Shares in Jewel parent soar on report of deal

Stock in Jewel-Osco parent Supervalu soared 13.5 percent Friday on speculation that the company is on the brink of a deal with Cerberus Capital Management.

Shares for the Eden Prairie, Minn-based grocery company closed at $2.94.

Supervalu spokesman Mike Siemienas said the company is in talks with several suitors, though a deal is not assured.  A representative for Cerberus Capital Management, a New York-based investment firm, declined to comment for this story.

The Eden Prarie, Minn-based company, which also owns Albertsons, Cub, Acme and Save-A-Lot stores, said it was exploring strategic alternatives, including a sale, in July. Days later, Supervalu dismissed CEO Craig Herkert, and Chairman Wayne Sales stepped in to run the troubled grocer.

Supervalu sales and earnings have lagged those of competitors for years. In 2012, the company's stock price fell 69.6 percent and return on investment declined 68.6 percent, according to Bloomberg. Average stock prices in the broader consumer staples market rose 7.4 percent and returns gained 10.7 percent in the period.

For the fiscal year ended Feb. 25, Supervalu reported a loss of $1.04 billion, which included a $519 million operating loss and $509 million in interest expense. Sales declined 3 percent, to $27.9 billion. The company has carried an onerous debt load since buying Albertsons, which included Chicago's Jewel-Osco chain, in 2006, making Supervalu the subject of bankruptcy  speculation.

Cerberus is rumored to be in the mix to buy parts of the company. The firm has experience in the food retail sector and was an investor in the 2006 Albertsons deal. Cerberus still holds a stake in Albertsons and Strategic Restaurants, a Burger King franchisee with more than 250 restaurants.

eyork@tribune.com | twitter: @emilyyork

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Firm bringing HQ to Chicago

St. Louis-based construction firm Clayco Inc. is moving its headquarters to Chicago, attracted by ease of air travel, proximity to clients, access to young professionals and the potential to land city business as Mayor Rahm Emanuel pushes ahead with public-private partnerships for infrastructure improvements, its top executive said Thursday.

Clayco Chairman and CEO Robert Clark and Emanuel are expected to formally announce the move Friday.

Two-hundred and eighty of the company's 1,000 employees already work in the Chicago area, including 88 who work full time at the Jewelers Building, 35 E. Wacker Drive, which becomes company headquarters.

The company expects to double its Chicago workforce during the next couple of years, in part by increasing its architectural business and expanding its infrastructure business.

Clark said the company is seeking to acquire a municipal engineering company as part of an effort to develop its infrastructure business during the next few years. Now focused on industrial, office and institutional projects, the company would like to add a fourth specialty area that would go after water, sewer, road, bridge and airport work, Clark said.

"In the long run, public-private partnerships are something I'm very intrigued about and interested in pursuing," he said. "I don't think we'll do it overnight. … It may be three years from now, until we have significant traction in the (infrastructure) market."

"We're interested in national projects, not just local," he said. "But hopefully we'll have work in our own backyard."

Clayco donated $50,000 to Emanuel's mayoral campaign in late 2010, and Clark donated an additional $10,000 in September to The Chicago Committee, the mayor's campaign fund, according to the Illinois State Board of Elections. Clark said his contributions to a variety of politicians stem from personal convictions and have no relation to his business endeavors.

Tom Alexander, a spokesman for Emanuel, said: "Clayco is choosing Chicago because Chicago offers them unique access to world-class talent and a location from which they can easily and effectively do business around the world, period. Any type of private-public building project would undergo the city's very strict, competitive procurement process."

Last spring, Emanuel won City Council approval for the formation of the Chicago Infrastructure Trust, which will endeavor to secure private financing for public infrastructure projects.

Clayco's shift into downtown Chicago began in October 2010, when it opened offices in the Jewelers Building. Employees who had been based in Oakbrook Terrace have moved there, as have a handful of executives from St. Louis. Clark relocated to Chicago in September 2010.

The company did not seek or receive any financial incentives for its move, the city said. Clayco will keep its St. Louis office intact, and no layoffs are planned as part of the relocation.

Clark and Emanuel first met when Emanuel worked in the Clinton White House. Clark, who was active with the Young Presidents' Organization, worked with Emanuel on some events at the White House. Their paths have crossed a number of times since then, including during President Barack Obama's campaign in 2008.

A meeting with Emanuel played a role in the decision to relocate company headquarters, Clark said. It occupies the 13th and 27th floors of the Jewelers Building, or 30,000 square feet.

