Last week two of his targets joined forces: Julie Hiatt Steele, indicted by Starr for false statements, was a defense witness in Susan McDougal’s criminal-contempt trial. Both women allege that they are the victims of vindictive prosecution, a charge Starr denies. “Ken doesn’t want to be the issue,” says an associate. “He’d rather bow out gracefully.”
But that’s not so easy. Starr’s concerned that he has no deputy with the background and experience to succeed him. And he’s worried about the public reaction if he bails out now. In 1997, when he announced he was quitting to become a dean at Pepperdine University, the criticism–from liberals and conservatives–was so fierce, he abandoned the plan.
A spokesman at the independent counsel’s office insists Starr is going “full steam ahead.” But in recent weeks, sources say, Starr has begun talking to advisers about laying the groundwork for his departure. A key part of the planning: a media blitz to minimize negative publicity and refurbish his tarnished reputation. The longer Starr waits, the fewer options are open. The Pepperdine job now seems out of reach. Both of the positions he was offered have been filled. Friends say Starr is considering a book. He’s signed up to teach his usual constitutional-law seminar at the New York University School of Law next spring. And he’s always welcome at his old law firm, Kirkland & Ellis, says managing partner Jack Levin.
NORTHERN IRELANDPeace by Piece
As if the Kosovo crisis weren’t enough to keep Tony Blair busy, the British prime minister spent last week in Northern Ireland rescuing the stalled peace process from collapse. But the outcome was inconclusive: talks were postponed until April 13, and Blair and his Irish counterpart, Bertie Ahern, produced a joint declaration setting out a blueprint for a future agreement. The bottom line: the IRA had 40 days to “put some arms beyond use.” Otherwise its political wing, Sinn Fein, faces exclusion from Northern Ireland’s multiparty executive, which will serve as the region’s devolved government. The two leaders tried to put a positive spin on the disappointing results. Said Blair, it’s a “satis-factory basis” for a final settlement.
MEXICOVanished?
He was to be a symbol in Mexico’s fight against drugs and corruption, proof that high officials are no longer above the law. One problem: Mario Villanueva, governor of the state of Quintana Roo, has not been seen in public for more than a week. Last weekend authorities feared he may have fled the country. Charges were likely to come sometime after Monday, when his six-year term expired. He allegedly used the governor’s airport hangar as a drug-shipment center for the Juarez cartel, Mexico’s most powerful drug mafia. Best known for the beach-resort town of Cancun, Quintana Roo is now the major transit point for cocaine en route from Colombia to the United States. Villanueva, who has maintained his innocence, skipped two meetings with prosecutors last week. One of his lawyers says he last saw him early on March 28.
BIG DEALHow Big Oil Gets Bigger
British Petroleum has struck again. Last week BP agreed to buy Atlantic Richfield Co. (the seventh largest U.S. oil company) for nearly $27 billion in stock, just a few months after it acquired Amoco. Here’s how to become the world’s second largest oil company.
Step 1: Find new resources The old joke is true: the best place to drill for oil is on the floor on the New York Stock Exchange. BP has twice used its stock to buy U.S. firms with valuable assets. With Arco, BP will have reserves of 11.8 billion barrels.
Step 2: Refine the business After buying a firm, BP restructures remorselessly. Inefficient facilities are sold, and thousands of redundant managers are fired. In the latest deal, the senior management of Arco–which initiated the merger–will all resign.
Step 3: Pump out those profits Oil prices have risen of late, but economies of scale are still the industry mantra. With its latest acquisition, BP is the largest oil producer in the United States. It might better be called American Petroleum.
TRENDSEau de… Sofa?
In Europe, the intersection of aromatherapy and mainstream culture has spun off a crop of wacky products. Furniture: British company Contour-Mobel has placed scent-releasing capsules (in lavender, rose and vanilla) inside its chairs and sofas. Haute couture: French designer Olivier Lapidus recently launched a collection of scented evening dresses. Airports: The eyes tell you it’s Heathrow Airport; the nose says it’s Hawaii or a hay meadow. British Airways has embedded heated capsules in the floor of one of its arrivals lounges. Kitchen: Can’t be bothered to cook but crave that home-made smell? No worries. A quick spray from a new Crabtree & Evelyn canister and your guests will swear you made salad (“extracts of dill and cucumber”) or pastries (“notes of cream and vanilla”).
BASEBALLAll Wound Up on the Mound
New York’s most famous Japanese imports may be losing value. Mets pitcher Hideo “The Hurricane” Nomo was released from his contract last week after a lackluster spring performance. Now the Yankees’ Hideki Irabu may face a similar fate. After Irabu botched the same play two games in a row, owner George Steinbrenner called him a “fat toad.” “I don’t know what you got to do,” he added. “That’s not a Yankee.”
GAMESBut That Would Be Pong…
Don’t call it Ping-Pong–Parker Brothers owns that term. What you’re playing–if you’re cool–is table tennis. And if you’re really cool, you’ve got your own bat, preferably made of graphite and costing $200, stored in a zip-up leather case. Table tennis remains hugely popular worldwide and is finding a new U.S. fan base. Supercool lounge-pop artists Air feature TT in their latest video. Upscale pool parlors (Jillian’s in Boston, The Great Entertainer in San Francisco) now offer table tennis; and hard-core Pongers, custom bats in tow, pay $9 an hour to play. But the real upswing is grass-roots: Gen-Xers who’ve dusted off the old tables in their parents’ rec rooms.
