April 17, 2004

Apollo Advisers, Blackstone Group, Kohlberg Kravis Roberts and other private equity firms are reaching out to small investors through closed-end mutual funds; Apollo has raised $930 million to start a fund that will lend money to companies with revenue of $50 million to $500 million; vehicle is being promoted to investors looking for high yield in current low-rate environment, and it carries high fees; closed-end format allows private equity firms to raise money quickly and gives them permanent capital; photo (M)

Weil, Gotshal & Manges, one of top law firms in US, withdraws from New York City lawsuit against gun industry after clients complain about its role; city is preparing for first trial of a civil suit by an American city claiming that gun industry fosters illegal market in firearms criminals use; gun industry says case is crucial, and it has some of country's top law firms defending it; over 35 similar suits have been filed by cities against firearms industry since 1998; battle over role of Weil, Gotshal is latest display of hardball struggles over suits (M)

Boston Red Sox defeat New York Yankees, 6-2; photos (M)

Securities and Exchange Commission chief administrative law judge Brenda P Murray rules that Ernst & Young acted improperly by auditing PeopleSoft Inc, company with which it had highly profitable business relationship; bars accounting firm from accepting new audit clients in US for six months; unusual order, which includes $1.7 million fine, ends bitter fight in which SEC contends that Ernst violated rules on auditor independence; Murray also criticizes Edmund Coulson, Ernst partner in charge of independence issues (M)

Nokia, world's largest mobile phone maker, pays heavy price for missing trend toward clamshell phone handsets, allowing Samsung Electronics to cut into its market share; says second-quarter sales are likely to be slightly below $8.4 billion it recorded in second 2003 quarter; shares fall to 13-month low; Samsung reports $2.7 billion in profit in first quarter, increase of 178 percent from period year ago, and its best quarter ever; Nokia, which has reported 2 percent drop in first-quarter profit, still has leading share of world handset market; chief executive Jorma Ollila says company plans to introduce new cellphone models; photos (M)