Stocks to Watch: Deutsche Telekom Offers to Buy Qwest and U S West
Brian Louis
03/09/00 - 09:22 AM EST
Deutsche Telekom (DT Quote - Cramer on DT - Stock Picks) has made separate offers to take over Qwest Communications (Q Quote - Cramer on Q - Stock Picks) and U S West (USW Quote - Cramer on USW - Stock Picks), in transactions that could total more than $100 billion, The Wall Street Journal reported, citing people familiar with the situation. Qwest and U S West, a Baby Bell, agreed to merge last year. Mergers, acquisitions and joint ventures
Southeastern Asset Management, in a regulatory filing, said it has acquired a 6% stake in troubled heath insurer Aetna (AET Quote - Cramer on AET - Stock Picks). Aetna is reviewing a $70-per-share acquisition offer received a couple of weeks ago from WellPoint Health Networks (WLP Quote - Cramer on WLP - Stock Picks) and ING America Insurance, a unit of Dutch bank-insurer ING Groep (ING Quote - Cramer on ING - Stock Picks). Covad Communications (COVD Quote - Cramer on COVD - Stock Picks), a broadband services provider, is acquiring LaserLink.net for $387 million in stock, based on yesterday's closing price of Covad stock. A bunch of news out of the world of German banking. Deutsche Bank is taking over Dresdner Bank for $30 billion. Meanwhile, Reuters reported that German newspaper Die Welt said that HSBC (HBC Quote - Cramer on HBC - Stock Picks) is planning to mount a hostile takeover bid for Commerzbank. Software.com (SWCM Quote - Cramer on SWCM - Stock Picks), a developer of carrier-scale, Internet infrastructure applications, is buying @mobile.com for $400 million in stock. United Pan-Europe Communications (UPCOY Quote - Cramer on UPCOY - Stock Picks) plans to buy SBS Broadcasting (SBTV Quote - Cramer on SBTV - Stock Picks) for $2.8 billion in stock and cash. Earnings/revenue reports and previews
(Earnings estimates are from
First Call/Thomson Financial)
Lands' End (LE Quote - Cramer on LE - Stock Picks) posted fourth-quarter earnings of 92 cents a share, well below the eight-analyst estimate of $1.09 a share and down from the year-ago $1.07. The company said that for the first half of fiscal 2001, it expects sales to rise "in the mid-single digits." It also said it expects a "strong increase in earnings" in the first half of fiscal 2001. H.J. Heinz (HNZ Quote - Cramer on HNZ - Stock Picks) posted third-quarter operating earnings of 63 cents a share, a penny ahead of the 17-analyst estimate and up from the year-ago 60 cents. ShopKo Stores (SKO Quote - Cramer on SKO - Stock Picks) posted fourth-quarter operating earnings of $1.74 a share, beating the five-analyst estimate of $1.70 and above the year-ago $1.53 a share. Vail Resorts (MTN Quote - Cramer on MTN - Stock Picks) posted second-quarter net income of 31 cents a share, a penny higher than the nine-analyst estimate, but down from the year-ago 47 cents. Analyst actions
Warburg Dillon Read initiated coverage of American Dental (ADPI Quote - Cramer on ADPI - Stock Picks) as a buy with a price target of 13. Deutsche Banc Alex. Brown initiated coverage of Ann Taylor (ANN Quote - Cramer on ANN - Stock Picks) with a market perform rating. DB Alex. Brown initiated coverage of bebe stores (BEBE Quote - Cramer on BEBE - Stock Picks) with a market perform rating. Credit Suisse First Boston restarted coverage of Brooks Automation (BRKS Quote - Cramer on BRKS - Stock Picks) with a buy rating and set a price target of 95 on the stock. DB Alex. Brown started Charlotte Russe (CHIC Quote - Cramer on CHIC - Stock Picks) with a buy rating and set a price target of 21 on the stock. Hambrecht & Quist initiated coverage of Clarus (CLRS Quote - Cramer on CLRS - Stock Picks) with a buy rating. Warburg Dillon Read initiated coverage of Honeywell (HON Quote - Cramer on HON - Stock Picks) as a strong buy with a 12-month price target of 69. Warburg Dillon Read initiated coverage of Lennox (LII Quote - Cramer on LII - Stock Picks) with a buy rating and a price target of 18. DB Alex Brown initiated coverage of Men's Wearhouse (SUIT Quote - Cramer on SUIT - Stock Picks) with a buy rating and set a price target of 42 on the stock. Warburg Dillon Read initiated coverage of Pets.com (IPET Quote - Cramer on IPET - Stock Picks) with a buy rating and a 20 price target. Warburg Dillon Read initiated coverage of Radiologix (RDLX Quote - Cramer on RDLX - Stock Picks) as a buy with a 12-month price target of 10. DB Alex. Brown initiated coverage of Talbots (TLB Quote - Cramer on TLB - Stock Picks) with a buy rating and set a price target of 51 a share. Goldman Sachs initiated coverage of Trigon Healthcare (TGH Quote - Cramer on TGH - Stock Picks) as a buy. Lehman Brothers downgraded Triton PCS (TPCS Quote - Cramer on TPCS - Stock Picks) to neutral from buy based on valuation. Miscellany
Standard & Poor's said Sabre Holdings (TSG Quote - Cramer on TSG - Stock Picks) will replace Service Corp. (SRV Quote - Cramer on SRV - Stock Picks) in the S&P 500 index, effective March 15. TeraBeam Networks, a privately-owned company based in Seattle, named Dan Hesse, former president and CEO of AT&T's (T Quote - Cramer on T - Stock Picks) wireless unit, as CEO and president of TeraBeam. Meanwhile, AT&T said Mohan Gyani will succeed Hesse as president and CEO of its wireless division. Gyani is the former CFO of AirTouch Communications, which was taken over by Vodafone to form Vodafone AirTouch (VOD Quote - Cramer on VOD - Stock Picks). AT&T plans to conduct an IPO of AT&T Wireless Group tracking shares this spring. The new stock will track the performance of AT&T's voice and data mobility businesses, as well as its fixed-wireless business and ownership interests in international wireless operators.
