Einhorn wins round against Apple

Your move, Tim Cook.

Apple was dealt a major blow in its battle with David Einhorn, when a judge sided with the hedge-fund manager and blocked Apple from moving ahead with a shareholder vote on a controversial proposal.

Manhattan federal judge Richard Sullivan yesterday granted Einhorn’s bid to stop Apple from lumping several measures together as one proposal at its annual shareholder meeting next week.

Part of Apple’s proposal would have required shareholder approval for the company to issue preferred stock — a move that several large investors believe to be shareholder-friendly and good corporate governance — but which Einhorn opposes.

REUTERS

KO! Greenlight Capital’s David Einhorn (pictured) scored a decisive blow against Apple CEO Tim Cook when a federal judge granted Einhorn’s bid to block an upcoming shareholder vote.

The founder of $8 billion hedge fund Greenlight Capital has been lobbying the iPhone maker to return some of its $137 billion cash hoard to investors in the form of preferred stock or — as he calls them “iPrefs.”

As part of his campaign, Einhorn sued Apple earlier this month to block the proposal. He argued that Apple violated the Securities and Exchange Commission’s rules against “bundling,” which deprives shareholders of the right to vote on each issue separately.

In a 16-page ruling, Sullivan agreed with Einhorn, saying Apple cannot proceed with the proposal at next week’s shareholder meeting.

Apple yesterday said it was “disappointed” with the court’s ruling and that it would pull the proposal from next week’s meeting as a result.

The stock closed up 1.06 percent, to $450.81.

“This is a significant win for all Apple shareholders and for good corporate governance,” Greenlight Capital said in a statement. “We are pleased the court has recognized that Apple’s proxy is not compliant with the SEC’s rules.”

Before the proposal was blocked on technical grounds, Einhorn had been urging fellow shareholders to vote against it as a “referendum” on his effort to get Apple to distribute some of its cash to investors.

The hedge-fund manager is calling for the tech giant to issue preferred stock that pays dividends of 4 percent.

At a recent investor conference, Apple CEO Tim Cook called the idea “creative” and said he would consider it.

While Einhorn scored a legal win, some shareholders criticize him, saying that he is standing in the way of corporate governance.

“Our position is that Apple should re-introduce the measures as soon as it makes sense,” said Bill Dempsey of the Nathan Cummings Foundation, which also owns Apple stock.

Earlier this week, the foundation, which also invests in Greenlight through a fund of funds, sent a letter to Einhorn asking him to back off his campaign to block the proposal.

By depriving them of a vote on preferred stock, “you undermine shareholders’ rights, to no end whatsoever,” the letter said.

Also siding with Apple is the $253 billion California Public Employees Retirement System.

kwhitehouse@nypost.com

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South Florida hospitals could lose $368 million from sequestration

A detailed survey shows that South Florida hospitals could lose $368 million over 10 years in federal budget cuts starting next Friday, if the sequestration program kicks in as scheduled.

The Florida Hospital Association, using data from the American Hospital Association, estimates that over the next decade, sequestration would cause Miami-Dade hospitals to lose $223.9 million and Broward facilities $144.4 million under the Congress-mandated budget cuts that hit virtually all federal programs unless Republicans and Democrats can work out a compromise.

The New York Times and other national news organizations are reporting that sequestration, unlike the New Year’s fiscal cliff, seems virtually certain to take place.

The law requires across-the-board spending cuts in domestic and defense programs, with certain exceptions. Because healthcare represents more than one in five dollars of the federal budget, it will be a huge target for cuts.

For hospitals and doctors, the major impact will be felt in Medicare cuts, which according to the budget law are limited to 2 percent of Medicare payments. Medicaid, food stamps and Social Security are exempted from cuts, according to the Bipartisan Policy Center.

The FHA study calculates that over 10 years, Jackson Memorial Hospital stands to lose $30.6 million, Mount Sinai Medical Center on Miami Beach $27.3 million, Holy Cross in Fort Lauderdale $23.8 million and Memorial Regional Hospital in Hollywood $21.4 million.

“The problem with sequestration is that it just makes broad cuts across the board,” said Linda Quick, president of the South Florida Hospital and Healthcare Association. “The Affordable Care Act is looking at all sorts of intelligent ways to reduce costs,” including coordinated care that will stop duplicated tests and reduce hospital readmissions. “But sequestration takes an ax, and that doesn’t make any sense.”

