Chancellor Media Corp., Dallas, will vote July 13 to approve a $4.1 billionmerger with Austin, TX-based Capstar Broadcasting Corp. that would form thelargest radio network in the U.S. with 465 stations in 105 markets.

The deal could spark further growth for Chancellor Marketing Group, thecompany’s regional promotions network, which has used its affiliation withChancellor’s radio stations to become a $23 million agency in three years.

Web coupon provider CoolSavings, Chicago, successfully settled itspatent-infringement lawsuit against Bedford, MA-based CouponSurfer, Inc.CoolSavings alleged that CouponSurfer used its patented technology todistribute coupons via the Internet. The settlement includes a sideagreement allowing CouponSurfer to employ a limited form of CoolSavings’technology. Other terms were confidential.

E-mail marketer MarketHome Inc., Chicago, inked a strategic alliance withdirect-response giant Millard Group Inc., Peterborough, NH. Under terms ofthe deal, Millard Group and MarketHome will jointly market e-mail servicesto their clients, and will integrate clients’ messages to their customers.Web development company Maxnet Inc., Freehold, NJ, and First EntertainmentHolding Corp., Denver, a Web entertainment company, inked a cross-promotionpact for their Web sites. Maxnet’s maxplant.com focuses on creating andexpanding strategic alliances for its network of consumer andbusiness-oriented Web services. First Entertainment’sfirstentertainment.com represents a wide array of radio broadcasting,comedy club, and Internet service properties nationwide.

Microsoft Corp., Redmond, WA, and Sony Music Entertainment Corp., New YorkCity, signed a collaborative marketing agreement to cross-promote their Websites. The deal attempts to create wider distribution and promotion of SonyMusic’s Web efforts and increase exposure for Microsoft’s new Windows 4.0operating system.

USA Networks, New York City, will stop promoting Internet search engineLycos, Inc. Waltham, MA, now that a planned merger between the twocompanies has died. Steps to be taken include deleting any mention of Lycoson USA-controlled ticket envelopes, and termination of a promotion offeringMy Lycos personalized stock pages to the 70 million viewers of USA’s HomeShopping Network.

Japan-based Toshiba and Sweden-based AB Electrolux inked a jointpromotional and product development program for North America, Europe, andAsia. Terms of the agreement were not disclosed. The two companies willshare technologies in refrigerator and washing machine development andcoordinate related marketing efforts.

Lighthouse Holdings, Inc., Chicago, which specializes in acquiringmarketing services companies, agreed to buy Communicator, a London-basedshop that handles direct marketing, sales promotion, and design, and hasworked for clients such as Britvic Soft Drinks, Anheuser-Busch’s Bud Lightand Michelob, and Colgate Palmolive’s Total, Plax, and Ultra CavityProtection toothpaste brands.

Catalina Marketing, St. Petersburg, FL, and ACNielsen US, an operating armof ACNielsen Corp., Schaumburg, IL, announced the launch of Shopper Direct,a series of offerings to consumers based on better identification ofshopper segments. Retailers can use the service to determine which productstheir best customers buy in other retail channels, then match their rivals’offers.

Ha-Lo Industries, Niles, IL, acquired Hogberg International A.S., an Ulset,Norway-based privately owned promotional products company. The acquisitionis designed to add to Ha-Lo’s customer relationships and extend itsgeographic reach in Western Europe, Scandinavia, and Russia, says ceo LouWeisbach. Ha-Lo’s client roster includes Abbot Labs, Anheuser-Busch,Coca-Cola Co., Ford Motor Co., General Electric, and General Mills.

New York-based Bill Communications, part of global conglomerate VNU-USA,agreed in principle to acquire the Point-Of-Purchase AdvertisingInstitute’s Marketplace Conference and Exhibition. Terms of the acquisitionwere not disclosed. Bill Communications produces 42 business publicationsand 31 conferences, exhibitions, and events. O

Corvest Promotional Products, Inc., Largo, FL, a company formed in 1996 tobuy promotions suppliers, made its first deals recently with theacquisitions of Toppers Inc. and Gootnick Enterprises.

Simi Valley, CA-based Gootnick, which does business as It’s All Greek ToMe, specializes in plush products; Thorofare, NJ-based Toppers makes sportbags and other luggage, caps, umbrellas, towels, and other items.

Added to sales from lighting products manufacturer Adva-Lite, Inc., theacquisitions put Corvest beyond the $100 million sales mark, according toceo Keith Olivit. o

Try-Foods International will pair with Orlando neighbor Spice World to promote the spice company’s garlic products in produce departments nationally.

