organization in the South Side and south suburbs, an operation which successful supplanted the once powerful Shaw brothers, twins Bill and Bob, who held various posts.

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In HP-Autonomy debacle, many advisers but little good advice

(Reuters) - When Hewlett Packard acquired Autonomy last year for $11.1 billion, some 15 different financial, legal and accounting firms were involved in the transaction -- and none raised a flag about what HP said Tuesday was a major accounting fraud.

HP stunned Wall Street with the allegations about its British software unit and took an $8.8 billion writedown, the latest in a string of reversals for the storied company.

HP Chief Executive Meg Whitman, who was a director at the company at the time of the deal, said the board had relied on accounting firm Deloitte for vetting Autonomy's financials and that KPMG was subsequently hired to audit Deloitte.

HP had many other advisers as well: boutique investment bank Perella Weinberg Partners to serve as its lead adviser, along with Barclays. Banking advisers on both sides of the deal were paid $68.8 million, according to data from Thomson Reuters/Freeman Consulting.

Barclays pocketed the biggest banker fee of the transaction at $18.1 million and Perella was paid $12 million. The company's legal advisers included Gibson, Dunn & Crutcher; Freshfields Bruckhaus Deringer; Drinker Biddle & Reath; and Skadden, Arps, Slate, Meagher & Flom, which advised the board.

On Autonomy's side of the table were Frank Quattrone's Qatalyst Partners, which specializes in tech deals and which picked up $11.6 million.

UBS, Goldman Sachs, Citigroup, JPMorgan Chase and Bank of America were also advising Autonomy and were paid $5.4 million each. Slaughter & May and Morgan Lewis served as the company's legal advisers.

While regulators in the United States and the United Kingdom, as well as the Federal Bureau of Investigation, are likely to spend many months if not years investigating what happened, legal experts said on Tuesday that it wasn't clear if any of the advisers would ultimately be held liable.

"The most logical deep pocket would be the acquired firm's auditors, who should have allegedly caught these defalcations," said James Cox, a professor at Duke University law school who specializes in corporate and securities law. Since both auditors missed the problems and it appeared to have taken HP a while to catch it after it took over Autonomy, the auditors may have a strong defense.

"You can have a perfectly sound audit and still have fraud exist," he said. A Deloitte UK spokesman said the company could not comment and would cooperate with any investigations.

The law firms and the bankers will likely argue that they were not hired to review the bookkeeping and had relied on the opinion of the auditors, securities law experts said.

Multiple sources with knowledge of the HP-Autonomy transaction added that the big-name banks on Autonomy's side were brought in days before the final agreement was struck. These sources said the banks were brought on as favors for their long relationships with the companies, in a little-scrutinized Wall Street practice of crediting -- and paying -- investment banks that actually have little do with the deal.

LAWSUITS, REPUTATIONS AT STAKE

Plaintiffs lawyers said they were taking calls from investors about HP on Tuesday. Darren Robbins, a San Diego-based plaintiff lawyer who represents shareholders, said the tech icon appears to have spent billions on a shoddy company without undertaking the proper due diligence, and thus misrepresented its finances to investors.

"I think they have serious troubles," he said.

But plaintiff lawyers may have difficulty bringing so-called derivative lawsuits against professional services firms, said Brian Quinn, an M&A professor at Boston College Law School. In those cases, plaintiff lawyers can sue third parties, such as auditors, on behalf of HP -- but they must convince a judge that HP's board is unfit to pursue those claims itself. In this situation, though, HP's board disclosed the alleged fraud itself, Quinn said.

Even if the bankers and lawyers escape any legal problems, they could suffer a reputational hit. The scrutiny could be particularly unwelcome for Perella Weinberg: the firm advised Japanese camera maker Olympus' acquisition of British Gyrus -- a transaction that prompted investigations in the United States, United Kingdom and Japan into fees and payments made by Olympus.

Olympus had hired Perella to execute the transaction, which included a fee paid to "advisers" of $687 million - way beyond the usual scale for a transaction valued at only $2 billion. Perella was not implicated in the matter.

Meanwhile, the most controversial banker involved in the HP-Autonomy deal, Frank Quattrone of Qatalyst, represented Autonomy and played a key role in getting HP to pay a high price.

