Business Digest

HERSHEY SHARES RISE ON BID REPORT: Hershey Foods Corp. shares rose after USA Today reported that Nestle SA is offering about $11.5-billion for the biggest U.S. chocolate-candymaker. USA Today said Nestle made a preliminary bid of $82 to $85 a share for Hershey. Nestle and Hershey spokesmen declined to comment. Hershey shares rose $1.77 to close at $76.80. The Hershey Trust Co., a charitable trust that controls the company, said last month it would put Hershey up for sale to diversify its holdings. State legislators oppose the transaction.

TENET PLANS EXPANSION: Tenet Healthcare, the nation's second-largest hospital chain, said it will invest $1-billion by June 2003 on emergency rooms, new cancer and cardiology centers and additional hospital beds. Tenet plans to build a new hospital in Bartlett, Tenn., and to expand 24 of its existing 115 hospitals in 17 states. Tenet, of Santa Barbara, Calif., owns Seven Rivers Community Hospital in Crystal River.

US AIRWAYS SEEKS TO END PACTS: US Airways has asked a bankruptcy court for permission to reject collective bargaining agreements that cover more than 18,500 employees. The agreements are with mechanics and fleet service employees and with reservation agents and ticket-counter workers. These unions have not yet ratified cost-cutting agreements the airline says it needs to successfully reorganize. A hearing is scheduled for Sept. 10.

CURBS SOUGHT ON USE OF MEDICAL INFORMATION: Sen. Bill Nelson is introducing legislation that would stop drug stores from using personal medical information for drug marketing without the customer's prior consent. Under new privacy rules set out by President Bush's administration, pharmaceutical manufacturers can continue to pay drug stores to identify customers taking a certain prescription, then have the store send a letter encouraging them to switch to the drugmaker's brand. Under Nelson's bill, consumers would have to give explicit approval before drug stores can sell their personal health information.

UNITED TO TRY AGAIN FOR LOAN GUARANTEE: United Airlines intends to file a revised application for a federally guaranteed loan on Sept. 16. The announcement by chairman and chief executive Jack Creighton increases the pressure on the airline's employees and lessors to agree to significant cuts that would enable the airline to win approval for the $1.8-billion loan guarantee. The first application was rejected this month. Creighton has warned United may be forced to seek Chapter 11 bankruptcy protection if its unions and suppliers don't agree to concessions.

ENRON CREDITORS SEEK PLEA DEAL MONEY: Creditors for Enron filed suit against a former finance executive Michael J. Copper, seeking the $12-million he agreed to turn over to the government as part of a plea deal. Kopper, pleaded guilty last week to conspiracy to commit wire fraud and money laundering and agreed to turn over the money to the government. In papers filed with federal bankruptcy court in New York, creditors for Enron argued the cash should be transferred back to the estate of the company since it was siphoned out of Enron.

DISNEY DEBT DOWNGRADED: Credit-rating agency Fitch Inc. downgraded Walt Disney Co.'s debt, citing poor cash flow and heavy debt. Fitch lowered Disney's senior unsecured debt of about $14-billion to triple-B-plus from single-A-minus. Disney said that the downgrade reflected short-term business conditions and that it remains optimistic about its long-term prospects. Shares of Disney closed Monday at $16.67, down 16 cents.

DOUBLECLICK AD INVESTIGATION ENDS: DoubleClick Inc., the largest Internet advertising firm, said 10 states have ended an investigation of its data collection and ad service practices that prompted privacy concerns. DoubleClick said it has signed a settlement agreement with attorneys general in 10 states that does not involve an admission of wrongdoing. Florida was not among the states. DoubleClick said some of the conditions call for it to disclose its privacy policies and purge old data. It said it will hire an outside company to monitor its compliance with the agreement.

INTEL RELEASES 4 PC CHIPS: Intel Corp. released four new personal-computer microprocessors, the fastest yet from the world's biggest computer-chipmaker. The additions, chips that run at 2.8 gigahertz, 2.66 GHz and 2.6 GHz, bolster Intel's position in the race to deliver microprocessors that play music, video and games on PCs, spokesman Robert Manetta said. Intel's 2.8 GHz Pentium costs $508 each in lots of 1,000.

TREASURY AUCTION: Interest rates on short-term Treasury securities were mixed in Monday's auction. The Treasury Department sold $15-billion in three-month bills at a discount rate of 1.630 percent, unchanged from the previous week. An additional $14-billion was sold in six-month bills at a rate of 1.635 percent, up from 1.630 percent. The new discount rates understate the actual return to investors -- 1.661 percent for three-month bills and 1.672 percent for six-month bills.

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