The Dow swims and the Comp sinks at the midday hour.
Internet venture firm CMGI (CMGI Quote) announced a strategic alliance with Primedia (PRM Quote), a publishing company. As part of the alliance, CMGI will acquire 8 million shares of Primedia, or approximately 5%, in exchange for 1.53 million shares of CMGI. Liberty Media (LDIG Quote) will also invest $200 million in cash in Primedia in exchange for a 5% stake and 1.5 million warrants. CMGI fell 3 11/16 to 108 1/8; Primedia boosted 6 3/16, or 22.8%, to 33 5/16; Liberty Media was down 1 7/8 to 38. Mergers, acquisitions and joint ventures
BellSouth (BLS Quote) and SBC Communications (SBC Quote) could announce as early as next week an agreement to merge their U.S. cellular phone systems, according to The Wall Street Journal. BellSouth stayed flat at 47 1/4, while SBC Communications advanced 7/16 to 42 11/16.
British Telecommunications (BTY Quote), AT&T's (T Quote) AT&T Wireless Services and Microsoft (MSFT Quote) unveiled plans to cooperate in the wireless Internet arena. The companies said they'll get together to develop new wireless broadband applications for consumer and business markets. British Telecommunications slipped 8 1/4 to 188 3/4; AT&T lost 15/16 to 59 15/16; Microsoft dropped 3/4 to 106 7/16. Online broker E*Trade set a marketing pact with hotel giant Marriott International (MAR Quote). E*Trade moved down 1/8 to 29 3/8, while Marriott rose 1/8 to 31 3/8. Nationwide Mutual Insurance, a U.S. insurer, is acquiring Gartmore Investment Management, an investment management concern, from Royal Bank of Scotland Group for $1.6 billion. Neoforma (NEOF Quote) will acquire Eclipsys (ECLP Quote) for about $1.45 billion in stock. The moves comes less than a month after Eclipsys made an unsolicited $2 billion bid to buy Shared Medical Systems (SMS Quote). Neoforma slumped 9 3/4, or 32%, to 20 5/8; Eclipsys dropped 2 15/16, or 11.4%, to 22 7/8; Shared Medical declined 3 3/4, or 6.9%, to 50 1/4. Nortel (NT Quote) said it had raised its ownership in joint ventures with Germany's DaimlerChrysler (DCX Quote) and France's Aerospatiale-Matra to give it more leverage to expand into Europe's high-tech market. Separately, DaimlerChrysler confirmed a report that it was in cooperation talks with South Korea's Hyundai Motors only days after announcing an allegiance with Japan's Mitsubishi Motors. Nortel fell 11 3/4, or 8.7%, to 122 7/8, while DaimlerChrysler lifted 5/16 to 65 5/16. Ogden (OG Quote) said it agreed to sell its food and beverage concessions and venue management businesses to Aramark for $236 million including $11 million in assumed debt, as it continues to divest its nonenergy assets. Ogden gained 1/2 to 13 5/8. Internet software developer 724 Solutions (SVNX Quote) said it would acquire ezlogin.com for $127 million in stock to get technology that will give banking customers one-password access to all accounts. 