Company Report: WCOM, FON, MSFT, NDB, JDSU, NUFO, IBEM, More

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M&A Earnings/revenue Analyst actions Offerings/stock actions Miscellany

National Discount Brokers(NDB Quote) jumped 3 1/2, or 14.3%, to 28 after Deutsche Bank formalized a plan to buy up to 19.3% of the online broker, in an attempt to gain a foothold in the online investing market. Deutsche Bank is buying 3 million shares of NDB's common stock at $45.31 a share, an 81% premium over its closing price on Wednesday.

The companies said the union will give NDB access to Deutsche Bank's U.S. equity research and initial public offering capabilities and it will give Deutsche Bank access to NDB's online investor community.

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

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New Focus(NUFO Quote) popped 31, or 155%, to 51 in its trading debut, lately up 23 1/2, or 117.1%, to 43 5/8. Credit Suisse First Boston priced 5 million-shares at $20 a share, above its $16-$18 price range. New Focus makes fiber optics products for optical networks.

Fellow IPO iBeam's (IBEM Quote) reception was quieter but respectable nonetheless. Shares rose 4, or 40%, to 14 after Morgan Stanley Dean Witter priced 11 million-shares mid range at $10 a share. The company is an Internet broadcast network provider.

Mergers, acquisitions and joint ventures

CFW Communications(CFWC Quote) jumped 5, or 14.1%, to 40 1/2 after it agreed to purchase R&B Communications in a deal valued at $131 million CFW also said that it plans to pay $407 million for Primeco's PCS business.

Hartford Financial(HIG Quote) gained 2 13/16, or 5.3%, to 56 7/16 after saying it will pay $50.50 a share for the remaining 18.5% interest in Hartford Life(HLI Quote) that it doesn't already hold. The bid, which is 15% higher than its initial offer of $44 a share, values Hartford Life at roughly $7 billion.

International Paper (IP Quote) was unchanged at 39 1/16 after it said the Justice Department approved its merger with Champion International (CHA Quote). Champion climbed 13/16 to 74 1/16.

Federal antitrust officials are suggesting that MCI WorldCom's (WCOM Quote) merger with Sprint(FON Quote) should be stopped because it would infringe on antitrust law. WorldCom lost 2 7/16, or 5.8%, to 39 9/16 while Sprint slipped 1 3/4 to 56 1/4. The Justice Department is against the merger because it would bring together the second- and third-largest long-distance providers, threatening competition in Web switching services.

For more on this story, take a look at the coverage out of TheStreet.com/NYTimes.com joint newsroom.

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Earnings/revenue reports and previews

(Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.)

AnnTaylor(ANN Quote) added 3/8 to 25 1/4 after it posted first-quarter earnings of 55 cents a share, topping the 14-analyst estimate and up from the year-ago 51-cent profit.

CBRL(CBRL Quote) lost 21/64 to 12 63/64 after it reported third-quarter earnings of 25 cents a share, above the 12-analyst estimate by a penny, but in-line with the year-ago earnings.

Hormel(HRL Quote) climbed 7/16 to 16 13/16 after it reported second-quarter earnings of 26 cents a share, beating the four-analyst estimate by a penny and up from the year-ago earnings of 22 cents.

As reported yesterday, Lycos(LCOS Quote) posted third-quarter earnings of 7 cents a share, topping the 15-analyst estimate of 5 cents and up from the year-ago loss of a penny. Lycos said revenue for the quarter came in at $78.6 million, a 120% increase from the last year's $35.8 million. The stock bounced after hours and was up 4 45/64, or 8.2%, to 62 5/16 in regular trading today. (For more, see last night's The Night Watch).

Yesterday, the online media company announced a $12.5 billion merger with Spain-based Web company Terra Networks (TRRA Quote). Terra, which received downgrades from ABN Amro and others, continued to fall during today's trading session on news of that deal.

Keebler(KBL Quote) lost 1 1/16 to 33 5/8 after it reported first-quarter earnings of 55 cents a share, which includes a 4-cent gain. The nine-analyst estimate expected the company to post a 45-cent profit. The year-ago report was 37 cents a share.

