In giant “garage sale”, Japan’s TV giants hawk $3 billion of assets

TOKYO (Reuters) – Panasonic Corp, Japan‘s struggling maker of Viera brand TVs, owns more than 10 million square meters of office and factory space, dormitories for its workers and sports facilities for its rugby, baseball and women’s athletics teams.

As it battles for Christmas shoppers’ wallets in the year-end holiday season, the sprawling electronics conglomerate is also seeking buyers for some of those properties to trim its fixed costs and improve cashflow at a time of intense competition, particularly from South Korean rivals such as Samsung Electronics Co.

Japan’s other troubled TV makers, Sony Corp and Sharp Corp, are also selling buildings and businesses in a giant ‘garage sale’ that could raise a combined $ 3 billion.

Panasonic plans to raise $ 1.34 billion from offloading property and shares in other Japanese companies by end-March, the group’s chief financial officer Hideaki Kawai told Reuters.

“We have a lot of land and buildings in Japan and overseas,” he said in an interview at the company’s head office in Osaka, in western Japan. He declined to list which properties would go on the block, but said most are in Japan.

Included is a 24-storey central Tokyo block – built in 2003 with more than 47,300 square meters and housing 2,000 Panasonic workers – a source familiar with the plan told Reuters.

Kawai added that Panasonic would raise about a quarter of the sell-off funds by getting rid of shares it owns in other companies – a common practice of cross-shareholdings in Japan.

The proceeds would help bolster free cashflow to 200 billion yen ($ 2.43 billion) for the business year to March, Kawai said, and allow Panasonic to reduce its debt and maintain its crucial research and development effort as it revamps its business portfolio.

It will sell more assets in the year starting in April if cashflow dips below 200 billion yen, Kawai added. Panasonic President Kazuhiro Tsuga has promised to shut or sell businesses operating at below a 5 percent margin. Those sales could start as soon as April.

Panasonic’s fixed assets of $ 21 billion are around 30 percent more than those of Apple Inc, and are almost double the company’s market value. The company, founded almost a century ago as a small electrical extension socket maker, trades at around half its book value – which includes intangible assets such as patents. Sony trades at 39 percent of book, Sharp at 30 percent.

The fixed assets – buildings, land and machinery – of the three companies that were not so long ago a byword for innovation in household gadgetry total around $ 42 billion, while their combined market value is $ 24 billion.

CASHFLOW IS KING

The three firms have been downgraded by credit ratings agencies, making it tougher to raise funding on capital markets, and making asset sales more urgent.

Selling assets “is good in terms of their credit ratings because, for all three, it will lower fixed costs and they can reduce their capex requirements. Eventually, this could improve operating margins and, more importantly, cashflow,” said Alvin Lim, an analyst at Fitch Ratings in Seoul.

Fitch, which makes its ratings without input from company management, last month cut Panasonic to BB and Sony to BB minus, the first time one of the major agencies has relegated either company to junk status. Sharp is ranked B minus, adding to its borrowing costs.

“We rate Panasonic as investment grade, and it should have various funding options. Selling assets it can do without, to avoid raising additional borrowing, can be an option,” said Osamu Kobayashi, an analyst at Standard & Poor’s.

While Korean rivals have also benefited from a weaker local currency, data from the Japan Electronics and Information Technology Industries Association shows that Japanese production of consumer electronic equipment fell to just above $ 15 billion last year from more than $ 19 billion a decade ago. Output in September was just $ 980 million, half last year’s level.

“The gap with Korean makers seems to be widening. It’s going to be very difficult for them to regain their top-tier position,” said Fitch’s Lim.

As the three Japanese firms, all under new leadership, have sketched out restructuring plans, the cost of insuring their debt against defaulting in 5 years has dropped from spikes just a month ago. Credit default swaps for Sharp and Sony are down to levels last seen 3 months ago, while Panasonic’s have dropped 40 percent in the past month.

THREE PATHS

While Panasonic is looking to revamp its business around batteries, auto parts and household appliances, Sony is doubling down on smartphones, gaming and cameras. Sharp, meanwhile, is focusing on display screens and is forging alliances with the likes of Taiwan’s Hon Hai Precision Industry and U.S. chipmaker Qualcomm Inc.