724 Solutions slumped 12 7/8, or 9%, to 129 5/8. Stamps.com (STMP Quote) announced three new marketing partnerships with Automatic Data Processing(AUD Quote), NetLedger and Register.com (RCOM Quote). Stamps.com lost 1 to 22 1/16; Automatic Data Processing climbed 15/16 to 48 9/16; Register.com was down 4 7/16, or 5.8%, to 71 5/8. Seagate Technology (SEG Quote), the leading maker of computer disk drives, said it would be acquired by an investor group, Silver Lake Partners, in a complex deal that also provides for the sale of Seagate's 33% stake in Veritas Software (VRTS Quote) back to that company. The Veritas stake accounts for most of Seagate's stock market value. The companies valued the stock and cash deal at $20.2 billion. Seagate Technology lost 6 5/16, or 8.5%, to 67 11/16, while Veritas Software advanced 5 1/2 to 148. For more on the deal, check out a story written last night by TheStreet.com-NYTimes.com joint newsroom. Earnings/revenue reports and previews
(Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.) Adelphia Communications (ADLAC Quote), a cable company based in Coudersport, Pa., posted a fourth-quarter loss of $1.05 a share, a little worse than the two-analyst estimated loss of $1.03, but narrower than the year-ago loss of $1.06. Adelphia Communications fell 1 1/8 to 46 1/2. PepsiCo (PEP Quote) said it sees its first-quarter earnings in line with the First Call/Thomson Financial 13-analyst estimate of 28 cents a share. The company attributed the solid profit to strength in its Frito-Lay snack food division and its juice business, but added that high prices were problematic for its North American Pepsi-Cola unit. Chairman and CEO Roger Enrico said he also expects fiscal 2000 earnings to meet the 16-analyst estimate of $1.38 a share. Enrico said the company's share repurchasing program is being exercised faster than expected. PepsiCo climbed 1 13/16, or 5.5%, to 35 1/16. SuperValu (SVU Quote) posted fourth-quarter earnings of 52 cents a share, a penny better than the six-analyst estimate and better than the year-ago 45 cents. SuperValu rose 3/4 to 17 7/8. Offerings and stock actions
Warburg Dillon Read priced 4.5 million shares of Luminex (LMNX Quote) at $17 each, the lower end of the estimated $17-$19 range. The Austin, Texas-based company develops technology designed to simplify biological testing for the life sciences industry. Luminex jumped 6 1/2, or 38.2%, to 23 1/2.
Aztec (AZTC Quote) said it is proceeding with plans for an IPO of 20% of its e-solutions unit. The company also said it is making significant progress in divesting nonstrategic voice and data units. Aztec fell 1/2, or 6.4%, to 7 3/8. Micron Technology (MU Quote) set a 2-for-1 stock split. Micron Technology slumped 12 1/2, or 9.3%, to 122. Nexell (NEXL Quote) said it plans a 1-for-4 reverse split. Nexell lost 2 3/16, or 33%, to 4 7/16. Regeneron (REGN Quote) said its 2.6 million-share offering priced at $29.75 a share. Regeneron fell 1 3/4, or 5.9%, to 27 15/16. Analyst actions
Warburg Dillon Read announced research changes on the following financial sector stocks: BankAmerica (BAC Quote) UP to hold from reduce and price target lifted to 63 from 55, First Union (FTU Quote) DOWN to buy from strong buy, Huntington Bancshares (HBAN Quote) DOWN to hold from buy, KeyCorp (KEY Quote) DOWN to hold from buy , Northern Trust (NTRS Quote) DOWN to hold from buy, Wells Fargo (WFC Quote) UP to strong buy from buy and price target UP to 60 from 52. BankAmerica slipped 5/8 to 51 3/8; First Union declined 15/16 to 35 1/16; Huntington Bancshares fell 5/8 to 21 1/4; KeyCorp lost 1/16 to 18 15/16; Northern Trust was down 5/16 to 64 15/16; Wells Fargo rose 1/4 to 39 11/16.
