Midday Movers: Big Day for IPOs, Lands' End and Software.com
Diane Hess
03/09/00 - 01:22 PM EST
Mergers, acquisitions and joint ventures
Deutsche Telekom (DT - Cramer's Take - Stockpickr) has made separate offers to take over Qwest Communications (Q - Cramer's Take - Stockpickr) and U S West (USW - Cramer's Take - Stockpickr), 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. Deutsche Telekom was down 1/8 to 92 1/8. Qwest was up 3 3/4, or 6.9%, to 57 9/16. U S West jumped 3 3/4, or 5.4%, to 73 3/8. Southeastern Asset Management, in a regulatory filing, said it has acquired a 6% stake in troubled heath insurer Aetna (AET - Cramer's Take - Stockpickr). Aetna is reviewing a $70-per-share acquisition offer received a couple of weeks ago from WellPoint Health Networks (WLP - Cramer's Take - Stockpickr) and ING America Insurance, a unit of Dutch bank-insurer ING Groep (ING - Cramer's Take - Stockpickr). Aetna bounced 2 5/8, or 4.9%, to 56 3/4. WellPoint was flat at 59 7/8, while ING was down 5/8 to 49. Covad Communications (COVD - Cramer's Take - Stockpickr), a broadband services provider, is acquiring LaserLink.net for $387 million in stock, based on yesterday's closing price of Covad stock. Covad increased 3 3/4 to 94. 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 - Cramer's Take - Stockpickr) is planning to mount a hostile takeover bid for Commerzbank. HSBC declined 3/8 to 57. Metropolitan Life said it agreed to buy the remainder of specialist insurance asset manager and research firm Conning (CNNG - Cramer's Take - Stockpickr) for about $68 million. Conning rose 1 3/4, or 16.6%, to 12 5/16. Software.com (SWCM - Cramer's Take - Stockpickr), a developer of carrier-scale, Internet infrastructure applications, is buying @mobile.com for $400 million in stock. Software.com jumped 25 7/8, or 22.7%, to 140. United Pan-Europe Communications (UPCOY - Cramer's Take - Stockpickr) plans to buy SBS Broadcasting (SBTV - Cramer's Take - Stockpickr) for $2.8 billion in stock and cash. United Pan-Europe Communications declined 13, or 5.5%, to 224, while SBS Broadcasting rose 16 11/16, or 29.3%, to 73 11/16. Earnings/revenue reports and previews
Lands' End (LE - Cramer's Take - Stockpickr) 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. Lands' End was up 4 7/16, or 14.4%, to 35 5/16. H.J. Heinz (HNZ - Cramer's Take - Stockpickr) 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. Heinz was down 15/16 to 33 5/16. ShopKo Stores (SKO - Cramer's Take - Stockpickr) 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. ShopKo rose 1, or 5.9%, to 17 15/16. Vail Resorts (MTN - Cramer's Take - Stockpickr) 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. Vail Resorts was flat at 16 5/8. Offerings and stock actions
Robertson Stephens priced 4 million shares of Orapharma (OPHM - Cramer's Take - Stockpickr) at $18 each, above the expected $15 to $17 estimated range. Orapharma develops pharmaceutical products to treat oral diseases and disorders. Orapharma rose 15 1/8, or 84%, to 33 1/8. IPO Riverdeep Group (RVDPV - Cramer's Take - Stockpickr) offered 6.08 million ADRs, each representing six ordinary shares. ADRs were priced at $20 each, and were lately flying 32, or 160%, to 52. Riverdeep Group climbed 33 1/4, or 166.2%, to 53 1/4. Analyst actions
