Hostess, unions agree to mediation

Hostess Brands Inc agreed in court on Monday to enter private mediation with its lenders and leaders of a striking union to try to avert the liquidation of the maker of Twinkies snack cakes and Wonder Bread.

Hostess, its lenders and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union agreed to mediation at the urging of Bankruptcy Judge Robert Drain of the Southern District of New York, who advised against a more expensive, public hearing regarding the company's liquidation.

"My desire to do this is prompted primarily by the potential loss of over 18,000 jobs as well as my belief that there is a possibility to resolve this matter," Drain said.

The 82-year-old Hostess was seeking permission to liquidate its business, claiming that its operations have been crippled by a bakers strike and that winding down is the best way to preserve its dwindling cash. Hostess suspended operations at all of its 33 plants across the United States last week as it moved to start selling assets.

Heather Lennox, a lawyer for Hostess, said it would be hard for Hostess to recover from the damage it sustained due to the strike even if an agreement was forthcoming. Yet following the hearing, Hostess Chief Executive Officer Gregory Rayburn told reporters that there was always a chance Hostess could be saved.

"I think we have to see what unfolds," Rayburn said. "My impression is that the judge wants to understand the parties' positions and some of their logic, but it doesn't change our financial position.

"I'm happy to have the help," he added, referring to Drain's mediation following a breakdown of communication between Hostess and the union. "Maybe the judge will help. But can I handicap how it's going to go? No way."

A lawyer for Hostess' creditors' committee declined to comment.

The court-sanctioned mediation could make both sides more willing to give, said Nick Kalm, a communications consultant specializing in labor relations.

"It makes it much more likely that the company will put forward something that is less draconian... and the union will take it. The union realizes they are out of options," said Kalm.

BEHIND CLOSED DOORS

The BCTGM called the strike on November 9 after Hostess sought and won court approval to impose wage and benefit cuts.

Unlike other unions representing workers at Hostess, the BCTGM did not contest Hostess's action -- which allowed it to reject a collective bargaining agreement and impose its offer.

Given the fact that the union did not fight Hostess's motion in court, Judge Drain said it was "somewhat unusual to say the least, and perhaps illogical" that the union would then strike against it.

"Its an odd approach," Drain said. "Before thousands of people are put out of work it would seem to me worthwhile for both the union and the debtors to explore why that happened."

Drain also questioned whether the union had held discussions with competitors or potential suitors about a shiftover of jobs, saying the union's response to Monday's motion implied that it sees "meaningful sales available out there beyond the piecemeal sales that this motion contemplates."

A lawyer for the union did not immediately return a phone call seeking comment on whether such discussions had taken place.

BUYERS MAY EMERGE

Analysts have said Hostess' brands, which also include Nature's Pride, Dolly Madison and Drakes, are expected to draw interest from rivals including Flowers Foods, Pepperidge Farm owner Campbell Soup Co and Mexico's Grupo Bimbo.

Brian Boyle, a food industry investment banker at D.A. Davidson & Co, said it was hard to gauge the value of the Hostess assets, given that there are a lot of plants that are old and inefficient.

"The other wild card is whether you're going to see different buyers emerge for different segments of the business. So Flowers Foods, for instance, might want the cake segment and Bimbo could want the bread piece. So it comes down to 'are the parts greater than the whole?'," Boyle said. "In either case, significant labor and benefits concessions will be required."

Private equity firm Metropolous & Co said on Friday it was interested in pursuing the company, and on Monday, Fortune reported that Sun Capital Partners was interested. Sun Capital did not return a call seeking comment.

The company did have a potential white knight at one point, according to Hostess. Last spring, an outside equity investor had made a viable proposal that would help the company reorganize, it said, but the Teamsters union refused to agree to changes to the pension program and the outside investor walked away.

The company spent the summer and fall negotiating with all of the 12 unions trying to find a common path to reorganization, and did gain certain agreements with the Teamsters and many of the other unions, though not the BCTGM. At the same time the company started putting together a liquidation plan.

Read More..

Father, daughter killed in Wisconsin plane crash

An Antioch man and his teenage daughter have been identified as the victims killed in a small plane crash in southern Wisconsin Sunday.