Battle Mountain Gold (BMG Quote): DOWN to market perform from buy at Deutsche Banc Alex. Brown. Battle Mountain Gold descended 1/16 to 1 15/16. Bemis (BMS Quote): UP to buy from hold at Credit Suisse First Boston. Cabletron Systems (CS Quote): DOWN to market perform from market outperform at Goldman Sachs. Bemis advanced 1 11/16 to 35 3/4, while Cabletron Systems slumped 17 7/8, or 35.8%, to 32. Celadon Group (CLDN Quote): NEW buy at ABN Amro. Celadon Group gained 1 5/8, or 6.5%, to 26 3/4. Chubb (CB Quote): UP to buy from neutral at Salomon Smith Barney; price target: UP to 85 from 60. Chubb climbed 4 13/16, or 7.9%, to 65 5/8. Dense-Pac (DPAC Quote): NEW rating of strong buy at Thomas Weisel. Dense-Pac lifted 1 15/32, or 21%, to 8 15/32. Dole Food (DOL Quote): UP to market outperform from market perform at Goldman Sachs. Dole Food ascended 9/16 to 18 5/16. DSP Group (DSPG Quote): price target UP to 80 to 85 from 70 to 75 at SG Cowen. DSP Group lost 5 15/16, or 8.5%, to 63 5/8. J.D. Edwards (JDEC Quote): UP to outperform from neutral at Morgan Stanley Dean Witter. J.D. Edwards boosted 1 5/16 to 33 11/16. Enron (ENE Quote): price target UP to 90 from 80 at PaineWebber. Enron slipped 11/16 to 75 13/16. IMS Health (RX Quote): DOWN to hold from buy at CSFB. IMS Health descended 11/16 to 16 1/16. Isle of Capri Casinos (ISLE Quote): NEW buy with $14 price target at Alex. Brown. Isle of Capri Casinos moved down 1/16 to 11. Journal Register (JRC Quote): DOWN to neutral from accumulate at Merrill Lynch. Hollinger International (HLR Quote): DOWN to neutral from accumulate at Merrill Lynch. Journal Register lost 5/8 to 14 1/4, while Hollinger International was down 9/16 to 10 7/8. Lante (LNTE Quote): UP to strong buy from buy with a price target of 90 at Alex. Brown. Lante hopped 2 1/8, or 7.2%, to 31 1/2. Micron Technology (MU Quote): price target UP to 180 from 150 at Thomas Weisel. Micron Technology dropped 10 1/8, or 7.5%, to 124 3/8. Pier 1 (PIR Quote): UP to buy from hold with a 12-month price target of 14 at CSFB. Pier 1 advanced 1/2, or 5.5%, to 9 5/8. Razorfish (RAZF Quote): NEW buy with a price target of 47 at J.P. Morgan. Razorfish slipped 1 3/4, or 5.4%, to 30 3/4. Sapient (SAPE Quote): NEW buy and a price target of 130 at W.R. Hambrecht.Sapient was down 3 7/16 to 80 1/4. Silicon Storage Technology (SSTI Quote): NEW rating of strong buy and price target of 120 a share at CSFB. Silicon Storage dropped 1 3/4 to 76 3/8. Sycamore Networks (SCMR Quote): rating UP to buy from neutral; price target set at 200 at Lehman Brothers. Sycamore fell 1 11/16 to 123 1/4. U.S. Home & Garden (USHG Quote): rating DOWN to hold from outperform at ABN AMRO. U.S. Home & Garden lost 3/4, or 14.6%, to 4 3/8. VA Linux Systems (LNUX Quote): NEW buy at W.R. Hambrecht. VA Linux Systems climbed 1 1/8 to 63 9/16. Williams Communications (WMB Quote): rating UP to attractive from neutral at PaineWebber. Williams Communications lifted 9/16 to 44 7/16. Miscellany
Standard & Poor's said that Veritas would replace Pep Boys (PBY Quote) (but what'll happen to Manny, Mo and Jack?) in the S&P 500. S&P added that Edwards Lifesciences (EW Quote) will fill Veritas' former spot in the S&P MidCap 400 and Pep Boys would fill in for 911 services provider Rural/Metro (RURL Quote) in the S&P SmallCap 600. Pep Boys lost 9/16, or 8.7%, to 5 15/16; Edwards Lifesciences dropped 1/16 to 15 15/16; Rural/ Metro slumped 3/8, or 23.1%, to 1 1/4. Daizytek International (DZTK Quote) said it hired Chase Hambrecht & Quist to advise it on the spinoff of its electronic commerce software and service subsidiary PFSweb (PFSW Quote). Daisytek shareholders will receive about 0.8 PFSweb share for each Daisytek share held. Daizytek International advanced 1/8 to 16, while PFSweb lost 1, or 5.2%, to 18 1/4. The Heard on the Street column in the Journal said Wall Street's concerns about Globalstar Telecommunications (GSTRF Quote) have put chairman Bernard Schwartz and his team on the defensive. Amid disappointing early subscriber sign-ups, phone distribution problems and regulatory holdups, the company is slashing prices and hoping for more time to show progress to its investors. Globalstar Telecommunications declined 1/8 to 13 3/4.