"He asked me to target our national clients and bring them here," Clark recalls. "Quite frankly, I was blown away by that. Most mayors are not that aggressive; they leave that up to their economic development folks."

Clayco has done work for a number of large institutions and corporations, including Dow Chemical, Amazon.com, Caterpillar, and locally, Kraft Foods, Anixter, the University of Illinois, the University of Chicago and Blue Cross Blue Shield.

Started 28 years ago by Clark, the privately held company has annual revenue of $820 million. Subsidiaries include architecture and design firm Forum Studios and Concrete Strategies Inc.

kbergen@tribune.com

Twitter @kathy_bergen

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Nielsen And Twitter Team To Track TV

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Bill O’Reilly, National Geographic team up again for “Killing Kennedy” movie

LOS ANGELES (TheWrap.com) – Bill O’Reilly and National Geographic Channel are back in the assassination game.

Following its film adaptation of Fox News personality O’Reilly’s book “Killing Lincoln,” the National Geographic Channel will produce a two-hour film based on O’Reilly’s follow-up book, “Killing Kennedy: The End of Camelot,” the channel’s president, Howard T. Owens, said Thursday.

As it did with “Killing Lincoln,” National Geographic will team with Ridley Scott‘s Scott Free Productions to produce the new film.

Production on the project will begin this spring, with casting news to be announced shortly. According to National Geographic Channel, the film will combine “rare historical insights and archives with dramatic and emotionally engaging storytelling.”

“Killing Kennedy,” which was co-authored with Martin Dugard and published in October, explores President John F. Kennedy’s 1963 assassination in Dallas, and how his death helped to propel America into the Vietnam War era and spark a deep cultural change in the nation.

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Scant Proof Is Found to Back Up Claims by Energy Drinks

Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.

Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.

The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.

“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.

Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.

Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.

As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.

Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.

“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”

A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.

In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.

Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.

Consider the case of taurine, an additive used in most energy products.

On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.

But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.

Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.

Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.

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Brunswick to sell Hatteras, Cabo, lays off 105

The GT63 is the latest model of motor yacht from Hatteras, a unit of Brunswick Corp. (Hatteras Yachts / January 3, 2013)

Reuters

5:49 p.m. CST, January 3, 2013

Recreational boat maker Brunswick Corp. said Thursday that it is seeking buyers for its sportfishing convertible yacht brands Hatteras and Cabo, and that it laid off about 105 workers at its New Bern facility in North Carolina.

The facility had about 545 employees as of November.

Brunswick bought Hatteras for $80 million in 2001 and Cabo for $60 million in 2006.

"The current plan assumes that the eventual purchaser will retain both the physical plant and the workforce of Hatteras/Cabo," Chief Executive Dustan McCoy said.

Hatteras builds luxury motoryachts and sportfishing convertible yachts.

The boat maker suffered a slide in earnings as consumers turned away from splashing money on luxurious items like boats after the recession, and was forced to restructure its operations.

The lay off will affect 75 full-time and about 30 temporary workers, and help Brunswick "better adjust to market conditions," spokesperson Dan Kuberan told Reuters.

The New Bern plant makes Hatteras and Cabo Yachts.

The company said it expects to record charges of between $70 million and $80 million in relation to the changes announced today, a major part of which will be recorded in the fourth quarter ended December.

Brunswick shares were marginally down at $31.37 in trading after the bell. They closed at $31.51 on the New York Stock Exchange on Thursday.

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Chicago man charged in estranged wife's slaying in Munster

A Chicago man with a history of domestic violence arrests has been charged with the murder of his estranged wife in Munster, Ind., early New Year’s Day, authorities said.

Margarito Valdivia, 44, of the 10800 block of South Troy Street, is being held without bail in the slaying of his estranged wife, Erica Valdivia, 33, early on Tuesday, Munster Police said in a news release this afternoon. The attack at a home in the 800 block of Boxwood Drive in Munster also injured Erica Valdivia’s boyfriend, police said.

Erica Valdivia, whom the Lake County coroner’s office said suffered blunt force trauma to the head in an apparent homicide, had been separated from her husband for about four months, according to police.

Margarito Valdivia is believed to have driven to the Boxwood Drive home early Tuesday, gone in and confronted his wife and her boyfriend, police said. He hit the boyfriend in the head “numerous times” as he drove the boyfriend from the home, police said in the release.

Once the boyfriend was outside, Margarito Valdivia went back into the home and began beating his wife, police said.

Police were called to the Boxwood Drive home about 5:45 a.m. Tuesday and found the boyfriend outside with a severe cut to the head. Officers tried to go into the house, but were at first unable to, as Margarito Valdivia had barricaded himself inside. After a SWAT team was called, police sent a remote-controlled robot into the home, and he surrendered.

