Republican Sen. Stevens trails in Alaska vote

ANCHORAGE (Reuters) - Republican Sen. Ted Stevens, convicted last month of political corruption after decades as one of the most powerful figures in the U.S. Senate, appeared to have lost his re-election bid on Tuesday.

Stevens, who turned 85 on Tuesday, was trailing his Democratic challenger Mark Begich by more votes than Democrats said remained to be counted.

Begich, the popular mayor of Anchorage, had a lead of 3,724 votes and the Democratic Party estimated no more than 2,500 overseas ballots remained uncounted.

Democrats had still not declared victory by late afternoon, and a recount is possible, but if he wins, Begich would be the first Democrat to represent Alaska in the Senate in three decades.

The longest-serving Republican in the Senate with 40 years in office, Stevens once held extraordinary influence as the veteran chairman of the Senate Appropriations Committee before the Republicans lost their majority in the chamber two years ago.

As a holder of the purse strings -- perhaps the most unassailable source of U.S. congressional power -- Stevens was known for his grouchy demeanor, the "Incredible Hulk" tie he wore when negotiations turned tough, and for steering billions of dollars in federal spending to Alaska.

He was convicted last month of seven counts of lying on Senate disclosure forms by failing to report more than $250,000 in home improvements and other gifts from an oil executive and now faces up to 35 years in prison.

A move to oust Stevens from the Senate Republican conference was abruptly postponed on Tuesday, but Sen. Jim DeMint of South Carolina said he would seek a vote on Thursday on whether to remove Stevens from the Republican senators' organizing group and strip him of his committee assignments.

"After talking with many of my colleagues, it's clear there are sufficient votes to pass the resolution regarding Senator Stevens," DeMint said.

"The question now is timing. Some who support the resolution believe we should address this after the results of his election are confirmed in Alaska."

THREE UNDECIDED RACES

With three close Senate races including Alaska's yet to be decided from the November 4 election, Democrats already have gained six seats to boost their majority in the 100-member Senate to 57.

If they pick up all three undecided seats, for the first time in three decades they would have a majority big enough, 60, to pass legislation over Republican procedural hurdles.

The race in Georgia is headed for a December 2 runoff. A recount is planned in Minnesota with results expected next month.

Stevens, who still has a chance of being the first convicted felon to win election to the Senate, was mobbed by reporters when he emerged briefly from a meeting of Senate Republicans.

Asked whether he thinks his colleagues would let him serve in the Senate next year if he wins re-election, Stevens, said, "I have no control over that."

He also noted timing problems because his appeal against his convictions might not be completed until February, after the new Congress begins.

Stevens bristled when asked whether his conviction was hurting the Republican Party, which has been buffeted by corruption cases over the past few years.

"This is not a corruption case," he said, adding it was a case involving "a failure to disclose" gifts.

If Stevens wins re-election, but loses his appeal, he appears certain to be expelled from the Senate where both Democrats and Republicans have voiced support for such action.

(Reporting by Yereth Rosen and Tom Ferraro in Washington; Editing by Chris Wilson and Peter Henderson)