DealBook: S.E.C. Is Said to Be Investigating Trading Before Heinz Deal

Regulators are scrutinizing unusual trading surrounding the planned $23 billion takeover of the food company H. J. Heinz, raising questions about potential illegal activity in one of the biggest deals in recent memory, a person briefed on the matter said.

The Securities and Exchange Commission opened an insider trading inquiry on Thursday as Berkshire Hathaway and the investment firm 3G Capital agreed to pay $72.50 a share for Heinz, this person said. Regulators first noticed a suspicious spike in trading on Wednesday.

If the S.E.C.’s preliminary inquiry turns into a broader investigation, it could cast a shadow over the deal. As part of the process, authorities would turn their focus toward the limited universe of insiders who could have tipped off traders about the deal.

The agency’s inquiry is expected to be centered on options trading in Heinz, activity that soared this week as news of the deal circulated Wall Street. In what is known as a call option, investors can place a bullish bet on a stock, without actually committing to buy the shares. Instead, investors have the opportunity to buy at a given price and future date.

As recently as Tuesday, there was scant activity in Heinz options. But by Wednesday, as the companies were putting the finishing touches on the deal, options trading jumped, data from Bloomberg shows.

The price of Heinz’s stock soared after the deal was announced. The stock finished up nearly 20 percent on Thursday to close at $72.50, matching the offer price.

The S.E.C. is focusing on the sudden leap in options trading Wednesday, building on a related case it filed last year that also involved 3G, a company with Brazilian roots. In September, the agency obtained an emergency court order to freeze the assets of a Brazilian man suspected of insider trading around 3G Capital’s takeover of Burger King. The trader, a Brazilian citizen who worked at Wells Fargo in Miami, reportedly received the tip from a 3G investor.

Neither the company nor any individual at 3G has been accused of any wrongdoing in that case or in the Heinz inquiry.

While the inquiry is in its early stages, the person briefed on the matter said that regulators could take relatively prompt action. If it is concerned that traders might move the money overseas, the S.E.C. could ask a federal court to freeze the traders’ assets.

The S.E.C. routinely opens inquiries into trading activity after major mergers are announced, but often does not bring charges. The agency, however, has renewed its focus on insider trading, mounting dozens of cases in recent years.

An S.E.C. spokesman declined to comment. Bloomberg News earlier reported that S.E.C. investigators were reviewing the surge in Heinz options trading.

Read More..

Well: Ask Well: Swimming to Ease Back Pain

Many people find that recreational swimming helps ease back pain, and there is research to back that up. But some strokes may be better than others.

An advantage to exercising in a pool is that the buoyancy of the water takes stress off the joints. At the same time, swimming and other aquatic exercises can strengthen back and core muscles.

That said, it does not mean that everyone with a case of back pain should jump in a pool, said Dr. Scott A. Rodeo, a team physician for U.S.A. Olympic Swimming at the last three Olympic Games. Back pain can have a number of potential causes, some that require more caution than others. So the first thing to do is to get a careful evaluation and diagnosis. A doctor might recommend working with a physical therapist and starting off with standing exercises in the pool that involve bands and balls to strengthen the core and lower back muscles.

If you are cleared to swim, and just starting for the first time, pay close attention to your technique. Work with a coach or trainer if necessary. It may also be a good idea to start with the breaststroke, because the butterfly and freestyle strokes involve more trunk rotation. The backstroke is another good option, said Dr. Rodeo, who is co-chief of the sports medicine and shoulder service at the Hospital for Special Surgery in New York.

“With all the other strokes, you have the potential for some spine hyperextension,” Dr. Rodeo said. “With the backstroke, being on your back, you don’t have as much hyperextension.”

Like any activity, begin gradually, swimming perhaps twice a week at first and then progressing slowly over four to six weeks, he said. In one study, Japanese researchers looked at 35 people with low back pain who were enrolled in an aquatic exercise program, which included swimming and walking in a pool. Almost all of the patients showed improvements after six months, but the researchers found that those who participated at least twice weekly showed more significant improvements than those who went only once a week. “The improvement in physical score was independent of the initial ability in swimming,” they wrote.