FierceHealthcare, which produces trade publications, says sequestration cuts over the next decade will include $591 million from prescription drug benefits for seniors, $318 million from the Food and Drug Administration, $2.5 billion from the National Institutes of Health, $490 million from the Centers for Disease Control and $365 million from Indian Health Services.

The National Association of Community Health Centers estimates that 900,000 of its patients nationwide could lose care because of the cuts. The group said the cuts were “penny wise and pound foolish” because they would mean less preventive care while more and sicker patients would end up in emergency rooms.

Like the fiscal cliff, Republicans and Democrats agreed on a sequestration strategy, with the idea that the drastic measure would force the two sides to reach agreement on more deliberative budget adjustments. That hasn’t happened.

The White House reports that the law will mean that nondefense programs will be cut by 5 percent, defense programs by 8 percent. But since the first year’s cuts must be done over seven months, that means in 2013, nondefense programs need to be cut by 9 percent, defense programs by 13 percent.

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Bill to ban smoking on some public land advances

Cities and counties could bar smokers from beaches, parks, and other publicly owned outdoor areas under a proposal that passed an early Florida Senate test Thursday, despite concerns from restaurateurs.

By unanimous vote, the Senate Regulated Industries Committee approved the measure (SB 258), which expands the state’s clear indoor air restrictions to more outdoor venues.

Voters approved the Florida Indoor Clean Air Act a decade ago.

The proposal would allow local governments to create smoke-free areas on publicly owned land as long as smoking sections are also available.

A similar bill stalled last year after concerns over smoking on sidewalks.

The current version of the bill prohibits smoking only on sidewalks in public parks, on public beaches, or in recreations areas while continuing to allow smoking on regular street-side sidewalks.

The bill would also allow cities and counties to extend smoke-free zones from public buildings to 75 feet from the entrance, or the same distance from a ventilation system or windows.

Law-enforcement officials would be required to first alert violators of the no-smoking restrictions and ask them to leave before they can issue a citation.

“Nobody wants to put anyone in jail for doing these things but it does send a signal,” said Sen. John Thrasher, R-St. Augustine.

“This state wants to be smoke free, eventually. . . . This is just one incremental step toward getting there.”

Rep. Bill Hager, R-Delray Beach, filed a House version of the bill this week.

In December, Sarasota County Judge Maryann Boehm ruled that Sarasota’s ordinance banning smoking in public parks was unenforceable, arguing that regulating smoking was a task left to the Legislature.

Thursday’s vote came after representatives of the state’s restaurant industry expressed concerns about the potential of unintended consequences but said they hoped to work with the sponsors to work out problems as the bills progress.

“When the smoking ban was passed, many businesses spent hundreds of millions of dollars to reconfigure their properties to accommodate both the new law and our customers,” said Richard Turner, of the Florida Restaurant and Lodging Association.

“At the moment, we are concerned that some of these ordinances could impact the investments that have been made.”

Some panelists also expressed concerns, saying they want assurances that beaches and public parks will not be totally off limits to smokers.

“The beach belongs to everybody,” said Rep Audrey Gibson, D-Jacksonville. “And people are different.”

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Oscars Flashback: Drew Barrymore 1983

Considering that Drew Barrymore turns 38 today, it's fascinating to think that she attended her first Oscars thirty years ago. At the 1983 Oscars, the charming, young actress is adorable as ever as she is interviewed on the red carpet.

Although she had won a Young Artist Award for best actress for her performance in E.T. the Extra-Terrestrial, Barrymore didn't receive a nomination for an individual award at her first Oscars despite the majority consensus that she should have.

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However, the film, her second feature in her young acting career, was nominated for Best Picture at that year's Academy Awards.

With her sweet and sassy personality, 8-year-old Barrymore arrives to Hollywood's biggest celebration wearing a hot pink dress designed by her "momma" with a bow in her hair and a pearl necklace that was given to her by E.T. director Steven Spielberg.

"I don't know if it will win, but I'm hoping so much!" she says enthusiastically of the Oscar-nominated film.

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Also nominated that April evening was the film's director, Spielberg, for whom she reveals she voted in addition to voting for the film. As for the Best Actress category, which was loaded with talented actresses Meryl Streep, Julie Andrews, and Jessica Lange, Barrymore wasn't too interested.

"I'm not nominated," she replies with a smile when asked about her vote for Best Actress.

Two years later, Barrymore received her first major awards show nomination at the Golden Globes for the 1984 film Irreconcilable Differences. Despite more Globes nominations over the years, she has never been nominated for an Oscar.

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However, twenty-seven years after her first Oscars, Barrymore won her first major awards (Golden Globes, SAG Awards) for Grey Gardens.