An Antioch man and his 14-year-old daughter were killed when their plane crashed as it approached a small airport just north of the Wisconsin-Illinois border, according to police and relatives.

The victims were identified by the family as Todd Parfitt, who just turned 50, and Nicole Parfitt, 14.

A single-engine Grumman plane registered to Parfitt crashed about 1:25 p.m. Sunday as it approached the airport in Burlington, Wis., about 20 miles north of the state line, officials said. Both victims were thrown from the plane, they said.

“The preliminary information is that it crashed while attempting to land,” said Lynn Lunsford, a spokesman for the Federal Aviation Administration.

Lunsford said the Burlington airport has no control tower, and the pilot was not in contact with air traffic controllers when the plane went down in a cornfield.

Investigators from the National Transportation Safety Board were at the airport today, according to Burlington Municipal Airport officials. The plane wreckage will be taken into a hanger so investigators can inspect it, an official said.

James McKay, superintendent of Community High School District 117, said Nicole was a ninth-grader at Antioch High School.

“She was a very active student. She was a member of the dance team. Many, many kids know her in other ways.”

Counselors are at the school today helping students grieve and cope with the news, he said.

A Facebook page was created Sunday in honor of Nicole.

"They may have not made it to the runway that they intended, but they did land safely in heaven," one message reads.

Bailey Walker, who called herself a best friend of Nicole, said in a post: "Nicole, I love you so much. I will never forget all of our inside jokes and all of the times you made me laugh. How much I loved hanging out with you and just talking to you when I was upset made me feel so much better. You just knew how to cheer people up and you were always such an amazing person."

chicagobreaking@tribune.com

Twitter: @ChicagoBreaking

Read More..

Metal singer Aaron Lewis finds second home in country music

NASHVILLE, Tennessee (Reuters) – Aaron Lewis stands as one of the more unusual crossovers into country music, but the singer of the metal band Staind believes it was a fit made in the cradle.

“It’s been quite the pleasant eclectic mix of tattoos and black eyeliner, and Stetsons, cowboy boots and big shiny buckles,” Lewis said in an interview after the release of his first full-length country studio album, “The Road,” this week.

Lewis, 40, was raised on what he terms his grandfather’s country music: Johnny Cash, Waylon Jennings, Charlie Daniels and George Jones. He collaborated with Daniels and Jones on his country EP, “Town Line,” released last year.

This made the transition from the angst-ridden world of metal to the laid-back country scene an easy step for him, but perhaps not so much for his head-banging fans.

“A few fans are really having a hard time with it,” Lewis said. “I can’t make everyone happy. Music is about making me happy first. For those who wish I would stick with Staind, they’ll get what they want, too.”

Lewis, who sold seven studio albums over a 17-year career with Staind, says he has two musical careers because he is “creatively bipolar” and suffers from attention deficit disorder.

“I need to switch it up a little bit,” he said. “It’s kind of nice to write a song about taking my daughters to the beach instead (of) about something that’s tearing me apart from the inside.”

For Lewis, each song on “The Road” is the opportunity to explore his creativity in music, while winding down a road filled with new country listeners and taking Staind fans along for the ride.

“The Road” includes “Forever,” a thoughtful song of life on the road, and “Endless Summer,” a simple track about digging up clams and casting for striped bass with his daughters.

“If we catch a keeper we throw it on the grill,” he says. “The beauty of the adventure that I’m on now is I can write songs about stuff like that. I could never bring a song like that to the table for Staind.”

He describes writing “Endless Summer” as a “refreshing and a nice change” from his metal past.

“I remember having a big smile on my face the whole time I was writing it,” he said. “In the past, what’s usually coming up for lyrics is not smiley material. The song wrote itself in 10 minutes.”

In contrast, “Party in Hell,” which has fans up and dancing, was the last song Lewis wrote for the album and was inspired by a stint in Las Vegas.

“Las Vegas really is, in a metaphorical sense, a party in hell; you can get into anything you want to,” he said. “It was like well, ‘OK, I’m going to hell, who else is going to be there? We might as well have a party with it.’”

SAME PROCESS

His previous country EP, “Town Line,” featured the gold-selling single “Country Boy,” a collaboration with Daniels and Jones that hit the top of the “Billboard” album charts and topped off at No. 7 on the Top 200.

