The Ticker

Flea market bust yields

$30M in knockoffs

A flea market raid racked up more than 
$30 million in knockoff apparel and electronics, making it the largest counterfeit bust in Massachusetts, authorities said.

Authorities confiscated enough fake designer purses, clothing and pirated DVDs and CDs from two flea markets May 10 to fill three tractor trailers, U.S. Immigration and Customs Enforcement said.

Local businesses told police in January that illegal items were being sold at the flea markets, which have been open for years, said Lawrence interim Police Chief James Fitzpatrick.

"We didn't expect it to be this wide-ranging," he said. "We expected a couple dozen vendors, but I think they were ramping up for Mother's Day."

Forty-two vendors were arrested. Each pleaded not guilty to state charges of selling counterfeit items and is due back in court in July. The markets' managers have not been charged.

Phony items labeled as brands including Michael Kors, Nike, Louis Vuitton and Ugg Australia were confiscated.

"Counterfeiting is not a victimless crime," said Special Agent Bruce Foucart of the Department of Homeland Security. "People are losing revenue and jobs," he said. The items, many of which originated in China, will be destroyed, he said.

S&P 500 closes at record high

The S&P 500 closed at a record high yesterday, buoyed by a rally in housing stocks after better-than-expected home sales and a jump in Hewlett-Packard shares a day after the personal computer maker said it would cut more jobs.

The S&P 500 closed 1,900.53, just below a record intraday high of 1,902.17 set May 13 and above its record closing high of 1,897.45 the same day.

Hewlett-Packard jumped 6.1 percent to $33.72. The stock was among the S&P 500's best performers a day after the personal computer maker said it may cut as many as 16,000 more jobs in a major ramp-up of CEO Meg Whitman's years-long effort to turn the company around and relieve pressure on its profit margins.

Credit card cos. renew microchip push

Visa and MasterCard are renewing a push to speed the adoption of microchips into U.S. credit and debit cards in the wake of recent high-profile data breaches, including this week's revelation that hackers stole consumer data from eBay's computer systems.

Card processing companies argue that a move away from the black magnetic strips on the backs of credit cards would eliminate a substantial amount of U.S. credit card fraud. They say it's time to offer U.S. consumers the greater protections microchips provide by joining Canada, Mexico and most of Western Europe in using cards with the more advanced technology.

•  Gordon Brothers Group, a Boston-based global advisory, restructuring and investment firm specializing in the retail, consumer products, industrial and real estate sectors, announced that Michael P. Muldowney has joined the firm as chief financial officer. Muldowney's primary focus will be to work with all business units on transactional, strategic, financial and operational initiatives.

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Farmhouse crops up in Roxbury

A one-time Roxbury farmhouse has been restored with many of its original details and high quality craftsmanship.

Located across from Horatio Harris Park, about a half mile from the Jackson Square T station, the six-bedroom house is a legal two family and it has a newly renovated 1,200-square foot basement unit that could be an in-law or au pair suite.

The house has been meticulously restored with a mix of the old and new. There's original red cedar and reclaimed yellow pine floors. refinished marble mantels and staircase, as well as new paneled wainscoting, crown moldings, baseboard, stairs, doors and windows. The house also has new plumbing and electrical, gas-fired heating, central air, surveillance and lighting control systems.

The home's exterior features new unpainted cedar shingles along the front and restored clapboards painted blue and yellow on the sides and back. There's a puddingstone wall with wrought-iron gates out front along with a covered front porch with a mahogany deck.

The first floor features a living room with restored cherry floors, sconce lighting and a wood-mantel fireplace with glass mosaic tile. An adjacent sitting room/fourth bedroom has yellow pine floors, a tiled, marble-mantel fireplace and glass door to a mahogany deck. A nearby formal dining room has original maple floors with inlays added and a tiled, marble-mantel fireplace. All three rooms have Monarch chandeliers or sconces.

The spacious recessed-lit kitchen has new oak floors, Shaker-style maple cabinets, granite counters and stainless-steel Jenn-Air and Miele appliances. There's a dining nook and adjacent half bathroom.

There are three bedrooms on the second floor with restored pine floors, and the two bathrooms have basket-weave marble floors and quartz countertops, with a glass-enclosed shower in the master. There's also a closet with a washer/dryer hookup.

The third floor has a large bedroom with yellow-pine floor under the eaves and two skylights, plus a full bathroom.

The 1,200-square-foot basement unit has a kitchen with maple cabinets and granite counters, a living room, bedroom, washer/dryer hookup and separate utilities. There's a private front and rear entrance, and a sunken rear puddingstone patio for privacy.

The enclosed back yard has a grassy area and bluestone-lined patio, as well as parking for four vehicles.

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Summer rides great for escape

Summers in Boston are precious.

The winters can be long and tough. Spring lasts about 45 minutes. And fall is barely 100 days away.

So New Englanders know when summer finally gets here, it's time to own it. We work hard, we play hard. And it all begins in earnest on Memorial Day weekend.

Almost 90 percent of travelers this holiday weekend will go by car, and the 36.1 million Americans hitting the road for trips of more than 50 miles will be the highest in 10 years, according to AAA.

"It's an economic indicator," said Mary Maguire, director of public and government affairs for AAA Southern New England. "The great majority of people travel by car, especially if you have a large family. These numbers are very encouraging. We all endured 'Snowmaggedon' and now we're ready for summer."

New England's top summer travel destination is the beach. Cape Cod has more than 550 miles of shoreline, and the Cape Cod National Seashore alone draws more than 4.5 million people each year.

Ready to go? On the recommendations of Mark Takahashi, the automotive editor of Edmunds.com, here are three vehicles perfect for a Cape escape:

Audi A5 convertible

Admit it: Nothing's better than a convertible when you're thinking sea and sand. And if you're going al fresco, go in style — ditch the Geo Metro and get the luxury A5 droptop. The folding soft top doesn't impact trunk space, so you've got room for your beach chairs. Headroom is a little lacking in the rear seats, but with the top down, it won't matter. And really, the top should be down. (Starting MSRP: $44,500)

Mazda CX-5

If your beach trip skews more toward family fun than romantic getaway, this stylish choice has more room for passengers and stuff — as well as attractive fuel economy, averaging more than 30 mpg on the highway. "As one of our favorite compact crossover SUVs, the Mazda CX-5 delivers all the space and utility you'd expect, but also brings a more engaging driving experience," Takahashi said. "It also looks pretty sharp for an SUV. With available all-wheel drive, you can also venture out onto the sand." (MSRP: $22,945)