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14 people face charges after takedown of Brooklyn drug ring

Authorities say 14 people face charges after the takedown of a drug ring in Brooklyn.

District Attorney Charles J. Hynes says narcotics detectives made over 60 purchases, including heroin and crack, at the Red Hook Houses.

Hynes says community complaints about drug dealing prompted the investigation that began last summer.

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National Hotel nears end of long renovation

A panel of frosted glass puts everything in perspective for Delphine Dray as she oversees a years-long, multi-million dollar renovation project at the National Hotel on Miami Beach.

“Chez Claude and Simone,” says the piece of glass stationed between the lobby and restaurant, a reference to Dray’s parents, who bought the hotel in 2007.

“Every time I am exhausted and I pass that glass, I remember why,” said Delphine Dray, who joined her father — a billionaire hotel developer and well-known art collector in France — to restore the hotel after the purchase.

After working with him for years, she is finishing the project alone. Claude Dray, 76, was killed in his Paris home in October of 2011, a shooting that remains under investigation.

In a recent interview and tour of the hotel’s renovations, which are nearly finished, Dray did not discuss her father’s death, which drew extensive media coverage in Europe. But she spoke about the evolution of the father-daughter working relationship, the family’s Art Deco obsession and the inspiration for the hotel’s new old-fashioned touches.

The National is hosting a cocktail party Friday night to give attendees a peek at the progress.

Dray grew up in a home surrounded by Art Deco detail; her parents constantly brought home finds from the flea market. By 2006, they had amassed a fortune in art and furniture, which they sold for $75 million at a Paris auction in 2006.

That sale funded the purchase of the National Hotel at 1677 Collins Ave., which the Drays discovered during a visit to Miami Beach.

After having lunch at the Delano next door, Dray said, “My dad came inside the hotel and fell in love.” The owner was not interested in selling, but Claude Dray persisted, closing the deal in early 2007. Her family also owns the Hôtel de Paris in Saint-Tropez, which reopened Thursday after a complete overhaul overseen by Dray’s mother and older sister.

Delphine Dray said she thought it would be exciting to work on the 1939 hotel with her father, so she moved with her family to South Florida. She quickly discovered challenges, including stringent historic preservation rules and frequent disagreements with her father.

“We did not have at all the same vision,” she said.

For example, she said: “I was preparing mojitos for the Winter Music Conference.” Her father, on the other hand, famously once unplugged a speaker during a party at the hotel because the loud music was disturbing his work.

“We were fighting because that is the way it is supposed to be,” she said. “Now, I understand that he was totally right.”

She described a vision, now her own, of a classic, cozy property that brings guests back to the 1940s.

Joined by her 10-year-old twin girls, Pearl and Swan, and 13-year-old son Chad, Dray pointed out a new telephone meant to look antique mounted on the wall near the elevators on a guest floor. She showed off the entertainment units she designed to resemble furniture that her parents collected. And she highlighted Art Deco flourishes around doorknobs and handles.

“It’s very important for us to have the details,” she said.

With those priorities in mind, she is overseeing the final phase of the renovation, an investment that general manager Jacques Roy said will top $10 million. In addition to the small details, the renovation includes heavier, less obvious work: new drywall in guest rooms, for example, and new windows to replace leaky ones.

Painting of the building’s exterior should be finished in the next two to three weeks, Roy said. Dray compared its earlier unfinished state to resembling “a horror movie — the family Addams.”

And the final couple of guest room floors, as well as the restoration of the original Martini Room, should be done by the end of April.

“At the end, I will be very proud,” Dray said.

The National’s renovation wraps up as nearby properties such as the SLS Hotel South Beach and Gale South Beach & Regent Hotel have been given new life. Jeff Lehman, general manager of The Betsy Hotel and chair of the Miami Beach Visitor and Convention Authority, said the National has always been true to its roots. He managed the hotel for 10 years, including for a few months after Dray bought the property.

“I think historic preservation and the restoration of the hotels as they were built 70, 80 years ago is such a huge piece of our DNA,” he said. “It’s a lot of what sets us apart from any other destination on the planet.”

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Sleek pizza cafe brightens tech park

Thea Goldman, no stranger to culinary pioneering, has put down roots in a neighborhood on the edge of Overtown dubbed the Health District thanks to an ambitious building project around the University of Miami’s Life Science & Technology Park.

