Stocks to Watch: i2 Technologies Will Purchase Aspect Development
Eileen Kinsella
03/13/00 - 09:57 AM EST
i2 Technologies (ITWO Quote - Cramer on ITWO - Stock Picks) is buying Aspect Development (ASDV Quote - Cramer on ASDV - Stock Picks) for $9.3 billion. Tribune (TRB Quote - Cramer on TRB - Stock Picks) is buying Times Mirror (TMC Quote - Cramer on TMC - Stock Picks). Tribune is the publisher of the Chicago Tribune, and also owns numerous television stations in addition to the Chicago Cubs Major League Baseball franchise. Times Mirror is publisher of the Los Angeles Times and Newsday. Following completion of the deal, Tribune Company will have 11 daily newspapers, 22 television stations and four radio stations. Mergers, acquisitions and joint ventures
Six big Wall Street firms and Communicator announced the creation of Securities.Hub, an e-commerce concern that will host a series of online marketplaces linking firms with institutional investors. Goldman Sachs (GS Quote - Cramer on GS - Stock Picks), J.P. Morgan (JPM Quote - Cramer on JPM - Stock Picks), Lehman Brothers (LEH Quote - Cramer on LEH - Stock Picks), Merrill Lynch (MER Quote - Cramer on MER - Stock Picks), Morgan Stanley Dean Witter (MWD Quote - Cramer on MWD - Stock Picks) and Citigroup's (C Quote - Cramer on C - Stock Picks) Salomon Smith Barney will own a majority interest in the business. Communicator will provide the infrastructure and operate the business and have a minority interest. CoreComm Limited (COMM Quote - Cramer on COMM - Stock Picks) is buying Voyager.net (VOYN Quote - Cramer on VOYN - Stock Picks) for about $540 million in cash and stock. E*Trade is buying Card Capture Services, the largest independent network of centrally managed automated teller machines in the U.S. Terms of the deal weren't disclosed. General Motors (GM Quote - Cramer on GM - Stock Picks) and Italy's Fiat are reportedly close to reaching an alliance, according to published reports. The U.S. auto maker could take a 20% stake in the Italian group's car unit as part of an industrial partnership. Meanwhile, DaimlerChrysler (DCX Quote - Cramer on DCX - Stock Picks) is seeking to break up the discussions and entice Fiat away from its American rival with a separate offer. According to The Wall Street Journal, Fiat is also considering making a bid for Swedish truck maker Volvo (VOLVY Quote - Cramer on VOLVY - Stock Picks) if the European Commission blocks Volvo's plans to buy rival Scania (SCV.A Quote - Cramer on SCV.A - Stock Picks). IBM (IBM Quote - Cramer on IBM - Stock Picks) said it is teaming up with Cisco (CSCO Quote - Cramer on CSCO - Stock Picks), Ericsson (ERICY Quote - Cramer on ERICY - Stock Picks), Intel (INTC Quote - Cramer on INTC - Stock Picks), Motorola (MOT Quote - Cramer on MOT - Stock Picks), Nokia (NOK Quote - Cramer on NOK - Stock Picks), Palm (PALM Quote - Cramer on PALM - Stock Picks), Symbian and others to supply products and services to bring e-business applications to wireless devices L-3 Communications (LLL Quote - Cramer on LLL - Stock Picks) is buying the Traffic Alert and Collision Avoidance System product line from Honeywell (HON Quote - Cramer on HON - Stock Picks) for $255 million. Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks) and Andersen Consulting agreed to a $1 billion pact to form a joint venture called Avenade, a technology services firm that will employ 5,000 and contribute to building Internet businesses using Microsoft software. Radio One (ROIA Quote - Cramer on ROIA - Stock Picks) said it will buy 12 stations from Clear Channel (CCU Quote - Cramer on CCU - Stock Picks) for $1.3 billion, and 3 stations from Shirk for $40 million. Radio One will also buy Davis Broadcasting for $24 million. Texas Utilities (TXU Quote - Cramer on TXU - Stock Picks) said it was launching an offer for Spanish utility Hydroelectrica del Cantabrico for 21.25 euros (US$20.60) a share, or 2.4 billion euros. Tommy Hilfiger (TOM Quote - Cramer on TOM - Stock Picks) is believed to be in talks to buy all or part of privately owned Calvin Klein, The Sunday Telegraph in London reported. Calvin Klein could be valued at $1 billion, the newspaper said. Offerings and stock actions
Applied Micro Circuits (AMCC Quote - Cramer on AMCC - Stock Picks) said its board set a 2-for-1 stock split. Celgene (CELG Quote - Cramer on CELG - Stock Picks) said its board set a 3-for-1 stock split. Commerce One's (CMRC Quote - Cramer on CMRC - Stock Picks) board approved a 2-for-1 stock split. Datalink.net (DLK Quote - Cramer on DLK - Stock Picks) set a 2-for-1 stock split. Luxottica (LUX Quote - Cramer on LUX - Stock Picks) said it plans a 2-for-1 stock split and will apply for a listing on the Milan Stock Exchange by the end of 2000. Analyst actions
Credit Suisse First Boston cut its rating on Chiron (CHIR Quote - Cramer on CHIR - Stock Picks) to buy from strong buy. Donaldson Lufkin Jenrette added Compaq (CPQ Quote - Cramer on CPQ - Stock Picks) to its value list. Banc of America Securities and Bear Stearns upgraded Dell (DELL Quote - Cramer on DELL - Stock Picks). Banc of America upgraded Dell to strong buy from buy. Bear Stearns upgraded Dell to buy from attractive. Deutsche Banc Alex. Brown started coverage of Diversa (DVSA Quote - Cramer on DVSA - Stock Picks) with a buy rating and a 157 price target. Thomas Weisel analyst Doug van Dorsten started coverage of Eloquent (ELOQ Quote - Cramer on ELOQ - Stock Picks) with a buy rating and a 12-month price target of 60. J.P. Morgan set a 12-month price target for FleetBoston Financial (FBF Quote - Cramer on FBF - Stock Picks) at 38. Robertson Stephens upgraded Intel (INTC Quote - Cramer on INTC - Stock Picks) to strong buy from buy. Alex. Brown upgraded Knight/Trimark (NITE Quote - Cramer on NITE - Stock Picks) to strong buy from buy. DLJ said it raised Kohl's (KSS Quote - Cramer on KSS - Stock Picks) to buy from market performer. SG Cowen said it started coverage of Landacorp (LCOR Quote - Cramer on LCOR - Stock Picks) as a strong buy. Thomas Weisel analyst Keith Gay initiated coverage on VarsityBooks.com (VSTY Quote - Cramer on VSTY - Stock Picks) with a buy rating. Miscellany
Aetna (AET Quote - Cramer on AET - Stock Picks) said it planned to separate its finance and health care businesses "as soon as an orderly separation can be achieved." The company also plans to sell off international assets that do not fit the strategy of either resulting company. Meanwhile, Warburg Dillon Read cut its rating on Aetna to reduce from hold. Excite@Home (ATHM Quote - Cramer on ATHM - Stock Picks) said it will launch an online service aimed at high-speed users. The Heard on the Street column in the Journal says biotech stocks are acting like Internet stocks, driving the biotech industry's market capitalization, up 50% to $600 billion in just two months time. The story speculates that some biotech companies now have the capacity to swallow up old-line pharmaceuticals companies, though it adds no imminent deals are on the horizon.
For analysis of the market's preopen tone and trends, see the Wake-Up Call, published separately.