Jaguar F-Type

Probably more suitable to the one-percenters who summer on the Vineyard or Nantucket, the Jaguar F-Type is the pick if you can't make it to the Hamptons. A V8-powered roadster ($92,000) might be a waste, because there's no place to open it up on Route 6. But you can still be the first one to the yacht club. (MSRP: $69,000)

Some people prefer a different approach to summer. Rather than sun, sand and salt water, many Hub escapees head for the hills — to the Berkshires, the Adirondacks or the peaceful Green Mountains of Vermont. For those folks, a luxury sedan doesn't make sense, but these rides do:

Toyota Highlander

Takahashi's top recommendation for a mountain excursion combines roominess and affordability. "It's one of our highest-rated SUVs for good reason," he said. With a thoughtful, refined interior and strong V6 power, the Highlander is right at home for camp or cabin. Best of all: seating for eight, although the rear-most seats should be reserved for children. (MSRP: $29,215)

BMW X5

What's better for a westward march than a well-crafted, powerful, stylish SUV? As it's a BMW, expect and receive luxury and superior construction. "This one should make a long road trip seem shorter," said Takahashi, who recommends the diesel-powered xDrive35d for its authoritative acceleration and frugal fuel consumption. (MSRP: $52,800)

Range Rover Sport

There aren't a lot of vehicles that have the wide range of capabilities of the Land Rover Range Rover Sport. "The V8-powered version defies logic, and probably physics, with its sports car-like performance, yet it also can handle off-road terrain like a pickup," noted Takahashi. "It makes a strong statement." (MSRP: $62,600)

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The Ticker

State Senate votes to expand bottle bill law

Advocates for an expanded bottle bill in Massachusetts are praising a Senate vote to expand the nickel deposit law to include bottled water and other non-carbonated beverages.

The measure was approved as an amendment to the state budget for the fiscal year starting July 1. Supporters of the effort to update the three-decade-old law are gathering signatures to put it before voters in November if the Legislature doesn't act first.

The Senate has voted in the past to expand the law to cover bottled water and sports drinks, but the measure has not advanced in the House.

HP to cut more

Hewlett Packard is bracing to slash an additional 11,000 to 16,000 jobs after it announced a dip in revenue for its second quarter.

The computing giant, which is in the midst of a long restructuring program by CEO Meg Whitman, said revenue was down 1 percent, to $27.3 billion, from the same quarter a year ago.

HP had previously announced plans to cut 34,000 jobs.

TODAY

 Commerce Department releases new home sales for April.

THE SHUFFLE

Disruptor Beam, the company that developed the popular "Game of Thrones Ascent," announced the appointment of Boston PR veteran Elicia Basoli as the company's new director of communications.

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Website logs state of search topics

What do Canadian men, eyebrow waxing, George Costanza, hangover cure, Muppets, PCP, Tinder and yoga have in common? When they're the subjects of online searches, Massachusetts residents are behind the greatest number of queries about them.

Real estate search site Estately opted for a silly approach to highlighting the differences between states. It ran random search terms through Google Trends — from glam rock to conjugal visits to infected piercing — to see which states performed the most searches on the topics.

"We try to find interesting differences between places for people trying to buy homes," said Ryan Nickum, the Seattle site's lead blogger. "It's superfluous information, but it's kind of a fun way to think about where you want to live."

After starting with basic topics such as religious and political names and terms, Nickum expanded to pop culture, and music and food preferences, before deciding that the stranger the search, the more interesting the results.

"I'm sure people in Massachusetts are searching for the best places to eat, the best places to travel — all the sort of normal searches — but that wouldn't have been as interesting," he said.

But now, Nickum finds himself policing a rather uncomfortable discussion on the blog's comment section. "One of the top results for Washington state was circumcision, and that's led to a little bit too detailed debate … on the merits," he said.

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Hot Beacon Hill homes offer luxury for less

If you're looking to buy a historic single family in toney Beacon Hill, prepare to pay for the privilege, but less than the original asking prices.

While low inventory in some Boston neighborhoods is leading to multiple offers, bidding wars and sales above asking price on some properties, two of the Hill's top-of-the-market single-family homes are seeing their prices chopped.

This week, Beth Dicker­son of Gibson Sotheby's relaunched her recently 
acquired listing at 23 W. Ced­ar St., a five-bedroom townhouse that was handsomely redone last year, by dropping the price by $400,000 May 15, after having already dropped it $150,000 May 2. It is now on the market for $5,350,000.

"I did a re-analysis, something you generally do when a property hasn't sold within 60 days in this market," said Dickerson, consistently ranked as the second-highest-volume real estate broker in Boston who has sold dozens of super-high-end properties. "With the end of the spring market coming, reducing the price gives the property some buzz before the summer comes in and buying slows down."

The 5,341-square-foot property certainly pops, from its stately 1836 Greek Revival brick and wrought-iron exterior to an elegantly restored living/dining area, a chef's kitchen with honed Carrara marble countertops and a private two-tiered garden and roof deck. Original floors and woodwork were redone, but there's also a contemporary feel in its four levels of living space.

"The owner's an interior decorator who's done a great job mixing in the old with the new," Dickerson said.

It was originally listed by another broker at $6,250,000 in July 2013, so the property has actually been reduced $900,000 since its makeover.

Another top-tier single family, a spectacular 8,684-square-foot Beacon Hill townhouse overlooking Boston Common at 56 Beacon St., has had its price cut by $600,000, to $11,900,000.

Jeannemarie Conley of Otis & Ahearn has had the listing — along with colleague John Corcoran — since January 2011.

"Cutting the price brings in new potential buyers, and encourages others who've looked at it to look at it again," said Conley, who sold 15 Commonwealth Ave. for $12.5 million in 2012, the highest sales price in Boston that year. "The price cut is already working because it's increasing activity on the property.

In addition to its beautiful restored woodwork, the townhouse, built in 1819, features a huge dining room with a marble fireplace, a master bedroom suite taking up an entire floor and an elevator to all floors. It also has something unheard of in the city — a private 
attached four-car garage.

"The market for single-family properties like these are families looking to make a long-term commitment to city living," Conley said. "It's a major decision."

Both of these properties have had a number of 
offers, their brokers say, but for various reasons have not sold.

"Selling these kinds of properties is a combination of the right timing and price coming together," Conley said.

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Gov. Deval Patrick reveals jobs pact with Japan

Gov. Deval Patrick yesterday let slip that his administration is working on a pact with a Japanese agency that promotes foreign investment in the country as he defended his globetrotting to entrepreneurs, saying the frequent travels are part of "a strategy" to grow education, innovation and infrastructure in the Bay State.