Sony may also take the real estate sale route to raise much-needed cash, with a possible sale of its 37-storey New York headquarters, dubbed by New Yorkers as the ‘Chippendale’ because of its design that is reminiscent of the period English furniture. Selling that jewel could raise $ 1 billion, media have reported.

The maker of Vaio laptops, PlayStation gaming consoles and Bravia TVs may also sell its battery business, which makes lithium ion power packs for tablets, PCs and mobile phones. The company has been approached by investment banks offering to sell the unit, which employs 2,700 people and has three factories in Japan and two overseas assembly plants. Sony values the business’s fixed assets at $ 636 million.

Potential buyers could include BYD Co Ltd, a Chinese carmaker backed by billionaire investor Warren Buffett, and Taiwan’s Hon Hai – which part owns Sharp’s advanced LCD panel plant in Sakai, western Japan, and is in talks to buy TV assembly plants in China, Malaysia and Mexico for $ 667 million, Japan’s Sankei newspaper has reported.

Sharp has mortgaged nearly all its properties to secure a $ 4.6 billion bailout from Japanese banks and so has few assets to offer in a grand garage sale.

Instead, it’s selling part of the garage.

Qualcomm has agreed to buy a 5 percent stake in Sharp, making it the largest shareholder. Hon Hai, which earlier this year agreed to invest in Sharp – before its stock slumped in the wake of record losses – has said it remains interested in taking a stake.

“Whatever they can get to get through this fiscal period by scaling down their operation is a critical step for them to remain afloat,” said Fitch’s Lim.

($ 1 = 82.4700 Japanese yen)

(Additional reporting by Reiji Murai; Editing by Ian Geoghegan)

Tech News Headlines – Yahoo! News

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Tim McGraw and Faith Hill Kick Off Special Series of Las Vegas Shows

By Mark Gray

12/09/2012 at 05:00 PM EST

Tim McGraw and Faith Hill

Denise Truscello/WireImage

Tim McGraw and Faith Hill looked at each other, their hands on each others knees and shared a passionate kiss just after midnight Sunday morning.

The moment was a long time coming – it capped off their first weekend as a Las Vegas headlining act.

Earlier in the 90 minute show, McGraw told the crowd at the Venetian that he and his wife were going to "have fun tonight" and it genuinely seemed like they did, singing with each other for several songs while still letting the other perform their solo hits. Though the show – called the Soul2Soul series – is technically not the same "residency" show Las Vegas is known for, the couple will perform for 10 weekends through April.

At a press conference several months ago, McGraw and Hill promised a "personal" show, and they delivered in a big way. In fact, it got very personal as McGraw complimented his wife on her flowing black dress, saying, "It's gonna look good on the floor later."

The duo also took a moment to sit down and speak with the crowd. Though they didn't field any questions, they spoke about the most common questions they get asked. "We always get asked what was the music we heard first, who influenced us," Hill said.

Rather than answer it, the duo then sing a few of their main influences – Hill sang George Strait; McGraw sang The Eagles.

"I love doing other people's music, better than my own," McGraw joked.

With few bells and whistles, the show puts the focus squarely on it's two superstars, and considering the rousing ovations McGraw and Hill received Saturday, that's perfectly fine with their fans.

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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Plenty of smoke clouds the future of legalized pot in Washington

SEATTLE — Customers have been drifting into Jay Fratt's alternative pipe and tobacco shop, Smokin J's, in the days since Washington state's marijuana law took effect, wondering when cannabis would take its place on the shelves next to the handblown glass pipes.

Hold on, he told them. Fratt is, before anything else, a businessman, and he quickly realized there was a lot of smoke in the details.

First of all, the law setting up the nation's first legal regulatory system for retail pot won't allow sales until next year. And the federal government still considers marijuana illegal.

Then there are the taxation provisions: Can legal retailers compete with the black market when they have to pay over 25% in taxes? What about the provision that says marijuana shops can't stock anything but pot and pot supplies? What would happen to the Vancouver, Wash., shopkeeper's tie-dye baby jumpsuits, his "Stoner" trivia games, his meditating Buddha tapestries?

