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Company Report: A Good Day for Vodafone, Pinnacle and Several IPOs

Vodafone AirTouch (VOD) - Get Vodafone Group Plc Report fell 3 15/16, or 6.4%, to 57 13/16 after it announced yesterday it is buying Mannesmann (MNNSY) in the largest deal ever, valued at about $181 billion. Vodafone will exchange 58.96 shares for each Mannesmann share, giving the German company 49.5% of the combined group.

Mannesmann's supervisory board approved the agreement, ending a three-month campaign by Vodafone CEO Chris Gent for control of Germany's largest cellular company. The new group will be Europe's biggest phone business, with about 10% of the world's mobile-phone customers, and will also dominate mobile Internet services. With more than 42 million customers, the new Vodafone will force its rivals to form alliances and make acquisitions in order to compete.

Orange

, the Mannesmann-owned mobile-phone company which Vodafone intends to sell, is the most obvious target.

TheStreet.com

wrote about the deal in a story

yesterday.

Eight IPOs made their trading debuts during today's session. For more on their pricing and performance, check out

TheStreet.com's

coverage of

Offerings and stock actions

.

Merger, acquisitions and joint ventures

CMGI

(CMGI)

dropped 6 to 118 9/16 after it said it will take a 4.9% stake in Chicago-based

divine interVentures

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a move that will expand its reach in the Midwest.

Global Telesystems

(GTS) - Get Triple-S Management Corporation Report

popped 3 3/8, or 11.5%, to 32 13/16 after it said it acquired

Netcom Internet

, a British ISP. GTS said it entered into a definitive agreement with U.K. venture capital firm

Providence Equity Partners

to buy Netcom for GTS common stock valued at $91.5 million.

Martha Stewart Enterprises

(MSO)

lost 1 to 25 after it said that it would take a 5% interest in

Kmart's

(KM)

Web Site,

BlueLight.com

, for $13 million. Shares of Kmart slipped 5/16 to 8 11/16. According to the deal, Martha Stewart merchandise would be sold on the site, with the company receiving the royalties.

Monsanto

(MTC) - Get MMTec, Inc. Report

inched up 1/4 to 42 1/4 after it said it is selling its sweetener business, which includes the brands

NutraSweet

and

Equal

, to investment group

Tabletop Acquisition

for $570 million. Monsanto is merging with

Pharmacia & Upjohn

(PNU)

.

For more on Monsanto, take a look at the

story written this morning by

TheStreet.com/NYTimes.com's

joint newsroom.

USA Networks

(USAI) - Get Pacer American Energy Independence ETF Report

gained 1 7/16 to 56 3/16 after said it will form an e-commerce partnership with the

National Basketball Association

. Under the multi-year partnership, fans can buy NBA merchandise and game tickets online and watch basketball shows on the Home Shopping Network and other USA channels.

Earnings/revenue reports and previews

(

Earnings estimates from First Call; new highs and lows on a closing basis unless otherwise specified. Earnings reported on a diluted basis unless otherwise specified.

)

CH Energy Group

(CHG)

slipped 1/8 to 31 after it posted fourth-quarter earnings of 51 cents a share, beating the two-analyst estimate of 45 cents but down from the year-ago 52 cents.

Circuit City

(CC) - Get Chemours Co. Report

jumped 5 15/16, or 15.7%, to 43 11/16 after it said January same-store sales rose 9%.

GPU

(GPU)

slipped 15/16 to 28 11/16 posted fourth-quarter earnings of 56 cents a share, 2 cents ahead of the 10-analyst estimate. GPU said it wants to sell all of its Australian operations and is reviewing other international assets for possible sale. The company is also thinking of increasing the size of its share-repurchase program.

Haverty Furniture

(HVT) - Get Haverty Furniture Companies, Inc. Report

inched up 1/16 to 11 after it said January same-store sales rose 8.3%. The company said it changed its accounting method for recognizing revenues and says an accounting charge will cut first-quarter earnings by 15 cents a share.

Journal Register

(JRC)

climbed 1 5/16, or 10.7%, to 13 5/8 after it posted fourth-quarter earnings of 31 cents a share, in line with the six-analyst estimate and up from the year-ago 30 cents.

Niagara Mohawk

(NMK)

fell 5/16 to 13 1/16 after it reported a fourth-quarter loss of 10 cents a share, wider than the four-analyst estimate of 2 cents but smaller than the year-ago loss of 14 cents.

Temple-Inland

(TIN)

rose 7/16 to 55 after it reported fourth-quarter earnings from continuing operations of $1.03 a share, 3 cents ahead of the 11-analyst estimate.

Offerings and stock actions

Credit Suisse First Boston

priced

ACTV's

(IATV)

4 million-share follow-on offering at $30 a share.

Atmel

(ATML)

lifted 1/4 to 35 13/16 after it said it would offer 18 million shares of common stock at $35.50 a share. The company will sell all shares in the offering, which is being lead-managed by

Morgan Stanley Dean Witter

.

Pinnacle Systems

(PCLE)

popped 3 7/8, or 8%, to 51 15/16 after it set a 2-for-1 stock split.

Red Hat

(RHAT)

declined 5 15/16, or 6%, to 92 11/16 after it said its 4 million-share offering was priced at $95 a share. Underwriters on the offering were

Goldman Sachs

,

Chase H&Q

,

Thomas Weisel Partners

,

J.P. Morgan

and

Schwab

.

Analyst actions

Deutsche Banc Alex. Brown

upgraded

Abbott Laboratories

(ABT) - Get Abbott Laboratories Report

to strong buy from buy. Shares of Abbott Laboratories popped 1 1/8 to 34 3/8.

