Company Report: AOL, H-P Jet Higher on Tech's Big Day

The Nasdaq Composite Index grabbed all the attention as it jumped more than 149 points to a record 5046.86, marking the first time the tech-laden index closed above 5000. Partying in tech stocks wasn't limited to Comp components as Big Board techs got busy as well.

America Online AOL flew 6 1/8, or 11.2%, to 61 after CEO Steve Case told Bloomberg that it continues to talk with AT&T T about forming a partnership. Credit Suisse First Boston repeated a strong buy rating on the stock, expressing confidence in its underlying fundamentals. The stock was the most active on the New York Stock Exchange with 36 million shares changing hands.

Dow component Hewlett-Packard HWP hightailed it up 11, or 7.8%, to 151 7/8, on somewhat premature excitement over expectations of upbeat analyst comments about its recent spinoff Agilent Technologies A. Agilent added 1 to 153.

---

Winning Nasdaq names included Software.com SWCM which soared 32 11/16, or 28.6%, to 146 13/16 after it announced plans to buy @mobile.com for $400 million in stock.

Mergers, acquisitions and joint ventures

Covad Communications COVD, a broadband services provider, is acquiring LaserLink.net for $387 million in stock, based on yesterday's closing price of Covad stock. Covad climbed 5, or 5.5%, to 95 1/4.

Deutsche Banc Alex Brown raised its price target on Covad to 135 from 90.

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 is planning to mount a hostile takeover bid for Commerzbank. HSBC was unchanged at 57 3/8. Deutsche Telekom DT has made separate offers to take over Qwest Communications Q and U S West USW, 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 rose 13/16 to 93 1/16, Qwest jumped 3 3/8, or 6.3%, to 57 3/16 and U S West hopped 6 1/8, or 8.8%, to 75 3/4.

For more on this story, check out coverage from TheStreet.com/NYTimes.com joint newsroom.

IBM IBM rose 1 5/16 to 107 9/16 after it signed deals for local U.S. telephone providers Bell Atlantic BEL and SBC Communications SBC to test IBM's new line of Web-access devices with their high-speed Internet connection services. Bell Atlantic lifted 2 1/8 to 58 5/8, while SBC Communications was unchanged at 41 5/8.

Lucent LU lost 3/8 to 67 5/8 after it said it received optical and data network contracts from Saudi Telecom worth $145 million.

Metropolitan Life said it agreed to buy the remainder of specialist insurance asset manager and research firm Conning CNNG for about $68 million. Conning climbed 1 11/16, or 16%, to 12 1/4.

After the close, MetLife cut the size of its forthcoming IPO to 179 million shares at $13 to $15 each from 255 million shares at $14 to $24.

Southeastern Asset Management, in a regulatory filing, said it has acquired a 6% stake in troubled heath insurer Aetna AET. Aetna is reviewing a $70-per-share acquisition offer received a couple of weeks ago from WellPoint Health Networks WLP and ING America Insurance, a unit of Dutch bank/insurer ING Groep ING. Aetna gained 2 7/8, or 5.3%, to 57, WellPoint Health inched up 1/8 to 60, and ING Groep slipped 1/4 to 49 3/8.

United Pan-Europe Communications UPCOY shed 17, or 7.2%, to 220 after saying it plans to buy SBS Broadcasting SBTV for $2.8 billion in stock and cash. SBS jumped 15 1/2, or 27.2%, to 72 1/2.

Earnings/revenue reports and previews

(Earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified. New highs and lows on a closing basis unless otherwise specified. )

Genzyme Surgical ProductsGZSP fell 3/8 to 14 9/16 after it posted a fourth-quarter loss of 59 cents, narrower than both the single-analyst estimate and the year -ago report of a 63-cent loss.

H.J. Heinz HNZ added 1/4 to 34 1/2 after it 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.

For more on this story, check out coverage from TheStreet.com/NYTimes.com joint newsroom. Lands' End LE jumped 4 5/8, or 14.9%, to 35 1/2 after it 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.

For more on this story, check out coverage from TheStreet.com/NYTimes.com joint newsroom.

National Semiconductor NSM stumbled 4 to 78 1/2 after it reported third-quarter earnings of 51 cents a share, well above the 19-analyst estimate of 45 cents and the year-ago loss of 16 cents a share. The company said it sees sequential improvements in fourth-quarter revenue, margins and earnings.

ShopKo Stores SKO bounced 1 11/16, or 9.9%, to 18 5/8 after it 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.

Tibco Software TIBX edged up 1 1316 to 136 3/4 after it said it expects first-quarter revenue to more than double to about $41 million to $42 million from the $18 million recorded a year ago.