The euphoria that accompanied the debut of the initiative making it legal in Washington for adults to possess an ounce or less of marijuana faded shortly after midnight Thursday, when about 150 people gathered at the base of the Space Needle in Seattle to toke up in celebration.

By Friday morning, the bureaucrats, the lawyers and the suits from Wall Street were pulling into town as state regulators began setting up what could become a $1-billion industry, built precariously on a product whose possession the federal government considers a felony.

State officials estimate that pot will soon be selling legally for about $12 a gram, with annual consumption of 85 million grams — a potential bonanza in state tax revenue of nearly $2 billion over the first five years.

"I'm telling my clients, if I had a collective and I knew that legalization was coming and I knew they were going to be licensing people and I was already in the business, I'd be one of the first people going to apply for a license," said Jay Berneburg, a Tacoma, Wash., lawyer who held a seminar recently about getting into the retail trade.

"You could make a million dollars in five days. There's going to be people lined up to buy marijuana, just because they can," he said.

Venture capitalists are moving in. Brendan Kennedy and Michael Blue, two Yale University MBA graduates with backgrounds in Silicon Valley, have raised $5 million through their private equity firm, Privateer Holdings, believed to be the first in the nation to focus strictly on marijuana-related companies.

"We realized this was and is the biggest opportunity we think we'll probably see in our lifetimes," Blue said.

Their first acquisition was Leafly.com, a website that rates strains of marijuana for their medicinal properties. Users can plug in their ZIP codes and find out which products available in their areas produce the effects they're looking for, from "giggly" to the ability to treat migraines.

Vaporizers are another product they're looking at — anything that doesn't directly involve buying or selling marijuana. Privateer is offering investors the chance to make money in an arena most venture capitalists can't touch under standard partnership agreements, which normally spell out that investments not in compliance with federal law are prohibited. That means, they figure, an opportunity for stunning profits with little competition from other investment firms — though one has to listen to a lot of Bob Marley at trade shows.

"I've studied a lot of industries. I've never seen one that had this unique set of circumstances," Kennedy said. "It's highly fragmented, it's very unstructured, there's no leaders, there's no standards. The entire topic is taboo, and there's no involvement by Wall Street ... which is a unique opportunity, right?"

The state Liquor Control Board is asking for a staff of 40 to help set up a network of possibly 300 or more state-licensed retail stores. The board must also figure out how to regulate growers and packagers.

That process will take much of the next year. Though it has been legal since Thursday for adults to use small amounts of marijuana away from public view, they can't buy it, sell it or grow it until regulations are in place. Exemptions remain for medical users under existing law.

"Nowhere in the nation, or in the world, have they set up a regulatory system for recreational marijuana use. I think that's where we're kind of charting new ground," said Pat Kohler, director of the board.

"There will have to be a set of regulations set up on how much they can grow, what kind of security they need to have, can they grow it indoors — all these things need to be discussed."

In part, Kohler said, Washington will be looking to Colorado — where voters approved a similar statute that goes into effect in January — which has in place regulations for medical marijuana more comprehensive than Washington's laissez-faire approach.

She said it would also be logical to model regulations on rules governing the liquor industry. Until this year, when alcohol sales were privatized, hard liquor in Washington was sold at state-licensed stores that, like those to be set up under the marijuana law, sold nothing but alcohol under tight regulation and taxation.

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Morsi Extends Compromise to Egyptian Opposition

Tara Todras-Whitehill for The New York Times

Protesters against President Mohamed Morsi next to a destroyed barricade near the presidential palace in Cairo on Saturday. More Photos »

CAIRO — Struggling to quell violent protests that have threatened to derail a referendum on an Islamist-backed draft constitution, President Mohamed Morsi of Egypt moved Saturday to appease his opponents with a package of concessions hours after state news media reported that he was moving toward imposing a form of martial law to secure the streets and allow the vote.

Mr. Morsi did not budge on a critical demand of the opposition: that he postpone the referendum set for next Saturday to allow a thorough overhaul of the proposed charter, which liberal groups say has inadequate protection of individual rights and provisions that could someday give Muslim religious authorities new influence.

