16 airport investors show interest in Midway

An international array of airport investors and operators have shown interest in developing bids to privatize Midway Airport, the city announced Friday evening.

Sixteen parties responded to the city's "request for qualifications" by a 4 p.m. deadline, indicating they had interest in leasing, operating and improving the Southwest Side airport, the nation's 26th busiest, with about 9 million passengers passing through annually.

"The response generated from the  ... process is encouraging and provides the city with a sense of the strong level of interest in a potential lease," said Lois Scott, the city's chief financial officer. "We must evaluate fully if this could be a win for Chicagoans."

The city and its advisers will review the responses to identify qualified potential bidders.

Of the 16, seven had both the operational and financial capabilities sought in the RFQ. The city identified them as:

-- ACO Investment Group, an investor and operator with global airport experience.

-- AMP Capital Investors Limited, a manager and investor in airports, including Melbourne Airport in Australia and Newcastle Airport, in Britain.

--  Corporacion America Group, an Argentina-based airport operator with 49 airports in seven countries.

-- Global Infrastructure Partners (GIP), which is the controlling investor and active manager of London City Airport, London Gatwick Airport and Edinburgh Airport.

--Great Lakes Airport Alliance, which is a partnership of Macquarie Infrastructure and Real Assets and Ferrovial. Its airport operations include London's Heathrow, Brussels Airport and Copenhagen Airport.

-- Incheon International Airport and Hastings Funds Management, which is the sole owner and operator of Incheon International Airport in South Korea and an investor with 16 airport-related investments.

--  Industry Funds Management and Manchester Airport Group, an investor with interests in 13 airports, including Melbourne Airport and Brisbane Airport, both in Australia, and operator of Manchester Airport and East Midlands Airport, in Britain.

If the city moves forward and seeks proposals, a privatization plan could be submitted to the City Council this summer.

This is the second time Chicago has looked at privatizing Midway. A 99-year lease that would have brought in $2.5 billion died in 2009 when the financial markets froze. That deal had drawn six serious bidders.

Mayor Rahm Emanuel has said any second attempt would have to provide city taxpayers with a better deal than the widely criticized 75-year agreement to privatize parking meter operations, carried out during former Mayor Richard Daley's administration. Proceeds from the earlier deal were used to plug operating deficits, and meter rates rose sharply.

This time, proposed leases must be less than 40 years, which locks in the city for a shorter period.

Rather than making only an upfront payment, the private operator also must share revenue with the city on an ongoing basis. Initial proceeds would be used to pay down debt issued since 1996 to rebuild the airport, the mayor's office said. There is about $1.4 billion in outstanding debt.

Longer term, cash flow would be directed to city infrastructure needs. The mayor has pledged proceeds would not be used to pay for city operations.

kbergen@tribune.com

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Retired general: National Guard could help curb Chicago violence

To reduce the homicides and shootings plaguing Chicago streets, elected officials should consider calling on the state and federal governments for help, even the National Guard if necessary, said a retired Army lieutenant general who spearheaded the military response after Hurricane Katrina.

"Just like we do with any disaster. When the tornado comes, or the floods come, the federal government comes in to help," Russel L. Honore said Thursday at a news conference in Chicago.

"Let's not let this be about pride. 'We are big ol' Chicago, we are too proud, we can handle this.' Maybe you can't handle it. If you need help, get the federal government here. But let's control the streets so children and elderly people can be in a safe community."

Honore, known for his no-nonsense leadership, was in Chicago as part of The HistoryMakers project to record and archive the stories of African-American military leaders. The nonprofit organization houses the largest collection of recorded histories of African-Americans.

As part of his visit, Honore met with high school students to discuss his career.

At the news conference at the Chicago Military Academy in the Bronzeville neighborhood, Honore spoke out against the gun violence that affects the lives of so many of the students.

Honore was mild in his tone and fell short of demanding action. Instead he suggested a strategy he thinks could work.

To tackle the violence here, Honore said, the state police and other law enforcement agencies could lend a hand to local police. And the National Guard could take over routine duties, patrolling the streets and handling traffic, while police concentrate their efforts on solving crimes and increasing their presence in troubled neighborhoods.