Read More..

Well: Ask Well: Swimming to Ease Back Pain

Many people find that recreational swimming helps ease back pain, and there is research to back that up. But some strokes may be better than others.

An advantage to exercising in a pool is that the buoyancy of the water takes stress off the joints. At the same time, swimming and other aquatic exercises can strengthen back and core muscles.

That said, it does not mean that everyone with a case of back pain should jump in a pool, said Dr. Scott A. Rodeo, a team physician for U.S.A. Olympic Swimming at the last three Olympic Games. Back pain can have a number of potential causes, some that require more caution than others. So the first thing to do is to get a careful evaluation and diagnosis. A doctor might recommend working with a physical therapist and starting off with standing exercises in the pool that involve bands and balls to strengthen the core and lower back muscles.

If you are cleared to swim, and just starting for the first time, pay close attention to your technique. Work with a coach or trainer if necessary. It may also be a good idea to start with the breaststroke, because the butterfly and freestyle strokes involve more trunk rotation. The backstroke is another good option, said Dr. Rodeo, who is co-chief of the sports medicine and shoulder service at the Hospital for Special Surgery in New York.

“With all the other strokes, you have the potential for some spine hyperextension,” Dr. Rodeo said. “With the backstroke, being on your back, you don’t have as much hyperextension.”

Like any activity, begin gradually, swimming perhaps twice a week at first and then progressing slowly over four to six weeks, he said. In one study, Japanese researchers looked at 35 people with low back pain who were enrolled in an aquatic exercise program, which included swimming and walking in a pool. Almost all of the patients showed improvements after six months, but the researchers found that those who participated at least twice weekly showed more significant improvements than those who went only once a week. “The improvement in physical score was independent of the initial ability in swimming,” they wrote.

Read More..

Russia Seeks Arrest of Georgian Politician

MOSCOW — Russian authorities issued an arrest warrant for a Georgian politician, Givi Targamadze, on Thursday, charging that he had incited riots in Russia, in particular by helping to organize an anti-government march last May that culminated in a confrontation between protesters and the riot police.

Russian authorities asserted that the large anti-government protests were being orchestrated by foreign powers, but Mr. Targamadze, a longtime lieutenant of President Mikheil Saakashvili, is the first non-Russian to face criminal charges.

Russian television has broadcast what it says is surveillance video showing Mr. Targamadze meeting with a leftist leader, Sergei Udaltsov, and two of his deputies, at one point offering to deliver large sums of money on behalf of a Russian banker now living in exile.

At the time, Mr. Targamadze said no such meeting had taken place and that the footage had been manufactured by the Prosecutorial Investigative Committee and the Federal Security Service, or F.S.B., the successor to the K.G.B.

“It is clear that this was all prepared in the investigative committee and the F.S.B. headquarters,” he told Dozhd, an Internet news site. “It is sold to the media and then very quickly, at lightning speed, the Investigative Committee reacts.”

A spokeswoman for Georgia’s general prosecutor told Interfax on Thursday that Georgia cannot extradite Mr. Targamadze to Russia because it would violate his rights under the country’s Constitution, but that prosecutors could open a criminal case based on Russia’s request.

Russian analysts noted that the Georgian government did not say Mr. Targamadze’s status as a lawmaker gave him immunity from prosecution. Mr. Saakashvili’s party lost a parliamentary election last October to an opposition coalition intent on repairing Tbilisi’s icy relations with Moscow.

Mr. Targamadze could not be reached for comment on Thursday. A spokesman for the United National Movement, the party he belongs to, said he was traveling outside Georgia. Meanwhile, the police in Moscow said they were working to determine who else in Russia may have had contact with Mr. Targamadze.

Foreign interference in Russian politics was a central theme on Thursday when President Vladimir V. Putin met with top officials at the Federal Security Service, congratulating them on “courageous acts to neutralize internal and external enemies.” Mr. Putin reported that 200 foreign intelligence officers had been identified in 2002, and spoke with satisfaction about new measures restricting foreign financing for nonprofit organizations.