But in a midnight news conference, his prime minister said Mr. Morsi was offering concessions that he had appeared to dismiss out of hand a few days before. The president rescinded most of his sweeping Nov. 22 decree that temporarily elevated his decisions above judicial review and drew tens of thousands of protesters into the streets calling for his downfall. He also offered a convoluted arrangement for the factions to negotiate constitutional amendments this week that would be added to the charter after the vote.

Taken together, the announcements, rolled out over a confusing day, appeared to indicate the president’s determination to do whatever it takes to get to the referendum, which his Islamist supporters say will lay the foundation of a new democracy and a return to stability.

Amid growing concerns among his advisers that the Interior Ministry might be unable to secure either the polls or the institutions of government in the face of renewed violent protests, the state media reported early Saturday that he would soon order the armed forces to keep order and authorize its solders to arrest civilians.

In recent days, mobs have attacked more than two dozen Muslim Brotherhood offices and ransacked the group’s headquarters, and more than seven people have died in street fighting between Islamists and their opponents.

As of early Sunday, Mr. Morsi had not yet formally issued an order calling out the military, raising the possibility that the announcement was intended as a warning to tell his opponents their protests would not derail the vote.

The moves on Saturday offered little hope of fully resolving the standoff, in part because opposition leaders had ruled out — even before his concessions were announced — any rushed attempt at a compromise just days before the referendum.

“No mind would accept dialogue at gunpoint,” said Mohamed Abu El Ghar, an opposition leader, alluding to previously floated ideas about last-minute talks for constitutional amendments.

Nor did Mr. Morsi’s Islamist allies expect his proposals to succeed. Many said they had concluded that much of the secular opposition was primarily interested in obstructing the transition to democracy at all costs, to try to block the Islamists from winning elections. Instead, some of the president’s supporters privately relished the bind they believed Mr. Morsi had built for the opposition by giving in to some demands, forcing their secular opponents to admit they are afraid to take their case to the ballot box.

For now, the military appears to back Mr. Morsi. Soon after the state newspaper Al Ahram suggested the president would impose martial law, a military spokesman read a statement over state television that echoed Mr. Morsi’s own speeches.

The military “realizes its national responsibility for maintaining the supreme interests of the nation and securing and protecting the vital targets, public institutions and the interests of the innocent citizens,” the spokesman said, warning of “divisions that threaten the State of Egypt.”

“Dialogue is the best and sole way to reach consensus that achieves the interests of the nation and the citizens,” he added. “Anything other than that puts us in a dark tunnel with drastic consequences, which is something that we will not allow.”

If Mr. Morsi goes through with the plan, it would represent a historic role reversal. For six decades, Egypt’s military-backed authoritarian presidents used martial law to hold on to power and to jail Islamists like Mr. Morsi, a former leader of the Muslim Brotherhood. It would also come just four months after he managed to pry power out of the hands of the country’s top generals, who had seized control when Hosni Mubarak was ousted last year and then held on to it for three months after Mr. Morsi’s election.

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Michelle Branch's Daughter's Dream Job Is For the Birds - Literally

Mom & Babies
Celebrity Baby Blog

12/03/2012 at 02:00 PM ET

Sthanlee B. Mirador/Shooting Star

It seems as if Michelle Branch‘s daughter won’t be following in her musical footsteps any time soon.

While the Grammy Award winning singer/songwriter and her husband, bass player Teddy Landau, are no strangers to the stage, 7-year-old Owen Isabelle has found her niche in nature.

“I think because my husband and I are both musicians, she kind of feels like she has to do something a little bit more serious than her mom and dad,” the Cook Taste Eat host, 29, tells PEOPLE.

“Since she was 3 or 4 years old, she was always into science and dinosaurs and watching nature shows.”

In particular, all-things aviary has struck a chord with the little girl, who has already happily declared her future dream job.

“She’s obsessed with birds. She’s been begging to have a pet bird, which I will not allow,” saya Branch. “[Owen] claims she’s going to be an ornithologist when she grows up. Literally, it’s birds 24/7 — every book she wants is birds, stickers, drawings, clothes, everything.”

And as sure as she is of her pending career plans, Owen is just as confident in her political views. Happy to reveal who would have earned her support, the little girl has no qualms about divulging the deciding factor during the recent Presidential election.

