Settlement talks between the government and Microsoft (MSFT) in the antitrust case against the software giant ended Saturday. Judge Richard Posner, the court-appointed mediator, in a statement said he ended his efforts to bring the government and Microsoft together. Judge Thomas Penfield Jackson already has issued findings of fact in the case that harshly criticized Microsoft. Jackson is expected to issue his verdict as early as this week.
CIBC World Markets sliced its rating on the stock to hold from buy, while
SG Cowen reiterated its strong buy rating and 140 price target on the tech giant. Microsoft sank 14 1/2, or 12.6%, to 91 3/4.
Anadarko Petroleum (APC) fell 3 7/8, or 9.9%, to 34 13/16 after it said it is buying Union Pacific Resources (UPR) for $4.4 billion in stock. Union Pacific Resources added 7/8, or 6%, to 15 3/8. Under terms of the deal, UPR shareholders will receive 0.4550 shares of Anadarko for each UPR share they own, or $17.60 a share in stock, a 21% premium to UPR's closing price of 14 1/2 on Friday. Following the deal, UPR will be a wholly owned subsidiary of Anadarko. Anadarko and UPR are oil and gas exploration and production companies.
Mergers, acquisitions and joint ventures
ACTV (IATV) lost 2 3/16, or 6.2%, to 32 7/8 and Liberty Digital (LDIG), a media company, lost 2, or 5.2%, to 36 1/2 after the companies said they would invest another $20 million in ACTV, boosting its interest in the software maker to 16%. Advanced Micro Devices(AMD) added 1 to 60 after it said it agreed to a $300 million two-year deal with French-based telecom equipment provider Alcatel. The deal calls for AMD to supply Alcatel with memory units to run its modems, cell phones and telecom infrastructure. AppNet(APNT), a consulting services provider, lost 1 11/16 to 45 5/16 and Commerce One (CMRC) shed 12 3/4, or 8.5%, to 136 1/2 after the companies said they have agreed to a venture that would create Web exchanges for companies to trade their products. The companies said the pact would start by setting up online marketplaces for the financial services, automotive and oil industries. The deal also tags AppNet as the preferred consultant for Commerce One customers. Duke Energy (DUK) climbed 11/16 to 53 3/16 and ExxonMobil (XOM) gained 1 3/16 to 79 3/16 after the companies announced that one of Duke's affiliates is buying Mobil Europe Gas, a European gas trading and marketing company. Electronics Boutique (ELBO) slipped 7/16 to 18 11/16 after it said it agreed to buy Funco (FNCO) for $110 million in cash. Funco popped 5 1/8, or 43.2%, to 17. Troubled toymaker Mattel (MAT) inched up 1/4 to 10 3/4 after it said it has hired Credit Suisse First Boston to sell its software business, most of which includes the assets of the company formerly known as the Learning Co., which Mattel bought last May. Mattel has suffered significant operating losses from that acquisition. The Wall Street Journal, citing people familiar with the situation, reported that the company could get less than a third of the $3.5 billion it paid for the Learning Co. The European Commission gave the final OK for Minnesota Mining & Manufacturing's(MMM) purchase of the voting stock of the closely held German telecom equipment maker Quante. According to the Commission, the agreement, which relates to components for telecom and data transmission equipment, does not create any antitrust concerns because it does not increase 3M's status in the market. Shares gained 2 3/8 to 90 15/16. Nokia(NOK) shed 12 13/16, or 5.7%, to 209 1/4 after it said it would enter a $500 million handset and global service market expansion pact with VoiceStream (VSTR). VoiceStream fell 3 1/2 to 125 5/16. Rexam (REXMY), a British packaging concern, inched up 1/4, or 6.6%, to 4 after it said it is buying American National Can Group (CAN) for $18 a share, a 37% premium over American National's closing price of 13 1/8 on Friday, or $990 million. American National, which was lately 4 1/16, or 31%, to 17 3/16, makes aluminum and steel beverage cans. SAP (SAP), the German business software company, dropped 5 5/8, or 9.4%. to 54 1/8 after it said it is combining its information technology service operations into a unit called SAP Systems Integration. An IPO is slated this year for the unit. Tribune (TRB) tacked on 1 1/16 to 37 5/8 after it announced that it is exploring alternatives, including a possible sale, of its education businesses following its pending $8 billion merger with Times Mirror (TMC). Times Mirror rose 15/16 to 93 7/8. Warner Bros., a unit of Time Warner (TWX), and Disney's (DIS) Buena Vista International are buying stakes in Yes Television, a U.K. pay TV company, ahead of Yes Television's IPO. Time Warner dropped 5 3/4, or 5.8%, to 94 1/4, while Disney added 1/8 to 41 3/8. Earnings/revenue reports and previews
(Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.) Charles Schwab (SCH) gained 3 3/4, or 6.6%, to 60 3/4 after it said it expects first-quarter net income to come in between 31 cents and 33 cents a share, well above the nine-analyst estimate of 26 cents. Separately, Schwab's first-quarter EPS estimate was lifted to 27 cents a share from 23 cents at Chase Manhattan's Hambrecht & Quist unit.
