British Airways and KLM Royal Dutch Airlines (KLM Quote) are exploring a possible merger that could link the two airlines. Both companies have been affected by increasing competition within Europe and on trans-Atlantic routes, though talks remain at a very preliminary stage, according to people close to the situation. KLM climbed 1 1/4, or 5.4%, to 24 3/8. For more on this story, take a look at the coverage out of TheStreet.com/NYTimes.com's joint newsroom.
The
Federal Communications Commission gave the go ahead for
AT&T (T Quote)to acquire
MediaOne(UMG Quote) for $54 billion. The agency attached certain stipulations to the deal's approval. AT&T lifted 1 to 36 1/8, while MediaOne hopped 2 1/8 to 69 1/8.
Brokerage firm Merrill Lynch (MER Quote) is in talks to acquire one of the Nasdaq Stock Market's top share dealers, Herzog Heine Geduld, according to reports. The acquisition would enable Merrill to expand its Nasdaq market making operations. Merrill Lynch slipped 1/2 to 107 1/2. The board of Bestfoods(BFO Quote) is expected to meet as early as today to discuss the newest bid from Unilever(UN Quote), the Wall Street Journal reported. The newspaper, quoting people familiar with the matter, said Unilever is offering Bestfoods' shareholders close to $72 a share, or $20.5 billion. The company earlier offered $66 a share, but it was rejected as "financially inadequate." But, people close to the negotiations also told the newspaper, Bestfoods is in intensive talks to acquire Campbell Soup(CPB Quote), whose stock has fallen 46.5% during the past two years and has a market capitalization of $12.6 billion. USA Today reported that Bestfoods is in talks to buy the company for more than $15 billion. Bestfoods fell 2 3/8 to 62 3/4; Unilever rose 9/16 to 50 3/8; Campbell Soup advanced 1 3/16 to 31 1/8. Restaurant operator Buffets (BOCB Quote) is being acquired by a private equity firm for $643 million, or $13.85 a share, according to Reuters. Buffets increased 3/4, or 6.2%, to 12 7/8. CDNow (CDNW Quote) said it is in talks with five groups about a possible investment or merger deal. The company said it expects to announce a merger or investment deal by June 30 and has drawn up a short list of prospective investors or merger partners from more than two dozen companies. CDNow lowered 11/16, or 14.1%, to 4 3/16. Cherry (CHER Quote), which manufactures electronic components, said it accepted a buyout proposal from chairman and president Peter Cherry and his affiliates for $26.40 a share in cash. Cherry boosted 5 3/8, or 26.4%, to 25 3/4. Cisco (CSCO Quote) will buy communications company Elbit's (ELBTF Quote) Hynex subsidiary for about $127 million. Elbit said it expects to realize a $47 million net capital gain from the sale. Cisco slipped 1 1/8 to 63 1/4, while Elbit added 1/2, or 5.1%, to 10 5/16. Hearst-Argyle Television (HTV Quote) announced an agreement with Emmis Communications (EMMS Quote), covering Hearst-Argyle's three radio stations in Phoenix. Under terms of the deal, Emmis will manage the Phoenix stations for up to three years, and will have the option to buy them for $160 million. Hearst-Argyle lifted 7/16 to 20 3/8, while Emmis shed 3/8 to 37 5/8. IBM (IBM Quote) and start-up Salesforce.com are expected to announce a partnership to help small businesses become e-businesses, the New York Times reported. IBM moved up 3 5/8 to 112 7/16. Meritor Automotive(MRA Quote) and Arvin Industries(ARV Quote) received antitrust approval from the European Union Commission for a proposed merger between the two U.S automotive parts companies. Meritor improved 3/8 to 13 3/16, while Arvin climbed 5/16 to 19 1/16. Motorola (MOT Quote) said it received a $535 million pact from Adelphia Business Solutions (ABIZ Quote) for digital set-top terminals and modems. Motorola climbed 1 1/16 to 37 7/8, while Adelphia sank 5/8 to 29 3/8. Primark(PMK Quote), a global