“Around election time she said, ‘You know Mom, if I could vote, I would vote for Barack Obama.’ And I said, ‘Oh, really, that’s so interesting. Why?’” Branch recalls.

“And she said, ‘Well, remember that one time we got to go to the White House and meet him? I don’t vote for strangers.’”

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

Read More..

Coast Guard officer killed on the job is remembered

Hundreds came in uniform to Terminal Island on Saturday to say goodbye to the veteran Coast Guardsman killed last week when his boat was rammed by suspected smugglers. His shipmates called him a patriot and gave him the standard salute for a comrade killed in action.

But amid the pomp and circumstance of military mourning — the flyovers and rifle salutes — another side emerged to Chief Petty Officer Terrell Horne III, 34. A doting father known to do push-ups with his two young sons on his back. A giving friend who smoked cigars with his buds. A warrior willing to dress in ugly holiday sweaters around Christmastime.

His colleagues, in their formal bravo uniforms, could be seen wiping away tears as Horne's brother-in-law told his widow, pregnant with a third child, that the hole in her heart would never go away, nor should it.

"The goal is to create a permanent space in your heart that he can live in," he said. "That hole that you're feeling right now is not something to be feared."

The memorial was a reminder of what officials say is a growing threat of smugglers along the nation's coasts. Last Sunday, Horne and three shipmates spotted a panga — an open fishing boat favored by smugglers ferrying marijuana bales and illegal immigrants — running without lights near the Santa Barbara coast. In the darkness, they turned on their blue flashing lights and shouted, in English and Spanish: "Stop! Police! Put your hands up!"

But the two men aboard the panga throttled their engines, authorities said, and headed straight for the small, inflatable Coast Guard boat. Crew members fired on the suspects but couldn't stop the vessel from careering into theirs, a collision that sent Horne into the water with a fatal head wound. His colleagues said Horne may have saved the life of the boat's coxswain by pushing him from the helm, and exposing himself to the oncoming boat.

The men on the panga — believed to be supplying gasoline to other smuggling craft along the California coast — initially got away but were later arrested as they tried to flee back to Mexico. On Saturday, top officials in attendance at Horne's memorial said his death underscored the dangers posed by smugglers abandoning well-policed land routes in favor of the sea.

Homeland Security Secretary Janet Napolitano called the attack "a reminder of the unique dangers the men and women of the Coast Guard face." Robert Papp, the commandant of the Coast Guard, was more blunt. "Those engaged in this dark business," he said, "they're bold and they're growing bolder and they're a danger to our people."

Authorities said they could not recall another Coast Guard member being killed in such a manner off the California coast.

Run-ins with seaborne smugglers have nearly doubled since 2010, many along the more secluded beaches of Ventura and Santa Barbara counties, according to U.S. Immigration and Customs Enforcement. Some local officials in those areas have expressed alarm as smugglers move farther out to sea and farther north to avoid detection.

The focus Saturday, though, was on remembering Horne. Napolitano recounted his rescue of kayakers off Catalina island — and the blankets and hot chocolate he gave them afterward. Horne's commanding officer, Steward Sibert, remembered finishing off patrol shifts with Horne by sitting on their ship's fantail, watching the sunset and yakking about solving the world's problems. Others recalled how thrilled Horne was after a promotion.

Horne, of Redondo Beach, was second in command of the Coast Guard Cutter Halibut, based in Marina del Rey. During the last week, the Coast Guard promoted Horne again, this time posthumously, making him a boatswain's mate senior chief.

robert.faturechi@latimes.com

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Business Briefing | Fraud: Fraud Accusation by Solar Panel Maker