Donaldson Lufkin & Jenrette

cut

Ann Taylor

(ANN)

to marker performer from buy. Shares of Ann Taylor slid 9/16 to 16 1/2.

Warburg Dillon Read

raised its price target on

Cisco

(CSCO) - Get Cisco Systems, Inc. Report

to 140 from 100. Shares of Cisco hopped 3 5/16 to 121 1/8.

SG Cowen

analyst Moshe Katri raised his outlook for

Electronic Data Systems

(EDS)

by increasing the EPS estimate to $2.26 from $2.22 for 2000 and started the 2001 estimate at $2.60. Shares of Electronic Data Systems jumped 5 1/16, or 7.2%, to 75.

Goldman Sachs

sliced its fiscal 2000 EPS estimates on

CNet

(CNET) - Get ZW Data Action Technologies Inc Report

to 6 cents from 31 cents and lowered its fiscal 2001 estimates to 64 cents from 76 cents. Shares of CNet slid 1 to 51.

Warburg initiated coverage of

Digene

(DIGE)

with a buy rating and set a price target of 35 on the stock. Digene lifted 2 1/4, or 9%, to 28.

Warburg initiated coverage of

Granite Construction

(GVA) - Get Granite Construction Incorporated Report

with a buy rating. Shares of Granite Construction advanced 15/16 to 21 5/8.

Warburg initiated coverage of

Mallinckrodt

(MKG)

with a hold rating and set a price target of 33 on the stock. Shares of Mallinckrodt edged up 7/16 to 30 3/16.

Salomon Smith Barney

started coverage of

Metricom

(MCOM)

with a buy rating. Shares of Metricom gained 1 5/8 to 90 5/8.

Deutsche Banc Alex. Brown raised

Pharmacopeia's

(PCOP)

price target to 55 from 36. Shares of Pharmacopeia's leaped 5 3/4, or 16%, to 42 1/2.

CSFB upgraded

Radiant Systems

(RADS)

to strong buy from buy and raised its price target on the stock to 75. Shares of Radiant Systems leaped 10, or 22.6%, to 54 1/2.

First Boston upgraded

Sherwin-Williams

(SHW) - Get Sherwin-Williams Company Report

to buy from hold. Sherwin-Williams moved up 1/2 to 20 1/8.

First Boston upgraded

Strayer Education

(STRA) - Get Strategic Education, Inc. Report

to buy from hold. Shares of Strayer Education shot up 6 5/16, or 32.2%, to 25 15/16.

Bear Stearns

sliced its rating on

US Search.com

(SRCH)

to attractive from buy. Shares of US Search.com fell 3, or 28.9%, to 7 3/8.

Miscellany

AOL Europe

, a 50-50 venture of

America Online

(AOL)

and

Bertelsmann

, has increased its number of subscribers to 3.8 million from 2.8 million since mid-September,

Reuters

reported. Shares of AOL lost 2 1/4 to 57 5/8.

BellSouth

(BLS)

advanced 1 7/16 to 45 1/2 after it said it plans to slice its domestic workforce by about 2,100 jobs as the company tries to streamline its operations. The company will take an after-tax charge of between $60 million and $80 million in the first quarter of 2000.

The U.S.

Justice Department

is examining online auctioneer

eBay's

(EBAY) - Get eBay Inc. Report

efforts to limit software probes of its site, often for comparison shopping, by other Internet companies,

The Wall Street Journal

reported. Shares of eBay bounced 2 7/8 to 168 1/16.

After an emergency board meeting in New York yesterday,

Mattel

(MAT) - Get Mattel, Inc. Report

CEO

Jill Barad

stepped down from her position from the toymaker. Barad's departure follows a series of disappointing quarters stemming from its floundering

Learning Co.

division.

Mattel said its board of directors would manage the company's operations until it taps Barad's successor.

Along with its management changes, the company released its fourth-quarter results of a 4-cent loss, greatly missing the 11-analyst estimate of 25 cents a share and down from the year-ago profit of 20 cents. Shares of Mattel skidded 1/4 to 10 5/8.

TheStreet.com's

Herb Greenberg wrote a

piece on Mattel last night. And Jim Cramer

weighed in this morning.

Terra Networks'

(TRRA)

CEO Juan Perea is leaving the company and will be replaced by Abel Linares. Terra, an Internet service provider in the Spanish- and Portuguese-speaking world, is a unit of Spain's

Telefonica

(TEF) - Get Telefónica SA Report

. Linares comes to Terra from

TPI-Paginas Amarillas

, which is also a unit of Telefonica. Shares of Terra declined 5 5/8, or 5.7%, to 91 3/4 and Telefonica tacked on 1/8 to 86 1/8.

Investment bankers and traders on both sides of the Atlantic stand to gain hefty sums from the Vodafone-Mannesman deal, the Heard on the Street column in the

Journal

says. Sharing in the biggest spoils will be

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. Report

and

UBS's

Warburg Dillon Read

, which could see fees of up to $75 million each.

The Inside Wall Street column in

Business Week

, penned by Gene Marcial, takes a look at

priceline.com

(PCLN)

, which some believe is oversold. Shares of prceline.com advanced 3/4 to 60 3/8.

Elsewhere, the column highlights

Harris & Harris

(HHGP)

, which some investors think could be the next

CMGI

(CMGI)

or

Safeguard Scientifics

(SFE) - Get Safeguard Scientifics, Inc. Report

Shares of Harris & Harris climbed 2 1/8, or 15.8%, to 15 5/8 and Safeguard retreated 4 3/16 to 148 1/2.

Meanwhile, also garnering bullish mention in the column this week is

Kos Pharmaceuticals

(KOSP)

.