“Any direct or indirect interference in our internal affairs — any form of pressure on Russia, its allies and partners — is unacceptable,” he said, according to a transcript.

He urged the F.S.B. to increase pressure on the Internet, which he said was being used to promote extremist ideas.

“To neutralize different types of extremist structures we need to act as resolutely as possible,” he said. “It is necessary to block attempts by radical groups to use information technologies, Internet resources and social networking Web sites for their propaganda,” he said.

He went on to say that Russian civil society was rapidly becoming more engaged and active, but that uncontrolled speech and organizing could pose a risk to the state.

“Citizens’ right to freedom of speech is unshakable and inviolable — however, no one has the right to sow hatred, to stir up society and the country, and put under threat the life, welfare and peace of millions of our citizens.” He offered a similar warning about citizens’ initiatives, saying the rise in activism “obviously will be supported by the state.”

“At the same time, I want to underline — no one has a monopoly on the right to speak in the name of all Russian society, especially structures that are controlled and financed from abroad,” he said.

The head of the F.S.B., Aleksandr Bortnikov, told Mr. Putin that the United States and its allies had increased “geopolitical pressure” on Russia over the past year, noting that “as before, they consider our state as one of their main competitors in the international arena.”

Read More..

Bits Blog: Apple Chief Hints at Shareholder Rewards to Come

Investors want more cash from Apple.

Timothy D. Cook, Apple’s chief executive, wasn’t ready to give it to them on Tuesday. But recent history and Mr. Cook’s tendency to foreshadow events before they occur strongly suggest he will reward them soon.

Speaking for the second consecutive year in at a Goldman Sachs technology investor conference, Mr. Cook said Apple’s management team and board were discussing how to return more of the company’s enormous stockpile of cash to shareholders.

If those words sound familiar, it’s because Mr. Cook said almost the same thing a year ago at the Goldman Sachs conference. A month later, the company announced a plan to return more than $45 billion to shareholders over three years in the form of dividends and share repurchases.

That plan only served to slow the swelling of Apple’s cash hoard, not to reduce it. Last year around this time, Apple had nearly $100 billion in cash. Now it has around $137 billion.

“We do have some cash,” Mr. Cook said at the Goldman conference on Tuesday, in a moment of deliberate understatement that set off chuckles from his audience.

Some investors — like the hedge-fund manager David Einhorn — are cranky that Apple’s cash is sitting around earning so little interest.

Mr. Cook said Apple had looked at making some big acquisitions but never seriously enough to follow through on the deals. With its cash, Apple could afford one Amazon or two Facebooks and still have billions in spare change.

Instead, Apple buys smaller companies, mostly for their talent or intellectual property, Mr. Cook said. He said Apple has averaged about one acquisition every other month for the last three years.

How to send more cash to shareholders is the tricky part. Much of Apple’s cash is generated overseas and can’t be paid out to shareholders without being subject to repatriation taxes. In a recent research note, Toni Sacconaghi, an analyst at Bernstein Research, said  Apple could not meaningfully increase its return of cash to shareholders without paying the taxes or issuing debt.

While the latter option sounds nonsensical for a company with as much cash in the bank as Apple, a number of cash-rich technology companies, including Microsoft and Cisco, have issued debt, taking advantage of low interest rates. Mr. Sacconaghi suggested that the most attractive option for Apple shareholders would be for the company to borrow money, perhaps in the range of $50 billion to $100 billion, and use it to buy back stock or increase the dividend. He said increasing the return of cash was critical for Apple to attract a new class of dividend-hungry value investors as the company’s growth slows. Apple’s shares have declined about 33 percent since their high in September.

Mr. Cook called a lawsuit filed against the company by Mr. Einhorn, president of Greenlight Capital, a “silly sideshow.”

Mr. Einhorn has claimed that a change Apple is proposing to make to its corporate charter would limit the option of returning more cash to shareholders through the issuing of preferred stock. Apple has said that even with the charter change, it could issue preferred stock with shareholder approval.

