Tennis: Anger drives Wozniacki into Dubai semi-finals

DUBAI: Former world number one Caroline Wozniacki reached the Dubai Open semi-finals on Thursday with a 4-6, 6-1, 6-4 win over Marion Bartoli, shrugging off a code violation in the process.

Wozniacki was warned for illegal coaching as the match boiled up to a thrilling finish, apparently because she was talking to her father Piotr.

"I'm not sure if it's coaching if I talk to the coach, but apparently that's new rules, so I guess that I can't say anything nowadays," commented Wozniacki.

"I was telling him things, and all of a sudden I hear I get a code violation. I'm like, okay."

Then she turned the aggravation into laughter.

"I was telling him what I was doing wrong. There's not much he can say because he knows that if he says yes, then he's in trouble, and if he says no, he's in trouble too."

Wozniacki will tackle Petra Kvitova for a place in the final after the 2011 Wimbledon champion underlined her new status as the unofficial tournament favourite by ending the title defence of Agnieszka Radwanska.

The Czech Republic player again showed that she is in her best form since winning her only Grand Slam title 19 months ago, out-hitting and out-serving the third-seeded Pole, 6-2, 6-4.

It followed her victory over former French Open champion Ana Ivanovic on Wednesday -- and her near-success against Serena Williams last week in Qatar -- and was her best win in 15 months.

"I've played three great matches so far," said Kvitova, who believes that more fitness work with a new trainer has made an important difference to her least impressive area, her movement.

"And that's something I really need -- to play more matches this season. I hope this will help me for the rest of the year."

Roberta Vinci and Sara Errani, the world's top doubles pair, will put their lifelong friendship to one side on Friday when they clash in the other semi-final.

Vinci, who had accounted for one former Grand Slam winner and one seeded player already, beat the seventh-seeded former US Open champion, Samantha Stosur 6-2, 6-4 to reach the last four.

Errani, who had played one long three-set match already, had another, beating Nadia Petrova, the former world number three from Russia, 6-4, 0-6, 6-3.

Vinci said it would be like "playing my sister," and Errani pointed out how strange it might feel as they spend about 300 days together during the year.

"I'm number one in the world in doubles, so it's incredible for me," said Vinci who is ranked 17 in singles.

"I'm probably playing singles in a more relaxed way, and so I'm playing better."

She added: "It was a great match for me, great performance. I played a good game today like yesterday," she said, referring to her straight sets win over Angelique Kerber, the fourth seed from Germany.

- AFP/fa

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Rajnath condemns Hyderabad blast, condoles deaths

NEW DELHI: BJP president Rajnath Singh on Thursday condoled the loss of lives in Hyderabad blasts and demanded that the government conduct a thorough probe into the incident.

"I express my condolences to the family members of those killed in the blast. This is a condemnable incident. I hope the government will take appropriate action to provide immediate and adequate relief to those injured in the blast," Singh told reporters.

Twelve people were killed and more than 80 injured late on Thursday evening when two powerful serial blasts rocked a busy commercial hub of Hyderabad close to a crowded bus stand at Dilsukhnagar.

Singh demanded a thorough probe into the attack and asked the government to take steps to prevent such incidents in future. The blasts took place during the peak hour outside a roadside eatery near Konark cinema in the locality resulting in a stampede-like situation with people trying to run for safety.

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Flu shot doing a poor job of protecting elderly

ATLANTA (AP) — It turns out this year's flu shot is doing a startlingly dismal job of protecting senior citizens, the most vulnerable age group.

The vaccine is proving only 9 percent effective in people 65 and older against the harsh strain of the flu that is predominant this season, the Centers for Disease Control and Prevention said Thursday.

Health officials are baffled as to why this is so. But the findings help explain why so many older people have been hospitalized with the flu this year.

Despite the findings, the CDC stood by its recommendation that everyone over 6 months get flu shots, the elderly included, because some protection is better than none, and because those who are vaccinated and still get sick may suffer less severe symptoms.