A star investment banker in the 1990s, Quattrone had worked at Morgan Stanley, Deutsche Bank and Credit Suisse, and helped arrange some of the biggest tech initial public offerings of the era, including Amazon.com Inc and Cisco Systems Inc.

But his time at the top of Silicon Valley was curtailed by charges that he blocked an investigation into IPO kickbacks. After two trials failed to resolve his case, he ultimately reached a deal with prosecutors.

His return to the Silicon Valley M&A scene has impressed many in the tech world.

"His reputation is at an all-time high right now," said Dan Scheinman, the former head of mergers and acquisitions at Cisco who has worked with Quattrone on several deals.

Analysts almost uniformly deemed the $11.1 billion he got HP to pay for Autonomy as overly rich -- a compliment to him at the time, but possibly a hollow success if HP's allegations prove true.

(Reporting By Nadia Damouni and Nicola Leske in New York and Andrew Callus in London. Additional reporting by Dan Levine in San Francisco.; Editing by Peter Lauria, Jonathan Weber, Muralikumar Anantharaman, Janet McBride)

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Thunder edge Clippers 117-111 in overtime

OKLAHOMA CITY (AP) — Kevin Durant scored 35 points, Russell Westbrook added 23 and Oklahoma City's All-Star tandem scored all of the Thunder's points in overtime in a 117-111 victory over the Los Angeles Clippers on Wednesday night.

The Clippers, who came in tied for the best record in the Western Conference, had a six-game winning streak snapped.

Westbrook connected on a 3-pointer from the left wing to open the scoring in overtime, and Durant rattled one in from about the same spot two possessions later for a 108-104 advantage.

Westbrook then answered DeAndre Jordan's three-point play with a baseline jumper, and Oklahoma City was able to close it out from the foul line.

Blake Griffin led Los Angeles with 23 points and Jamal Crawford scored 20 in the meeting of Western Conference division leaders. Clippers starting forward Caron Butler missed the game with a strained right shoulder.

After trailing for the previous 44 minutes, the Clippers finally pulled even at 102 when Matt Barnes drove for a layup with 36 seconds left in regulation. Griffin denied Durant the ball on the Thunder's ensuing possession, and Westbrook came up empty on a drive to the basket.

Chris Paul then dribbled out the rest of the clock before missing a turnaround jumper from the left elbow as the horn sounded.

Los Angeles was never able to pull ahead, failing in its bid to win at least seven games in a row for only the sixth time in franchise history.

Kevin Martin scored 20 points and Serge Ibaka chipped in 15 points and 12 rebounds for Oklahoma City before fouling out in overtime. Hasheem Thabeet also matched his career high with 10 points off the bench.

Barnes had 19 points for the Clippers. Paul was limited to nine points on 2-for-14 shooting, and he also had nine assists. Los Angeles had been tied with Memphis for the West's best record at the start of the day but dropped behind Oklahoma City and San Antonio with the loss.

The Clippers, who won three out of four against Oklahoma City in a sometimes testy series last season, haven't had a winning streak of seven games or longer since 1991.

The meetings last season included Griffin's memorable throwdown over Kendrick Perkins in a Clippers win and Perkins' retaliation with a hard foul to Griffin's face as Oklahoma City won the rematch. Barnes had a couple scuffles with Ibaka and Perkins but nothing quite as noteworthy.

The Thunder pushed ahead with a string of eight straight made baskets in the first quarter, and the lead stretched to 26-16 after Westbrook's extra effort turned a potential turnover into a three-point play for Thabeet. After Paul knocked the ball away from him, Westbrook sprawled on the floor and tapped the ball toward Martin, who picked up the rolling ball and swung it to Nick Collison, who passed it on to Thabeet for a layup.

Oklahoma City's lead was 59-49 at halftime after Ibaka banked in a 3-pointer at the buzzer.

The Clippers finally got back within striking distance early in the fourth, withThunder coach Scott Brooks yelling to Durant to get off the bench with Los Angeles back within 78-75.

With Durant back in, Oklahoma City responded with the next six points to stabilize momentarily.

