Champion International (CHA) - Get Report boosted 12 9/16, or 24.4%, to 64 after International Paper (IP) - Get Report made an unsolicited offer to buy the paper producer for $6.2 billion in cash and stock, or $64 a share. International Paper fell 2 9/16, or 6.4%, to 37 7/16.

IP's move could ignite a bidding war with Helsinki-based

UPM-Kymmene

(UPM)

, which announced an all-stock deal to buy Champion in February. International Paper also said it intends to shed $3 billion in assets by the end of 2001 to focus on its core businesses.

Deutsche Banc Alex. Brown

cut its rating on International Paper to buy from strong buy.

Mergers, acquisitions and joint ventures

Applied Digital Solutions

(ADSX)

edged up 3/32 to 5 7/8, after it announced it has signed a definitive agreement to buy

Destron Fearing

(DFCO)

, which climbed 9/16, or 12.9%, to 4 15/16. Applied Digital had announced plans to purchase the company in a stock deal.

ITT Industries

(IIN) - Get Report

gained 1/4 to 32 following its announcement that it will buy privately-held switch maker

C&K Components

for about $117 million.

Williams Communications

(WCG) - Get Report

rose 1 1/8 to 36 11/16 after it said it has completed a $215 million agreement to provide network services and dark fiber to Internet service provider

Cogent Communications

.

Earnings/revenue reports and previews

(

Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.

)

Affiliated Computer Services

(ACS)

lifted 5/16 to 33 15/16. The company reported 53 cents a share on net income, beating year-ago earnings of 43 cents and the eight-analyst estimate by a penny. The company said income a share, excluding goodwill amortization was 62 cents, up from 50 cents a year ago.

Chubb

(CB) - Get Report

increased 1 1/8 to 66 1/8 after it posted first-quarter operating income of 85 cents a share. The 18-analyst estimate was for 94 cents, while the year-ago earnings were $1.02. The company said net income in the latest quarter was 87 cents a share, including catastrophe-related losses of 11 cents a share.

Soap maker

Dial

(DL) - Get Report

dropped 1/8 to 13 7/8 after it reported first-quarter earnings per share of 23 cents, in line with the 8-analyst estimate, and off from the year-ago figure of 26 cents.

GATX

(GMT)

slipped 1/8 to 37 3/4. The holding company reported first-quarter earnings per share of 82 cents, missing the 3-analyst estimate of 83 cents by a penny but beating its year-ago figure of 78 cents a share.

Hasbro

(HAS) - Get Report

added 3/8 to 16 1/8. The toy manufacturer posted first-quarter earnings of 8 cents a share including a loss of 1 cent a share, well above the seven-analyst estimate of 1 cent and up from the year-ago 7 cents. The company said its outlook for the full year remains positive and said it sees 2000 revenue growth at about 5% and earnings per share up 10%, excluding items.

Primedia

(PRM)

gained 1/8 to 20 5/8. The publishing company posted a first-quarter loss of 35 cents a share including a gain. The two-analyst expected loss was 34 cents while the year-ago loss was 41 cents.

Phelps Dodge

(PD) - Get Report

lifted 11/16 to 45 1/8 after it reported first-quarter earnings per share of 25 cents. The company beat the 12-analyst estimate of 23 cents for the quarter, and far outpaced its year-ago loss of 11 cents.

Procter & Gamble

(PG) - Get Report

fell 6 1/2, or 9.2%, to 64 after it posted third-quarter earnings of 64 cents a share, in line with the lowered 12-analyst estimate. Year-ago results were not available.

Offerings and stock actions

Dollar General

(DG) - Get Report

staggered 1/8 to 23 1/16 after it set a 5-for-4 stock split.

Analyst actions

Corning

(GLW) - Get Report

; jumped 28, or 18.5%, to 179; UP to near-term buy from accumulate at

Merrill Lynch

.

French biotech company

Genset

(GENXY)

hopped 3 1/4, or 17.6%, to 21 3/4; UP to trading buy from market performer at

Goldman Sachs

.

Redback Networks

(RBAK)

with a recommend at Goldman Sachs. Redback soared 13 3/8, or 24.8%, to 67 3/8.

Diversified electronics maker

SCI Systems

(SCI) - Get Report

boosted 4 7/8, or 10.8%. to 50; UP to strong buy from buy at

SG Cowen

; six- to 12-month price target: UP to 60 to 63 a share; UP to outperform from neutral at

Morgan Stanley

.

Upgrades

Amphenol

(APH) - Get Report

lifted 9 7/8, or 9%, to 120; UP to buy from Outperform at

Lehman Brothers

; Year earnings estimate per share UP to $4.10 from $3.75 and the 12-month price target UP to 150 from 115 per share.