information service provider of financial, economic and market research information, agreed to be bought by Canadian publisher Thomson for $38 a share, or about $842 million, in a cash tender offer. The merger agreement, which was approved by both companies' boards, calls for Thomson to assume about $235 million in Primark debt. Primark soared 8 7/16, or 29.1%, to 37 7/16. For more on the Primark story, take a look at TheStreet.com/NYTimes.com's coverage. China's Unicom (UCM Quote) confirmed it will not use Qualcomm's (QCOM Quote) code-division multiple access (CDMA) mobile phone technology for at least three years. Qualcomm's stock fell sharply last week when talk of Unicom's about face began to hit the market. Unicom decreased 1 1/4 to 39 3/4, while Qualcomm dropped 5 7/16, or 7.5%, to 67 1/4. Qualcomm was upgraded to buy from hold at Edward Jones. For more on the Unicom/Qualcomm merger take a look at the story out of TheStreet.com/NYTimes.com joint newsroom. Verisign (VRSN Quote), American Express (AXP Quote) and Ariba (ARBA Quote) are in an alliance for payment for infrastructure for B2B e-commerce. Verisign shed 4 11/16 to 177 11/16; American Express decreased 7/8 to 55 5/8; Ariba jumped 10, or 14.2%, to 80 1/2. Back to top Sportwear manufacturer Oakley (OO Quote) estimates second-quarter earnings at 21 cents a share, above the two-analyst estimate of 18 cents . Oakley hopped 1 5/8, or 16.9%, to 11 1/4. Back to top Upgrades AES (AES Quote): UP to intermediate-term accumulate from neutral; target price: 55. AES slipped 2 1/8 to 43 7/8. Cabot Oil & Gas (COG Quote): UP to buy from market performer at J.P. Morgan. Cabot Oil & Gas edged up 1/4 to 2 1/2. Cigna(CI Quote): 2001 EPS UP to $7.50 from $7.40 at Donaldson Lufkin & Jenrette, price target: UP to 120 from 110. Cigna stumbled 1 1/2 to 87 7/8. Citigroup (C Quote): UP to strong buy from buy at ING Barings; price target UP to 78. Citigroup declined 3/16 to 66 7/16. Goodyear(GT Quote): BUY from market performer at Deutsche Banc Alex. Brown, price target: 35. Goodyear edged up 5/16 to 28 1/8. Human Genome Sciences (HGSI Quote): UP to long-term buy from long-term accumulate at Merrill Lynch. Human Genome jumped up 7 9/16, or 7.1%, to 113 1/2. Pharmacia (PHA Quote): UP to attractive from neutral at PaineWebber; price target up to 60 from 55. Pharmacia lifted 11/16 to 50. Schlumberger(SLB Quote): UP to top pick from buy at DLJ. Schlumberger skidded 1/2 to 69 1/16. Downgrades Computer Motion (RBOT Quote): DOWN to neutral from buy at U.S. Bancorp Piper Jaffrey. Computer Motion declined 3/16 to 7 9/16. Golden West Financial (GDW Quote): DOWN to neutral from attractive at PaineWebber. Golden West slumped 2 7/16, or 5.3%, to 43 9/16. MGIC Investment Group (MTG Quote): DOWN to attractive from buy at PaineWebber. MGIC stumbled 11/16 to 53 13/16. Initiations Autonomy (AUTN Quote): NEW buy at Banc of America. Autonomy bounced 4 3/8 to 114 3/8. LSI Logic (LSI Quote): NEW buy at Lehman Brothers. Price target: 85. LSI Logic popped 1 7/8 to 64 3/8. MIPS Technologies(MIPS Quote): NEW buy at Lehman Brothers, price target: 45. MIPS climbed 3 7/8, or 11.9%, to 36 1/8. NRG Energy (NRG Quote): NEW buy at Credit Suisse First Boston; price target: 25; and NEW buy at ABN Amro. NRG Energy declined 5/16 to 16 15/16. CSFB assumed coverage of Wind River Systems (WIND Quote) with a STRONG BUY rating. Wind River moved up 3 3/8, or 9.2%, to 40. Texas Instruments (TXN Quote): NEW outperform at Lehman Brothers; year-end price target: 105. Texas Instruments fell 1 11/16 to 84. Group moves
DLJ downgraded three banks: Bank of America (BAC Quote): DOWN to market perform from buy. Bank of America stumbled 1 3/4 to 59 1/4. Firstar (FSR Quote): DOWN to market perform from buy. Firstar lost 1 3/8, or 5%, to 26 1/16. Wells Fargo (WFC Quote): DOWN to market perform from buy. Wells Fargo shed 2 5/8, or 5.5%, to 45 1/8.