At a briefing on his Innovation Economy Mission last December to Japan, Hong Kong and Singapore emceed by Jim Paul, director of the Boston office of the U.S. Department of Commerce, Patrick said his administration is working on a memorandum of understanding with the Japan External Trade Organization, a government-related agency, but was stopped short of elaborating by someone in the audience.

"I guess I'm not supposed to announce that today," Patrick said. "Stay tuned."

There are currently 130 Japanese companies in Massachusetts supporting 10,000 jobs as part of the state's $3 billion trade relationship with the country.

Patrick said his trade missions aren't about "how many fistfuls of purchase orders" he can bring home, but rather, "How many relationships can we deepen, can we create, can we extend."

But with little more than seven months left to serve on Beacon Hill, Patrick, said it will be up to others to build on his team's groundwork by forging future partnerships with senior government leaders.

"You realize of course it's up to you, not me. It's about whether you're willing to walk through the door we open," Patrick said.

Yesterday's event was held at District Hall on Northern Avenue, the world's first dedicated open workspace for the innovation community.

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The Harvard Club to sell off section

The Harvard Club of Boston plans to sell a portion of its Commonwealth Avenue main clubhouse to fund a "transformational" renovation.

Ensconced at 374-380 Commonwealth Ave. since 1913, the private club has an agreement to sell part of 380 Commonwealth Ave. to Boston's Sea-Dar Real Estate Inc., which wants to build an addition and add five condos in the building.

"We're selling what we deem as an underutilized portion of our Comm. Ave. location," said Steven Cummings, the club's general manager. "We're engaging in a series of transformational changes to our main clubhouse ... to improve the club experience for our current members and to allow us to better attract and retain a new generation of membership."

Sale proceeds will be used solely to fund the updates, which will include improved interior circulation, a new rear entrance and dining renovations, according to Cummings, who said it was too early for a project price tag.

The Harvard Club, which has 4,500 members, also leases space at 1 Federal St., in the Financial District.

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The Ticker

TJX Cos. shares drop

Shares of TJX Cos. Inc. fell 7.62 percent yesterday to $53.95 after the Framingham owner of T.J. Maxx, Marshalls and HomeGoods missed first-quarter earnings estimates for the first time in five years and lowered the high end of its full-year outlook.

The off-price retailer's sales climbed 4.9 percent to $6.49 billion — missing Wall Street's average estimate of $6.60 billion — on weaker clothing sales.

TJX plans to significantly increase its marketing this quarter and expand its loyalty program to include a non-credit-card choice. It also plans to open its first stores in Austria next year.

Investors also unloaded shares in several other big retail chains, dragging down U.S. stocks and wiping out small gains from a day earlier. Disappointing earnings from Dick's Sporting Goods, Urban Outfitters and others triggered the selling spree.

Cupcake co. opening on Charles Street

Boston's Sweet Cupcakes is petitioning the city's Licensing Board to open a fifth location at 81 Charles St. on Beacon Hill — the site of celebrity chef Todd English's former Isabelle's CurlyCakes. English had opened the cupcake shop in 2010 with his daughter, Isabelle, but it closed in January for "renovations" and never reopened.

Hotel Commonwealth named
official hotel of the Red Sox

The Hotel Commonwealth in Kenmore Square has been named the official hotel of the Boston Red Sox. The 149-room luxury hotel, a fervent supporter of the team and home to some of the city's top dining and drinking establishments, will use the new four-year partnership to connect Boston visitors with exclusive Red Sox excursions, from group ticket packages to batting practice visits to VIP seating and events — even a package honoring pitcher Jon Lester.

Today

 Federal Reserve releases minutes from April interest-rate meeting.

TOMORROW

 Labor Department releases weekly jobless claims.

 National Association of Realtors releases existing home sales for April.

 Freddie Mac, the mortgage company, releases weekly mortgage rates.

 Conference Board releases leading indicators for April.

THE SHUFFLE

TD Bank has promoted Jennifer L. Swift to assistant vice president, store manager of the branch located on Route 6A in Sandwich. She is responsible for new business development, consumer and business lending, managing personnel and overseeing the day-to-day operations at the branch. Swift has eight years of retail banking experience at TD Bank.

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Collar tracks pets’ health

The best friend of man's best friend's may be a new smart collar that can tell when your pooch is feeling "ruff."

PetPace's wireless collar tracks temperature, respiration, pulse, activity level and the position of a cat or dog to catch health problems early.

"The pet can communicate with us to tell us how they feel," said Abraham Menkes, president and CEO of PetPace, which was founded in 2012 and has offices in Burlington and Israel. "Within a few minutes that something occurs, we know."

The collar can detect changes in Fido's behavior before an owner can, and alert both the owner and a vet through an app.

"Initially (pets) hide their symptoms, it's a defense mechanism," said Dr. Asaf Dagan, chief veterinarian at PetPace. "By the time the owner will notice the symptoms, it will get to the point where the pet cannot hide it anymore and it's getting worse."

The data PetPace collects is also used to compare individual cats and dogs, so owners can see how active Mittens is, compared to other cats her age. The PetPace collar is $150 with a $15 monthly service fee. It became available in Massachusetts and Florida yesterday, and will be rolled out to the rest of the country this summer.

PetPace is counting on owners being willing to shell out for their four-legged furballs. A 2011 poll found that 90 percent of owners consider their pet to be a part of the family.

When asked why the company developed a pet collar when the human fitness tracking industries are exploding, Menkes said it was a no-brainer: "We like pets better."

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Netflix coming to Germany, France, 4 other markets

SAN FRANCISCO — Netflix will expand into Germany, France and four other European countries later this year as the Internet video service tries to build an international following that might eventually surpass its U.S. audience.

The additional markets announced Wednesday will extend Netflix's reach into nearly 50 countries, including 13 in Europe. Besides Germany and France, the latest countries on Netflix's list are Switzerland, Austria, Belgium and Luxembourg. The Los Gatos, California, company entered Europe in 2012 when its Internet video service debuted in the U.K. and Ireland.

Earlier this year, Netflix Inc. disclosed its plans to sell its service in more European countries without identifying where they would be.

The company still isn't saying which month its service will be available in the new markets or how much it will cost. Netflix recently raised its Internet streaming prices for new customers by about $1 per month around the world. With the increase, Netflix charges $9 per month for unlimited video streaming in the U.S. The company froze rates at $8 per month for two years for subscribers before the May 9 increase.

Netflix ended March with 35.7 million U.S. subscribers and an additional 12.7 million customers in the rest of the world. The company has set a long-term goal of 60 million to 90 million U.S. subscribers and more than 100 million internationally.