Durant was merely a bystander as Eric Maynor set up Thabeet for a two-handed slam and then Collison for a floater along the left side of the lane, but he then came up with a steal and launched an outlet pass to set up Martin's fast-break layup with 9:10 left that drew a timeout from Clippers coach Vinny Del Negro.

The Clippers then scored the next seven points to get back within 84-82 on a putback by Barnes.

Notes: Los Angeles has held eight straight opponents below 46 percent shooting. The Thunder were just shy at 45.6 percent. ... Crawford made all four of his free throws, stretching his streak of consecutive makes to 29. He made 37 in a row in April. ... Jordan, one of the NBA's worst foul shooters at 42 percent, got Oklahoma City to stop hacking him intentionally in the fourth quarter by making three of four.

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Chevy Chase is leaving NBC's sitcom 'Community'

LOS ANGELES (AP) — The NBC series "Community" will finish the season without Chevy Chase.

Sony Pictures Television said Wednesday that the actor is leaving the sitcom by mutual agreement with producers.

His immediate departure means he won't be included in the last episode or two of the show's 13-episode season, which is still in production.

Chase had a rocky tenure playing a bored and wealthy man who enrolls in community college. The actor publicly expressed unhappiness at working on a sitcom and feuded last year with the show's creator and former executive producer, Dan Harmon.

The fourth-season premiere of "Community" is Feb. 7, when it makes a delayed return to the 8 p.m. EST Thursday time slot. The show's ensemble cast includes Joel McHale and Donald Glover.

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Judge rejects 9/11 suit against United

United Airline employees help passengers at the check-in counter in Terminal 1 at Chicago O'Hare International Airport. (Stacey Wescott, Chicago Tribune / November 15, 2012)

Reuters

9:48 a.m. CST, November 21, 2012

United Airlines bears no responsibility for suspected security lapses at a Maine airport that allowed hijackers onto the American Airlines plane that crashed into one of the World Trade Center towers on Sept. 11, 2001, a federal judge ruled.

U.S. District Judge Alvin Hellerstein on Wednesday granted a request by United and its parent United Continental Holdings Inc. to dismiss negligence claims brought by Larry Silverstein, the leaseholder of the World Trade Center property.

The decision concerned the destruction of 7 World Trade Center, the North Tower that collapsed hours after being pierced by debris stemming from the crash of AMR Corp.'s American Airlines Flight 11 into 1 World Trade Center.

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Warrants issued, no arrests in Indianapolis explosion

Indianapolis investigators have opened a criminal homicide probe into the explosion that killed two people and damaged or destroyed dozens of homes earlier this month. (Nov. 20)

Investigators said Tuesday that no arrests have been made in connection with an Indianapolis house explosion that killed two people and destroyed at least five homes, but that authorities were still serving search warrants and questioning people.

Prosecutor Terry Curry told The Indianapolis Star on Tuesday that search warrants had been executed and people were questioned, but he declined to discuss who was questioned or where the warrants had been served.

Curry spokeswoman Brienne Delaney told The Associated Press on Tuesday evening that no arrests had been made.

“It's still a fluid situation,” she said. It isn't clear how many people have been questioned.

The investigation into the Nov. 10 explosion is believed to be focusing on a house occupied by Monserrate Shirley and her boyfriend, Mark Leonard. The couple and Shirley's 12-year-old daughter were away at the time of the explosion, but the young couple next door died when their house was destroyed.

Indianapolis Homeland Security Director Gary Coons said in a statement released Tuesday night that investigators were still at work at the blast-damaged neighborhood on Indianapolis' south side.

“The investigation is still ongoing and we are still processing the scene. No arrests have been made at this time,” his statement said.

Attorney Randall Cable said earlier Tuesday that Shirley and Leonard had been cooperating with investigators and were “bewildered” by Curry's announcement Monday that the investigation was considered a criminal homicide.

City arson investigators and the Bureau of Alcohol, Tobacco, Firearms and Explosives concluded the blast was not an accident, Curry told the AP earlier Tuesday. The case is classified as a criminal homicide investigation because of the deaths of Jennifer and John Longworth.

Curry declined to discuss details of the investigation or the search warrants, which he said would remain sealed until — or if — any criminal charges are filed.

Officials have said they believe natural gas was involved in the explosion and that they are focusing on appliances as the cause. The explosion caused an estimated $4.4 million in damage.

