Midday Movers: Network Solutions Pops, While VeriSign Slides; Procter & Gamble Plummets

Network Solutions (NSOL Quote) popped 58 7/16, or 16.2%, to 419 1/16 after VeriSign (VRSN Quote) agreed to acquire it in a stock deal valued at roughly $21 billion. VeriSign, lately sliding 37 3/8, or 15%, to 210, said it would issue 2.15 shares for each share of Network Solutions. VeriSign said it expects to complete the deal in the third quarter of fiscal 2000. According to the terms, Jim Rutt would stay on as Network Solutions CEO and report to VeriSign President and CEO Stratton Sclavos.

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Procter & Gamble(PG Quote) shed 27 7/16, or 31.4%, to 60 after it warned investors it would post third-quarter earnings 10% to 11% below the year-ago 72-cents-a-share report. The company blamed its earnings shortfall on the higher cost of pulp and petroleum-based materials. The 13-analyst estimate sees Procter & Gamble reporting third-quarter earnings of 78 cents a share.

Donaldson Lufkin & Jenrette sliced its rating on Procter & Gamble to market performance from top pick. Merrill Lynch downgraded the stock to neutral from accumulate.

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