Grubb & Ellis

(GBE)

lifted 1/16 to 5 3/8; UP to buy from market performer at

Banc of America

.

Ivex Packaging

(IXX)

fell 3/16 to 9 5/16; UP to attractive from neutral at

Bear Stearns

.

Kemet

(KEM) - Get Report

advanced 5 9/16, or 8.9%, to 68 1/16; price target UP to 125 from 115 at Merrill Lynch.

Silicon Valley Bancshares

(SIVB) - Get Report

climbed 7 3/8, or 13.3%, to 62 5/16; UP to buy from neutral at Bear Stearns..

Downgrades

Northrop Grumman

(NOC) - Get Report

traded up 2 1/16 to 72 1/2; DOWN to near-term accumulate from near-term buy at Merrill Lynch.

Starbucks

(SBUX) - Get Report

lost 1 3/4 to 38 3/16; DOWN to market performer from buy at Banc of America.

Initiations

Applebee's International

(APPB)

lifted 3 1/16, or 9%, to 37 1/16; NEW buy at Bear Stearns; price target: 48.

Arrowpoint Communications

(ARPT)

added 1 3/16 to 90 1/8; NEW buy at

J.P. Morgan

and new market performer at Goldman Sachs; price target:150 at J.P. Morgan.

Bottomline Technologies

(EPAY) - Get Report

rose 1 3/16 to 90 1/8; NEW near-term accumulate/buy rating at Merrill Lynch; 12-18 month price target 60.

Warburg Dillon Read

initiated coverage of

Citigroup

(C) - Get Report

and

Bank of New York

(BK) - Get Report

with strong buy ratings. Citigroup added 2 9/16 to 64 3/8, while Bank of New York lifted 1 5/8 to 44 13/16.

Clothing retailer

Liz Claiborne

(LIZ)

increased 2 3/16 to 46 9/16; NEW recommend at Goldman Sachs.

Gadzoox

(ZOOX)

was off 7/8 to 31 1/2; NEW buy at

Credit Suisse First Boston

; 12-month price target 50.

Mercator Software

(MCTR)

dropped 3 1/8, or 7.8%, to 37 1/8; NEW buy at Lehman; price target:50.

Mercury Interactive

(MERQ)

boosted 9 11/16, or 14.7%, to 75 7/16; NEW buy rating; price target: 80 at Lehman Brothers.

Micromuse

(MUSE)

improved 3 1/8 to 84 1/8; NEW buy at Lehman Brothers; price target: 100.

Oracle

(ORCL) - Get Report

ascended 3 5/16 to 75 3/4: NEW buy; price target: 100 at Lehman.

PeopleSoft

(PSFT)

boosted 1, or 7.2%, to 14 13/16; NEW neutral; price target: 20 at Lehman Brothers.

Viasystems

(VG) - Get Report

hopped 1 15/16, or 14%, to 15 3/4; NEW strong buy; price target of 21 at First Boston.

Group Moves

Salomon Smith Barney

initiated coverage of three drug retailing companies:

CVS

(CVS) - Get Report

at outperform; price target: 44. CVS lifted 2 3/4, or 6.3%, to 46 3/4.

Long Drug Store

(LDG)

at neutral; price target: 23. Long Drug Store advanced 7/8 to 24 7/8.

Walgreen

(WAG)

at buy; price target: 28. Walgreen moved up 7/16 to 29 3/16.

Salomon Smith Barney also initiated coverage of four supermarkets:

Safeway

(SWY)

at buy; price target: 56. Safeway fell 15/16 to 48 1/2.

Kroger

(KR) - Get Report

at outperform; price target: 20. Kroger traded up 9/16 to 19 7/8.

Albertson's

(AB) - Get Report

at neutral; price target: 35. Albertson's hopped 1/8, or 6.7%, to 2.

Delhaize America

(DZA)

at neutral; price target: 19. Delhaize America added 1/16 to 18 7/16.

Goldman Sachs

initiated coverage of two Internet companies:

Critical Path

(CPTH)

at recommend. Critical Path increased 2, or 5.4%, to 39

ValueClick

(VCLK)

at market outperformer. The shares were up 1 1/4, or 11.4%, to 12 1/4.

Miscellany

The Heard on the Street column in

The Wall Street Journal

looks at a comprehensive study of tracking stocks, which concluded that the increasingly popular issues don't live up to the hype. Tracking stocks allow companies to offer stock in a subsidiary to the public without giving up control over the business, and are often used as a way to take advantage of Internet subsidiary valuations.

Among the disappointing results noted: The long-term performance of tracking stocks has been subpar compared with some market benchmarks; parent companies who issue the stocks don't seem to get much of a boost in share price; and tracking stocks don't even seem to meet their intended goal of helping analysts understand companies by breaking out separate businesses.