Last year, Chicago homicides exceeded 500 for the first time since 2008, a 16 percent jump from 2011. And January saw the most homicides for that month since 2002. In addition, the shooting death of Hadiya Pendleton has placed an international spotlight on the random violence in Chicago because the 15-year-old honors student with so much promise was killed less than a mile from President Barack Obama's home.

To reduce the violence, more attention needs to be paid to poor communities infested with drugs, Honore said.

"Trust me, we can tap this down," Honore said of the shootings. "It would take a commitment, and it's not going to be popular. Many people are going to say why are you bringing that to my community? (But) do you want law enforcement or do you want people shooting day and night and destroying the lives of innocent people like the little girl who lost her life here a few weeks ago?"

Rondell Freeman, a 17-year-old junior at Prologue Early College High School who was among the students to hear Honore's remarks, said he feels afraid on the streets or even visiting the local park in his Garfield Park community. Honore's suggestion to bring in state police and National Guard seems radical, but it may be necessary, he said.

"We should do whatever it takes to end the violence, so we won't have to feel scared," he said. "These kids have guns. We need experienced people that can stop them."

When he's not working as a Chicago police officer, Richard Wooten said he's in the neighborhoods — Auburn Gresham, West Chesterfield and Chatham — helping residents develop neighborhood watch groups.

"Crime in Chicago is just running rampant," said Wooten, who does community work as part of his own organization, the Gathering Point Community Council. He attended Honore's news conference.

"This is going to require more than just the Chicago Police Department," he said. "We are in a state right now where we need not only to get the community activated and mobilized and dealing with the issues in their community, but somewhere along the way, we're going to have to tap into some federal funding."

lbowean@tribune.com

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Jane Fonda, Kristen Stewart, Jennifer Garner join list of Oscar presenters

LOS ANGELES (TheWrap.com) – Oscar-winner Jane Fonda has been added to this year’s list of presenters at the Academy Awards ceremony, along with non-Oscar winners Kristen Stewart, Jennifer Garner and Kerry Washington, the show’s producers said on Thursday.

Fonda took home her first Oscar statue in 1972 for her leading role in “Klute” and then won another in 1979 for her performance in Hal Ashby’s “Coming Home.”

She has been nominated five other times, while Stewart, Garner and Washington have yet to be so honored.

Still, Stewart is a hugely popular young starlet thanks to her role as Bella Swan in the “Twilight” franchise, and Washington portrayed Jamie Foxx‘s wife in Best Picture nominee “Django Unchained.”

And not only did TV’s “Alias” star Garner appear in the 2012 family fantasy “The Odd Life of Timothy Green,” but her husband, Ben Affleck, while not getting a nomination this year, did direct the clear frontrunner for Best Picture, “Argo.”

All four leading ladies are joining a very long list of previously announced Oscar presenters, including Affleck, Jennifer Aniston, Michael Douglas, Jamie Foxx, Paul Rudd, Salma Hayek Pinault, Melissa McCarthy, Liam Neeson, John Travolta, Jessica Chastain, Jennifer Lawrence, Halle Berry, Sandra Bullock, Nicole Kidman, Reese Witherspoon, Mark Wahlberg, Ted and the cast of “The Avengers.”

Jean Dujardin, Christopher Plummer, Octavia Spencer and Meryl Streep – last year’s winners in the Academy’s acting categories – are returning as presenters, too.

Barbra Streisand and Adele will perform, along with the casts of “Les Misérables,” “Chicago” and “Dreamgirls.”

“Family Guy” creator Seth MacFarlane hosts this Sunday’s telecast.

Movies News Headlines – Yahoo! News

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Governors Fall Away in G.O.P. Fight Against More Medicaid

Under pressure from the health care industry and consumer advocates, seven Republican governors are cautiously moving to expand Medicaid, giving an unexpected boost to President Obama’s plan to insure some 30 million more Americans.

The Supreme Court ruled last year that expanding Medicaid to include many more low-income people was an option under the new federal health care law, not a requirement, tossing the decision to the states and touching off battles in many capitols.

The federal government will pay the entire cost of covering newly eligible beneficiaries from 2014 to 2016, and 90 percent or more later. But many Republican governors and lawmakers immediately questioned whether that commitment would last, and whether increased spending on Medicaid makes sense, given the size of the federal budget deficit. Some flatly declared they would not consider it.