Curry said investigators had considered homicide a possibility all along, but it wasn't until police and the ATF ruled out an accidental cause that it became a criminal probe.

He declined to say whether investigators had any suspects or if there was any physical evidence or possible motive that the blast had been deliberately set.

“In terms of any intent, I can't speak to that,” Curry said.

Cable said in a statement that Shirley and Leonard have “cooperated fully” with investigators and that they want the cause “of this horrific and saddening tragedy to be determined.”

Fire Capt. Rita Burris said Tuesday that about 15 heavily damaged homes are “on hold,” meaning that residents have limited access because of the investigation.

Once the on-scene work is complete, she said inspectors will have to determine if those homes are safe enough to enter or if they must be demolished.

“That's a two-fold, two-layer thing that these homeowners are going to have to deal with,” Burris said.

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Microsoft vs. Google trial over patents finishes up

SEATTLE (Reuters) - A Google expert witness testified on Tuesday that Microsoft will make roughly $94 billion in revenue through 2017 from its Xbox game console and Surface tablet that use Google's patented wireless technology.

Michael Dansky, an expert for Google's Motorola Mobility unit, testified on the last day of a high stakes trial over patents between Microsoft and Google in Seattle. The $94 billion figure he cited also includes a wireless adapter that Microsoft no longer sells. It was not clear how far back he was counting past revenues.

Microsoft declined comment on the figure.

The week-long trial in a Seattle federal court examined how much of a royalty Microsoft Corp should pay Google Inc for a license to some of Motorola's patents. Google bought Motorola earlier this year for $12.5 billion, partly for its library of communications patents.

Motorola had sought up to $4 billion a year for its wireless and video patents, while Microsoft argues its rival deserves just over $1 million a year.

If U.S. District Judge James Robart decides Google deserves only a small royalty, then its Motorola patents would be a weaker bargaining chip for Google to negotiate licensing deals with rivals.

The rapid rise of smartphones has sparked an explosion of litigation between major players disputing ownership of the underlying technology and the design of handsets.

Apple Inc and Microsoft have been litigating in courts around the world against Google and partners like Samsung Electronics Co Ltd, which use the Android operating system on their mobile devices.

Apple contends that Android is basically a copy of its iOS smartphone software, and Microsoft holds patents that it contends cover a number of Android features.

In return, Motorola and some other Android hardware makers launched countering legal action.

Before trial, Robart said testimony about patent license agreements between Microsoft, Motorola and other tech companies could be disclosed to the public, along with other sensitive financial information.

However, the judge reversed himself this week and said he was bound by appellate precedent to keep that information secret. On Tuesday he cleared the courtroom and heard two hours of testimony in secret.

During the open session, Dansky said Motorola's video patents are crucial to Microsoft and other tech companies, and deserve a high royalty.

"You will have a difficult time selling smart phones or tablets," Dansky said, without Motorola's technology.

Robart is not expected to release a ruling for several weeks as both companies must file further legal briefs.

The case in U.S. District Court, Western District of Washington is Microsoft Corp. vs. Motorola Inc., 10-cv-1823.

(Reporting by Lisa Dembiczak; Writing by Dan Levine; Editing by Richard Pullin)

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Jack Taylor scores 138 points for Grinnell

GRINNELL, Iowa (AP) — Jack Taylor scored 138 points to shatter the NCAA scoring record in Division III Grinnell's 179-104 victory over Faith Baptist Bible on Tuesday night.

Taylor made 27 of 71 3-point attempts, was 52 of 108 overall from the field and added seven free throws on 10 attempts in 36 minutes.

"It felt like anything I tossed up was going in," said Taylor, a 5-foot-10 sophomore guard from Black River Falls, Wis.

Rio Grande's Bevo Francis held the NCAA scoring record with 113 points against Hillsdale in 1954. In 1953, Francis had 116 against Ashland Junior College. Frank Selvy is the only other player to reach triple figures, scoring 100 points for Division I Furman against Newberry in 1954.

The previous Grinnell record was 89 by Griffin Lentsch last Nov. 19 against Principia.

Taylor averaged 23.5 points in Grinnell's first two games this season.