Vail Resorts MTN lifted 3/8 to 17 after it 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.

Offerings and stock actions

Chelsea GCA CCG advanced 1 to 28 11/16 after it said its board approved the repurchase of $50 million in common and preferred shares. Robertson Stephens priced 4 million shares of OraPharma OPHM at $18 each, above the expected $15 to $17 estimated range. OraPharma develops pharmaceutical products to treat oral diseases and disorders. OraPharma leapt 13 1/4, or 73.6%, to 31 1/4.

IPO Riverdeep Group RVDPV offered 6.08 million ADRs, each representing six ordinary shares. ADRs were priced at $20 each. Riverdeep ran up 46 55/64, or 234.3%, to 66 55/64 .

Analyst actions

Deutsche Banc Alex. Brown initiated coverage of five retailers. Started at buy were Charlotte Russe CHIC, up 2, or 16.8%, to 13 7/8 (price target: 21); Men's Wearhouse SUIT, up 1 11/16, or 7%, to 25 3/4 (price target: 42); and Talbots TLB, up 1/2 to 38 (price target: 51).

Started at outperform were AnnTaylor ANN, down 1/16 to 23 15/16, and Bebe Stores BEBE, off 3/8 to 11 7/8.

---

Warburg Dillon Read initiated coverage of American Dental ADPI as a buy with a price target of 13. American Dental edged up 13/16, or 11.7%, to 7 3/4.

Morgan Stanley Dean Witter cut its rating on American Tower AMT to outperform from strong buy and set a price target of 54. American Tower stumbled 5/16 to 53 5/8.

Credit Suisse First Boston restarted coverage of Brooks Automation BRKS with a buy rating and set a price target of 95 on the stock. Brooks Automation gained 3 3/4 to 79 3/4.

ING Barings started coverage of CanTV VNT as a hold, and sees earnings of $1.06 per ADR in 2000. CanTV rose 1/4 to 36 9/16.

Chase H&Q initiated coverage of Clarus CLRS with a buy rating. Clarus jumped 12 11/16, or 10.4%, to 134 5/8.

Merrill Lynch started coverage of Globix GBIX with a buy rating and set a 12-month price target of 85. Globix moved up 4 3/8, or 8%, to 59 1/16.

Warburg Dillon Read initiated coverage of Honeywell HON as a strong buy with a 12-month price target of 69. Honeywell rose 1 5/16 to 44.

Warburg Dillon Read initiated coverage of Lennox LII with a buy rating and a price target of 18. Lennox was up 1/16 to 10 1/16.

Thomas Weisel Partners analyst Doug Van Dorsten lowered his rating on MIPS Technology MIPS to buy from strong buy. MIPS Technology jumped 8 1/8, or 13.2%, to 69 5/8.

Thomas Weisel analyst Keith Gay raised his 12- to 18-month price target on National Computer Systems NLCS to 60 from 48. National Computer Systems bounced 7, or 15.6%, to 51 ¿.

Dresdner Kleinwort Benson downgraded its rating on PC Holdings PC to add from buy. PC Holdings was down 1/8 to 19 3/4.

Warburg Dillon Read initiated coverage of Pets.com IPET with a buy rating and a 20 price target. Pets.com climbed 1 1/2, or 21.3%, to 8 17/32.

Banc of America Securities raised its price target on PMC-Sierra PMCS to 325 from 175. PMC Sierra, jumped 18 5/16, or 8.1%, to 245 1/4.

Warburg Dillon Read initiated coverage of Radiologix RDLX as a buy with a 12-month price target of 10. Radiologix rose 1 1/4, or 29.9%, to 5 7/16.

Goldman Sachs initiated coverage of Trigon Healthcare TGH as a buy. Trigon Healthcare was up 7/16 to 29 7/16.

Lehman Brothers downgraded Triton PCS TPCS to neutral from buy based on valuation. Triton PCS fell 3 7/8, or 5.8%, to 63 3/8.

Morgan Stanley said it initiated coverage of World Access WAXS with a strong buy rating and a price target of 38. World Access increased 5 1/4, or 26.5%, to 25 1/16.

Miscellany

TeraBeam Networks, a privately owned company based in Seattle, named Dan Hesse, former president and CEO of AT&T's 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. 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 slid down 3/8 to 52 5/8.

Standard & Poor's late yesterday said Sabre Holdings TSG will replace Service Corp. SRV in the S&P 500 index, effective March 15. Sabre Holdings nevertheless declined 1 11/16 to 47 5/16, while Service Corp. was down 1/8 to 3 7/16.

Select Comfort SCSS said it named William McLaughlin president and CEO. Select Comfort dropped 1/16 to 5 9/16.