Police entered the home and found Erica Valdivia lying in a bathroom, with “major trauma” to the head, including her face, police said. She was taken to Community Hospital in Munster, where she was declared dead at 10:04 a.m. Tuesday, according to the coroner’s office.

The Lake County, Ind., prosecutor’s office charged Margarito Valdivia with murder and felony battery today, police said. Court information was not immediately available, but he was being held without bail in Lake County Jail.

Court records show that Margarito Valdivia has Cook County arrests dating back to 1990, when he was arrested on a domestic violence charge and an order of protection was lodged against him. The charges were later dropped. In 1994, he was charged with domestic battery and resisting arrest and was sentenced to a year’s probation after being found guilty of the resisting arrest charge, according to court records.

In 1997, Margarito Valdivia was charged with criminal damage and having a firearm without a gun owner’s permit, and given two years court supervision following a guilty plea. A 2000 domestic battery charge was dropped, but in August 2012 he was found guilty of battery after an attack July 23 in the 9800 block of South Commercial Avenue and sentenced to a year’s conditional discharge, records show.

At the time of the battery arrest, he was still living at the same home in the 10600 block of South Avenue N that the coroner’s office listed as Erica Valdivia’s home address.

lford@tribune.com

Twitter: @ltaford

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2013′s first hot Kickstarter project: An Android-based gaming ‘console-on-a-stick’

We didn’t have to wait very long to discover what 2013′s first big Kickstarter project would be. Via Ars Technica, we give you the GameStick, an Android-based two-inch long stick that plugs directly into a controller and acts as a highly portable gaming console. The GameStick team says that their goal with the new mini-console was to create “a big screen games console that was so small you could pop it in your pocket… so you can take all your games with you to any TV you like.” As far as titles go, GameStick developers so far have “identified 200 [Android] titles that will be great to play on GameStick” and are also “working with our network of over 250 developers including great studios such as Madfinger, Hutch, Disney and others to bring you the best line-up.” The project is seeking $ 100,000 by February 1st and has already raised over $ 31,500 on its first day; in other words, gamers who invest in the GameStick should see a lot of exciting stretch goals announced over the next month. If fully funded, GameStick is slated to launch to the public by this April.

[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]

This article was originally published by BGR

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‘Tennessee Waltz’ singer Patti Page dies at 85

NASHVILLE, Tenn. (AP) — Unforgettable songs like “Tennessee Waltz” and “(How Much Is That) Doggie in the Window?” made Patti Page the best-selling female singer of the 1950s and a star who would spend much of the rest of her life traveling the world.

When unspecified health problems finally stopped her decades of touring, though, Page wrote a sad-but-resolute letter to her fans late last year about the change.

“Although I feel I still have the voice God gave me, physical impairments are preventing me from using that voice as I had for so many years,” Page wrote. “It is only He who knows what the future holds.”

Page died on New Year’s Day in Encinitas, Calif., according to publicist Schatzi Hageman, ending one of pop music’s most diverse careers. She was 85 and just five weeks away from being honored at the Grammy Awards with a Lifetime Achievement Award from The Recording Academy.

Page achieved several career milestones in American pop culture, but she’ll be remembered for indelible hits that crossed the artificial categorizations of music and remained atop the charts for months to reach a truly national audience.

“Tennessee Waltz” scored the rare achievement of reaching No. 1 on the pop, country and R&B charts simultaneously and was officially adopted as one of two official songs by the state of Tennessee. Its reach was so powerful, six other artists reached the charts the following year with covers.

Two other hits, “I Went To Your Wedding” and “Doggie in the Window,” which had a second life for decades as a children’s song, each spent more than two months at No. 1. Other hits included “Mockin’ Bird Hill,” ”Hush, Hush, Sweet Charlotte,” and “Allegheny Moon.” She teamed with George Jones on “You Never Looked That Good When You Were Mine.”

“I just loved singing with Patti and she hit notes I never dreamed of,” Jones said Wednesday in an email to The Associated Press. “We cut some songs together and it was a great time. She’ll be missed by lots of folks and everybody needs to know how great she was. Patti was a wonderful singer with a real special voice.”

So special, Page managed to maintain her career when most singers of her generation and their more innocent songs were shoved aside by the swinging hips of Elvis Presley. Page proved herself something of a match for the nascent rock ‘n’ roll crowd and its obsession with sex, continuing to place songs on the pop charts into the 1960s and the country charts into the ’80s.

