HEARST WOOING PM, KRAFT EXECS AFTER ADS PULLED;NIELSEN SUITS UP FOR NHL, NCAA AND NASCAR; PIZZA HUT-BASEBALL TALKS BALK; CALVIN KLEIN'S NEW ADS IRK WARNACO'S WACHNER;CMP GRABS TAXI AD SPACE FOR COMDEX; COVER GIRL, FACTOR READY LONG-WEARING FOUNDATION; CORDIANT LAYS PLANS FOR $203M RIGHTS ISSUE; K-III RAISES $150M WITH INITIAL OFFERING; CHINESE DELEGATION ATTENDS WFA; TRUE NORTH NET INCOME, REVENUE RISE; SUPREME COURT HEARS R.I. LIQUOR AD CASE; DISNEYLAND MAY HAVE NARROWED REVIEW TO 4; FORMER PR EXEC ENTERS GUILTY PLEA;

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NEW YORK-In an effort to win back advertising from Philip Morris USA and sister Philip Morris Cos. unit Kraft Foods, Hearst executives have been meeting with top management from the advertisers. The marketers pulled ads after Hearst dropped rate bases and hiked ad prices, effective this month. In one recent meeting, Hearst Magazines President D. Claeys Bahrenburg, the incoming chairman of the Magazine Publishers of America, huddled with Philip Morris USA President-CEO James J. Morgan. Hearst publishers last week were scheduled to meet with Kraft agency Leo Burnett USA, Chicago.

NEW YORK-Nielsen Media Research's new sports marketing group has completed deals with the National Hockey League, National Collegiate Athletic Association and Nascar. Combined with previous deals cut earlier this year with the NBA, NFL and others, Nielsen now has contracts with every major TV sports purveyor with the exception of Major League Baseball.

NEW YORK-Major League Baseball's expected sponsorship deal with Pizza Hut (AA, Oct. 30) may now be not so imminent after all. Sports marketing executives familiar with the situation said talks between MLB and Pizza Hut have broken down and that the deal is off-for now. Executives said the breakdown came because Pizza Hut wants a little more of the marketing pantry than MLB is willing to give. The proposed deal was said to be on par with True Value's recent three-year, $40 million pact. Insiders said to look for Burger King Corp., suddenly very interested in sports marketing, to make a run at baseball.

NEW YORK-The U.S. Department of Justice may not have any quarrel with Calvin Klein's November underwear ad campaign featuring a splayed-leg Joel West (AA, Oct. 30), but Linda Wachner, president of Warnaco, which owns and makes the underwear, does. Ms. Wachner told Women's Wear Daily the "ad isn't in keeping with everything Warnaco is doing." Through a spokesman, Ms. Wachner said, "Calvin Klein is a creative genius, and I have no question [in future campaigns] we'll see great advertising that sells products and conforms to highest standards of good taste." The ads, created in-house, mark Calvin Klein's first appearance in Playboy, in the December issue.

MANHASSET, N.Y.-CMP Publications is spending $63,000 for space on top of 200 Las Vegas cabs next week to promote CMP and its 13 titles at Comdex/Fall. CMP bought 100 taxi tops at the computer show a year ago, and Director of Corporate Communications Barbara Kerbel stood in enough hour-plus taxi lines to know people spend time staring at cabs. Stein, Killpatrick & Rogan, New York, created CMP's cab campaign.

NEW YORK-Procter & Gamble Co.'s Cover Girl and Max Factor will both introduce in 1996 long-wearing foundation that will be called Continuous Wear Foundation and Lasting Performance Stay Put Makeup, respectively.

LONDON-Cordiant announced plans Nov. 3 to raise $203 million from shareholders through a rights issue to pay back almost all of the company's $221 million debt and cut interest payments, now running about $30 million a year.

NEW YORK-In its initial public offering, K-III Communications Corp. sold 12% of itself to the public at $10 a share, raising some $150 million. The deal leaves primary backer Kohlberg Kravis Roberts & Co. still in control of 82.2% of the company, with top executives of the 6-year-old company holding the rest. On its second day of trading, Nov. 3, the stock closed at $10.88 per share, after starting trading at $10 Nov. 2.

SYDNEY-A 40-person delegation from China joined more than 300 other delegates at the World Federation of Advertisers 42nd Congress last week. Federation President Peter Mitchell plans to go to China next year to help start an ad association.

CHICAGO-True North Communications reported net income of $4.2 million for the third quarter, up 2.1% from the period a year ago. Revenue increased 8.1% to $108.7 million. For the nine-month period, net income excluding unusual items rose 8.9% to $17.9 million. Nine-month revenue increased 8.2% to $314.9 million.

WASHINGTON-The U.S. Supreme Court, delving into the question of allowable limits on price advertising, listened to an hour of oral arguments on the Rhode Island Liquor Mart case last week. Several justices appeared notably skeptical of the state's law barring liquor price advertisements. RJR bolsters security for cigarette giveaways

WINSTON-SALEM, N.C.-R.J. Reynolds Tobacco Co. moved to greatly tighten security and procedures in its race car event cigarette giveaways after the TV show "A Current Affair" demonstrated minors could easily get smokes. Besides imposing the rules, RJR said it warned the contractor executing the program that RJR would take over unless tighter security was exercised.

ANAHEIM, Calif.-Disneyland is said to have narrowed its agency search for its $13 million account to four finalists: Ogilvy & Mather, Los Angeles; and Foote, Cone & Belding; Goldberg Moser O'Neill; and Young & Rubicam, all San Francisco.

WASHINGTON-James Lake, former partner of PR agency Robinson Lake Sawyer Miller, a unit of Bozell Worldwide, pleaded guilty to wire fraud and election law violations in exchange for an independent counsel's pledge not to charge Robinson Lake or Bozell. Mr. Lake had been granted immunity in exchange for cooperation in an investigation into former Agriculture Secretary Mike Espy's relationships with agricultural lobbyists, but he chose to waive his immunity to protect his partners, who were not aware of his misdeeds, the Los Angeles Times reported. The PR agency has changed its name to Robinson Lerer Sawyer Miller.

Newslines....

Major League Baseball is said to have finalized negotiations with ESPN, Fox, NBC and Liberty Sports for its TV rights with five-year deals with each that total $1.6 billion....Florida Department of Citrus, Lakeland, is accepting bids for its $20 million ad account, now at Saatchi & Saatchi Advertising, New York....Tele-Communications Inc., its Liberty Media Group subsidiary and News Corp., as expected, unveiled an alliance to own and operate sports programming services on a global basis. Liberty's Prime Sports regional networks and News Corp.'s fledgling fX cable network combine with the companies' other assets for the venture....Television Bureau of Advertising reported TV station ad sales rose a scant 0.8% in September and were up 3.1% for the third quarter. Local spot outpaced national, with stations up 5% for September and 4.8% for the third quarter in local sales. National spot sales were down 4.4% in September and up only 1% in the third quarter....Fox is said to be so angry over cancellation of the Nov. 4 Mike Tyson-Buster Mathis Jr. bout that it is rethinking a monthly boxing series deal with Mr. Tyson's manager, Don King. Mr. Tyson's managers promise the fight will be rescheduled.... Pepsi-Cola International, Purchase, N.Y., to Ogilvy & Mather, New York, from BBDO Worldwide for its $15 million international 7UP account....Ian Diery to president-CEO, AST Research, Irvine, Calif. Mr. Diery is the former marketing chief of Apple Computer....TV Guide said it will raise its ad rates 10% with the Jan. 6 issue. A one-time color ad page will cost $137,500; a b&w page will cost $116,700.

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