"Year in and year out, the vaccine is the best protection we have," said CDC flu expert Dr. Joseph Bresee.

Overall, across the age groups studied, the vaccine's effectiveness was found to be a moderate 56 percent, which means those who got a shot have a 56 percent lower chance of winding up at the doctor with the flu. That is somewhat worse than what has been seen in other years.

For those 65 and older, the vaccine was only 27 percent effective against the three strains it is designed to protect against, the worst level in about a decade. It did a particularly poor job against the tough strain that is causing more than three-quarters of the illnesses this year.

It is well known that flu vaccine tends to protect younger people better than older ones. Elderly people have weaker immune systems that don't respond as well to flu shots, and they are more vulnerable to the illness and its complications, including pneumonia.

But health officials said they don't know why this year's vaccine did so poorly in that age group.

One theory, as yet unproven, is that older people's immune systems were accustomed to strains from the last two years and had more trouble switching gears to handle this year's different, harsh strain.

The preliminary data for senior citizens is less than definitive. It is based on fewer than 300 people scattered among five states.

But it will no doubt surprise many people that the effectiveness is that low, said Michael Osterholm, a University of Minnesota infectious-disease expert who has tried to draw attention to the need for a more effective flu vaccine.

Among infectious diseases, flu is considered one of the nation's leading killers. On average, about 24,000 Americans die each flu season, according to the CDC.

This flu season started in early December, a month earlier than usual, and peaked by the end of year. Hospitalization rates for people 65 and older have been some of the highest in a decade, at 146 per 100,000 people.

Flu viruses tend to mutate more quickly than others, so a new vaccine is formulated each year to target the strains expected to be the major threats. CDC officials have said that in formulating this year's vaccine, scientists accurately anticipated the strains that are circulating this season.

Because of the guesswork involved, scientists tend to set a lower bar for flu vaccine. While childhood vaccines against diseases like measles are expected to be 90 or 95 percent effective, a flu vaccine that's 60 to 70 percent effective in the U.S. is considered pretty good. By that standard, this year's vaccine is OK.

For senior citizens, a flu vaccine is considered pretty good if it's in the 30 to 40 percent range, said Dr. Arnold Monto, a University of Michigan flu expert.

A high-dose version of the flu shot was recently made available for those 65 and older, but the new study was too small to show whether that has made a difference.

The CDC estimates are based on about 2,700 people who got sick in December and January. The researchers traced back to see who had gotten shots and who hadn't. An earlier, smaller study put the vaccine's overall effectiveness at 62 percent, but other factors that might have influenced that figure weren't taken into account.

The CDC's Bresee said there is a danger in providing preliminary results because it may result in people doubting — or skipping — flu shots. But the figures were released to warn older people who got shots that they may still get sick and shouldn't ignore any serious flu-like symptoms, he said.

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CDC report: http://www.cdc.gov/mmwr

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Peterson Sentenced to 38 Years for 3rd Wife's Murder

Former Illinois cop Drew Peterson yelled, "I did not kill Kathleen!" during the sentencing phase of his trial today -- and then a judge sentenced him to 38 years in jail for killing her.

The sentence came after Will County Judge Edward Burmila denied Peterson a re-trial in the killing of his third wife, Kathleen Savio, in 2004.

Peterson had faced as many as 60 years in prison.

At his sentencing, after Peterson shouted that he did not kill his wife, someone in the courtroom yelled in reply, "Yes you did!" according to ABC News Chicago station WLS. Burmila then ordered that person to leave the courtroom.

Peterson went on to claim that police "altered evidence" in his case and "intimidated witnesses and scared my children."

"I love Kathy," he said. "She was a good mom. ... She didn't deserve to die."

He added that he was planning to get a tattoo on his back that would say, "No good deed goes unpunished."

Peterson's defense team had requested a re-trial after he was found guilty in September of killing Savio and making it look like an accident.