Web-based life-stages marketer LifeServ, Chicago, signed contracts with Lincoln Mercury, FirstUSA, Mead Johnson, and Prudential Insurance totaling more than $2.5 million. LifeServ has more than 180,000 members.

MyPoints.com, San Francisco, signed a marketing agreement with Microsoft Corp., Redmond, WA, through which the two companies will promote Microsoft Outlook Express, a loyalty e-mail software system, and MyPoints BonusMail, a direct e-mail marketing service.

Haverford, PA-based RealTime Media has paired with CouponSurfer.com, a leading provider of Internet coupons, to offer a bundled package of promotions and value-added coupons for its e-commerce clients, which include Lycos, Fleet Street Bank, and RealTime’s own Prizes.com.

New Line Cinema, New York City, struck an advertising and promotions deal with Dulles, VA-based America Online through which the studio will promote its films across a variety of AOL’s channels and Web sites. New Line will develop specific areas for each film that will be linked to AOL as part of a 16-month pact.

Catalina Marketing Corp., St. Petersburg, FL, announced that its health care division, Health Resource Publishing Company, St. Louis, added Walgreen Co., Deerfield, IL, the nation’s largest drugstore chain, to its Health Resource Network. Walgreens is selectively installing the system, which produces the Health Resource Newsletter, a personalized, targeted pharmacy-delivered newsletter that gives shoppers up-to-date information on medication, compliance messages, and advertising for related products. Catalina also added Phoenix, AZ-based pet store chain Petsmart as a client. The new partnership is slated for national rollout at Petsmart’s 455 outlets in August.

Snyder Communications, Bethesda, MD, announced that its subsidiary, Arnold Communications, was awarded a $10 million contract from Toysmart.com to develop an integrated marketing program that will include both creative development and media buying responsibilities. Formerly Holt Educational Outlet, Toysmart.com claims to be the leading retailer of educational toys on the Internet.

Millennial Vegetables Tanimura & Antle, Salinas, CA, has partnered with Warner Bros. Consumer Products, Hollywood, CA, to promote T&A’s line of Cool Cuts carrots, celery, apples, and other perishables. Under the banner “Passport to Mil-Looney-Um, ” T&A products will carry Looney Tunes characters such as Bugs Bunny, Daffy Duck, Tweety Bird, Sylvester, and the Tasmanian Devil through August. o

Kirshenbaum Bond & Partners, New York City, launched an entertainment division called KBE to concentrate on TV, film, and theatrical marketing. The unit already has Radio City Music Hall as a client, and will make its first foray into TV by handling the marketing work for Dragon Tales, an animated kids show from Columbia TriStar and Children’s Television Workshop premiering on PBS this fall.

McDonald’s Corp., Oak Brook, IL, named The Beanstalk Group, New York City, to handle licensing for consumer products in the U.S. Big Mac wants to expand its licensing program beyond the 100-plus companies now selling McD-themed apparel, toys, collectibles, and NASCAR-related goods.

Apparel maker/retailer Big Dog Holdings, Santa Barbara, CA, concluded initial licensing agreements with northern CA-based Golden West Specialty Foods for a Big Dog hot-sauce brand; Cadore Moda Optical Wear, Miami, for a line of optical frames and sunglasses; and MBNA American Bank, N.A., Newark, DE, for a customized credit card.

H.J. Heinz Co., Pittburgh, has licensed the Boston Market brand name from Boston Chicken, Golden, CO, for a line of packaged goods to be sold via supermarkets. Boston Chicken gets a royalty fee based on sales. The deal is subject to approval by U.S. Bankruptcy Court, District of Arizona, where Boston Chicken filed for Chapter 11 protection last October.

Simon Marketing, a wholly owned subsidiary of Cyrk, Inc., Gloucester, MA, announced a strategic alliance with Artisan Home Entertainment, Santa Monica, CA, a leading independent DVD and home video distributor. Simon will seek to enhance Artisan’s brand value by generating retail and consumer awareness for the company’s home video library, which includes Terminator 2: Judgment Day, Reservoir Dogs, Dirty Dancing, and The Piano.

CustomDisc.com, a division of Custom Revolutions Inc., New York City, and BMG Special Products, a division of BMG Entertainment, New York City, have concluded a marketing agreement to develop customized CDs from BMG’s extensive music catalog for corporate clients to use as premiums and incentives.