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URGENT: Video shows beheading of second American journalist

DUBAI (Reuters) - The Islamic State militant group released a video purporting to show the beheading of U.S. hostage Steven Sotloff, the SITE monitoring service reported on Tuesday. A masked figure in the video also issued a threat against a British hostage, a man the group named as David Haines, and warned governments to back off "this evil alliance of America against the Islamic State", the monitoring service said. (Reporting by William Maclean, Editing by Angus MacSwan)

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Perfect World joins consortium offering to buy out Shanda Games

(Reuters) - China's online game developer Perfect World Co Ltd said it joined the consortium offering to buy rival Shanda Games Ltd.

Perfect World said it would buy 30.3 million class A Shanda Games shares for $100 million from Shanda Interactive Entertainment Ltd, a shareholder in Shanda Games.

Shanda Interactive and an affiliate of investment firm Primavera Capital, who together own 76.2 percent of Shanda Games, offered to buy the company in a deal that valued it at $1.9 billion in January.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Savio D'Souza)

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