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“Life of Pi” and “Rise of Guardians” Debut, but It’s Still “Twilight” Time at Box Office

LOS ANGELES (TheWrap.com) – Ang Lee‘s lyrical epic “Life of Pi,” the computer-animated 3D holiday tale “Rise of the Guardians” and the “Red Dawn” reboot all debut in theaters Wednesday, as the holiday movie season kicks into high gear.

But the current No. 1, “Twilight: Breaking Dawn 2,” will almost surely out-earn the newcomers and dominate the Thanksgiving weekend box office, with a second week that analysts are projecting will hit $ 65 million over the five days. DreamWorks Animation‘s “Rise of the Guardians” will wind up with around $ 55 million and run second, they say.

Add in sturdy holdovers like Sony’s record-breaking James Bond movie “Skyfall” and Disney’s animated “Wreck-It Ralph,” along with expanding awards hopefuls “Lincoln” and “Silver Linings Playbook,” and it shapes up as a very busy weekend at the cineplexes.

Summit Entertainment’s “Breaking Dawn 2″ remains in 4,070 theaters after rolling up $ 141 million in its U.S. debut last weekend.

That was the year’s fourth best opening – behind “The Avengers,” “Dark Knight Rises” and “The Hunger Games” – but fell short of the franchise-best $ 142.8 million set by “New Moon” in 2009. “Breaking Dawn” is expected to play more strongly abroad than domestically, and the first-week numbers reflect that: It took in nearly $ 200 million in its first week of release overseas.

“In the U.S., it didn’t get that finale bump that the last Harry Potter movie did, which was surprising,” Exhibitor Relations senior analyst Jeff Bock told TheWrap, “Its fan base was committed, but Summit couldn’t expand it beyond that.”

“Harry Potter and the Deathly Hallows, Part 2″ opened to $ 169 million in 2011, well ahead of “Deathly Hallows 2,” which opened to $ 125 million the previous year.

“Skyfall,” which took in $ 41 million in its second week as it became the top-grossing Bond film of all time, is looking at a five-day total of around $ 39 million, the analysts say. Its worldwide gross now stands at $ 672 million, $ 507 million of which has come from overseas.

Buoyed by surprisingly strong results, Disney is expanding “Lincoln” into roughly 2,000 theaters, up from 1,775, on Friday. The DreamWorks Oscar contender was a surprise No. 3 finisher with $ 21 million last weekend, well above analysts’ and the studio’s projections. It’s projected to finish with $ 24 million over the long weekend.

Among the newcomers, Oscar contender “The Life of Pi” is the most difficult to peg in terms of box-office potential.

It’s hard to imagine a tale tougher to bring to the screen than Yann Martel’s 2001 saga of an Indian youth lost at sea with a ravenous Bengal tiger aboard his small lifeboat and their ensuing adventures. But Lee brought martial arts (“Crouching Tiger, Hidden Dragon”) and gay cowboys (“Brokeback Mountain”) into the movie mainstream, and he’s employed the highest-tech digital tools to bring David Magee’s adaptation to life in 3D.

Indian Suraj Sharma, who was 17 and had no acting experience when he shot “Pi,” plays the lead and spends a good bit of the film alone in a boat with the tiger.

The critics love it (92 percent positive on Rotten Tomatoes), calling it gorgeous, innovative and a provocative and soulful examination of faith. Those are admirable qualities in a film, but hardly requisites for – or a guarantee of – box office success.

Fox has the PG-rated “Pi” in 2,700 theaters and it will have the advantage of premium pricing going for it. Analysts see it opening with about $ 25 million over the five days, and feel its long-term playability will hinge on word-of-mouth and awards buzz.

In terms of the box office, the most comparable film could be last year’s Martin Scorsese-directed 3D family adventure “Hugo.” Paramount opened that film around the same time last year to $ 11 million, and it went on to make $ 73 million, $ 185 million worldwide.

With its international cast and exotic settings, “Pi” is another example of a film expected to perform far better internationally than in the U.S. Fox is rolling it out in Taiwan Tuesday, China Wednesday and Hong Kong, India and Puerto Rico this weekend. With Lee’s following in China and young star Sharma expected to draw crowds in India, those two markets should give it fast start overseas.

“Pi” was produced for $ 120 million by Lee, Fox 2000 and special effects firm Rhythm and Hues.