A Chinese solar panel maker, Suntech Power Holdings, already under pressure from the collapse in the price of its products, said an internal investigation had determined that the company was defrauded by a partner in a solar development fund. As a result, Suntech will reduce its 2010 net income by $60 million to $80 million, it said. The accusation involves a Luxembourg investment fund, GSF Sicar, a solar power plant developer that is 80 percent owned by Suntech and 10 percent by Zhengrong Shi, who founded Suntech in 2001. The accusation relates to a minority shareholder, GSF Capital PTE, which owns the remaining 10 percent of the fund. Suntech, which plans to file restated consolidated results in early 2013, said it had concluded that a security interest it received from GSF Capital to finance Italian solar projects did not exist. It said in August that the 560 million euro ($727 million) security was in the form of German bonds. Suntech is also weighing alternatives to cover a $541 million convertible bond due in 2013. Suntech is grappling with a global glut of solar panels that has sent prices into a tailspin. The company also said revenue fell 18 percent in the third quarter from the second because subsidies were cut in Europe, a top solar market. Shipments of photovoltaic solar panels are expected to be lower than planned. Suntech also said that its results for 2011 and the first quarter of 2012 should not be relied on, although the impact was expected to be immaterial. The Chinese solar panel industry received a vote of confidence, too, on Friday, when a Suntech rival, JinkoSolar Holding, said its Swiss unit would get up to $1 billion over five years from the China Development Bank Corporation to provide money for projects outside China.

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Susan Powell's Father-in-Law Secretly Took 4,500 Pictures of Her

12/07/2012 at 07:30 PM EST

Wrapping up a year that has brought unimaginable frustration and heartbreak, Susan Powell's family marked the three-year anniversary of her disappearance at a ceremony this week near where her two sons are buried.

"It's a hard time of year," Susan's father, Chuck Cox, tells PEOPLE. "Our daughter's still missing. Someday, we will find out what happened to her."

He added that he is not sure what to make of a West Valley City, Utah, police announcement Thursday that their investigation into Susan's Dec. 6, 2009 disappearance remains active but "has been scaled down," with a reduction in the number of full-time investigators working the case.

The announcement came at the same time that more evidence emerged of the alleged obsession Susan's father-in-law, Steven Powell, had toward her. Authorities released nearly 4,500 pictures that they say he secretly took of her at home and elsewhere.

Cox says he's hopeful that the police are still doing everything possible to solve Susan's case, but he hasn't ruled out suing the department for failing to arrest Susan's husband, Josh Powell, for her murder.

More than two years after Susan's disappearance, Josh on Feb. 5 murdered the couple's two sons and committed suicide by blowing up his house.

Cox's lawyer, Anne Bremner, says Cox "goes back and forth" over whether to sue West Valley City. "He wants them to find her. A lawsuit can have a chilling affect on things."

Cox and Bremner say they do plan to file a lawsuit against the state of Washington for continuing to give Josh visitation with his children despite what they claim were mounting concerns regarding his mental stability.

Although Cox and the police believe that Josh Powell knew more than anyone what happened to Susan, they also strongly suspect that his father, Steven Powell, should still be looked at more closely.

Steven Powell

Ted S. Warren / AP

The Coxes hoped Steve Powell's voyeurism trial in May would unearth some answers but it did not. Powell invoked his Fifth Amendment right against self-incrimination when asked in jail about Susan.

In numerous interviews with PEOPLE, Steve and Josh Powell denied any involvement in Susan's disappearance and have suggested that she ran off with another man.

Steve Powell was prosecuted for surreptitiously photographing his neighbor's young daughters (and is serving a 30-month sentence), but the investigation also unearthed journals in which Powell described his interest in his daughter-in-law, as well as the thousands of photos, which were released Thursday to the Associated Press.

In a journal entry, Steven Powell recalls a sexually charged dream in which Susan asks him, “Do you think I would make a good wife for you?” None of the pictures show Susan naked, although there are images of her crotch and backside.

"We think he knows exactly where our daughter is," Cox says.

Once Susan disappeared, Josh sold the family's home in Utah and moved with the boys into Steven Powell's house in Puyallup, Wash., only about two miles from the Cox family.

On Thursday, families streamed to Puyallup’s Woodbine Cemetery to remember the Powell boys and other children who died tragically and to dedicate a memorial: a bronze angel inspired by the novella The Christmas Box, in which strangers learn the value of love following a child’s death.

The novella's author, Richard Paul Evans, also attended the dedication. The memorial is on a hill overlooking the boys' gravesites 75 yards away.

"We get a lot of support from a lot of people and we're going to make it through," Cox says.

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