In Florida, where Gov. Rick Scott reversed his position and on Wednesday announced his support for expanding Medicaid, proponents say that doing so will not only save lives, but also create jobs and stimulate the economy. Similar arguments have swayed the Republican governors of Arizona, Michigan, Nevada, New Mexico, North Dakota and Ohio, who in recent months have announced their intention to expand Medicaid.

The shift has delighted supporters of the law.

“I think this means the dominoes are falling,” said Ronald F. Pollack, the executive director of Families USA, a consumer group. “The message is, ‘Even though I may not have supported and even strongly opposed the Affordable Care Act, it would be harmful to the citizens of my state if I didn’t opt into taking these very substantial federal dollars to help people who truly need it.’ ”

 Nationwide, Medicaid covers 60 million people, most of them low-income or disabled. The Congressional Budget Office has estimated that 17 million more people could be enrolled if all states took the expansion option. So far, 22 states have said they will expand the program, 17 have opted against it, and 11 have not yet decided, according to Avalere Health, a consulting firm.

Some Republican governors remain firmly opposed to the expansion of Medicaid. In her State of the State address, Gov. Nikki R. Haley said, “As long as I am governor, South Carolina will not implement the public policy disaster that is Obamacare’s Medicaid expansion.”

Gov. Rick Perry affirmed that “Texas will not expand Medicaid” and said he was proud that Texas did not follow other states “scrambling to grab every tax dollar they can.”

The change of heart for some Republican governors has come after vigorous lobbying by health industry players, particularly hospitals. Hospital associations around the country signed off on Medicaid cuts under the health care law on the assumption that their losses would be more than offset by new paying customers, including many insured by Medicaid.

Politics could also be a factor in states where Republican governors have decided to expand Medicaid. Mr. Obama won all of those states except Arizona and North Dakota in last year’s election, a fact that may have influenced several of the governors’ decisions. Some of the seven are also up for re-election next year.

Religious leaders have added a moral dimension to the campaign in some states. The Roman Catholic bishops of Salt Lake City and Little Rock, Ark., for example, have urged state officials to expand Medicaid.

The Obama administration has tried to win over skeptical state officials by offering new flexibility to manage Medicaid as they like. On the same day that he agreed to expand Medicaid in Florida, Mr. Scott got federal permission to move more Medicaid beneficiaries into private managed care plans.

Mr. Scott’s support for expanding Medicaid is particularly significant — Florida is the fourth most populous state — and surprising. A onetime hospital executive, he has been among the most strident critics of the health care law, and his opposition to it was a cornerstone of his 2010 campaign for governor.

The battle is not over, however. In Florida, as in many other states, expansion is subject to approval by the Legislature, whose Republican leaders have expressed misgivings. The legislative session begins next month, and advocates say they plan to press ahead with a lobbying campaign.

Leah Barber-Heinz, a spokeswoman for Florida Chain, a health advocacy group, said it was trying to inform lawmakers and the public about who would benefit from an expansion of Medicaid. More than one-fifth of Florida residents, roughly 4 million of 19 million people, lack health insurance.

“There are so many misperceptions about the uninsured,” Ms. Barber-Heinz said. “So we’re trying to show faces of who would be impacted: people who have been hit by the recession, people who have been laid off, educated people, people who own homes.”

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United takes Dreamliner off schedule until June

The All Nippon Airways Dreamliner 787 arrives at Mineta San Jose International Airport. (Gary Reyes/San Jose Mercury News/MCT / January 22, 2013)

Staff and wire report

1:35 p.m. CST, February 21, 2013

The parent company of United Airlines says it is taking the Boeing 787 off its schedule through June 5 for all but one of its routes.

United Continental Holdings Inc. said it still plans to use the 787 on its flights between Denver and Tokyo's Narita airport starting May 12. It had aimed to start that route on March 31.

United, currently world's largest airline and the only U.S. customer for the 787, said the timing of that reinstatement will depend on resolution of the Dreamliner's current issues.

The 50 Dreamliners in commercial service were grounded worldwide last month after a series of battery-related incidents including a fire on board a parked plane in the United States and an in-flight problem on another jet in Japan. United had only been flying the plance since November.

Sources told Reuters earlier this week that Boeing Co. has found a way to fix the battery problems that involves increasing the space between the lithium ion battery cells.