The re-trial, Peterson's attorneys claimed, was warranted because his former lead trial counsel, Joel Brodsky, had "single-handedly" lost the trial last fall, according to attorney Steve Greenberg. Greenberg is a former colleague of Brodsky's, but the two have recently been embroiled in a bitter public feud.

M. Spencer Green/AP Photo

Burmila today rejected all of the motions for a new trial and, as he said he would do, moved on to sentencing immediately.

It is the latest development in the bizarre story of Peterson, a former suburban Chicago police officer. In 2004, Peterson's third wife, Savio, was found dead in her bathtub, a death that was initially ruled an accident. But when his fourth wife, Stacy Peterson, disappeared in 2007, Savio's body was exhumed and her death ruled a homicide.

Drew Peterson has never been charged in connection with Stacy Peterson's case.

Drew Peterson's murder trial last fall was marred by legal battles between his attorneys and prosecutors over what evidence was allowed in court. On three separate occasions, Peterson's defense team asked for a mistrial, but it was rebuffed every time by Burmila.

A large part of the testimony in that trial was hearsay, based on comments that Savio and Stacy Peterson made to friends that portrayed Peterson as a violent and threatening husband.

Peterson said at his sentencing today that hearsay was "a scary thing" because people are not accountable for the truth, according to WLS. An emotional Peterson, his voice shaking at times, blamed the media for portraying him as a monster.

Ultimately, the jury convicted Peterson, noting that it had reached a decision it believed was "just."

Savio's nephew Michael Lisak said afterwards that his aunt "can finally rest in peace."

"Today is a day for battered women, not just Kathleen Savio," Lisak said. "Your voice will be heard. My aunt's voice was heard through the grave. She would not stop. They will listen to you now."

Peterson's sister Cassandra Cales had a blunt message for the newly convicted murderer.

"Game over, Drew," she said. "He can wipe the smirk off his face. It's time to pay."

The Associated Press contributed to this report.

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French, Malian forces fight Islamist rebels in Gao

GAO, Mali (Reuters) - French and Malian troops fought Islamists on the streets of Gao and a car bomb exploded in Kidal on Thursday, as fighting showed little sign of abating weeks before France plans to start withdrawing some forces.

Reuters reporters in Gao in the country's desert north said French and Malian forces fired at the mayor's office with heavy machineguns after Islamists were reported to have infiltrated the Niger River town during a night of explosions and gunfire.

French Defense Minister Jean-Yves Le Drian told a news conference in Brussels that Gao was back under control after clashes earlier in the day.

"Malian troops supported by French soldiers killed five jihadists and the situation is back to normal," he said.

In Kidal, a remote far north town where the French are hunting Islamists, residents said a car bomb killed two. A French defense ministry source reported no French casualties.

French troops dispatched to root out rebels with links to al Qaeda swiftly retook northern towns last month. But they now risk being bogged down in a guerrilla conflict as they try to help Mali's weak army counter bombings and raids.

"There was an infiltration by Islamists overnight and there is shooting all over the place," Sadou Harouna Diallo, Gao's mayor, told Reuters by telephone earlier in the day, saying he was not in his office at the time.

Gao is a French hub for operations in the Kidal region, about 300 km (190 miles) northeast, where many Islamist leaders are thought to have retreated and foreign hostages may be held.

"They are black and two were disguised as women," a Malian soldier in Gao who gave his name only as Sergeant Assak told Reuters during a pause in heavy gunfire around Independence Square.

Six Malian military pickups were deployed in the square and opened fire on the mayor's office with the heavy machineguns. Two injured soldiers were taken away in an ambulance.

French troops in armored vehicles later joined the battle as it spilled out into the warren of sandy streets, where, two weeks ago, they also fought for hours against Islamists who had infiltrated the town via the nearby river.

Helicopters clattered over the mayor's office, while a nearby local government office and petrol station was on fire.

A Gao resident said he heard an explosion and then saw a Malian military vehicle on fire in a nearby street.

Paris has said it plans to start withdrawing some of its 4,000 troops from Mali next month. But rebels have fought back against Mali's weak and divided army, and African forces due to take over the French role are not yet in place.

