Company Report: IBM and Qwest Jump After Deal for E-Business Services

Also, DaimlerChrysler off slightly after agreeing to take 34% stake in Mitsubishi.
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IBM

(IBM) - Get Report

climbed 5 15/16 to 126 9/16 and

Qwest Communications

(Q)

hopped 4 1/2, or 9.7%, to 51 after the companies set a multiyear pact to deliver e-business services and applications via the creation and deployment of Qwest's Internet data centers. The companies expect more than $5 billion in revenue from the agreement, which will be split almost equally between the two.

For more on this

story, check out the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

OpenTV

(OPTV)

shed 39 15/16, or 23.6%, to 129 1/16 after saying it is buying

Spyglass

(SPYG) - Get Report

in a stock swap valued at $2.5 billion.

Spyglass, which produces Internet client-server technology, sailed up 12 1/2, or 17.9%, to 82 3/8. Under terms of the deal, OpenTV, an interactive television company, will acquire all of Spyglass' outstanding stock in a tax-free stock swap. Spyglass shareholders will receive 0.7236 OpenTV Series A ordinary shares in exchange for each share of Spyglass stock they own. Based on OpenTV's closing stock price on March 24, the deal values Spyglass at $122.28 a share, a whopping premium to Spyglass' closing price Friday of 69 7/8.

Mergers, acquisitions and joint ventures

Spain's

Iberdrola

is in talks to buy

FPL Group

(FPL) - Get Report

, the parent of

Florida Power & Light

, in a transaction valued at up to $11 billion, the

The Wall Street Journal

reported, citing people familiar with the matter. FPL Group rose 3 3/16, or 7.4%, to 46 1/2.

Ahold

(AHO)

, the Dutch supermarket group, fell 1 1/4 to 25 despite saying the

Federal Trade Commission

has approved its takeover of

U.S. Foodservice

(UFS) - Get Report

. Ahold is buying U.S. Foodservice for $3.6 billion.

Alcan Aluminum

(AL) - Get Report

gained 1/2 to 33 1/16 after saying it and

Taihan Electric Wire

would require a 95% stake in

Aluminum of Korea

for $200 million in cash.

DaimlerChrysler

(DCX)

fell 5/16 to 67 3/16 after announcing it

agreed to take a 34% stake in Japanese automaker

Mitsubishi Motors

for $2 billion.

For more on this

story, check out the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

Deutsche Telekom

(DT) - Get Report

slipped 3/4 to 85 11/16 after it said it bought a controlling stake in DaimlerChrysler's IT services firm

Debis Systemhaus

.

Home Properties

(HME)

slipped 1/4 to 26 13/16 after it said it is considering strategic alternatives for its affordable housing development unit, Conifer Realty, including a public spinoff or a sale of all or part of Conifer.

Liberty Media

(LMG.A)

lifted 1 3/16 to 58 1/16 after it said it will buy a 9% stake in

IDT

(IDTC)

for $130 million.

Monsanto

(MTC) - Get Report

was unchanged at 47 1/4 after saying it will sell its sweetener-ingredient business to

JW Childs

for $440 million in cash.

Optio Software

(OPTO)

fell 1/4 to 17, after saying it will buy privately held

Muscato

and its affiliate

Translink Solutions

for $25 million in cash, plus $8 million in promissory notes.

PaineWebber

(PWJ)

is in talks to buy regional brokerage firm

J.C. Bradford

, which is based in Nashville, Tenn., the

Journal

reported, citing people familiar with the talks. The

Journal

story said PaineWebber declined to comment, while closely held J.C. Bradford said it doesn't comment on rumors. PaineWebber lost 3 1/2, or 7.4%, to 43 9/16.

Philips Electronics

(PHG) - Get Report

rose 1 3/4 to 181 13/16 after it said it sold 20% of its holding in U.S. fiber-optics firm

JDS Uniphase

(JDSU)

. JDS Uniphase fell 3 3/4 to 128 3/4. Philips said its first-quarter results would include a $509.7 million after-tax gain from the sale.