Salomon Smith Barney rolled out coverage of several semiconductor equipment companies: Veeco Instruments (VECO Quote): as an outperform. Veeco tacked on 1/2 to 56 3/4. Credence Systems (CMOS Quote): as an outperform. Credence hopped 1 1/8 to 65 1/4. Electro Scientific Industries (ESIO Quote): as a buy. Electro Scientific declined 1/8 to 52 9/16.
Back to top NTL (NTLI Quote) advanced 2 3/8 to 71 after it said it is examining issuing a tracking stocks or may spin off its five divisions, starting with its broadcast business this year. Back to top Chip maker Advanced Micro Devices (AMD Quote) said it is introducing its new Athlon processor, which ranges from 750 megahertz to one gigahertz in speed and $319 and $990 in price. The company said Compaq (CPQ Quote), Gateway (GTW Quote), Hewlett-Packard (HWP Quote) and IBM are planning to introduce computer systems based on its Athlon processor. AMD lifted 1 3/8 to 91 1/2 and Compaq declined 1/4 to 26 3/8, while Gateway lost 2 7/8, or 5.2%, to 51 7/8. H-P jumped 9 7/16, or 8.5%, to 120 3/8 and IBM tacked on 3 5/8 to 112 7/16. American Express Publishing, a partnership between Time Warner (TWX Quote) and American Express (AXP Quote), is expected to announce it has appointed Ed Kelly as president and CEO, according to the Journal. Kelly has been group publisher for American Express' Travel & Leisure magazines. Time Warner stumbled 1 1/4 to 81 1/2 and American Express skidded 7/8 to 55 5/8. Charles Schwab (SCH Quote) is expected to announce wireless trading for its online customers, the New York Times reported. According to the story, the move comes a year and a half after competitor Fidelity Investments introduced the service though the wireless trading market remains small enough that Schwab does not consider itself late to the game. Charles Schwab stumbled 1 1/16 to 32 7/16. Cypress Communications(CYCO Quote) added 9/16, or 6.7%, to 8 15/16 after it named W. Frank Blount chairman and CEO, while R. Stanley Allen, the company's co-founder and current CEO, was appointed vice chairman. Blount previously served as CEO of Australian telecommunications company Telstra(TLS Quote) until March 1999. Telstra shed 7/16 to 20. Ford's(F Quote) newly acquired British-based Land Rover unit said it will recall about 10,000 Discovery and Defender TD5 models in order to replace engine flywheels on manual transmission models. Land Rover, which makes sport utility vehicles and was recently sold to Ford from BMW, said it also planned to inspect the vehicles' clutch parts for signs of wear, saying new tests had shown that "high energy inputs" into the clutch and flywheel system could lead to failure of the flywheel assembly in some cases. It was also recalling about 1,300 Discovery Series 2 V8 models to upgrade the engine idler pulley. Ford tacked on 7/8 to 50 7/8. Heller Financial(HF Quote), a U.S. leverage-finance firm, said it would launch a new European Leverage Finance Group with initial funding of $1 billion. The company said in a statement that the group, which will be based in London, will offer cash-flow financing solutions to venture capital markets and companies throughout Europe. Heller edged up 9/16 to 20 3/4. Microsoft (MSFT Quote) is expected to unveil part of its next generation Internet technology today, despite the overhanging worry of a federal antitrust ruling, The Wall Street Journal reported. The new feature, BizTalk Server, will assist businesses with their e-commerce transactions. Microsoft lifted 9/16 to 66 7/8. Drug developer PathoGenesis (PGNS Quote) said it will explore strategic options but said it is still on track to meet expectations for 2000. PathoGenesis bounced 1 13/16, or 10%, to 19 15/16. Online investment bank Wit Capital (WITC Quote) announced that Ronald Readmond has resigned as co-CEO and Robert Lessin will become sole CEO. The company also said it appointed Russell Crabs and Mark Loehr as co-presidents. Crabs and Loehr were previously co-heads of the company's Wit SoundView division. Wit stumbled 13/32 to 9. The Heard on the Street column in the Journal looked at bookseller Borders (BGP Quote), which announced in March it was exploring strategic alternatives to help its troubled stock price. Shareholder activist and fund manager Barry Lafer urged the company to consider options including a leveraged buyout and stock buyback after he acquired a 2.8% stake. But, the story says, none of those actions will necessarily translate into a boost for the stock price. Borders skidded 3/8 to 17 1/8. Back to top