Islamists abandoned the main towns they held but French and Malian forces have said there are pockets of Islamist resistance across the north, which is about the size of France.

CAR BOMB

Residents reported a bomb in the east of Kidal on Thursday.

"It was a car bomb that exploded in a garage," said one resident who went to the scene but asked not to be named.

"The driver and another man were killed. Two other people were injured," he added.

A French defense ministry official confirmed there had been a car bomb but said it did not appear that French troops, based at the town's airport, had been targeted.

Earlier this week, a French soldier was killed in heavy fighting north of Kidal, where French and Chadian troops are hunting Islamists in the Adrar des Ifoghas mountains, which border Algeria.

Operations there are further complicated by the presence of separatist Tuareg rebels, whose rebellion triggered the fighting in northern Mali last year but were sidelined by the better-armed Islamists.

Having dispatched its forces to prevent an Islamist advance south in January, Paris is eager not to become bogged down in a long-term conflict in Mali. But their Malian and African allies have urged French troops not to pull out too soon.

(Additional reporting by Emanuel Braun in Gao, Adama Diarra in Bamako, David Lewis and John Irish in Dakar and Adrian Croft in Brussels; Writing by David Lewis; Editing by Jason Webb and Roger Atwood)

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Football: Jones strike earns Schalke draw at Galatasaray

ISTANBUL: Schalke 04 brushed off poor recent form to earn a 1-1 draw at Galatasaray in the Champions League last 16, first-leg clash on Wednesday despite the hosts fielding Didier Drogba and Wesley Sneijder.

After Turkey striker Burak Yilmaz gave Galatasaray an early lead at the Turk Telekom Arena, US midfielder Jermaine Jones equalised on the stroke of half-time to give Schalke a slim advantage ahead of the March 12 second leg.

Schalke have now lost just one of their last ten European away fixtures, including victories at Olympiakos and Arsenal, in sharp contrast to their recent Bundesliga form.

After just one victory in their last 12 games, this was a huge improvement by the Royal Blues.

Despite Drogba and Sneijder making their Champions League debuts for the ambitious Turkish club since joining last month from Shanghai Shenhua and Inter Milan respectively, both had quiet games as the hosts failed to dominate.

The game started at a frantic pace with both teams focusing on attack while leaving plenty of space at the back.

The hosts took the lead when Yilmaz, with a superb first touch, flicked the ball with his heel over marker Benedikt Hoewedes and slammed his shot past Schalke goalkeeper Timo Hildebrand after just 12 minutes.

The Germans had their chances as Hoewedes' header found Dutch striker Klaas-Jan Huntelaar, back in the side after a two-week break with a burst blood vessel in his left eye, but he could not stab the ball over the line.

Ex-Schalke midfielder Hamit Altintop hammered the underside of the cross-bar for Galatasaray in a busy opening period while Schalke's Jefferson Farfan was only denied when defender Semih Kaya turned his shot around the post.

Jones is suspended for the return leg on March 12 after his appeals for a booking against Selcuk Inan saw him earn a yellow card of his own on 35 minutes.

But the US international redeemed himself when he converted a brilliant pass from Farfan to hit the back of the net after a fast break for the equaliser on 45 minutes which will be invaluable in the return leg.

Schalke had a let off with 25 minutes left when Drogba put Yilmaz in a great position, but Hildebrand blocked the shot just as the offside flag went up.

Huntelaar smashed a shot over the bar with 75 minutes before making way for Finland's Teemu Pukki, while both Yilmaz and Sabri Sarioglu both tested Hildebrand at the other end.

With Borussia Dortmund having earned a 2-2 draw at Donetsk and after Bayern Munich's impressive 3-1 win at Arsenal on Tuesday, all three Bundesliga clubs now have a strong chance of making the quarter-finals.

-AFP/ac

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Abhilash Tomy hits Indian Ocean on his solo voyage around the world

NEW DELHI: Lt-Commander Abhilash Tomy, the naval officer who embarked on a solo "non-stop" circumnavigation of the globe on a sail boat last November, is now back in the Indian Ocean after sailing around the Cape of Good Hope on Tuesday.