Mr. Cook danced around the rumors that Apple would create an inexpensive iPhone for emerging markets, where income levels and a lack of subsidies by wireless carriers have put the company’s smartphone out of reach for many consumers. But he noted Apple’s history of coming up with creative new products, like the iPod shuffle and the iPad Mini, that appeal to budget-minded shoppers.

“The only thing we’ll never do is make a crappy product,” he said. “That’s the only religion we have.”

Read More..

Japanese Economy Contracts and Remains in Recession

TOKYO (AP) — Japan’s economy remained mired in recession late last year, shrinking 0.4 percent in annualized terms for the third straight quarter of contraction on feeble demand at home and overseas.

The government reported Thursday that growth for all of 2012 was 1.9 percent, after a 0.6 percent contraction in 2011 and a 4.7 percent increase in 2010 and a 5.5 percent contraction in 2009.

The figures were worse than expected, as many analysts had forecast the economy may have emerged from recession late last year as the Japanese yen weakened against other major currencies, giving a boost to Japanese export manufacturers.

Prime Minister Shinzo Abe, who took office in late December, is championing aggressive spending and monetary stimulus to help get growth back on track. He has lobbied the central bank to set an inflation target of 2 percent, aimed at breaking out of Japan’s long bout of deflation, or falling prices, that he says are inhibiting corporate investment and growth.

But the Bank of Japan was not expected to announce any major new initiatives from a policy meeting on Thursday. The current central bank governor, Masaaki Shirakawa, is due to leave office on March 19, and Mr. Abe is expected to appoint as his successor an expert who favors his more activist approach to monetary policy.

Last year began on an upbeat note with annual growth in the first quarter at 6 percent as strong government spending on reconstruction from the March 2011 tsunami disaster helped spur demand. But the economy contracted in the second quarter and deteriorated further as frictions with China over a territorial dispute hurt exports to one of Japan’s largest overseas markets.

Despite the dismal data for last year, many in Japan expect at least a temporary bump to growth from higher government spending on public works and other programs. An index measuring consumer confidence, released this week, jumped to its highest level since 2007, the biggest increase in a single month.

Read More..

Use of Morning-After Pill Is Rising, Report Says

The use of morning-after pills by American women has more than doubled in recent years, driven largely by rising rates of use among women in their early 20s, according to new federal data released Thursday.

The finding is likely to add to the public debate over rules issued by the Obama administration under the new health care law that require most employers to provide free coverage of birth control, including morning-after pills, to female employees. Some religious institutions and some employers have objected to the requirement and filed lawsuits to block its enforcement.

Morning-after pills, which help prevent pregnancy after sex, were used by 11 percent of sexually active women from 2006 to 2010, the period of the study. That was up from just 4 percent in 2002. Nearly one in four women between the ages of 20 and 24 who had ever had sex have used the pill at some point, the data show.

Morning-after pills are particularly controversial among some conservative groups who contend they can cause abortions by interfering with the implantation of a fertilized egg that the groups regard as a person.

Medical experts say that portrayal is inaccurate, and that studies provide strong evidence that the most commonly used pills do not hinder implantation, but work by delaying or preventing ovulation so that an egg is never fertilized in the first place, or thicken cervical mucus so sperm have trouble moving.

This month, the Obama administration offered a proposal that could expand the number of groups that do not need to provide or pay for birth control coverage. But the proposal did not end the political fight over the issue, which legal experts say may end up in the Supreme Court.

The new data was released by the National Center for Health Statistics and based on interviews with more than 12,000 women from 2006 to 2010. Researchers asked sexually active women if they had ever used emergency contraception, “also known as Plan B, Preven or morning-after pills,” as well as about their use of other forms of birth control.

Over all, 99 percent of sexually active women ages 15 to 44 have used contraception at some point in their lives, or about 53 million women, up slightly from 2002. An earlier report found that 62 percent of all women of reproductive age were currently using some form of birth control.

The new report found that 98.6 percent of sexually active Catholic women had used contraception at some point, but the data did not show how many Catholic women currently use contraception.

Condom use has risen markedly. More than 93 percent of women said they had partners who had used condoms at some point, compared with 82 percent of women in 1995, a likely effect of strong public advocacy for condom use during the AIDS epidemic.