“That’s crazy, right?” Lewis asks, shaking his head. “It was pretty amazing for me, pretty surreal. I was actually in the studio with Charlie, which was a lot of fun. We have become good friends.”

The writing process for country or rock is the same, according to Lewis.

“The music is always first, then the melody, and the lyrics third,” he said. “I need the music to know what the landscape is that I’m singing over, and I need the melody to fit the words in, and then the words come last.”

But the lyrics do not come while he is writing on a piece of paper. “They come with me standing in front of a microphone with the song playing in the background and singing,” he said. “It’s total improv, right off the cuff.”

As with recording, Lewis does not approach a rock performance differently from a country performance.

“I go out on stage and perform those songs I recorded to the best of my ability to sound just like the recording,” he said. “I have always tried to approach every show like it’s the only show that I have. That’s kind of how I’ve gone about this crazy career I’ve had now coming up on 15 years.”

(Reporting by Vernell Hackett; Editing by Christine Kearney and Lisa Von Ahn)

Music News Headlines – Yahoo! News

Read More..

Novelties: Single-Incision Surgery, Via New Robotic Systems

SURGEONS once made incisions large enough to get to a gallbladder or other organs by using conventional tools they held in their own hands. Today, many sit at a computer console instead, guiding robotic arms that enter the patient’s body through small openings not much larger than keyholes.

But even this minimally invasive surgery usually requires multiple incisions: one for the camera system showing the way to the surgeon at the console, and others for each of the robotic arms that do the cutting and stitching.

Now there are robotic systems — one on the market, others in development — that are even less intrusive. They require only a single, small incision through which the robotic arms and camera enter.

This could lead to faster recovery, said Dr. Michael Hsieh, a Stanford professor and a urologist at Lucile Packard Children’s Hospital and Stanford Hospital. “There’s only one wound to heal with this procedure, rather than three,” he said.

Dr. Hsieh, who performs abdominal surgery on small children, uses minimally invasive techniques that typically now require three incisions. His patients generally go home a day or two after surgery, he said, “but I think they would recover more quickly if I could reduce my multiple incisions to just one,” he said. “And there will be less scarring, or even no scarring, if you enter through the navel.”

He will soon have a chance to try out the new method on his patients. Stanford Hospital is buying a system from Intuitive Surgical called Single-Site that requires only a single incision of about one inch. The system, approved by the Food and Drug Administration only for gallbladder removal, is used as an add-on to a basic robotic system from Intuitive, known as the da Vinci Si.

The Si costs $1.3 million to $2.2 million, said Angela Wonson, a spokeswoman for Intuitive, based in Sunnyvale, Calif. The Single-Site can add $60,000 or more to the bill, or far less, depending in part on the equipment that hospitals might already have.

The East Jefferson General Hospital in Metairie, La., has bought a Single-Site system. Seated at a computer there, Dr. Joseph Uddo Jr. can control the instruments, which can enter the body by way of one incision in the navel. Surgical instruments like scissors are at the ends of the robotic arms. “To change a tool, you take out one instrument and load in another,” he said.

ANOTHER surgical robotic system, now in development, enters the body through a remarkably small incision — six-tenths of an inch, or 15 millimeters. The robot was designed by Drs. Dennis Fowler and Peter Allen of Columbia University and Dr. Nabil Simaan of Vanderbilt University. Once inside the body, it unfolds to reveal a camera system and two snakelike arms that perform the surgery. The system has been licensed to Titan Medical in Toronto.

Minimally invasive surgery through a single incision can also be performed with long, thin laparoscopic tools that surgeons wield as they watch a video monitor. But single-incision laparoscopic surgery with hand-held instruments can have problems, said Dr. Adrian Park, chairman of the department of surgery at the Anne Arundel Medical Center in Annapolis, Md., who specializes in minimally invasive gastrointestinal surgery. One difficulty is its ergonomic challenge to doctors, while another is the pressure that the tools place on tissue during single-incision operations.

Robotic systems, by contrast, are likely to ease single-incision surgery, said Jeffrey J. Tomaszewski, a fellow in urologic oncology at the Fox Chase Cancer Center in Philadelphia.