"It's an amazing story... the last time he had any human contact was when he was flagged off from Mumbai on November 1. He manages to sleep only a couple of hours at a stretch. While around 5,000 people have climbed Mt Everest, only around 80 have successfully done the solo non-stop circumnavigation of the globe," a Navy officer said.

Tomy, who earlier crossed Cape Leeuwin and Cape Horn in the arduous voyage during which he often faced winds of up to 45-50 knots, is expected to reach Mumbai towards March-end on his naval sailing ship Mhadei. By then, he would have covered a distance of over 22,000 nautical miles (around 40,000 km), crossing the equator twice in the process.

In his latest email sent to the Navy HQ, Tomy said, "It has been a fantastic voyage so far! The boat is in much better shape than what I had expected her to be. Initially, I was very conservative but after rounding Cape Horn, I have been pushing the boat and she is sailing much faster. It does not feel as if I have spent more than 100 days at sea alone."

After Commander Dilip Donde became the first Indian ever to undertake solo circumnavigation of the world in Mhadei in 2009-2010, Tomy - a maritime reconnaissance Dornier pilot by specialization - then came forward to do one better by undertaking a "solo, unassisted, non-stop" endeavour in the 'Sagar Parikrama-II' mission.

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Obama administration tackles colonoscopy confusion

WASHINGTON (AP) — It's one part of the new health care law that seemed clear: free coverage for preventive care under most insurance plans.

Only it didn't turn out that way.

So on Wednesday, the Obama administration had to straighten out the confusion.

Have you gone for a colonoscopy thinking it was free, only to get a hefty bill because the doctor removed a polyp?

No more.

Taking out such precancerous growths as part of a routine colon cancer screening procedure will now be considered preventive care.

"Polyp removal is an integral part of a colonoscopy," the Department of Health and Human Services said in guidance posted on its website. That conclusion has the backing of several leading medical societies, the department noted.

Also addressed in the notice was genetic testing for breast cancer, coverage of over-the-counter products such as aspirin for heart care and nicotine patches for smoking, and birth control for women. Unlike formal regulations, the guidance does not have the force of law, but advocates for patients say insurers would be ill-advised to ignore it.

President Barack Obama's health care law required most private health plans to cover preventive care at no additional charge to patients. It also expanded preventive coverage without copayments for Medicare recipients. For workers and their families, the expense is borne by the company health plan, which passes on some of those costs in the form of higher premiums. Advocates say preventive care saves the health care system money over time.

Colonoscopy is an expensive test that can cost more than $1,000. It's recommended for adults 50 and over, and has become a rite of passage for aging baby boomers.

News that it would be covered free under the health care law got attention, but that was followed quickly by a letdown when many insurers started charging if a polyp or two was discovered and removed during the procedure.

"Insurers were reclassifying it from a preventive test to a diagnostic procedure," said Stephen Finan, policy director for the American Cancer Society Cancer Action Network. "In some cases the cost-sharing was a significant amount of money."

His group was among several that complained to the administration.

Other free preventive services addressed in Wednesday's guidance:

—Insurers must cover testing, if ordered by a doctor, for rare BRCA genes that dramatically increase the risk of breast cancer. Such tests can cost as much as $3,000.

—Over-the-counter products such as aspirin for heart care and nicotine patches for smoking cessation are covered with a doctor's prescription.

—Insurers won't be able to fulfill the law's requirement to cover contraception as preventive care for women if they only pay for birth control pills. A full range of FDA-approved methods must be covered, including long-acting implant and intrauterine devices. Birth control methods for men are not covered as preventive care.

If a health plan does not have a network doctor who performs a particular preventive service, a patient can see a doctor out-of-network without facing copays or additional charges.

Also Wednesday, the government came out with final rules on the benefits that health plans catering to individuals and small businesses will have to offer starting next year, when new insurance markets called exchanges open in each state.