Page never kept track, but was told late in life that she’d recorded more than 1,000 songs. That’s not what she had in her mind growing up as young Clara Ann Fowler.

“I was a kid from Oklahoma who never wanted to be a singer, but was told I could sing,” she said in a 1999 interview. “And things snowballed.”

She was popular in pop music and country and became the first singer to have television programs on all three major networks, including “The Patti Page Show” on ABC. In films, Page co-starred with Burt Lancaster in his Oscar-winning characterization of “Elmer Gantry,” and she appeared in “Dondi” with David Janssen and in “Boy’s Night Out” with James Garner and Kim Novak.

She also starred on stage in the musical comedy “Annie Get Your Gun.” Her death came just a few days after the conclusion of the run of “Flipside: The Patti Page Story,” an off-Broadway musical commemorating her life.

In 1999, after 51 years of performing, Page won her first Grammy for traditional pop vocal performance for “Live at Carnegie Hall — The 50th Anniversary Concert.” Page was planning to attend a special ceremony on Feb. 9 in Los Angeles where she was to receive a lifetime achievement award from The Recording Academy.

Neil Portnow, the Academy’s president and CEO, said he spoke with Page and she had been “grateful and excited” to receive the honor. “Our industry has lost a remarkable talent and a true gift, and our sincere condolences go out to her family, friends and fans who were inspired by her work.”

Page was born Nov. 8, 1927, in Claremore, Okla. The family of three boys and eight girls moved a few years later to nearby Tulsa.

She got her stage name working at radio station KTUL, which had a 15-minute program sponsored by Page Milk Co. The regular Patti Page singer left and was replaced by Fowler, who took the name with her on the road to stardom.

Page was discovered by Jack Rael, a band leader who was making a stop in Tulsa in 1946 when he heard Page sing on the radio. Rael called KTUL asking where the broadcast originated. When told Page was a local singer, he quickly arranged an interview and abandoned his career to be Page’s manager.

A year later she signed a contract with Mercury Records and began appearing in nightclubs in the Chicago area.

Her first major hit was “With My Eyes Wide Open I’m Dreaming,” but she got noticed a few years earlier in 1947 with “Confess.”

She created a distinctive sound for the music industry on that song by overdubbing her own voice when she didn’t have enough money to hire backup singers for the single.

“We would have to pay for all those expenses because Mercury felt that I had not as yet received any national recognition that would merit Mercury paying for it,” Page once said.

“Confess” was enough of a hit that Rael persuaded Mercury to let Page try full four-part harmony by overdubbing. The result was “With My Eyes Wide Open I’m Dreaming.” The label read, “Vocals by Patti Page, Patti Page, Patti Page and Patti Page.”

“Tennessee Waltz,” her biggest-selling record, was a fluke.

Because Christmas was approaching, Mercury Records wanted Page to record “Boogie Woogie Santa Claus” in 1950.

Page and Rael got hold of “Tennessee Waltz,” convinced that a pop artist could make a smash hit out of it. Mercury agreed to put it on the B-side of the Christmas song.

“Mercury wanted to concentrate on a Christmas song and they didn’t want anything with much merit on the flip side,” Page said. “They didn’t want any disc jockeys to turn the Christmas record over. The title of that great Christmas song was ‘Boogie Woogie Santa Claus,’ and no one ever heard of it.”

“Tennessee Waltz” became the first pop tune that crossed over into a big country hit.

The waltz was on the charts for 30 weeks, 12 of them in the top 10, and eventually sold more than 10 million copies, behind only “White Christmas” by Bing Crosby at the time.

She received the Pioneer Award from the Academy of Country Music in 1980. She also is a member of the Oklahoma Jazz Hall of Fame.

In her later career, Page and husband Jerry Filiciotto spent half the year living in Southern California and half in an 1830s farmhouse in New Hampshire. He died in 2009.

Page is survived by her son, Daniel O’Curran, daughter Kathleen Ginn and sister Peggy Layton.

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Chinese Groups Slowly Carve Out Space in Work Against H.I.V./AIDS

Gilles Sabrie for The New York Times

In October, a student gave blood for an H.I.V. test at the Lingnan Health Center in Guangzhou. The center tries to be a safe space for gay men in an environment that can be hostile toward them.

GUANGZHOU, China — As he waited to give blood for an H.I.V. test one recent afternoon, Le, a 25-year-old marketing professional, explained why he was there. “I was aware of the consequences” of not using a condom, he said, “but somehow I didn’t know how to say no.”