Warburg Dillon Read initiated coverage of American Dental (ADPI - Cramer's Take - Stockpickr) as a buy with a price target of 13. American Dental was up 11/16, or 9.9%, to 7 5/8. Morgan Stanley Dean Witter cut its rating on American Tower (AMT - Cramer's Take - Stockpickr) to outperform from strong buy and set a price target of 54. American Tower slipped 2 9/16 to 51 3/8. Deutsche Banc Alex. Brown initiated coverage of Ann Taylor (ANN - Cramer's Take - Stockpickr) with a market perform rating. Ann Taylor dropped 1 1/8 to 22 7/8. Alex. Brown initiated coverage of bebe stores (BEBE - Cramer's Take - Stockpickr) with a market perform rating. bebe stores was down 3/16 to 12 1/16. Credit Suisse First Boston restarted coverage of Brooks Automation (BRKS - Cramer's Take - Stockpickr) with a buy rating and set a price target of 95 on the stock. Brooks Automation was up 2 1/4 to 78 1/4. ING Barings started coverage of CanTV (VNT - Cramer's Take - Stockpickr) as a hold, and sees earnings of $1.06 per ADR in 2000. CanTV was up 1/8 to 36 7/16. DB Alex. Brown started Charlotte Russe (CHIC - Cramer's Take - Stockpickr) with a buy rating and set a price target of 21 on the stock. Charlotte Russe was up 1 7/8, or 15.8%, to 13 3/4. Chase H&Q initiated coverage of Clarus (CLRS - Cramer's Take - Stockpickr) with a buy rating. Clarus was up 21 1/16, or 17.3%, to 143. Merrill Lynch started coverage of Globix (GBIX - Cramer's Take - Stockpickr) with a buy rating and set a 12-month price target of 85. Globix rose 5 9/16, or 10.2%, to 60 7/16. Warburg Dillon Read initiated coverage of Honeywell (HON - Cramer's Take - Stockpickr) as a strong buy with a 12-month price target of 69. Honeywell rose 7/8 to 43 5/8. Warburg Dillon Read initiated coverage of Lennox (LII - Cramer's Take - Stockpickr) with a buy rating and a price target of 18. Lennox stayed flat at 10. Alex. Brown initiated coverage of Men's Wearhouse (SUIT - Cramer's Take - Stockpickr) with a buy rating and set a price target of 42 on the stock. Men's Wearhouse moved up 1 15/64, or 5.1%, to 25 5/16. Thomas Weisel analyst Doug Van Dorsten lowered his rating on MIPS Technology (MIPS - Cramer's Take - Stockpickr) to buy from strong buy. MIPS Technology rose 5 13/16, or 9.5%, to 67 5/16. Thomas Weisel analyst Keith Gay raised his 12-month-to-18-month price target on National Computer Systems (NLCS - Cramer's Take - Stockpickr) to 60 from 48. National Computer Systems moved up to 4 5/16, or 9.6%, to 49 1/16. Warburg Dillon Read initiated coverage of Pets.com (IPET - Cramer's Take - Stockpickr) with a buy rating and a 20 price target. Pets.com was up 1 25/32, or 25.3%, to 8 13/16. Banc of America Securities raised its price target on PMC-Sierra (PMCS - Cramer's Take - Stockpickr) to 325 from 175. PMC-Sierra jumped 12 5/16, or 5.4%, to 239 3/16. Warburg Dillon Read initiated coverage of Radiologix (RDLX - Cramer's Take - Stockpickr) as a buy with a 12-month price target of 10. Radiologix moved up 1 15/16, or 43.3%, to 6. Alex. Brown initiated coverage of Talbots (TLB - Cramer's Take - Stockpickr) with a buy rating and set a price target of 51 a share. Talbots was up 1 3/4 to 39 1/4. Goldman Sachs initiated coverage of Trigon Healthcare (TGH - Cramer's Take - Stockpickr) as a buy. Trigon Healthcare was up 1/16 to 29 1/16. Lehman Brothers downgraded Triton PCS (TPCS - Cramer's Take - Stockpickr) to neutral from buy based on valuation. Triton PCS fell 5 5/16, or 7.9%, to 61 15/16. Miscellaneous
TeraBeam Networks, a privately owned company based in Seattle, named Dan Hesse, former president and CEO of AT&T's (T - Cramer's Take - Stockpickr) 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 - Cramer's Take - Stockpickr). 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. AT&T was down 3/16 to 52 13/16. Standard & Poor's said Sabre Holdings (TSG - Cramer's Take - Stockpickr) will replace Service Corp. (SRV - Cramer's Take - Stockpickr) in the S&P 500 index, effective March 15. Sabre Holdings declined 2 to 47, while Service Corp was down 3/16, or 5.3%, to 3 3/8. Select Comfort (SCSS - Cramer's Take - Stockpickr) said it named William McLaughlin president and CEO. Select Comfort stayed flat at 5 5/8.