The overseas push has been costly so far for Netflix, which has amassed international losses exceeding $800 million since it ventured outside the U.S. for the first time in 2010. The company's U.S. operations, including a steadily shrinking DVD-by-mail service, have continued to churn out profits that so far have more than offset the international losses.

Last year, for instance, Netflix earned $112 million despite sustaining $274 million in international losses.

Netflix expects to start eking out a profit in its existing overseas markets by the end of this year.

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Oil hovers above $102 as Libya tensions flare

The price of oil hovered above $102 a barrel Tuesday as the threat of further violence in Libya threw into question the country's ability to ramp up its crude exports.

Benchmark U.S. crude for July delivery was up 18 cents to $102.29 a barrel at 0640 GMT in electronic trading on the New York Mercantile Exchange. The Nymex contract for June rose 12 cents to settle at $102.73 on Monday, its last day of trading.

Brent crude, a benchmark for international oil, added 23 cents to $109.60 on the ICE exchange in London.

A revolt by a rogue general has split the Islamists that dominate Libya's politics and risks an outright battle for power that could fragment the country, which has Africa's largest proven reserves of crude. Libya was a key supplier of crude to European refineries but has been struggling to stabilize oil output and exports since dictator Moammar Gadhafi was ousted in 2011.

In other energy futures trading in New York:

— Wholesale gasoline rose 0.2 cent to $2.951 a gallon.

— Natural gas added 1 cent to $4.48 per 1,000 cubic feet.

— Heating oil gained 0.4 cent to $2.941 a gallon.

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Council to vote on $4.6M Fenway Center tax break

Boston city councilors are set to decide tomorrow whether to approve a 
$4.6 million tax break for the Fenway Center development straddling the Massachusetts Turnpike — even as state officials have yet to approve the project over concerns about its financing.

"We need proof that the deal will be financed and we're not going to have to worry about financial issues midway through construction," said MassDOT spokeswoman Cyndi Roy, who added the agency has extended multiple deadlines for the project. "We want to get this done. ... But we want these last remaining issues worked out before we can complete the deal."

The long-stalled but 
recently revived project is now moving along two different tracks. In April, the BRA already signed off on the tax break that is expected to be moved out of a City Council subcommittee tomorrow just before the full council vote, according to City Councilor Salvatore LaMattina.

MassDOT, meanwhile, is also in negotiations with project developer John Rosenthal of Meredith Management over terms for the air rights over the Pike, according to Roy.

LaMattina said he expects wide council support tomorrow and touted the 1,800 construction jobs the project is expected to bring. He said he doesn't have the same concerns MassDOT has about project funding.

"I would hope DOT would approve this," said LaMattina. "I'll be glad to, if I have to, reach out to DOT to approve it and say it's a good project for the city."

Rosenthal did not return messages seeking comment yesterday.

The $550 million Fenway Center project had been held up for three years over an ultimately unsuccessful lawsuit brought by an abutter, represented in court by attorney Jane Willis of Ropes & Gray — the wife of MassDOT Secretary Richard Davey.

Davey disclosed the conflict of interest and has recused himself from the negotiations, which are being conducted by Jeffrey Simon, MassDOT's assistant secretary for real estate, said Roy.

The project will feature 550 apartments as well as commercial space, parking and essentially cover the Pike section that runs from Brookline Avenue to Beacon Street.

It's expected to generate $5.7 million a year in tax revenue, city officials said.

Richard Weir contributed to this report.

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AT&T’s deal with DirecTV opens door to innovators

Now, it's a fair fight.

AT&T's planned $48.5 billion merger with DirecTV creates a worthy adversary for the Comcast-Time Warner Cable colossus that is currently pending regulatory approval.

And it gives the plucky peeps at Netflix a potential upper hand as they engage in an antagonistic and incredibly entertaining war of words with Comcast, protesting the Time Warner merger and continuing to accuse the company of throttling its streaming speeds.

Let's hope that AT&T isn't so (allegedly) short-sighted as to sabotage its own broadband service to make its competitors look bad. Consumers are sick of this nonsense.

I could envision AT&T going #TeamNetflix, making nice with the beloved streaming service, which got us hooked on binge-watching and ushered in a new television renaissance.

If approved, the DirecTV merger would allow AT&T to inherit a wealth of content partners, and 38 million new video subscribers who are going to expect new benefits as a result. The new AT&T television behemoth would be smart to position itself as the T-Mobile of cable and broadband providers: the pro-consumer, value-friendly alternative focused on delivering Netflix, Amazon Prime Instant Video and apps without the hurdles and strings.

Doing so would deal a serious blow to the new Comcast goliath, forcing it to play nice with its own content partners.

But let's be honest: The consumer benefits from these mergers, if any, would be short-lived. The cable landscape is consolidating, and it's doing so out of fear and a lack of any new ideas for delivering content to consumers.

Consumer advocates will say this is the latest blow to a marketplace where consumers are already kicked in the pants by lousy service and high prices. But I say, let the goliaths just buy each other up. Let them play spin-the-bottle with one another. And while they're doing that, Netflix and other creative companies such as Amazon and even Microsoft (think Xbox) will continue to innovate.

And eventually the strategically challenged titans will be innovated out of existence.

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Bakery recalls frozen pancakes for allergy risk

LAWRENCE  — Middle East Bakery, Inc. is recalling its dairy-free, gluten-free frozen pancakes sold with a Market Basket store label because they may contain undisclosed milk.

The company said Monday its "Market Basket Dairy-Free, Gluten-Free Pancakes" were sold in Market Basket Supermarket Stores in Massachusetts and New Hampshire. It said people who are allergic or sensitive to milk could have an allergic reaction, and one illness has been reported.

The bakery said the problem was caused by "a temporary breakdown" in the production and packaging processes. People who bought the pancakes should discard them or return them to the place of purchase for a refund. The recalled packages contain 12 pancakes in a 14-ounce box with UPC 4970571120.

Customers with questions may call Middle East Bakery at 978-688-2221, 9 a.m.-5 p.m. Monday through Friday.

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AT&T aims for TV's future with $48.5B DirecTV deal

LOS ANGELES — Priming itself for the age of Internet-delivered video, AT&T Inc. said it would buy DirecTV for $48.5 billion in cash and stock, or $95 per share.

While DirecTV doesn't help the telecom company compete in the online video space immediately, cost savings from the merger and the extra cash flow will improve its ability to compete with the cable giant that would be formed by Comcast Corp.'s proposed $45 billion takeover of Time Warner Cable.