In contrast, women who had used intrauterine devices, or IUDs, at some point in their lives declined to about 8 percent from 10 percent in 1995. The use of birth control pills has remained steady since 1995 at 82 percent.

Eighty-nine percent of white women said they had used birth control pills at some point, compared with 67 percent of Hispanic women, 78 percent of black women and 57 percent of Asian women.

Education played a role in the type of contraception used. Forty percent of women without a high school diploma said they chose sterilization, while just 10 percent of women with a bachelor’s degree said they used that method. Those without a high school diploma were also far more likely to use three-month injectables, like Depo-Provera — 36 percent compared with 13 percent of women with a college degree.

About 12 percent of college graduates said they had used emergency contraception, while 7 percent of women with only a high school degree said they had used it.

Educated women were far more likely to have practiced periodic abstinence based on the menstrual cycle. About 28 percent of women with a master’s degree or higher had practiced this method, while just 13 percent of women without a high school diploma had, the report found.

White women, American-born Hispanic women and black women were most likely to practice withdrawal, with more than half of women in each group saying they have used that method. Just 44 percent of foreign-born Hispanics said they practiced withdrawal.

Read More..

Use of Morning-After Pill Is Rising, Report Says

The use of morning-after pills by American women has more than doubled in recent years, driven largely by rising rates of use among women in their early 20s, according to new federal data released Thursday.

The finding is likely to add to the public debate over rules issued by the Obama administration under the new health care law that require most employers to provide free coverage of birth control, including morning-after pills, to female employees. Some religious institutions and some employers have objected to the requirement and filed lawsuits to block its enforcement.

Morning-after pills, which help prevent pregnancy after sex, were used by 11 percent of sexually active women from 2006 to 2010, the period of the study. That was up from just 4 percent in 2002. Nearly one in four women between the ages of 20 and 24 who had ever had sex have used the pill at some point, the data show.

Morning-after pills are particularly controversial among some conservative groups who contend they can cause abortions by interfering with the implantation of a fertilized egg that the groups regard as a person.

Medical experts say that portrayal is inaccurate, and that studies provide strong evidence that the most commonly used pills do not hinder implantation, but work by delaying or preventing ovulation so that an egg is never fertilized in the first place, or thicken cervical mucus so sperm have trouble moving.

This month, the Obama administration offered a proposal that could expand the number of groups that do not need to provide or pay for birth control coverage. But the proposal did not end the political fight over the issue, which legal experts say may end up in the Supreme Court.

The new data was released by the National Center for Health Statistics and based on interviews with more than 12,000 women from 2006 to 2010. Researchers asked sexually active women if they had ever used emergency contraception, “also known as Plan B, Preven or morning-after pills,” as well as about their use of other forms of birth control.

Over all, 99 percent of sexually active women ages 15 to 44 have used contraception at some point in their lives, or about 53 million women, up slightly from 2002. An earlier report found that 62 percent of all women of reproductive age were currently using some form of birth control.

The new report found that 98.6 percent of sexually active Catholic women had used contraception at some point, but the data did not show how many Catholic women currently use contraception.

Condom use has risen markedly. More than 93 percent of women said they had partners who had used condoms at some point, compared with 82 percent of women in 1995, a likely effect of strong public advocacy for condom use during the AIDS epidemic.

In contrast, women who had used intrauterine devices, or IUDs, at some point in their lives declined to about 8 percent from 10 percent in 1995. The use of birth control pills has remained steady since 1995 at 82 percent.

Eighty-nine percent of white women said they had used birth control pills at some point, compared with 67 percent of Hispanic women, 78 percent of black women and 57 percent of Asian women.

Education played a role in the type of contraception used. Forty percent of women without a high school diploma said they chose sterilization, while just 10 percent of women with a bachelor’s degree said they used that method. Those without a high school diploma were also far more likely to use three-month injectables, like Depo-Provera — 36 percent compared with 13 percent of women with a college degree.

About 12 percent of college graduates said they had used emergency contraception, while 7 percent of women with only a high school degree said they had used it.

