Evening Update: Global Crossing Files $1 Billion Suit Against Tyco

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M&A Earnings/revenue Offerings/stock actions Miscellany

Global Crossing (GBLX Quote) said it has brought a $1 billion suit against Tyco International (TYC Quote), claiming breach of contract regarding the installation of a fiber-optic cable system. The suit involves Tyco's deal to set up the South American fiber-optic cable system for Global Crossing. Atlantic Crossing, a division of Global Crossing, has also filed proceedings against Tyco, alleging further other breaches of contract.

Major Indices INDEX CHANGE % VALUE YR TO DATE Dow -84.65 -0.80% 10,542.20 -8.3% S&P 500 -6.57 -0.47% 1400.38 -4.7% Nasdaq -26.02 -0.77% 3364.38 -17.3% Russell 2000 -10.02 -2.09% 469.68 -6.9% TSC Internet -4.64 -0.56% 819.19 -29% TSC New Tech 30 -53.72 -10.55% 455.67 -26.3% NOTE CHANGE PRICE YIELD 10-Year Treasury 10/32 100 1/32 6.455%

In other postclose news (earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified):

Mergers, acquisitions and joint ventures

Philips Electronics NV (PHG Quote) has entered a deal to buy a 60% stake in MedQuist (MEDQ Quote), a transcriber of medical dictation into electronic formatted records, for $51 a share. According to the terms, MedQuist will use Philips speech technology for converting medical records into text. The deal also calls for MedQuist and Philips to create and employ speech recognition technology, which should boost revenue since growth has been hindered by the availability of transcriptionists.

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Earnings/revenue reports and previews

Footstar (FTS Quote) said it would post second-quarter earnings that top the seven-analyst estimate of 60 cents and the fiscal 2000 seven-analyst estimate of a $3.01 profit. The footwear retailer also said that that its incorporation of the newly acquired Just For Feet (FEETQ Quote) stores was advancing, as it wraps up final talks for 15 new Just For Feet in the fall of this year.

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Offerings and stock actions

J.D. Edwards (JDEC Quote) said that it would cut 800 jobs from its workforce as part of its new restructuring plan. E-commerce software company said that although its software license revenue increased in the first half if the fiscal year by 20%, its costs do not match up with its revenue growth.

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