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Appeals court OKs Chrysler sale to Fiat

NEW YORK (AP) - A U.S. appeals court conditionally approved Chrysler's sale of most of its assets to Italy's Fiat Friday, but is keeping the deal on hold until Monday to allow an appeal to the nation's highest court.

The U.S. Court of Appeals for the 2nd Circuit said it will continue to delay the sale until 1 p.m. Monday, unless the U.S. Supreme Court intervenes. The three-judge appeals court was expected to release a written ruling later Friday.

Thomas Lauria, an attorney representing the trio of Indiana state pension and construction funds that appealed the sale, said his clients will keep pressing their objections.

"We will be going to the Supreme Court to see if we can get some time to get this case considered by them," Lauria said after the hearing.

Chrysler said in a statement, "We're pleased with the court's decision and appreciate the court's recognition of the need for a swift conclusion to the process so we can quickly start becoming a new car company."

Homeland Security nominee drops out

WASHINGTON (AP) - President Barack Obama's pick for intelligence chief at the Homeland Security Department withdrew from consideration Friday amid questions about his role in the CIA's interrogations of suspected terrorists.

Philip Mudd was scheduled to appear next week before senators considering his nomination as undersecretary of intelligence and analysis. He notified the White House on Friday that he was withdrawing his name because he did not want to be a distraction.

At issue was the extent of Mudd's involvement in the interrogation program while he was a senior CIA official in the Bush administration. The interrogation methods have been criticized by Democratic lawmakers and Obama.

2nd person with swine flu dies

TACOMA, Wash. (AP) - Health officials say a second person with a confirmed case of swine flu has died in Washington state.

The Tacoma-Pierce County Health Department said a Pierce County woman in her 20s died Friday after being hospitalized since May 21.

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