The coverage generally is better than what's now available to people buying individual policies, but close to what medium-size companies offer, with some important improvements in areas such as mental health care.

Benefits include hospital and outpatient care, emergency services, maternity and newborn care, prescriptions, prevention, rehabilitation and ongoing assistance for people with potentially disabling conditions, and dental and vision care for children.

All plans will have to cover the same benefits, but their premiums and cost sharing will vary. There will be four level of coverage — bronze, silver, gold and platinum. Bronze plans will cover 60 percent of expected costs while platinum plans will cover 90 percent.

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Online:

Health and Human Services Department: http://tinyurl.com/au6lzeo

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Arias Can't Remember Gory Death of Ex-Boyfriend

Accused murderer Jodi Arias told an Arizona jury today that her ex-boyfriend became enraged when she dropped his new camera, body slammed her to a tile floor and threatened to kill her, and in the frantic struggle that followed she remembers a gun being fired accidentally but does not remember stabbing him.

Her version of Travis Alexander's death was the culmination of more than a week of testimony in which Arias, 32, has tried to convince the jury she killed Alexander, 27, in self-defense during a violent episode in what she has described as an increasingly abusive relationship. She is on trial for murder and could face the death penalty if convicted.

Arias said that Alexander lost his temper when she dropped his camera on his bathroom floor while taking nude photos of him. Enraged, he picked her up and body slammed her onto the floor, screaming at her, she told the jury.

She said she ran to his closet to get away from him, and then exited through the closet's second door into Alexander's office where she grabbed a gun that she knew he kept on a top shelf. She could hear Alexander's footsteps coming after her down the hall, she said.

She tried to keep running, but as Alexander came after her she said she pointed the gun at him in an attempt to ward him off.

"I pointed it at him with both of my hands. I thought that would stop him, but he just kept running. He got like a linebacker. He got low and grabbed my waist, and as he was lunging at me the gun went off. I didn't mean to shoot. I didn't even think I was holding the trigger," she said.

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"But he lunged at me and we fell really hard toward the tile wall, so at this point I didn't even know if he had been shot. I didn't see anything different. We were struggling, wrestling, he's a wrestler.

"So he's grabbing at my clothes and I got up, and he's screaming angry, and after I broke away from him. He said 'f***ing kill you bitch,'" she testified.

Catching Up on the Trial? Check Out ABC News' Jodi Arias Trial Coverage

Timeline of the Jodi Arias Trial

Asked by her lawyer whether she was convinced Alexander intended to kill her, Arias answered, "For sure. He'd almost killed me once before and now he's saying he was going to." Arias had earlier testified that Alexander had once choked her.

But Arias' story of the death struggle ended there when she told the court that she has no memory of stabbing or slashing Alexander whose body was later found with 27 stab wounds, a slit throat and two bullets in his head. She said she only remembered standing in the bathroom, dropping the knife on the tile floor, realizing the "horror" of what had happened, and screaming.

"I have no memory of stabbing him," she said. "There's a huge gap. I don't know if I blacked out or what, but there's a huge gap. The most clear memory I have after that point is driving in the desert."

Arias' defense rests heavily on the description of Alexander's death, as her attorneys have argued she was forced to kill Alexander in self-defense. She has described what she said were Alexander's increasingly abusive and rage-filled outbursts toward her in the weeks leading up his death.

The prosecution alleges that Arias murdered Alexander in a jealous rage, and has attempted to prove that the killing was pre-meditated. They will cross-examine Arias after she is done testifying for the defense.

Arias said that she remembers driving away from Alexander's home in Mesa, Ariz., and "coming to" somewhere in the desert to realize that her lover was likely dead, and that she had killed him. As it dawned on her that police would soon be looking for Alexander's killer, she said she decided that she would pretend the bloody confrontation had never happened.

"I knew that it was really bad, that my life was probably done now. I wished it was just a nightmare I could wake up from, but I knew I had messed up pretty badly and the inevitable was going to be something I could not really run from," she testified.