“Robots are an extension and multiplier of our own surgical hands,” Dr. Tomaszewski said. He has done traditional laparoscopic surgery with hand-held instruments, including operations through a single incision. “But you can be working at constrained angles,” he said. “A robot can improve the angle of workability.”

Robotic systems, though, have yet to show that they are always worth the extra money they cost. Such proof will take time, said Allison Okamura, an associate professor of mechanical engineering at Stanford who directs the Collaborative Haptics and Robotics in Medicine Lab. “The jury is still out because of the longevity of the studies that are required,” she said.

Dr. Tomaszewski agreed. “We surgeons love using the robot,” he said. “But the question is, and what we all have to fight hard to do, is to determine for what procedure the robotic approach provides the best benefit.”

Dr. Hsieh says he hopes that single-site robotic systems will someday bring a benefit he’s long dreamed about.

“We may get to the point where we do outpatient, scarless robotic surgery,” he said. “That’s what I’m shooting for.”

E-mail: novelties@nytimes.com.

Read More..

Best October in 6 years for area home sales

The Chicago area's housing market last month regained the momentum it lost in September, resulting in more homes being sold than in any October since 2006.

Sales of existing single-family homes and condominiums in the nine-county Chicago area totaled 8,326 properties in October, according to figures released Monday by the Illinois Association of Realtors. While below some of the monthly sales totals recorded earlier in the year, the volume was an increase of 11.3 percent over September and 44.1 percent higher than the 5,776 homes sold in October 2011.

Within the city of Chicago, 2,009 homes were sold in October, an improvement of 8.8 percent over September and up 53.1 percent from October 2011. Condos accounted for 60 percent of the city's sales volume.

The strong sales continue to remove excess inventory for the market, which is necessary before price appreciation can truly begin. The number of homes listed for sale is at its lowest point in five years, according to Midwest Real Estate Data LLC, the local multiple listing provider. 

Meanwhile, the number of pending home sales in the Chicago area, meaning properties that are under contract but the sales have not yet closed, totaled 10,364 in October, the highest it's ever been except for April 2010 when home sales were affected by federal homebuyer tax credit programs.

For the Chicago area as a whole, the median price of a home was $153,000, the lowest it's been since March but still ahead 2.1 percent from October 2011's $149,900.  Among local counties, DuPage County was one of those that saw double-digit, year-over-year monthly appreciation, rising 11.4 percent in October, to $195,000.

Within the city, the median price rose to $175,000, up 8 percent from a year ago but again, the lowest monthly price recorded since March. In the condo market, the median price fell 8.7 percent from September, to $210,000. However, that sum was a 13.5 percent increase from October 2011.

Last month, 43 percent of sales within the city were either foreclosures or short sales.

The median is the point at which half the homes are sold for more and half for less.

"There's a great deal of end-of-the year excitement," said Zeke Morris, president of the Chicago Association of Realtors. "Typically our numbers are down in the fourth quarter but we're beginning to catch up to other markets in Illinois."

Geoffrey J.D. Hewings, a University of Illinois economist, attributed the improved sales performance to a slowly improving economy, stronger consumer confidence and continued low mortgages rates.

The monthly average commitment rate for the benchmark 30-year, fixed-rate mortgage in the Chicago area was 3.36 percent in October, compared with 3.49 percent in September and 4.07 percent in October 2011, according to the Federal Home Loan Mortgage Corp. Last week, Freddie Mac said average mortgage rates hit a new all-time low in its weekly survey, of 3.34 percent for a 30-year, fixed rate mortgage.

mepodmolik@tribune.com | Twitter @mepodmolik

Read More..

1 dead, 4 hurt in Dan Ryan crash that closes some lanes

Emergency vehicles at the scene of a fatal collision on the Dan Ryan Expressway. Video by Stacey Wescott.

Staff report

9:02 a.m. CST, November 18, 2012

Illinois State Police have closed the inbound express lanes on the Dan Ryan Expressway from 51st Street after a fatal collision this morning.

Local lanes remain open.

The accident occurred on the expressway near 26th Street at about 4:30 a.m., Chicago Fire Department spokesman Kevin MacGregor said.

One person was pronounced dead on arrival, and fire officials transported four people to area hospitals in critical condition, MacGregor said.