Men's Wearhouse(MENS Quote) lost 2 3/4, or 12.1%, to 20 despite reporting first-quarter earnings of 32 cents a share, beating the 10-analyst by a penny and the year-ago report of 25-cent profit.

Venator Group(Z Quote) slipped 7/8 to 10 15/16 after it reported first-quarter earnings of 11 cents, missing the 6-analyst estimate by a penny, but up from the year-ago loss of 8 cents a share.

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Analyst actions

One day after Mattel (MAT Quote) got a new CEO, it also got a new and improved rating from Merrill Lynch. This morning, the firm upgraded Mattel's medium-term rating to accumulate from neutral and its long-term rating to buy from accumulate. Mattel lifted 1/8 to 12 7/8.

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Upgrades

Three investment banks raised earnings estimates for Analog Devices (ADI Quote) a day after the company reported sharply higher second-quarter earnings. Analog Devices slipped 5/16 to 73 3/16.

• Goldman Sachs raised its 2000 EPS estimates to $1.35 a share from $1.15 and his 2001 estimate to $1.75 a share from $1.48.

• Merrill Lynch raised its 2000 estimates to $1.32 a share, from $1.17 and 2001 EPS to $1.77 from $1.52.

• SG Cowen raised its 2000 EPS view to $1.32 a share from $1.12 and 2001 EPS to $1.74 from $1.40.

Baker Hughes (BHI Quote): price target UP to 50 from 40 at Prudential Securities. Baker Hughes stumbled 1 11/16 to 36 1/16.

Dress Barn (DBRN Quote): UP to attractive from neutral at Bear Stearns; price target: 27. Dress Barn lifted 1 3/16, or 5.9%, to 21.

Intimate Brands (IBI Quote): price target UP to 50 from 47 at Credit Suisse First Boston. Intimate Brands fell 3/4 to 44 9/16.

M.A. Hanna (MAH Quote): intermediate-term rating UP to accumulate from neutral at Merrill Lynch. M.A. Hanna bounced 1/2 to 12 1/2.

Pepsi Bottling Group (PBG Quote): 2000 EPS estimates UP to $1.38 from $1.27 and 2001 estimates up to $1.72 from $1.56.at Salomon Smith Barney. Pepsi Bottling added 5/8 to 26 1/16.

Sysco (SYY Quote): long-term rating UP to buy from attractive at Merrill Lynch; price target: 49. Sysco tacked on 9/16 to 41 1/8.

Vishay (VSH Quote): price target UP to 125 from 120 at Donaldson Lufkin & Jenrette. Vishay advanced 1 1/2 to 90.

Yankee Candle (YCC Quote): price target UP to 29 from 23 at Prudential. Yankee Candle edged up 9/16 to 21 15/16.

Downgrades

AT&T (T Quote): 2000 revenue growth forecast DOWN to 6% from 8.5%; 2000 earnings forecast down to $1.80 a share from $2.17 and cash earnings expectations to $2.40 a share from $2.70 at Lehman Brothers. AT&T shed 1 3/16 to 36 15/16.

American Eagle Outfitters (AEOS Quote): price target DOWN to 35 from 44 at U.S. Bancorp Piper Jaffray. American Eagle Outfitters declined 15/16, or 5.4%, to 16 7/16.

Dillard's(DDS Quote): first-quarter earnings estimate DOWN to 39 cents a share from 57 cents at A.G. Edwards; fiscal 2001 estimates DOWN to $1.82 from $2.16 a share. Dillard's tacked on 1/16 to 14 7/8.

Equant(ENT Quote): DOWN to neutral from accumulate at Merrill Lynch, and to outperform from strong buy at Morgan Stanley Dean Witter. Equant plummeted 14 1/2, or 23.6%, to 46 7/8.

MGM Grand (MGG Quote): DOWN to neutral from buy at Salomon Smith Barney. MGM Grand lost 5/16 to 33 1/4.

