MAINLAND

Nestle may have edge in Hershey buyout

HARRISBURG, Pa. >> As Hershey Foods Corp. puts itself on the market, the company's Kit Kat bar could give one of its potential suitors a small advantage over rival bidders, analysts say.

Swiss food company Nestle SA, regarded as one of the strongest contenders for the nation's largest candy maker, licenses the Kit Kat brand to Hershey to sell in the United States. If it loses the bidding war, it would in all likelihood insist on retaining the rights to the brand, analysts said.

"It certainly gives them a leg up," said William Leach, an analyst with Banc of America Securities.

The Wall Street Journal, citing sources close to the potential bidders, reported yesterday that Kit Kat could be worth as much as $1 billion, a prospect that could discourage other buyers unwilling to pay as much without having the rights to the brand.

Leapfrog sued for patent infringement

Emeryville, Calif. >> LeapFrog Enterprises Inc., whose shares surged 22 percent Thursday after an initial public offering, said it's facing a patent infringement lawsuit over its LeapPad interactive books.

The shares of the maker of educational toys, backed by Michael Milken and Larry Ellison, fell 15 percent yesterday. The company said it will defend itself against the allegations from closely held Technology Innovations LLC.

LeapFrog Chief Executive Michael Wood held a conference call before trading began yesterday with the securities firms that managed the sale to discuss the lawsuit, said company spokeswoman Cherie Steward. The company was notified of the suit yesterday, she said. The shares were priced by underwriters the night before.

LeapPad products have flip books on one side and activities, games and music on the other. It was the No. 1 selling product on a unit basis in the toy industry in 2000 and 2001, according to Chris Byrne, an independent toy consultant.

Divorce battle over for Viacom's Redstone

BOSTON >> Viacom Inc. Chairman Sumner Redstone, whose marital squabbles raised investor eyebrows during negotiations to buy television network CBS Inc., was granted a divorce yesterday from his wife of more than 50 years.

Phyllis Redstone demanded a $3 billion settlement when she filed for divorce in September 1999. The couple was granted a no-fault divorce by the Massachusetts Probate and Family Court, their lawyers said, declining to disclose terms.

Sumner Redstone, 79, will retain control of cinema chain National Amusements Inc. and Viacom Inc., the owner of the CBS television network and cable networks such as MTV and Nickelodeon, according to a statement.

INTERNATIONAL

Australian brothel to seduce investors

MELBOURNE, Australia >> If sex sells, now's a good time to flog it to investors while they mourn the poor performance of most of their investments.

That's the thinking of Australia's largest brothel, the Daily Planet, which has unveiled plans to list its property arm in a bid to build the world's largest floated sex empire.

If the plan succeeds, the Melbourne-based Daily Planet says it would be the world's first listed bordello.

"Because the old saying that sex sells is so true ... we believe the opportunities are unlimited," said Andrew Harris, one of the Daily Planet's three directors.

Amid the doom of plunging equity markets, the directors were confident that stock in the gaudy property would arouse enthusiastic interest.

"It's a novelty raising that may just perk the market up," Harris said.

The Daily Planet has 18 themed rooms.