Educated women were far more likely to have practiced periodic abstinence based on the menstrual cycle. About 28 percent of women with a master’s degree or higher had practiced this method, while just 13 percent of women without a high school diploma had, the report found.

White women, American-born Hispanic women and black women were most likely to practice withdrawal, with more than half of women in each group saying they have used that method. Just 44 percent of foreign-born Hispanics said they practiced withdrawal.

Read More..

A Running Start for a U.S.-Europe Trade Pact

BRUSSELS — Embarking on what could be the biggest trade agreement ever in its economic sweep, officials from the United States and the European Union indicated Wednesday that they had already resolved some of the stickiest issues behind closed doors.

But the sheer ambition of the trade negotiations, which aim not only to eliminate import duties but also synchronize regulations governing products like cars, drugs and medical devices, leaves plenty of room for the talks to bog down in the type of parochial concerns that have derailed past efforts at a trans-Atlantic trade pact.

Ron Kirk, the U.S. Trade Representative, said by telephone Wednesday that this time things would be different. Already, he said, preliminary discussions between him and top E.U. officials have made “very good progress” on issues that have stymied trade relations for years, like health and safety standards applied to food. A final agreement is possible before the end of 2014, he said.

But, Mr. Kirk acknowledged, “we’ve still got a lot of work ahead of us.”

President Barack Obama endorsed a trade pact during his State of the Union address Tuesday, answering pleas from European leaders desperate for a way to speed up economic growth. Though Mr. Obama devoted only a single sentence to the topic, it was the green light that proponents of a trade deal had been hoping for.

“And tonight, I’m announcing that we will launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union,” Mr. Obama said, giving the potential pact a name. He added, “Because trade that is fair and free across the Atlantic supports millions of good-paying American jobs.”

European officials on Wednesday agreed with Mr. Kirk that the timing is favorable for an agreement. And officials in both Brussels and Washington noted that the rising economic might of China gave them further incentive. A broad trade agreement could help ensure that Americans and Europeans, and not the Chinese government, would set standards on product safety or protection of intellectual property in years to come.

“You will now be setting what the rules of the road are for trade that are going to shape the global trading system,” said Karan Bhatia, a former deputy U.S. trade representative who is now vice president for global government affairs at General Electric in Washington.

Unless the United States and Europe are in agreement, in too many future trade cases, “we would be forced to accept Chinese standards,” Karel De Gucht, the trade commissioner who is expected to lead the talks on behalf of Europe, said during an interview. “That’s what it is about.”

José Manuel Barroso, the president of the European Commission — the Union’s administrative arm — said at a news conference here that a trade pact would bolster the economies of the United States and Europe.

“Both of us need growth, and both us also have budgetary difficulties,” Mr. Barroso said. “Trade is the most economic way of promoting growth.”

But Mr. De Gucht, interviewed later, added a note of caution. “The low-hanging fruit doesn’t exist here any more,” he said. “All the easy topics are off the table.”

European leaders, including Prime Minister David Cameron of Britain and Chancellor Angela Merkel of Germany, have been pushing for a trade deal as a low-cost way of stimulating their struggling economies. Mr. Obama’s statement Tuesday will help put to rest complaints by some Europeans that the U.S. president has not paid enough attention to his country’s largest trading partner.

“A deal will create jobs on both sides of the Atlantic and make our countries more prosperous,” Mr. Cameron said in statement. “Breaking down the remaining trade barriers and securing a comprehensive deal will require hard work and bold decisions on both sides.”

Between them, the United States and Europe account for about half of global economic output and one-third of world trade. Trade in goods between the Union and America totaled $646 billion last year, according to U.S. government figures.

According to Mr. Kirk, the trade representative, the Union is the best customer for U.S. exports, buying $459 billion in goods and services and supporting 2.4 million American jobs.

“I don’t know if I would call it the biggest trade agreement in the history of the planet,” Mr. Kirk said, “but it is really a very big deal.”

Read More..

Tech Companies and Immigrant Advocates Press for Broad Changes in Law

SAN FRANCISCO — What do computer programmers and illegal immigrants have to do with each other?