"I didn't want anyone to know that that had happened or that I did it, so I started taking steps in the aftermath to cover it up. I did a whole bunch of things to try to make it seem like I was never there," she said.

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Bulgarian government resigns amid growing protests

SOFIA (Reuters) - Bulgaria's government resigned on Wednesday after mass protests against high power prices and falling living standards, joining a long list of European administrations felled by austerity during four years of debt crisis.

Prime Minister Boiko Borisov, an ex-bodyguard who took power in 2009 on pledges to root out graft and raise incomes in the European Union's poorest member, faces a tough task of propping up eroding support ahead of an expected early election.

Wage and pension freezes and tax hikes have bitten deep in a country where earnings are less than half the EU average and tens of thousands of Bulgarians have rallied in protests that have turned violent, chanting "Mafia" and "Resign".

Moves by Borisov on Tuesday to blame foreign utility companies for the rise in the cost of heating homes was to no avail and an eleventh day of marches saw 15 people hospitalized and 25 arrested in clashes with police.

"My decision to resign will not be changed under any circumstances. I do not build roads so that blood is shed on them," said Borisov, who began his career guarding the Black Sea state's communist dictator Todor Zhivkov.

A karate black belt, Borisov has cultivated a Putin-like "can-do" image since he entered politics as Sofia mayor in 2005 and would connect with voters by showing up on the capital's rutted streets to oversee the repair of pot-holes.

But critics say he has often skirted due process, sometimes to the benefit of those close to him, and his swift policy U-turns have wounded the public's trust.

The spark for the protests was high electricity bills, after the government raised prices by 13 percent last July. But it quickly spilled over into wider frustration with Borisov and political elites with perceived links to shadowy businesses.

"He made my day," said student Borislav Hadzhiev in central Sofia, commenting on Borisov's resignation. "The truth is that we're living in an extremely poor country."

POLLS, PRICES

The prime minister's final desperate moves on Tuesday included cutting power prices and risking a diplomatic row with the Czech Republic by punishing companies including CEZ, moves which conflicted with EU norms on protection of investors and due process.

CEZ officials were hopeful on Wednesday that it would be able to avoid losing its distribution license after all and officials from the Bulgarian regulator said the company would not be punished if it dealt with breaches of procedure.

But shares in what is central Europe's largest publicly-listed company fell another 1 percent on Wednesday.

If pushed through, the fines for CEZ and two other foreign-owned firms will not encourage other investors in Bulgaria, who already have to navigate complicated bureaucracy and widespread corruption and organized crime to take advantage of Bulgaria's 10-percent flat tax rate.

Financial markets reacted negatively to the turbulence on Wednesday. The cost of insuring Bulgaria's debt rose to a three-month high and debt yields rose some 15 basis points, though the country's low deficit of 0.5 percent of gross domestic product means there is little risk to the lev currency's peg against the euro.

Borisov's interior minister indicated that elections originally planned for July would probably be pulled forward by saying that his rightist GERB party would not take part in talks to form a new government.

MILLIONS GONE

GERB's woes have echoes in another ex-communist EU member, Slovenia, where demonstrators have taken to the streets and added pressure to a crumbling conservative government.

A small crowd gathered in support of Borisov outside Sofia's parliament, which is expected to approve his resignation on Thursday, while bigger demonstrations against the premier were expected in the evening.

Unemployment in the country of 7.3 million is far from the highs hit in the decade after the end of communism but remains at 11.9 percent. Average salaries are stuck at around 800 levs ($550) a month and millions have emigrated, leaving swathes of the country depopulated and little hope for those who remain.

GERB's popularity has held up well and it still led in the latest polls before protests grew in size last weekend, but analysts say the opposition Socialists should draw strength from the demonstrations.

The leftists, successors to Bulgaria's communist party, have proposed tax cuts and wage hikes and are likely to raise questions about public finances if elected.

(Additional reporting by Angel Krasimirov; editing by Patrick Graham)

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