Le, a gay man who would give only his first name, was being tested at the Lingnan Health Center, an organization run largely by gay volunteers, whose walls are adorned with red AIDS ribbons and a smiling condom mascot. In the past, Le went to hospitals to be tested, he said, but the stigma of being a gay man in China made the experience particularly harrowing.

“I’d always be concerned about what the doctors would think of me,” Le said. “Here we’re all in the same community, so there’s less to worry about.”

Le is one of thousands of gay men in this bustling city of 13 million people who are benefiting from a pioneering experiment that supporters hope will revolutionize the way the Communist Party deals with nongovernment groups trying to stop the spread of AIDS and other sexually transmitted diseases.

Encouraged by the new slate of leaders who came to power in November, civil society activists hope the model taking shape here in the prosperous southern province of Guangdong, which has long served as a petri dish for economic reform, will be replicated nationally, not just in the fight against disease but also on issues like poverty, mental health and the environment.

While China’s Center for Disease Control and Prevention has allowed community organizations across the country to participate in disease testing programs since 2008, in practice those efforts remain patchy. But in November, just before World AIDS Day the following month, the grass-roots movement received a high-profile endorsement from the incoming prime minister, Li Keqiang.

At a meeting with advocates for AIDS patients, Mr. Li, a large red ribbon pinned to his jacket, promised more government support and shook hands with H.I.V.-positive people. The image resounded in a society where those infected are routinely turned away from hospitals and hounded from their jobs. “Civil society plays an indispensable role in the national battle against H.I.V./AIDS,” he said, according to the state news media.

Activists remain wary, however, noting that the government has made similar promises in the past. And despite the high-level support and a policy in Guangdong allowing grass-roots groups to register directly with the government — instead of being forced to find an official sponsor, as in much of the country — many organizations say they still are stymied by dizzying bureaucratic hurdles or rejected for missing unannounced deadlines.

Tao Cai, the director of AIDS Care China, which provides support to 30,000 H.I.V.-positive people nationwide but remains unregistered, believes the obstacles come from local officials who are trying to prevent nonprofit groups from competing with their fiefs. “In China,” he said, “we say reform never gets out of Zhongnanhai,” a reference to the walled compound for senior leaders in Beijing.

There is little doubt that public health officials need help. Through October, nearly 69,000 new H.I.V. infections were reported in China in 2012, a 13 percent rise from the same period in 2011. Almost 90 percent of those cases were contracted through sexual intercourse, with rising numbers involving gay men. Medical experts also worry about syphilis, which has returned with a vengeance after being virtually wiped out during the Mao era.

Reported cases of syphilis, known in the south as “Guangdong boils,” have increased more than tenfold in the last decade, according to national statistics. As with H.I.V., gay men and sex workers are particularly at risk. Local health experts estimate that 5 percent of men who have sex with other men carry H.I.V., while around 20 percent test positive for syphilis.

The Chinese authorities have long tackled the rise in communicable diseases among gay men with all the sensitivity of a swinging billy club. In raids on bars, bathhouses and parks, police officers and health officials often force those detained to hand over their IDs and submit to blood tests.

Grass-roots health groups have been frequent targets of official harassment as well. In most provinces, they can legally register with the Bureau of Civil Affairs only if they are sponsored by a government agency. But advocates say few agencies are willing to vouch for groups focused on politically fraught issues like homosexuality, prostitution or sexually transmitted diseases.

In the face of such constraints, the majority of China’s estimated 1,000 H.I.V. organizations operate in a legal purgatory that deprives them of tax benefits and makes it risky to accept foreign donations, usually their main source of support.

Mr. Li, the incoming premier, has a spotty record when it comes to H.I.V. In the 1990s, when he was the top official in central Henan Province, a botched blood-collection program there infected hundreds of thousands of people with H.I.V. Critics say Mr. Li was more interested in covering up the problem than dealing with its causes. Even as he was holding court with AIDS groups, over a hundred of those infected in the scandal marched in Beijing to the Ministry of Health demanding justice.

Mr. Li’s views appear to have changed. In November, social media erupted over the case of a 25-year-old man seeking treatment for lung cancer who was turned away from two Beijing hospitals because he was H.I.V.-positive. A hospital in nearby Tianjin finally removed the tumor — but only after he altered his medical records to conceal his H.I.V. status from doctors. As a battle raged online between those condemning his actions and those sympathizing with his plight, Mr. Li ordered the Health Ministry to prohibit hospitals from rejecting AIDS patients.

This article has been revised to reflect the following correction:

Correction: January 2, 2013

Because of an editing error, an earlier version of a picture caption misspelled part of the name of an organization in Guangzhou. It is the Lingnan Health Center, not Lignan. 

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