With 5.7 million U-verse TV customers and 20.3 million DirecTV customers in the U.S., the combined AT&T-DirecTV would serve 26 million. That would make it the second-largest pay TV operator behind a combined Comcast-Time Warner Cable, which would serve 30 million under a $45 billion merger proposed in February.

AT&T is already the largest mobile service provider in the U.S., serving 116 million customers compared to Verizon's 103 million.

"What it does is it gives us the pieces to fulfill a vision we've had for a couple of years - the ability to take premium content and deliver it across multiple points: your smartphone, tablet, television or laptop," AT&T's Chairman and CEO Randall Stephenson said on a conference call with journalists Sunday.

The companies are aiming to eke out $1.6 billion in annual cost savings in an increasingly expensive and maturing pay TV business. Using DirecTV's cash flow, AT&T has greater ability to invest in its landline and mobile networks for broader reach and faster speeds in an Internet service market where it risks falling behind a bulked up Comcast-Time Warner Cable.

The companies also promised consumer benefits like more economical bundles that tie mobile phone, pay TV and Internet service together on a single bill.

But the deal could face unique regulatory scrutiny from the Federal Communications Commission and Department of Justice. Unlike the cable company tie-up, the AT&T-DirecTV merger would effectively cut the number of video providers from four to three for about 25 percent of U.S. households.

Cable companies operate in regions that don't overlap, but in comparison, AT&T provides TV service to 22 states, where it is a direct competitor to DirecTV, which is nationwide. Reducing choice in those markets could result in higher prices for consumers and that usually gives regulators cause for concern.

Stephenson said those concerns would be addressed with a number of what he called "unprecedented" commitments. Among them:

- DirecTV would continue to be offered as a standalone service for three years after the deal's closing.

- AT&T would offer standalone broadband service for at least three years after closing, so consumers could consume video from Netflix and other online services, with download speeds of at least 6 megabits per second where feasible.

- AT&T would expand high-speed broadband access to 15 million more homes - beyond the 70 million that could now get AT&T service - within four years.

- AT&T vowed to abide by the open Internet order from 2010 that the Federal Communications Commission is now in the process of revising after a court struck it down.

- AT&T vowed to sell its roughly 9 percent stake in Latin American wireless carrier América Móvil for about $5 billion.

"This is going to prove to be a pro-competitive and pro-consumer transaction," Stephenson said.

Several consumer groups disagree. Delara Derakhshani, policy counsel for Consumer Reports magazine's lobbying arm, Consumers Union, said the deal "is just the latest attempt at consolidation in a marketplace where consumers are already saddled with lousy service and price hikes."

"You can't justify AT&T buying DirecTV by pointing at Comcast's grab for Time Warner, because neither one is a good deal for consumers," she said in a statement.

AT&T and DirecTV expect the deal to close within 12 months. Under the terms announced Sunday, DirecTV shareholders will receive $28.50 per share in cash and $66.50 per share in AT&T stock. The total transaction value is $67.1 billion, including DirecTV's net debt.

Stephenson and DirecTV CEO Michael White both said the merger would allow the combined company to offer video over multiple screens, but acknowledged that deals with content providers to expand service on multiple platforms still need to be negotiated.

White said that, for example, DirecTV's exclusive deal for its signature product, NFL Sunday Ticket, expires at the end of the coming season. He said he was "confident" the deal would be extended with the NFL on an exclusive, long-term basis, and noted that in the past, DirecTV has sold the football package directly to online platforms, such as to users of Sony's PlayStation.

"This positions us well to compete in the 21st century," White said. "I think our future is bright together in ways that make both of our companies stronger."

Analysts have questioned the strategic benefits of a deal, particularly because it would give AT&T a larger presence in the mature market for pay TV.

Last year, pay TV subscribers in the U.S. fell for the first time, dipping 0.1 percent to 94.6 million, according to Leichtman Research Group.

While AT&T and DirecTV are doing better than cable companies at attracting TV subscribers, DirecTV's growth in the U.S. has stalled while AT&T is growing the fastest of any TV provider.

DirecTV offers neither fixed-line or mobile Internet service, and its rights to airwave frequencies for satellite TV are not the kind that AT&T can use to improve its mobile phone network.

Still, Stephenson has talked exuberantly about how the growth of online video helps boost demand for its Internet and mobile services. Last month, AT&T entered a joint venture with the Chernin Group to invest in online video services.

DirecTV would continue to be based in El Segundo, California, following the merger, the companies said.

___

Business Writer Dee-Ann Durbin in Detroit contributed to this report.

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Book: Web tangled against us

The best thing about Pulitzer Prize-winning journalist Glenn Greenwald's gripping new book "No Place to Hide: Edward Snowden, the NSA and the U.S. Surveillance State" is that it's easily adaptable to a screenplay and destined to become a movie.

Indeed, Sony Pictures already has nabbed the rights to adapt the book into a feature film. Doing so ensures that a global conversation about NSA overreach is revived just as it's about to subside — probably a year or two after the final Snowden bombshells are released this summer. And that, in turn, ensures that the scandal of illegal domestic spying will reach millions more people.

Greenwald's book does a nice job of tying all the chilling revelations about domestic spy programs like PRISM into a disturbing thesis. It's a thesis that casts the Internet age in a new light, maintaining that the NSA, by actively "Converting the Internet into a system of surveillance … guts it of its core potential. Worse, it turns the Internet into a tool of repression."

At times, the book reads like a Cold War spy novel. As he was about to meet Snowden for the first time, Greenwald writes that his colleague feared their taxi driver in Hong Kong could be an undercover agent. He writes that they were instructed that Snowden would be recognizable as the person "carrying a Rubik's Cube."

"It sounds paranoid … but the government has the capability to activate cellphones and laptops remotely as eavesdropping devices," intrepid filmmaker Laura Poitras, who had an essential role in connecting Greenwald and Snowden, is quoted as telling him in the book.

So the two would remove their mobile phone batteries or keep their cellphones elsewhere whenever they spoke.

A good portion of the book is a veritable smackdown of the mainstream media. Unlike Greenwald's forward charge, Snowden observed that "Rather than report the story quickly and aggressively, the Washington Post had assembled a large team of lawyers who were making all kinds of demands and issuing all sorts of dire warnings."

The book doesn't drop a lot of bombshells, but Greenwald said in a recent interview with GQ that the biggest NSA revelation yet is coming this summer.

"I like to think of it as a fireworks show," he said. "You want to save your best for last."

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AT&T buy targets Comcast

AT&T is spending big bucks to compete head-to-head with Comcast in a deal announced yesterday to buy the satellite TV subscription service DirecTV for $48.5 billion.