Thea’s Pizzeria and Café is modeled on Joey’s Café, the business she and now ex-husband Joey Goldman opened in Wynwood in 2008. Their bold move spurred a cascade of interest and investment in an area that five years later is a hipster haven.

Here, the willowy, British-accented dynamo has taken a similar approach to an area with few eating options. That is part of the plan, says Goldman who opened in the fall for breakfast and lunch and is testing the dinner waters with Friday night openings.

Though only 15 minutes from South Beach, this tiny and stunning eatery, situated almost under I-95, is worlds away. It’s surrounded by office buildings, warehouses, car repair shops, a technical school and, most importantly, plans for a large hotel and retail space.

Dressed causally in black jeans and T-shirts and hailing from as far away as Naples, Italy, and as close as the surrounding Allapattah neighborhood, wait staff takes its cue from the upbeat boss with sunny smiles and quick service.

A dramatic, 30-foot-wide mural of peonies, roses, daffodils and daisies shimmers with 210,000 pieces of Italian glass pieced together by designer Carlo dal Bianco of Bisazza Mosaico. It’s set against a black backdrop with simple wooden tables set with vases of white hydrangea. Buffed, eggshell-colored concrete floors and soaring ceilings lend an industrial edge, while golden globes of light cast an elegant sheen.

The food is equal parts rustic and refined. Simple starters include pristine salads of baby arugula, mint, escarole and nicely roasted beets and a tiny greenhouse arrangement, all farmed locally.

A nice array of pizzas is cooked in a gas-fueled stone oven. The crust could be a bit saltier and chewier, but it makes a fine vehicle for generous and deftly handle toppings such as sausage-ricotta and anchovy-caper. My favorite is artichoke hearts with arugula, or maybe Gorgonzola with toasty walnuts and truffle oil.

A slightly stiff and too-thin focaccia loaded with shredded pecorino cheese and black pepper could use more loft.

Daily fish specials such as a silken cod fillet over mashed potatoes and a puree of briny black olives are always a good bet, as is the perfectly grilled salmon with lemony caper sauce over white bean and red onion salad. Chicken paillard, pounded thin and served with roasted potatoes and green beans, is simple and satisfying.

Like the menu, the wine list is modest but well done. Most of the two dozen or so labels are available by the glass, including a robust sangiovese from Emiglia Romana coincidentally named Thea.

With the exception of imported ravioli, pastas are of the boxed variety but well handled. We sampled the indulgent rigatoni with nicely browned coins of sausage and Italian ricotta.

Desserts are as simple and elegant as the place itself. Icy frozen espresso, granita topped with whipped cream and salted caramel ice cream are fine choices, as is a light but deeply flavored chocolate cake with a simple dusting of powdered sugar and a handful of plump raspberries.

Thea’s is a bustling hive of activity at breakfast and lunch, and dinner is growing more popular. Like a bright patch in a weed-strewn lot, this burgeoning eatery is full of promise.

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Bradley Cooper on Awards Success of 'Silver Linings Playbook'

Oscar Sunday is fast approaching and gold statuettes are on the horizon for the film industry's finest. As Bradley Cooper and his Silver Linings Playbook cohorts got together before the big show, he reflected on the film's remarkable critical acclaim that may soon result in Oscars.

After being nominated for four Golden Globes and four SAG Awards, which resulted in two awards that both went to Jennifer Lawrence for her lead role, Silver Linings is up for a total of eight awards at the nearing Academy Awards.

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"We're overwhelmed and incredibly grateful," said Bradley Cooper, who has been nominated at all the major awards show for the film. "You never know what's going to happen. I mean, we knew when we were making the movie that it felt special every day and that we were getting something that felt very authentic."

Cooper went on to humbly distance himself from the success of the film by crediting the relationship between director and screenplay writer David O. Russell and his son, who faces mental deficiencies.

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"These two guys, there was a story that they wanted to tell and then Jennifer and I were privileged enough to tell it," he said.

The gathering was sponsored by Vanity Fair, Barneys New York, and The Weinstein Company in support of The Glenholme School, which is devoted to young people who struggle with various forms of mental disorders.

Based on his own experiences with his son, who attends the school, Russell was inspired to adapt Matthew Quick's 2008 novel The Silver Linings Playbook to the big screen. The response to the film has been substantial not only from critics but from a variety of public figures.

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"Many people can learn from it. I've had so many people come up to me since we made the film," Russell said. "I've had so many families come forward. Movie stars, professional athletes, regular people saying, 'Thank you for the film.' The Vice President of the United States [has said], 'This film has opened up the dialogue about people facing these challenges.'"