Distributor Paramount is rolling out DreamWorks Animation‘s computer animated family film “Rise of the Guardians” on 3,500 3D screens.

The holiday rollout is a natural for the PG-rated “Rise of the Guardians,” which has a star-studded voice cast, and is executive produced by Guillermo Del Toro and produced by Gary Goetzman.

Based on the William Joyce’s “Guardians of Childhood” series, it tells the tale of Jack Frost (Chris Pine), who gets help from Santa Claus (Alec Baldwin), the Tooth Fairy (Isla Fisher) and the Easter Bunny (Hugh Jackman) after the evil Pitch (Jude Law) threatens the children of the world.

Awareness of the film is strong, and the critics think it’s pretty good. Seventy percent of the reviews on Rotten Tomatoes are positive, 67 percent at Movie Review Intelligence. DreamWorks Animation has been on a hot streak, and this its first release since “Madagascar 3: Europe’s Most Wanted,” which has made over $ 735 million worldwide this year.

“Red Dawn” is a remake of the 1984 John Millius war film that helped launch the careers of young stars Patrick Swayze, Lea Thompson, Jennifer Grey and Charlie Sheen. Released at the peak of the Cold War, its populist and patriotic themes resonated strongly. In that film, Swayze’s character leads a group of teens who turn guerrilla fighters to resist Soviet and Cuban invaders who are occupying their state.

Shot in 2009, the “Red Dawn” reboot was to have been released in 2010, but was delayed by the financial troubles of the studio behind it, MGM.

Since then, the careers of several of the film’s stars have taken off. Since shooting “Red Dawn,” Chris Hemsworth has starred in “Thor,” “The Avengers” and “Snow White and the Huntsman,” while Josh Peck was featured in “The Hunger Games.” Josh Hutcherson, Adrianne Palicki, Isabel Lucas and Jeffrey Dean Morgan co-star.

This “Red Dawn” plays more like an action film and is less jingoistic than the original, and FilmDistrict has marketed that way. In addition to targeting fan boys at the Fantastic Fest in Austin, Texas, and college campuses, “Red Dawn” has been show at more than 100 military bases. The cast did a special screening at Port Hueneme Naval Base in Oxnard, Calif.

Speaking of militaries, while the film was on the shelf: the filmmakers digitally turned the invaders from Chinese into North Koreans after angry denunciations of the portrayals from the Beijing press. The switch shouldn’t hurt at the Chinese box office, either.

FilmDistrict is opening the PG-13-rated “Red Dawn” in 2,600 theaters. The original made the equivalent of $ 90 million when adjusted to today’s ticket prices, while this reboot will be fortunate to make half that amount. A five-day total of around $ 15 million is what the analysts are projecting for the opening.

Fox Searchlight is rolling out “Hitchcock,” starring Anthony Hopkins as the late director Alfred Hitchcock, in 17 theaters on Friday.

Directed by Sacha Gervasi, with a screenplay from John G. McLaughlin, the film explores the relationship between Hitchcock and his wife and partner Alma Reville (Helen Mirren) while they were working on “Psycho,” one of his most successful films.

Scarlett Johansson, Danny Huston, Jessica Biel, Toni Collette, Michael Wincott, and James D’Arcy co-star in the Montecito Picture Company production.

“Hitchcock” premiered at the AFI Film Festival and has been well-received by the critics. It has a 76 percent positive rating on Rotten Tomatoes.

Fox Searchlight plans to expand the film gradually over the next three weeks, ahead of its national release on December 14, when it will be on between 500 and 600 theaters.

The Weinstein Company is expanding its Oscar hopeful “Silver Linings Playbook” into 420 theaters. The dark romantic comedy is directed by David O. Russell and stars Jennifer Lawrence, Bradley Cooper and Robert De Niro.

“Silver Linings Playbook” averaged $ 28,652 on 16 screens in its debut and was to have expanded into 2,000 theaters on Wednesday. But the Weinstein Co. shifted gears last week and decided on a more gradual platform release in hopes of building awards buzz. The Weinstein Co. knows Oscar campaigns; they were behind the last two Best Picture winners, “The King’s Speech” and “The Artist.”

Movies News Headlines – Yahoo! News

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