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Tribune exclusive: 'We were just regular parents who were slapped in the face'

The parents of slain teen Hadiya Pendleton talk about her life and death and the issues raised after she died. (Chris Walker/Chicago Tribune)

11:57 p.m. CST, February 20, 2013

Hadiya Pendleton’s parents haven’t had much time to reminisce about their daughter’s life and death before Wednesday, when they sat down for an exclusive interview for the Tribune.

Cleopatra Cowley-Pendleton recalled getting the phone call on Jan. 29 that her 15-year-old daughter had been shot, and rushing to the hospital only to find out it was too late, her daughter was dead.

A whirlwind of activity followed as Hadiya became a national symbol of gun violence and her parents traveled to Washington for President Barack Obama’s State of the Union speech.

“I’m not going to be extremely political, but if I can help someone else not go through what we’ve gone through, then I have to do what I can,” Cowley-Pendleton said. “These are the cards we have been dealt. If these are the shoes I need to walk in, I don’t mind walking in them.”

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Mumford & Sons storm to top of Billboard 200 after Grammy win

LOS ANGELES (Reuters) – British folk band Mumford & Sons jumped to No. 1 on the Billboard 200 album chart on Wednesday after their album “Babel” won a top Grammy honor, while several other Grammy performers received boosts on the U.S. charts.

“Babel,” which won the coveted Album of the Year prize at the Grammy awards on February 10, sold 185,000 copies according to figures from Nielsen SoundScan. The band also performed twice on the live television broadcast, which was watched by 28 million people.

The album was released in September 2012 and shot to the top of the Billboard 200 chart as one of the biggest-selling debuts of the year. It was ranked No. 4 last week before again claiming the top spot after its Grammy boost.

The official “2013 Grammy Nominees” compilation album, featuring songs by The Black Keys, Kelly Clarkson, Katy Perry and Gotye, landed at No. 2 this week, with 87,000 copies sold.

Grammy performers also saw their albums return to the top 10, with Bruno Mars‘ “Unorthodox Jukebox” at No. 3, Taylor Swift’s “Red” at No. 4, The Lumineers’ self-titled debut record at No. 6, FUN.’s “Some Nights” at No. 7 and Maroon 5′s “Overexposed” at No. 10.

The digital songs chart also saw an impact from Grammy performances but none of the artists were able to oust indie rapper Macklemore and Ryan Lewis’ “Thrift Shop” from the top spot, which sold more than 412,000 downloads.

Rihanna’s “Stay” featuring Mikky Ekko received the biggest post-Grammy boost with more than 306,000 copies downloaded, coming in at No. 2.

Viral music video phenomenon “Harlem Shake” by Baauer came in at No. 3, followed by Bruno Mars’ “When I Was Your Man” at No. 4 and Justin Timberlake’s “Suit & Tie” featuring Jay-Z at No. 5, following the pair’s Grammy performance.

(Reporting by Piya Sinha-Roy; Editing by Jill Serjeant and Bill Trot)

Music News Headlines – Yahoo! News

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In Reversal, Florida to Take Health Law’s Medicaid Expansion

MIAMI — Gov. Rick Scott of Florida reversed himself on Wednesday and announced that he would expand his state’s Medicaid program to cover the poor, becoming the latest — and, perhaps, most prominent — Republican critic of President Obama’s health care law to decide to put it into effect.

It was an about-face for Mr. Scott, a former businessman who entered politics as a critic of Mr. Obama’s health care proposals. Florida was one of the states that sued to try to block the law. After the Supreme Court ruled last year that though the law was constitutional, states could choose not to expand their Medicaid programs to cover the poor, Mr. Scott said that Florida would not expand its programs.

Mr. Scott said Wednesday that he now supported a three-year expansion of Medicaid, through the period that the federal government has agreed to pay the full cost of the expansion, and before some of the costs are shifted to the states.

“While the federal government is committed to paying 100 percent of the cost, I cannot in good conscience deny Floridians that needed access to health care,” Mr. Scott said at a news conference. “We will support a three-year expansion of the Medicaid program under the new health care law as long as the federal government meets their commitment to pay 100 percent of the cost during that time.”

He said there were “no perfect options” when it came to the Medicaid expansion. “To be clear: our options are either having Floridians pay to fund this program in other states while denying health care to our citizens,” he said, “or using federal funding to help some of the poorest in our state with the Medicaid program as we explore other health care reforms.”