All of the injured had to be extricated from their vehicles, MacGregor said.

Two of those injured were taken to John H. Stroger, Jr. Hospital of Cook County, and two were taken to Northwestern Memorial, MacGregor said.

Check back for more information.

chicagobreaking@tribune.com

Twitter: @ChicagoBreaking

Read More..

So, Here’s That ‘Big Bang Theory’ Flashmob You Wanted

We realize there’s only so much time one can spend in a day watching new trailers, viral video clips, and shaky cell phone footage of people arguing on live television. This is why every day The Atlantic Wire highlights the videos that truly earn your five minutes (or less) of attention. Today:

RELATED: Beating Novak Djokovic: Never Forget Three-Fingered Steve

Psychologist Richard Wiseman has an interactive game for you to let you know you’re just predictable. To be fair, a couple of us tried it out and were not as predictable as Wiseman thought we were going to be. But without further ado, here it is (have some screen cleaner ready):

RELATED: A ‘Mad Men’ Rickroll and the Man That Destroys Carnival Games

RELATED: It’s Sort of Fun Watching Pippa Middleton Squirm

We too are very excited for the Disney installments of Star Wars. New movies, Ewoks, whatever count us in. We’re just not this excited: 

RELATED: A Video to Restore Our Faith in Humanity and a Glacier Tsunami

RELATED: Myspace Hopes Its Sexy New Video will Bring You Back

If you don’t know, The Big Bang Theory is basically a show about a bunch of really smart, really nerdy dorks. Now when it comes to the actual cast of The Big Bang Theory, we’re only pretty sure (and happy to be proven wrong) only one of those things apply:

And finally, do you have $ 37? If so, would you mind donating it to The Atlantic Wire robot fish aquarium fund? We promise, it’s totally a great cause. Thanks in advance!

Wireless News Headlines – Yahoo! News

Read More..

“Partners” Canceled by CBS

LOS ANGELES (TheWrap.com) – CBS’s freshman comedy “Partners” has been canceled, an individual with knowledge of the situation told TheWrap on Friday.

“Partners,” which starred Michael Urie and David Krumholtz, and centered around the “bromance” between two co-workers, one gay and one straight, premiered September 24 and occupied the Monday at 8:30 slot.

Its most recent episode scored a 1.8 rating/5 share in the advertiser-coveted 18-49 demographic – down 14 percent from the previous week, and its poorest showing to date. While the show had strong network support, it proved to be the weak link in CBS’s Monday night comedy lineup, the rest of which – “2 Broke Girls,” “How Met Your Mother” and “Mike & Molly” – has been on an upward trajectory.

“Partners” was created by “Will & Grace” writers David Kohan and Max Mutchnick and was loosely based on their own lives.

A “Two and a Half Men” repeat will air in the show’s former timeslot next week.

This makes the second cancellation for the network so far this year, following “Made in Jersey.”

TV News Headlines – Yahoo! News

Read More..

The Neediest Cases: Emerging From a Bleak Life to Become Fabulous Phil

For years, Phillip Johnson was caught in what seemed like an endless trench of bad luck. He was fired from a job, experienced intensifying psychological problems, lost his apartment and spent time in homeless shelters. At one point, he was hospitalized after overdosing on an antipsychotic drug.

“I had a rough road,” he said.

Since his hospital stay two years ago, and despite setbacks, Mr. Johnson, 27, has been getting his life on track. At Brooklyn Community Services, where he goes for daily counseling and therapy, everybody knows him as Fabulous Phil.

“Phillip is a light, the way he evokes happiness in other people,” his former caseworker, Teresa O’Brien, said. “Phillip’s character led directly to his nickname.”

About six months ago, with Ms. O’Brien’s help, Mr. Johnson started an event: Fabulous Phil Friday Dance Party Fridays.

One recent afternoon at the agency, 30 clients and a few counselors were eating cake, drinking soft drinks and juice, and grooving for 45 minutes to Jay-Z and Drake pulsating from a boom box.

Mr. Johnson’s voice rose with excitement when he talked about the party. Clients and counselors, he said, “enjoy themselves.”

“They connect more; they communicate more,” he continued. “Everybody is celebrating and laughing.”