The purchase pairs the high-speed Internet capabilities of the telecommunications heavyweight with premium cable channels and built-in subscribers of the television provider, in a move that will make AT&T the 
second-largest pay-TV operator in the U.S., with roughly 26 million customers.

"This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens — mobile devices, TVs, laptops, cars and even airplanes," AT&T's Chairman and CEO Randall Stephenson said in a statement.

The AT&T buy follows the Comcast/TimeWarner deal that — once complete — will create the nation's largest cable company, a move which analysts say leaves consumers with fewer options.

"The industry needs more competition, not more mergers," said John Bergmayer, a senior staff attorney at Public Knowledge. "We'll have to analyze this carefully for potential harms both to the video-programming and the wireless markets."

The deal could face tough scrutiny from the Federal Communications Commission and antitrust regulators at the Department of Justice. Unlike Comcast Corp. and Time Warner Cable — which don't compete in the same territory — AT&T's U-verse, offered in 22 states, competes directly for TV customers with DirecTV, which is available nationwide.

The combination would reduce consumers' options for pay TV providers from four to three for about 25 percent of U.S. households, according to Morgan Stanley analyst Ben Swinburne.

While DirecTV has a large presence in the U.S., it also has 18 million subscribers in Latin America. In 2013 the El Segundo, Calif.-based company generated $8 billion in profits off $32 billion in revenue, making it a tempting, cash-rich target for AT&T, analysts said.

But they question the strategic benefits of a deal that would give AT&T a larger presence in the mature market for pay TV.

Last year, pay TV subscribers in the U.S. fell for the first time, dipping 0.1 percent to 94.6 million, according to Leichtman Research Group.

While AT&T and DirecTV are doing better than cable companies at attracting TV subscribers, DirecTV's growth in the U.S. has stalled while AT&T is growing the fastest of any TV provider.

AT&T and DirecTV expect the deal to close within 12 months. Under the terms agreed to Sunday, DirecTV shareholders will receive $28.50 per share in cash and $66.50 per share in AT&T stock. The total transaction value is $67.1 billion, including DirecTV's net debt.

Herald wire services contributed to this report.

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AstraZeneca board rejects new offer from Pfizer

LONDON — The board of AstraZeneca has rejected the improved $119 billion takeover offer from U.S. drugmaker Pfizer, a decision that has caused a sharp slide in the U.K. company's share price as many investors think it effectively brings an end to the protracted and increasingly bitter takeover saga.

In a statement Monday, AstraZeneca's board said it "reiterates its confidence in AstraZeneca's ability to deliver on its prospects as an independent, science led business."

Pfizer Inc., which is the world's second-biggest drugmaker by revenue, has been courting No. 8 AstraZeneca PLC since January, arguing that their businesses are complementary and would be stronger together. On Sunday, it said it was ready to raise its stock-and-cash offer by 15 percent to $118.8 billion, or 70.73 billion pounds.

AstraZeneca didn't take long in rejecting the offer, its board arguing that Pfizer is making "an opportunistic attempt to acquire a transformed AstraZeneca, without reflecting the value of its exciting pipeline."

Because Pfizer said it won't raise its offer again or launch a hostile takeover bid over the heads of AstraZeneca's board, the prospect of a deal looks increasingly remote unless AstraZeneca shareholders urge a change of mind. Pfizer has said it hopes AstraZeneca's shareholders will push for a deal.

"This has been going on for quite some time and we have been in very deep engagement over the whole of the weekend," AstraZeneca Chairman Leif Johansson told the BBC. "If Pfizer now says this is the final offer I have to believe what they say."

Shareholders in AstraZeneca certainly think a deal is now unlikely and the company's share price slumped 14.7 percent to 41.15 pounds.

Johansson said in the rejection statement that his management team had told Pfizer over the weekend that it would need to see a 10 percent improvement over the 53.50 pounds-per-share offer that was on the table at that time. He said Pfizer's latest offer represented only a "minor improvement" that fell short of the 10 percent needed.

Though it has said its indicative offer is final, Pfizer has, under U.K. takeover rules, up until 5 p.m. local time May 26 to make a formal bid. If it doesn't, it cannot make another offer for six months.

For weeks, Pfizer has sought to get the board's approval for what would have been the richest acquisition ever among drugmakers and the third-biggest deal in any industry, according to figures from research firm Dealogic. It would be Pfizer's fourth deal worth $60 billion or more since 2000.

Pfizer's offer comes amid a surge of other deals as drugmakers look to either grow or eliminate noncore assets to focus on their strengths. Those deals include Switzerland's Novartis AG agreeing to buy GlaxoSmithKline's cancer-drug business for up to $16 billion, to sell most of its vaccines business to GSK for $7.1 billion, plus royalties, and to sell its animal health division to Eli Lilly and Co. of Indianapolis for about $5.4 billion. Canada's Valeant Pharmaceuticals has also made an unsolicited offer of nearly $46 billion for Botox maker Allergan, which has turned it down, so far.

Pfizer's latest offer increased the ratio of cash AstraZeneca shareholders would receive, from 33 percent to 45 percent. The latest offer would give them the equivalent of 55 pounds for each AstraZeneca share, split between 1.747 shares of the new company and 2.476 pence in cash. It said the offer represents a 45 percent premium to AstraZeneca's share price of 37.82 pounds on April 17, before rumors of the deal began circulating.

Pfizer CEO Ian Read said in a statement the proposed combination would yield "great benefits to patients and science in the UK and across the globe."

AstraZeneca has repeatedly rejected Pfizer's offers, insisting they significantly undervalue the company and its portfolio of experimental drugs. The company and British government officials also have raised concerns about the prospect of job cuts, facility closures and losing some of the science leadership in the UK, where London-based AstraZeneca is the second-biggest drugmaker, behind GlaxoSmithKline PLC.

Pfizer has made assurances such cuts would be limited. It's promised to complete AstraZeneca's research and development hub in Cambridge. And it pledged to establish the new company's tax residence, but not headquarters, in England, which would significantly reduce its future tax rate.

But layoffs are inevitable in big mergers, and Pfizer has a track record of eliminating tens of thousands of jobs around the world as a result of megadeals.

While Pfizer is best known to the public for Viagra, cholesterol fighter Lipitor and other widely used medicines, in the pharmaceutical industry it's known for two other things: marketing muscle and mega mergers, which together have repeatedly propelled it to the top.

