From wire reports

Charges dropped in Kmart fraud case

A federal judge, acting at the request of prosecutors who said evidence would not support a conviction, dismissed charges Friday against two former Kmart executives accused of conspiring to inflate the retailer's earnings.

The government had said Tony Montini Jr. and Joseph Hofmeister helped Kmart meet Wall Street's earnings expectations during the second quarter of 2001 by leading the company to improperly record a $42.3 million payment from a vendor.

Guccione resigns as Penthouse CEO

Bob Guccione, founder of Penthouse magazine, resigned as CEO of its parent company but will remain publisher and editor as the magazine struggles to emerge from bankruptcy.

Guccione, 72, was replaced as acting CEO of Penthouse International by Milton Polland, head of a California communications company.

Gtech to buy maker of lottery machines

Gtech Holdings Corp., the world's largest operator of lottery systems, Friday said it agreed to acquire Spielo Manufacturing Inc., a closely held Canadian maker of video lottery terminals, for about $150 million. The deal is expected to close in June 2004.