Evening Update: Market Woes Cut Into Exult's IPO, Scuttle 2Bridge's

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M&A Earnings/revenue Offerings/stock actions Miscellany

Market volatility continues to frighten away prospective IPOs. Following the close of trading, one company cut terms on its planned offering ... again, while a second company pulled out altogether. Exult, an online human resources management firm, said the terms of its IPO have been lowered, this time to 6 million shares at between $10 to $12 each, from 9 million shares for $13 to $15 each. The company now expects to net about $60.1 million based on the new terms, about 48% below the $116 million expected under previous terms. The original conditions set on April 25 were for 14 million shares at $14 to $16 a share.

2Bridge, which provides software that lets customers develop online business workplaces known as eHubs, withdrew its planned $57.5 million offering, citing market conditions.

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Major Indices INDEX CHANGE % VALUE YR TO DATE Dow 129.87 1.23% 10,652.20 -7.3% S&P 500 28.21 1.99% 1448.81 -1.4% Nasdaq 181.59 5.34% 3582.50 -12.0% Russell 2000 17.62 3.41% 492.43 -2.4% TSC Internet 58.29 7.36% 849.92 -26.3% NOTE CHANGE PRICE YIELD 10-Year Treasury 22/32 102 7/32 6.188%

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

A consortium of U.S. utilities that teamed up earlier this year to develop an Internet-based B2B marketplace named Commerce One (CMRC Quote) as its primary technology partner. The group of 15 utilities also said it added six members: Carolina Power & Light (CPL Quote); DTE Energy (DTE Quote); Dominion Resources (D Quote); El Paso Energy (EPG Quote); GPU (GPU Quote) and Ontario Power Generation.

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Aluminum company Alcoa (AA Quote) said it raised its bid for precision castings-maker Howmet (HWM Quote) to $21 a share. Alcoa said Howmet's independent directors agreed in principle to the new bid and also said it sees a merger agreement as early as Friday.

Boeing (BA Quote) and United Technologies (UTX Quote) said they received a $3.15 billion U.S. defense helicopter contract.

Gillette (G Quote) said it is in exclusive negotiations to sell its stationery products business and related assets to Newell Rubbermaid (NWL Quote). The stationary business consists of the PaperMate, Parker and Waterman pens and Liquid Paper correction products.

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Earnings/revenue reports and previews

Ball (BLL Quote) said it expects a second-quarter charge of about $86 million as part of a decision to close a North Carolina plant that employs 125 people.

Remec (REMC Quote) posted first-quarter earnings of 5 cents a share, beating the four-analyst estimate of 3 cents and the year-ago loss of 15 cents.

Starbucks (SBUX Quote) said May same-store sales rose 9% over last year's results.

Wind River Systems (WIND Quote) posted first-quarter earnings of 11 cents a share, well above the four-analyst estimate of 8 cents and in line with the year-ago 11 cents.

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Miscellany

Embarcadero Technologies (EMBT Quote) named Chairman Stephen Wong to the additional posts of CEO and president. Wong resumes the CEO position he held prior to the appointment of Ellen Taylor, who joined the company in October 1999 as president and CEO. Taylor is leaving the company to pursue other opportunities.

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