When it comes to the sweeping overhaul of the nation’s immigration laws that Congress is considering this year, the answer is everything.

Silicon Valley executives, who have long pressed the government to provide more visas for foreign-born math and science brains, are joining forces with an array of immigration groups seeking comprehensive changes in the law. And as momentum builds in Washington for a broad revamping, the tech industry has more hope than ever that it will finally achieve its goal: the expanded access to visas that it says is critical to its own continued growth and that of the economy as a whole.

Signs of the industry’s stepped-up engagement on the issue are visible everywhere. Prominent executives met with President Obama last week. Start-up founders who rarely abandon their computers have flown across the country to meet with lawmakers.

This Tuesday, the Technology CEO Council, an advocacy organization representing companies like Dell, Intel and Motorola, had meetings on Capitol Hill. On Wednesday, Steve Case, a founder of AOL, is scheduled to testify at the first Senate hearing this year on immigration legislation, alongside the head of the deportation agents’ union and the leader of a Latino civil rights group.

“The odds of high-skilled passing without comprehensive is close to zero, and the odds of comprehensive passing without high-skilled passing is close to zero,” said Robert D. Atkinson, president of the Information Technology and Innovation Foundation, a nonpartisan research group based in Washington.

The push comes as a clutch of powerful Senate Republicans and Democrats have reached a long-elusive agreement on some basic principles of a “comprehensive” revamping of immigration law. Separately, a bipartisan bill introduced in the Senate in late January focuses directly on the visa issue.

The industry’s argument for more so-called high-skilled visas has already persuaded the president.

“Real reform means fixing the legal immigration system to cut waiting periods, reduce bureaucracy, and attract the highly-skilled entrepreneurs and engineers that will help create jobs and grow our economy,” Mr. Obama said in Tuesday’s State of the Union speech.

In a speech in Las Vegas in January in which he introduced his own blueprint for overhauling immigration law, Mr. Obama embraced the idea that granting more visas was essential to maintaining innovation and job growth. He talked about foreigners studying at American universities, figuring out how to turn their ideas into businesses.

In part, the new alliance between the tech industry and immigration groups was born out of the 2012 elections and the rising influence of Hispanic voters.

“The world has changed since the election,” said Peter J. Muller, director of government relations at Intel, pointing out that the defeat of many Republican candidates had led to a softening of the party’s position on broad changes to immigration law. “There is a focus on comprehensive. We’re thrilled by it.”

“At this point,” he added, “our best hope for immigration reform lies with comprehensive reform.”

Mr. Case, the AOL co-founder, who now runs an investment fund, echoed that sentiment after meeting with the president last Tuesday.

“I look forward to doing whatever I can to help pass comprehensive immigration reform in the months ahead,” he said, “and ensure it includes strong provisions regarding high-skilled immigration, so we are positioned to win the global battle for talent.”

That sort of sentiment delights immigrants’ rights advocates who have banged their heads against the wall for years to rally a majority of Congress around their agenda.

“The stars are aligning here,” said Ali Noorani, executive director of the National Immigration Forum. “You’ve got the politics of immigration reform changing. You’ve got tech leaders leaning in not just for high-skilled but for broader immigration reform.”

Senator Orrin G. Hatch, Republican of Utah, who is co-sponsoring the bill to increase the number of visas available for highly skilled immigrants, said the cooperation went both ways.

“All the talk about the STEM field — science, technology, engineering, mathematics — has awakened even those who aren’t all that interested in the high-tech world,” he said.

While the growing momentum has surprised many in Washington, comprehensive change is still not a sure thing, especially in the Republican-controlled House.

Mr. Hatch said he would push forward with his measure even if the broader efforts foundered. But his Democratic co-sponsor, Amy Klobuchar of Minnesota, said she would press for the bill to be part of the comprehensive package.

Last year, technology executives had a taste of what could happen with stand-alone legislation.

Julia Preston contributed reporting from New York.

This article has been revised to reflect the following correction:

Correction: February 13, 2013

An earlier version of this article misstated the current basic annual cap for H-1B visas. It is 65,000 a year, not 60,000.

Read More..