Schlumberger (SLB Quote): DOWN to outperform from strong buy at Morgan Stanley Dean Witter; price target UP to 95 from 75. Schlumberger skidded 2 1/16 to 80 15/16.

Smith International (SII Quote): DOWN to outperform from strong buy at Morgan Stanley. Smith International shed 6 13/16, or 7.8%, to 80.

Source Media (SRCM Quote): price target DOWN to 14 from 16 at Prudential. Source Media was unchanged at 6 5/8.

Initiations

Concord Communications (CCRD Quote) down 1 3/8 to 26 1/2: NEW outperform rating at Morgan Stanley Dean Witter; price target: 44.

Delphi (DPH Quote) down 1/8 to 18 3/8:NEW long-term buy at J.P. Morgan.

Illuminet (ILUM Quote) dropped 4 1/32, or 9%, to 41: NEW outperform at Morgan Stanley Dean Witter: price target: 65.

Micromuse (MUSE Quote) dropped 6 5/8, or 7.3%, to 84 1/8: NEW strong buy at Morgan Stanley Dean Witter; price target: 150.

Visual Networks (VNWK Quote) jumped 5, or 12.6%, to 44 5/8: NEW strong buy at Morgan Stanley Dean Witter; price target 75; NEW buy at Lehman Brothers; price target: 42.

Vornado Realty (VNO Quote) slipped 1/8 to 35 11/16: NEW buy at Lehman Brothers; price target: 42.

Group Moves

PaineWebber upgraded two regional airlines and initiated coverage on another:

• Atlantic Coast Airlines (ACAI Quote) lost 3/4 to 30 3/8: to attractive from neutral.

• Mesa Air(MESA Quote) was unchanged at 6 3/4: to buy from neutral.

• Mesaba(MAIR Quote) lost 3/8 to 12: NEW neutral.

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Offerings and stock actions

Calpine(CPN Quote) declined 1 5/8 to 109 1/8 after it set a 2-for-1 stock split.

Chase Manhattan (CMB Quote) added 1 1/8 to 75 1/8 after it set a 3-for-2 stock split.

Tiffany (TIF Quote) slid 2 5/16 to 68 1/8 after it said it will split its stock 2-for-1.

Timberland (TBL Quote) hopped 2 1/4 to 72 1/8 after it said it would split its Class A and Class B common shares 2-for-1.

Vishay Intertechnology(VSH Quote) climbed 1 1/2 to 90 after it set 3-for-2 stock split.

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Miscellany

American Home Products(AHP Quote) will launch a drug named Protonix to rival AstraZeneca's(AZN Quote) top-selling heartburn remedy Prilosec, reported The Wall Street Journal. American Home Products gained 1 1/4 to 58 while AstraZeneca added 13/16 to 41 13/16.

JDS Uniphase's(JDSU Quote) fell 5 15/16, or 6.4%, to 86 9/16 after CEO and co-Chairman Kevin Kalkhoven announced his retirement. Jozef Straus, the company's president, COO and co-chairman, will succeed Kalkhoven. Straus will remain in the position of co-chairman.

For more on this story, take a look at the coverage out of TheStreet.com/NYTimes.com joint newsroom.

The government turned down Microsoft's(MSFT Quote) plan to alter its business operations, stating that the effort would not be effective measure to stop the software giant from infringing antitrust laws. The Justice Department is holding to its proposal to split up the company. Microsoft moved down 1 1/2 to 66 3/16.

ShopNow.com(SPNW Quote) gained 1/4 to 5 3/8 after it said it will change its name to Network Commerce. The company said the name change is part of an effort to create a new corporate identity that better reflects its position as a provider of technology, services and commerce networks for Internet sites, businesses and merchants.

Network Commerce's core commerce infrastructure technology, commerce applications and services will be known as the Network Commerce Distributed CommerceSuite. Built on the Distributed CommerceSuite are b2bNow.com, FreeMerchant.com, BottomDollar.com and SpeedyClick.com. The names of these Internet properties will remain the same. The company also offers consulting, custom commerce solutions, and integrated marketing services through its eBusiness Services division.

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