Is Silver Linings Playbook on your Oscars ballot?

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Donor controversy taking toll on Sen. Menendez's popularity: poll

TRENTON, NJ — A new poll shows a donor controversy is taking a toll on Sen. Robert Menendez's popularity.

The Quinnipiac University poll out Thursday shows the Democrat's job approval rating at a five-year low of 36 percent, compared with 41 percent who disapprove of his performance.

It also shows 44 percent think Menendez isn't honest and trustworthy, compared with 28 percent who believe he has those qualities.

Menendez was recently named chairman of the Senate's Foreign Relations Committee. But his ties to a Florida eye doctor and political donor have been referred to a Senate ethics panel.

Menendez reimbursed the doctor $58,000 for flights to the Dominican Republican aboard his private plane.

The poll of 1,1,49 registered voters was taken Feb. 13-17 and has an error margin of plus or minus 2.9 percentage points.

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Caribbean cell phone company asks South Florida relatives to buy minutes for family back home

An Irish billionaire’s telecommunications company, which has revolutionized cell phone usage in some of the world’s poorest countries, is bringing it’s latest marketing pitch to South Florida.

Digicel is tapping into South Florida’s close ties to Haiti and Jamaica in a campaign that asks families stateside to send minutes home.

Irish billionaire Denis O’Brien has staked a claim in the telecommunication industry by building his cell phone company in developing countries in the Caribbean and South America The South Florida Digicel campaign includes bus bench ads, billboards and television spots. The message is simple: “Send minutes home.”

Customers stateside can pay to send airtime minutes to family and friends’ pre-paid cell phones in the Caribbean. The concept is not new, but Digicel is seeking to broaden it’s reach.

It is a nod to South Florida’s ties to the Caribbean and the financial influence of the region’s diaspora. Families in Haiti and Jamaica rely heavily on remittances from abroad.

Haiti received $2.1 billion in remittances in 2011, which represents more than one quarter of the national income, according to the Inter-American Development Bank . In 2011, Jamaica received nearly $2 billion in remittances.

“We understand the value of the diaspora,” said Valerie Estimé, CEO of Digicel’s diaspora division. “They are our lifeline.”

Typically the company relies on ethnic media outlets like radio programs and niche publications for advertising, but there was a gap in reaching second- and third- generation Caribbean Americans, who are more plugged in to mainstream media, said Andreina Gonzalez, head of marketing in Digicel’s diaspora division.

“There was an opportunity to step up and go a little further,” Gonzalez said.

The campaign comes at a time when the company is facing some public relations backlash in Haiti and Jamaica. Customers from both islands have taken to social media to decry shoddy connections and poor customer service.

In Haiti, the problems were so acute that Digicel released an apology letter to its customers in December. When the company tried to integrate Voilà, a competitor Digicel acquired, into its network, the integration caused system failures.

“Quite simply, we did not deliver what we promised and we did not communicate effectively with customers through the problem times,” Damian Blackburn, Digicel’s Haiti CEO wrote in the apology.. “We apologize for letting our customers down and want to thank them for their patience and understanding.”

In South Florida, the marketing pitch is family-centered and draws on the diaspora’s need to stay connected. Digicel representatives say airtime minutes are as valuable as the cash remittances families send to the Caribbean.

The advertising features members of a culturally ambiguous animated family smiling and talking on cell phones.

The ads that appear in Little Haiti, North Miami and North Miami Beach are largely targeting the Haitian community. In South Broward, the focus shifts to the Jamaican population.

A similar campaign has also been launched in New York.

Prices range for $7 to $60 to add minutes to a relative’s Digicel account. Transactions can be made online or at participating stores in South Florida.

“You’re able to make a very big difference with a very small amount of your disposable income,” said Estimé. “We know how important it is to be able to get in touch with a mother, a sister or a brother.”

The company recognizes that some of its older customer base prefer the retail model, while younger and more savvy consumers would rather send pay for minutes directly from their computers or cell phones.

“It was really impressive to see Digicel online,” said Geralda Pierre, a Miami Gardens resident who sends minute to Haiti. “It’s so convenient to add minutes for my dad in Haiti who is sick. It makes it easier for me to get in touch with him.”

For now, Digicel says it will continue to mix the old and new. The Creole-language advertisements on Haitian radio and Island TV, a Creole language cable network, are here to stay.

“We are bringing first world convenience in some cases to third world countries,” Estimé said. “Digicel has in a way improved the lives of our loved ones back home.”

Follow @nadegegreen on Twitter

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