The leadership Mr. Johnson now displays seems to be a far cry from the excruciatingly introverted person he was.

As an only child living with his single mother in public housing in Bedford-Stuyvesant, Brooklyn, he said, he tended to isolate himself. “A lot of kids my age would say, ‘Come outside,’ but I would always stay in my room,” he said. He occupied himself by writing comic books or reading them, his favorites being Batman and Spiderman because, he said, “they were heroes who saved the day.”

After graduating from high school in 2003, he worked odd jobs until 2006, when he took a full-time position at a food court at La Guardia Airport, where he helped to clean up. The steady paycheck allowed him to leave his mother’s apartment and rent a room in Queens.

But the depression and bleak moods that had shadowed him throughout middle and high school asserted themselves.

“My thinking got confused,” he said. “Racing thoughts through my mind. Disorganized thoughts. I had a hard time focusing on one thing.”

In 2008, after two years on the job, Mr. Johnson was fired for loud and inappropriate behavior, and for being “unpredictable,” he said. The boss said he needed counseling. He moved back in with his mother, and in 2009 entered a program at an outpatient addiction treatment service, Bridge Back to Life. It was there, he said, that he received a diagnosis of schizophrenia and help with his depression and marijuana use.

But one evening in May 2010, he had a bout with insomnia.

He realized the antipsychotic medication he had been prescribed, Risperdal, made him feel tired, he said, so he took 12 of the pills, rather than his usual dosage of two pills twice a day. When 12 did not work, he took 6 more.

“The next morning when I woke up, it was hard for me to breathe,” he said.

He called an ambulance, which took to Woodhull Hospital. He was released after about a month.

Not long after, he returned to his mother’s apartment, but by February 2011, they both decided he should leave, and he relocated to a homeless shelter in East New York, where, he said, eight other people were crammed into his cubicle and there were “bedbugs, people lying in your bed, breaking into your locker to steal your stuff.”

In late spring 2011, he found a room for rent in Manhattan, but by Thanksgiving he was hospitalized again. Another stint in a shelter followed in April, when his building was sold.

Finally, in July, Mr. Johnson moved to supported housing on Staten Island, where he lives with a roommate. His monthly $900 Social Security disability check is sent to the residence, which deducts $600 for rent and gives him $175 in spending money; he has breakfast and lunch at the Brooklyn agency. To assist Mr. Johnson with unexpected expenses, a grant of $550 through The New York Times Neediest Cases Fund went to buy him a bed and pay a Medicare prescription plan fee for three months.

“I was so happy I have a bed to sleep on,” he said about the replacement for an air mattress. “When I have a long day, I have a bed to lay in, and I feel good about that.”

Mr. Johnson’s goals include getting his driver’s license — “I already have a learner’s permit,” he said, proudly — finishing his program at the agency, and then entering an apprenticeship program to become a plumber, carpenter or mechanic.

But seeing how his peers have benefited from Fabulous Phil Fridays has made him vow to remain involved with people dealing with mental illnesses or substance abuse.

He was asked at the party: Might he be like the comic-book heroes he loves? A smile spread across his face. He seemed to think so.

Read More..

U.S. Cellular exits Chicago market to signal strength elsewhere

Two years before U.S. Cellular's 2002 entry into Chicago's wireless carrier fray, Jack Rooney, then its chief executive, said his upstart enterprise would never "be a big gorilla" but rather "a little chimpanzee that runs around stealing bananas and having a lot of fun."

It turned out there weren't enough bananas in this particular jungle, and fun doesn't do much for investors.

So monkey see, monkey go. Its corporate headquarters will remain on the city's Northwest Side. But U.S. Cellular has said it is selling its spectrum and consumers here and in other underperforming markets. Offloading about 10 percent of its customer base to Sprint Nextel sometime next year should enable it to better concentrate on places where it has found more low-hanging fruit.

"Jack was right," Mary Dillon, U.S. Cellular's CEO since 2010, said in an interview. "We're not trying to be the biggest. We're trying to be the best at what we do, and this puts us in a position to continue to do that."