Mr. Scott said the state would not create its own insurance exchange to comply with another provision of the law.

His reversal sent ripples through the nation, especially given the change in tone and substance since the summer, when he said he would not create an exchange or expand Medicaid.

“Floridians are interested in jobs and economic growth, a quality education for their children, and keeping the cost of living low,” Mr. Scott said in a statement at the time. “Neither of these major provisions in Obamacare will achieve those goals, and since Florida is legally allowed to opt out, that’s the right decision for our citizens.”

Mr. Scott now joins the Republican governors of Arizona, Michigan, Nevada, New Mexico, North Dakota and Ohio, who have decided to join the Medicaid expansion. Some, like Gov. Jan Brewer of Arizona, were also staunch opponents of Mr. Obama’s overall health care law.

Shortly before his announcement, the governor received word from the federal government that it planned to grant Florida the final waiver needed to privatize Medicaid, a process the state initially undertook as a pilot project. Mr. Scott, who is running for re-election next year, has heavily lobbied for the waiver, arguing that Florida could not expand Medicaid without it.

Mr. Scott’s support of Medicaid expansion is significant, but is far from the last word. The program requires approval from Florida’s Republican-dominated Legislature, which has been averse to expanding Medicaid under the health care law. The Legislature’s two top Republican leaders said that before making a decision they would consider recommendations from a select committee, which has been asked to review the state’s options.

“The Florida Legislature will make the ultimate decision,” Will Weatherford, the state House speaker, said. “I am personally skeptical that this inflexible law will improve the quality of health care in our state and ensure our long-term financial stability.”

Medicaid, which covers three million people in Florida, costs the state $21 billion a year. The expansion would extend coverage to one million more people.

Mr. Scott’s reversal is sure to anger his original conservative supporters.

The governor “was elected because of his principled conservative leadership against Obamacare’s overreach,” said Slade O’Brien, state director for Americans for Prosperity, an influential conservative advocacy organization. “Hopefully our legislative leaders will not follow in Governor Scott’s footsteps, and will reject expansion.”

During his announcement on Wednesday, Mr. Scott said his mother’s recent death and her lifetime struggle to raise five children “with very little money” played a role in his decision.

“Losing someone so close to you puts everything in a new perspective, especially the big decisions,” he said.

Michael Cooper contributed reporting from New York.

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OfficeMax, Office Depot agree to merger

Office Depot to buy Office Max as an attempt to compete with Staples.

Office Depot Inc. and Naperville-based OfficeMax Inc. confirmed Wednesday that they're planning to merge but left some key questions about the deal unanswered.

The all-stock deal calls for Office Depot to issue 2.69 new shares of common stock for each outstanding common share of OfficeMax. But officials declined to say where the newly merged company would be headquartered, who would sit in the CEO seat or even what it would be called.

OfficeMax CEO Ravi Saligram and Office Depot CEO Neil Austrian presented a united front during a Wednesday conference call with analysts, taking turns to explain the specifics of the deal.

"It takes two to tango," Saligram said. "Lo and behold, Neil and I have decided to tango."

The announcement of a merger, which Saligram said would "create a stronger, more global, more efficient competitor," put to rest years of speculation about a deal. The merger would unite the No. 2 company in the stationery and office supplies industry, Boca Raton, Fla.-based Office Depot, with the No. 3 company, OfficeMax, headquartered off Interstate 88.

A merger between the two chains "has made sense for years," Credit Suisse analyst Gary Balter wrote in a note this week.

Market leader Staples also would benefit from a merger, BB&T Capital Markets analyst Anthony Chukumba said.

"Clearly, you can't make this deal work unless you close a bunch of stores," he said. "Store rationalization is long overdue, and Staples will clearly benefit from just having fewer stores to compete with."

OfficeMax, with about 29,000 employees, operates 978 stores, including 10 in the Chicago area. Office Depot has about 39,000 employees and operates 1,675 stores, including seven in the Chicago area.

The two CEOs wouldn't say how many stores would be closed, but Balter has predicted about 600.

If the merger is completed, the company's board would have an equal number of directors chosen by Office Depot and OfficeMax. Based on Wednesday's stock closing price, the deal's value is about $976 million.