Aurora Foods (AOR) climbed 7/16, or 14.6%, to 3 7/16 after it restated its 1998 and 1999 results. The company said it lost 7 cents a share in 1999. The company also named James Smith president and CEO, and Christopher Sortwell CFO. Both will join the company's board. Enterprise software company Legato Systems (LGTO) shed 23 1/4, or 51.8%, to 21 3/8 after it announced that it will be late in filing its Form 10-K for the year ended Dec. 31, 1999, with the Securities and Exchange Commission. During its ordinary-course review of collection matters, the company discovered that a small number of sales representatives had entered into unauthorized side agreements involving about $7 million in fourth-quarter 1999 revenue. Legato and its outside auditors are reviewing 1999 financial results and will file a Form 10-K on or before April 14. Additionally, the company stated that it expects first-quarter revenue to be between $54 million and $56 million. Shaw Group (SGR) added 1 to 36 1/4 after it posted second-quarter earnings of 44 cents a share, a penny ahead of the eight-analyst estimate and up from the year-ago 36 cents. Offerings and stock actions
Track Data's (TRAC) added 19/32, or 5.5%, to 7 3/4 after its board approved a 3-for-2 stock split. Track Data is a financial market data, news and research provider.
Andrx(ADRX) slipped 4 1/16 to 111 7/16 after it said it plans to offer 3 million pre-split shares. The sale could bring in proceeds of roughly $350 million. Global Sports (GSPT) announced that it will file an initial public offering of 5 million shares. Robertson Stephens is the deal's lead underwriter. Global Sports stumbled 2 3/8, or 12.7%, to 16 1/4. HNC Software (HNCS) tacked on 3/8 to 72 7/16 after it said it is comfortable with analysts estimates and said its board authorized the repurchase of up to about 250,000 shares of its common stock. The four-analyst expected loss is for 28 cents a share. Analyst actions
Credit Suisse First Boston raised its price target on Circuit City (CC) to 75 from 52 and lifted Best Buy (BBY)to 110 from 88. Circuit City advanced 1 1/8 to 62, while Best Buy fell 1 3/16 to 84 13/16.
Adobe Systems(ADBE): NEW outperform; price target of 140 at Morgan Stanley Dean Witter. Adobe Systems lifted 1 11/16 to 113. Chubb (CB): rating DOWN to market perform from buy at Donaldson Lufkin & Jenrette. Chubb gained 2 1/16 to 69 5/8. Conseco (CNC): DOWN to neutral from attractive and target price cut. Conseco slipped 1 1/8, or 9.8%, to 10 5/16. FirstWorld Communications (FWIS): coverage INITIATED with a buy rating and a 39 price target at Lehman Brothers. FirstWorld Communications lost 3/4 to 19 5/8. Gateway(GTW): NEW strong buy; price target of 80 at Morgan Stanley. Gateway moved up 1/2 to 55 1/2. Informix (IFMX): rating UP to buy from neutral at SG Cowen. Informix rose 5/16 to 17 1/4. Iprint.com (IPRT): NEW buy at Robertson Stephens . Iprint.com declined 2 3/8, or 12.3%, to 16 7/8. Kansas City Power (KLT): rating DOWN to hold from buy; price target UP to 31 from 29 by ABN Amro analyst Daniel Ford. Kansas City Power fell 2, or 6.9%, to 27. Louis Dreyfus Natural Gas (LD): rating DOWN to market perform from buy at J.P. Morgan. Louis Dreyfus Natural Gas slumped 5 3/8, or 15.8%, to 28 5/8. Louisiana-Pacific (LPX): coverage INITIATED with a market perform rating at Goldman Sachs. Louisiana-Pacific lifted 3/8 to 14 1/4. Marsh & McLennan (MMC): rating DOWN to market perform from buy at DLJ; to near-term neutral from accumulate at Merrill Lynch. Marsh & McLennan dropped 3 7/16 to 106 5/8. Net2000 Communications (NTKK): coverage INITIATED with a buy rating at DLJ. Net2000 Communications was down 3, or 12.6%, to 20 3/4. Hambrecht & Quist raised its profit estimates for online brokerages, citing strong share trading volumes: E*Trade's EPS estimates were raised to a loss of 16 cents from a loss of 18 cents. Knight-Trimark's (NITE) price target was raised to 70 from 60 and first-quarter EPS estimates were lifted to 93 cents from 67 cents. DLJ Direct's first-quarter estimate were raised to earnings of 4 cents a share, from a loss of 1 cent a share. Charles Schwab advanced 3 9/16, or 6.4%, to 60 9/16; E*Trade lost 1 to 29 1/16; Knight-Trimark fell 1 5/8 to 49 3/8; DLJ Direct slipped 1/16 to 13 1/4. Pfizer (PFE): rating UP to buy from market perform at Deutsche Banc Alex. Brown. Pfizer climbed 1 1/4 to 37 13/16. Province Healthcare (PRHC): coverage INITIATED with a buy rating and a 37 12-month price target at J.P. Morgan. Province Healthcare slipped 3/4 to 27 7/8. RealNetworks(RNWK): UP to buy from outperform at Salomon Smith Barney. RealNetworks fell 1 7/8 to 54 3/4. Starbucks (SBUX): rating DOWN to outperform from buy at Lehman Brothers; to near-term accumulate from buy at Merrill Lynch. Starbucks was down 3 1/2, or 7.8%, to 41 1/8. Ucar (UCR): rating DOWN to market underperform from market outperform at Goldman Sachs. Ucar declined 1 5/8, or 12.3%, to 11 9/16. Zions Bancorp (ZION): rating UP to buy from market perform from buy at DLJ. Zions Bancorp lifted 2 to 43 5/8. Miscellany
Cisco Systems(CSCO) lost 3 7/16 to 73 7/8 after it said that it chief technology officer, Judith Estrin, is departing from the company. Cisco said one of its top dealmakers, Mike Volpi, would take on some of her duties after she leaves on April 28. The Heard on the Street column in the Wall Street Journal takes a look at how Procter & Gamble's (PG) tumble this year affects former and current employees. P&G stock accounts for 93% of the contents of its employees' retirement plans. According to the Journal, P&G's downturn has vaporized a chunk of employee retirement savings. P&G gained 7/8 to 57 5/8.
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