What about Chicago kept U.S. Cellular from being the best here? Its strategy under both Rooney and Dillon has been to stress customer service — "the totality of many things," she said — an area in which it has believed it could outperform rival carriers, particularly lumbering giants such as AT&T and Verizon.

And, according to Consumers Union and others, U.S. Cellular delivered on that promise, even among its customers here. Certainly, some have pined for Apple iPhones and iPads not available through U.S. Cellular, but it offers the popular Samsung Galaxy S III and Galaxy Note II.

The thing about customer service, however, is you have to be a customer to actually appreciate it, which is why it's easier to satisfy customers in markets where it already enjoys a strong base.

That's part of the rationale for continuing to serve 5.2 million or so customers in areas including Joliet and Rockford, Iowa and Wisconsin, where U.S. Cellular is among the top three wireless carriers in market share signal strength, while getting out of places such as Chicago and St. Louis, where Dillon said the company was a late arrival and is "around No. 5" in share.

"For us to be able to have the kind of scale that we need — and that's in all the things that our customers love and need now and in the future — we have to have bigger market positions," she said. "In the most macro way, it's really about that."

Take the cost of upgrading here to a more efficient 4G LTE network, on its way to becoming de rigueur among wireless carriers, for example.

"In Chicago, we would not be able to get the kind of return to justify that investment," said Dillon, who previously was global chief marketing officer and executive vice president at McDonald's. "Believe me, I love Chicago. I'm a Chicagoan. I grew up here. I love this city. I don't think there's anything so different about (this market), except for the fact that the competitiveness of this city is such that we needed to say, 'How can we put our investments in the places where we can get the best return for the future and deliver the great kind of customer experience that people expect and want?'"

It's the gardening paradox of pruning to promote better, stronger growth. Faced with a sluggish, unforgiving economy, some companies with big-fish ambitions are deciding the best bet is to swim in a smaller pond and as lean as possible in hopes of realizing the kind of trends and margins investors often covet.

Glenview-based Illinois Tool Works, whose share price is up more than 25 percent so far this year, has not only pared low-margin operations but shed assets and narrowed its focus, reversing a massive acquisition spree from 2004 to 2008 that added 200 companies to a portfolio that peaked at about 800.

U.S. Cellular's reductions have yet to generate the same enthusiasm among investors, however, even as the $480 million sale of its service in Chicago, St. Louis, parts of Illinois, Indiana, Michigan and Ohio to Sprint promises better margins for its remaining markets spread over 23 states.

A share price drop of almost 11 percent since the announcement may be partly blamed on the paring being paired with third-quarter results that showed its net income from July through September plummeted 43 percent compared with the same stretch in 2011, even though revenue was up 3 percent. But the fact that the move may strengthen U.S. Cellular also may run counter to what some on Wall Street want to see.

"While some look at this as a prelude to selling the whole company, we fear that management may see its resulting structure as more sustainable and continue to fight it out in the very tough wireless market," Philip Cusick of JPMorgan wrote in a note to investors. "We believe that (it) would be worth more broken up than as an operating asset."

Dillon's unapologetic take: "I would say this does absolutely set us up for future continued success."

The transition, pending government approval, is expected to take up to nine months. In time, scaling back U.S. Cellular will mean elimination of about 980 jobs from a national workforce of about 8,400, including roughly 640 jobs in the Chicago area, 160 of them in the city itself. But it will continue to employ more than 1,400 people in the Chicago area, with 860 of them working at corporate headquarters.

"We're going to remain a top 40 Chicago public company," Dillon said. "We absolutely plan to stay committed and involved and visible in the city and really work with the city in terms of opportunities around workforce development."

Calling Chicago home predates its launch of branded service for callers here a decade ago this month following the acquisition of PrimeCo's operations in parts of Illinois a few months earlier for about $610 million. "We live in Chicago, and many of us were born here, so this is something we've wanted for a long time," Rooney said at the time.

"I would not say it was a mistake," Dillon said of trying to compete in Chicago. "I'd say the industry is quite different and as we are focused on how we continue to make sure that U.S. Cellular is profitable and growing in the future, we have to sometimes look at the business at different points in time and make decisions."

Taking care on the way out to avoid the banana peels the 800-pound gorillas leave behind.

philrosenthal@tribune.com

Twitter @phil_rosenthal

Read More..