Since 2000, it's done three acquisitions that have vaulted the company to No. 1 in revenue. It paid $111.8 billion for Warner-Lambert Co. in 2000 to get the rights to Lipitor, then $59.8 billion for Pharmacia Corp. in 2003 and $68 billion for Wyeth in 2009, according to Dealogic. With this deal, Pfizer would then be the buyer in four of the 10 richest deals ever in the pharmaceutical industry.

Each of those deals resulted in massive layoffs and closures of some medicine factories, research facilities and office buildings, with the cost-cutting boosting Pfizer's bottom line for a few years. That's clearly a key part of the rationale for this proposal, along with the prospect of lower taxes and getting some promising experimental drugs from AstraZeneca's labs.

Pfizer also wants to add to its medicine portfolio to boost revenue. The company slipped from No. 1 to No. 2 last year, behind Novartis AG, mainly because Lipitor got generic competition at the end of 2011, wiping out several billion dollars in annual sales. Pfizer also has sold off a couple parts of its business and reorganized as part of preparations to possibly break off another part of the company, something analysts have been urging it to do.

___

Johnson contributed from New York.

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Diminutive driver’s hubby worries about her safety

My wife is 5 feet 2 and has a driving posture that places her about 12 inches from the steering wheel of her 2010 Subaru Forester, even with the pedal extenders I have installed. Years ago I was convinced that this is pretty dangerous given the geometry and violence of airbag deployments. Should I be concerned about the risk of injury from a deploying airbag?

The basic rule of thumb is a minimum of 12 inches between the driver's chest and the steering wheel/airbag. The crash management system in modern automobiles is engineered to make sure the sea belt/restraint system prevents the driver's upper body from entering the "zone of deployment" prior to the airbag inflating.

So in this case the seatbelt is the critical factor. The good news is that her Subaru, like many modern vehicles and unlike many early-generation airbag-equipped vehicles, is equipped with front seatbelt pretensioners that will rapidly retract and lock the seatbelt in any frontal collision that triggers the airbag. The mechanism for this is an "explosively expanding gas" driving a piston that retracts the belt. This helps prevent "submarining" — sliding downward and forward in the seat — and helps prevent the upper body from reaching the airbag's zone of deployment.

It would appear that you've done everything possible to allow the Subaru's crash management system to work properly for your wife in the event of a serious frontal impact.

• • •

Some new cars do not have much space around the tire in the wheel well, which results in snow collecting and freezing in the small space. Could this affect how the brakes work?

Very unlikely. As long as the wheel can roll, the hydraulic pressure applying the brake pads against the rotors will force out moisture and debris as well as generating more than enough heat to melt any ice/snow in proximity. With that said, it's always a good idea to knock off the large "icebergs" that collect at the rear of the wheel wells before driving. These can initially limit steering until worn or knocked clear.

• • •

I have a 2002 Buick Century with about 180,000 miles on it. The transmission shifts smoothly when it first starts, but after driving for a while it starts to "clunk" when shifting to the next gear. The transmission was rebuilt in 2010. Transmission "conditioner" was added a couple of weeks ago and it's a little better, but not much. Any suggestions for eliminating the clunk except a $2,000 rebuild? Our son will be driving the car over the summer and we'd like it to last a while longer.

Does the "Service engine soon" light ever come on when the harsh shifting occurs? Hard upshifts or downshifts can be indicative of "limp" mode operation — a self-protective, high hydraulic pressure mode to prevent slippage/damage to the transmission. If so, a diagnostic scan tool may pinpoint the problem.

If no service light comes on, the problem may be mechanical. Even though the transmission apparently has been rebuilt, sediment or worn/binding valves or accumulator pistons may be causing the symptom. This might explain the temporary improvement from adding the conditioner. If the additive wasn't SeaFoam Trans-Tune, give this a try.

Recognize that harsh shifts aren't necessarily damaging to the transmission or drivetrain. Short of major work, I'd suggest continuing to drive the car until the symptoms worsen significantly. More gentle acceleration and/or manually upshifting/downshifting the transmission may improve shift quality.

• • •

Motoring Note: A hearty "thank you" to the armchair quarterbacks who commented on my response to the faulty fuel pump on the 2000 Ford Explorer that wouldn't start in cold weather unless the owner tapped on the bottom of the fuel tank. In describing the additional amperage drawn by a worn/tired fuel pump, I should have said higher mechanical rather than electrical resistance. The additional mechanical resistance in the pump is what causes the increased draw of current I described.

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Later business hours fit to a T

The MBTA's late night weekend service pilot program is spurring Cambridge to join the Hub in taking a look at extending the hours businesses can remain open.

"We want to look at the potential benefits, not just for our employees and our residents, but also for our local businesses," said Lisa Hemmerle, director of economic development for Cambridge. "We have a task force formed."

Government officials make up the task force and they are laying the groundwork before its membership is opened up to the public, Hemmerle said.

The city, said Hemmerle, already has granted requests from two businesses — the Kendall Square Cinema and Veggie Galaxy — to stay open later. And Hemmerle said Cambridge plans to begin an outreach program soon to encourage businesses to stay open later.

"We're hoping to have more, as people realize now their staff can get home," said Elizabeth Lint, executive director of the Cambridge License Commission. "It's something the city has an interest in."

The MBTA's yearlong late night service pilot program, which extended the hours trains and some buses run on Friday and Saturday nights until 2:30 a.m., kicked off in late March.

Meanwhile, Boston's late night task force has met twice since Mayor Martin J. Walsh announced his proposal to let bars and restaurants stay open until 3:30 a.m.

Still, the city hasn't opened up the floodgates yet. The Boston Licensing Board last week denied a request from Amelia's Taqueria in Allston to stay open until 3 a.m. on the weekends. Melina Schuler, a spokeswoman with the mayor's office, said those kinds of requests could be viewed more favorably in the future.

"Moving down the road we'll work better in terms of managing later operating hours," she said.

The task force, trying to get a pilot program rolling by the summer, is looking at how to best implement later hours.

"What's driving this is the two main things we want to look at is the quality of life and the demand for this service," said John Fitzgerald, senior project manager at the Boston Redevelopment Authority and co-chairman of the task force.

The task force, with the help of students from the Harvard Kennedy School, so far is collecting information, including crime statistics, streetlight concentrations and is even combing through Twitter to see the age of those most likely to be tweeting between 2 and 4 a.m.

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Boston HQ’s score skyline spots

The city's skyline has long been largely off limits to companies looking to advertise their names atop high-rises, but lately several companies planting roots in Boston have been allowed to emblazon their corporate logos on their rooftops and rooflines.