The combined company would have $18 billion in sales and achieve $400 million to $600 million in savings over three years, according to company officials.

Office Depot shareholders would own about 54 percent of the company and OfficeMax shareholders 46 percent.

It was not clear, though, whether those stockholders would be satisfied with the deal. One of OfficeMax's largest shareholders, Neuberger Berman, said this week that it would support a deal, depending on the terms.

The deal also is subject to approval by regulatory agencies, including the Federal Trade Commission.

Officials declined to say who would lead the combined business or where it would be located once the "merger of equals" is completed, likely by the end of the year.

"During the appropriate times ... our board will make the right decision," OfficeMax's Saligram said. "Now, we're independent companies, and we've got to go through lots of processes."

Saligram and Austrian will be considered to lead the company, but until a leader is chosen, they will remain in their positions.

"From the time we started talking, Ravi and I have grown very fond of each other. It's very clear we can work well together," Austrian said.

Their proposed partnership didn't begin well. The announcement of the planned merger was buried in an earnings release posted prematurely on the Office Depot website early in the morning, then quickly removed. The companies recovered, and about 8:30 a.m., they issued a joint statement announcing the proposed merger.

The mishap will likely be investigated by stock exchanges and regulatory organizations, according to a Chicago financial attorney.

"I am highly confident that the New York Stock Exchange, the Nasdaq and the Securities and Exchange Commission will be looking very closely at who pulled the trigger, who knew about this, and was this in good faith?" James McGurk said.

McGurk said he was not suggesting wrongdoing.

"When you think about it, you have two boards, lots of investment advisers, lawyers, and deals break down at the last minute. Are there lots of ways it could happen? Sure," he said.

OfficeMax shares closed Wednesday down 91 cents, or 7 percent, at $12.09. Shares of Office Depot closed down 84 cents, or nearly 17 percent, at $4.18.

Reuters contributed.

crshropshire@tribune.com

Twitter @corilyns

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Blackhawks make history in shootout win over Canucks

Three times the Blackhawks broke in alone on Canucks goaltender Cory Schneider during the opening period. Three times they came away empty.

For a while, it appeared that for the first time all season maybe it wouldn't be the Hawks' night as they faced their archrivals Tuesday night at the United Center.

Yeah, forget that.

The Hawks wobbled but came away with a 4-3 shootout victory over the Canucks and in the process made a little history. With their 16th consecutive game to start the season without a regulation loss, the Hawks equaled the Ducks' 2006 league record. At 13-0-3, the Hawks have captured 29 of a possible 32 points.

Andrew Shaw scored the game-winner in the shootout, Marian Hossa had two goals and Patrick Sharp also scored in regulation to provide the offense. Ray Emery earned the victory in goal despite yielding two scores late in the third period to send the game to overtime.

"It's probably not the way we'd want to pull that one out but give credit to our team to respond after they tied it up," Sharp said. "We have to find a way to tighten things up late in games, whether it's to be more disciplined, staying out of the box or whatever it may be. Credit to the guys, we pulled out the win and we can feel good about it."

The loss could prove costly as Hossa took a forearm to the back of the head from the Canucks' Jannik Hansen in the third period and did not return. Hossa suffered a serious concussion during the playoffs last season and was not cleared to play until mid-November. The Hawks were already without the services of defenseman Brent Seabrook, who is day-to-day with a lower-body injury.

Daniel Sedin, Alexander Edler and Kevin Bieksa scored for the Canucks in regulation but it wasn't enough as Schneider couldn't stop Patrick Kane and Shaw in the shootout.

The game had a postseason-like feel with physical play and a heart-pulsing pace that included five breakaways during a span of 7 minutes, 41 seconds in the first.

"There were some big hits out there — some questionable hits on both sides," Sharp said. "That's to be expected when these two teams face each other. There's obviously a lot of bad blood."

Said Hawks coach Joel Quenneville: "It was an amazing pace. When you play Vancouver the pace is as good as there is in the game. It was an exciting hockey game as far as the quantity and quality of chances at both ends."

The Hawks will look to set the record to start a season Friday night when they face the Sharks at the United Center.

"It's a remarkable start," Quenneville said. "Guys should be proud of the achievement and where they're at.

"Especially in a 48-game season, it has put us in a real good spot."

ckuc@tribune.com

Twitter @ChrisKuc

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