Boston-bound motorists heading over the Zakim Bridge are now greeted by giant letters that spell out Converse on the roof of the sneaker makers' soon-to-be opened world headquarters. Meanwhile, travelers to the Seaport District — particularly at night — can't help but notice the illuminated Vertex sign atop the pharmaceutical company's new waterfront home.

The tenants of the two buildings join only a handful of companies — State Street's headquarters in the Financial District being the most notable — granted permission by the Boston Redevelopment Authority to vertically advertise their names.

Boston's downtown skyscrapers are mostly devoid of rooftop advertising due to a 1979 BRA rule prohibiting signs atop high-rise buildings.

Lara Merida, the BRA's deputy director for community planning, said exemptions are granted to companies that locate their corporate headquarters in Boston and occupy the entire building. Hotels such as the Westin and Renaissance can erect signs on their rooflines as "wayfinders" for visitors, she said.

"Generally, signage on top of large projects is discouraged. However, corporate signs have been approved as an economic development incentive for companies building their headquarters in, or transferring their headquarters to Boston," the BRA said in a statement.

Other companies that got BRA approval to erect logos above their corporate headquarters include John Hancock Financial on Congress Street and New Balance in Brighton Landing.

Vertex recently moved its headquarters from Cambridge to Fan Pier, bringing with it 1,300 employees.

"As part of our move to Boston, we followed the BRA's policy related to placing a Vertex sign on our building. This was based on the building serving as our global headquarters and the fact that we occupy 100 percent of the space," said Vertex spokesman Zach Barber.

Converse is moving its world headquarters, now in North Andover, to 187,000 square feet of new office space being created by the $230 million refurbishment of a nine-story building across from the TD Garden. The rehabbed building will house some 400 Converse employees when it opens in the spring of 2015.

"The decision for signage was made by the city. Ultimately, the sign is a reflection that Converse is here to stay," Converse said in a statement.

Melina Schuler, a spokeswoman for Mayor Martin J. Walsh, said that while the Converse building will contain 45,000 square feet of ground floor retail, the sneaker company is occupying "100 percent of the office space."

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US-Russia tension could affect space station, satellites

The escalating tensions between the U.S. and Russia over Ukraine have reached a new altitude: space.

In the aftermath of the Cold War, the two super powers set aside their mistrust and agreed to build a massive orbiting outpost as a symbol of a new era of cooperation in space exploration. But now that partnership is under serious strain.

After Russian Deputy Prime Minister Dmitry Rogozin this week said his nation might no longer allow U.S. astronauts access to its launch vehicles and may use the International Space Station without American participation, the House Science, Space and Technology Committee on Thursday pressed NASA for answers about the how the U.S. could respond.

Since the retirement of the space shuttle, Russia has provided launches for U.S. astronauts, for $71 million each.

"Dropping out of ISS is a high-profile move on Russia's part," said Marco A. Caceres, space analyst for the aerospace research firm Teal Group Corp. of Fairfax, Va. "They're pulling the rug out from under the Americans. It's a move of national pride that plays well in Russia."

Indeed, after railing against U.S. sanctions in response to Russia's annexation of Crimea, Rogozin, chief of the Russian space and defense sectors, suggested that "the U.S.A. ... bring their astronauts to the International Space Station using a trampoline."

Rogozin's threat is too significant for the U.S. to ignore, said Loren B. Thompson, an aerospace and defense expert at the Lexington Institute, a Washington-based think tank.

"The central assumptions of the Obama administration space policy are no longer valid," he said.

The space station is just one example of how the mess in Ukraine is undermining aerospace trade between the two leaders in space travel. Russia has threatened to suspend exports of rocket engines, which are used to help launch U.S. Air Force satellites. And it has threatened to suspend cooperation on navigational systems that depend on outposts in Russia.

The U.S. helped fund the Russian program in the aftermath of the collapse of the Soviet Union. And when the shuttle Columbia burned up on re-entry in 2003, killing seven, the Russians agreed to help ferry U.S. astronauts back and forth to space.

The $100-billion orbital outpost, often cited as the most expensive machine ever built, has a series of modules and power systems, some Russian, some American and others from a range of international partners. The U.S. hardware produces most of the station's electricity, but the Russian propulsion system helps keep the station in orbit.

Now, that combination of hardware could cause a major headache. Under legal agreements, the U.S. has an upper hand in controlling the space station, but Rogozin said his nation could operate its modules independently of the U.S.

In a House hearing at the end of March, NASA Administrator Charles Bolden said the agency's partner is not Russia itself, but rather the Russian space agency, a distinction that many analysts dismissed.

The House science committee sent a letter to Bolden on Thursday seeking an assessment of a Russian withdrawal from the space station program after 2020. While the partnership is not yet broken, the committee wants to know what options the U.S. has if Rogozin's threats become reality.

The issue involves broad engineering and legal issues that may be new: Could the space station be separated into two parts? Who owns key systems? What would happen to life science research and how would such a breakdown in cooperation affect political support for human space flight?

When the U.S. and Russia agreed to build the station in 1993, neither country had the political will to build such an ambitious project by itself. For years the space station has been considered a symbol of how cooperation among nations may yield bigger results than any single effort.

But that was then.

"This is a step back toward the Cold War days," Caceres said of the current climate. "It's the beginning of a freeze on a great relationship that's been forged over the last two decades."

NASA ultimately wants private companies to take astronauts to the station by 2017, but that hardware is still in development.

Officials with NASA said they did not yet have a response to the committee's letter but issued a statement, which said in part:

"NASA has not received any official notification from the government of Russia on any cessation or changes in our space cooperation at this point. Operations on the ISS continue on a normal basis with the safe return of the Expedition 39 crew May 13 and the expected launch of another crew in two weeks."

Separately, Rogozin has said Russia intends to stop supplying the U.S. with rocket engines that are used in launching military satellites into orbit.

United Launch Alliance, a joint rocket venture of aerospace giants Boeing Co. and Lockheed Martin Corp., uses a Russian-made engine on its Atlas V rocket.

(EDITORS: STORY CAN END HERE)

The RD-180 engine provides the main thrust for the rocket, which launches the government's pricey, school-bus-sized national security satellites for spying, weather forecasting, communications and other, experimental purposes.

In the wake of Russia's seizure of Crimea, the Pentagon asked the Air Force to review United Launch Alliance's use of the engine.

United Launch Alliance said it was not aware of any restrictions. But even if an embargo on selling the engines takes effect, the company says it has stockpiled a two-year supply. It also has another family of rockets, called Delta IV, which uses all U.S.-made rocket engines.

"We are hopeful that our two nations will engage in productive conversations over the coming months that will resolve the matter quickly," Jessica Rye, a company spokeswoman, said.

———

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