Sigma-Aldrich

(SIAL)

fell 1/2 to 22 5/8 and

Cooper Industries

(CBE)

fell 9/16 to 33 15/16 after it announced that Cooper will purchase Sigma's B-Line Systems business for $425 million. B-Line Systems manufactures and markets a complete line of metal products.

Talk.com

(TALK)

tacked on 2 13/16, or 19.3%, to 17 3/8 after it said it is buying privately held

Access One Communications

, a private local telecommunications service provider to nine states in the Southeast, for $200 million in stock.

Separately, Talk.com said it reached a deal with

Soros Private Equity Partners

to invest $80 million in the company in exchange for 80,000 shares of 7% convertible preferred Talk.com stock. That is convertible into 4.5 million shares of Talk.com's common stock and warrants to acquire 200,000 shares of stock at $17.91 a share. Also, the company said a partner of Soros Private Equity Partners will join the company's board.

Titan

(TTN)

tacked on 4 13/16, or 7.9%, to go to 57 7/16 after it agreed to purchase closely held

AverStar

for stock and debt. According to the terms, Titan would pay AverStar an equity interest valued at $154 million if Titan's stock is trading between $56 to $61.60 upon the deal's completion. A stock price decline to between $39.60 and $44 would scale the deal's price tag down considerably, to $126 million. Titan also will assume roughly $65 million of AverStar debt.

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.

)

A.G. Edwards

(AGE) - Get Report

posted fourth-quarter earnings of $1.11 a share, well above the two-analyst estimate of 88 cents and the year-ago 78 cents. A.G. Edwards declined 1 5/16 to 37 3/8.

Calpine

(CPN)

said it expects to beat 2000 earnings-per-share estimates. The current seven-analyst estimate is for $2.26 a share. The power company slumped 10, or 11%, to 79 3/4.

Datalink

(DTLK)

said it will modify its earnings in response to the

Securities and Exchange Commission's

revenue policy. The company said it will take an undetermined first-quarter charge due to the accounting change. Datalink fell 5 1/2, or 19.1%, to 23 1/4.

ESC Medical Systems

(ESCM)

expects to report fourth-quarter sales of about $40 million and operating profit of $1 million. The company also noted that it has settled the longstanding litigation between

Reliant Technologies

and ESC units

Laser Industries

and

Sharplan Lasers

. ESC Medical Systems edged up 3/8 to 13 3/8.

Finova

(FNV) - Get Report

is taking a special charge of $80 million to bolster loss reserves and provide payment of deferred compensation and executive severance. The additional loss reserves will be used to cover write-offs in the first quarter related to a $70 million loss on a major customer of Finova's Distribution & Channel Finance unit.

The remainder of the charge will be used to provide payment of deferred compensation and severance to Samuel L. Eichenfield, chairman, president and CEO, who, it was announced this morning, is taking an early retirement for health and personal reasons. Finova said that excluding the charge, the company expects to meet Wall Street's expectations for the first quarter. The company also said it's "comfortable" with meeting consensus earnings estimates for the rest of the quarters of the year.

For more on this

story, check out the coverage from

TheStreet.com/NYTimes.com's

joint newsroom. Finova dropped 12, or 37.6%, to 19 15/16.

Red Hat

(RHAT)

posted a fourth-quarter loss of 4 cents a share, a penny narrower than the four-analyst estimate, but wider than the year-ago loss of 3 cents a share.

For more on this

story, check out the coverage from

TheStreet.com/NYTimes.com's

joint newsroom. Red Hat slipped 3 7/8, or 6.4%, to 56 5/8.

Walgreen

(WAG)

posted second-quarter earnings of 23 cents, a penny shy of the 17-analyst estimate, but up from the year-ago 20 cents. Walgreen dropped 1 1/2, or 5.4%, to 26 1/2.

Waste Management

(WMI)

posted fourth-quarter pro forma net income of 32 cents a share, 2 cents shy of the eight-analyst estimate. Waste Management expects proceeds of $3 billion from the sale of international and nonstrategic or underperforming assets, the majority of which is expected during the second and third quarters of this year. The company plans to use $2 billion of these expected proceeds to pay down debt. Waste Management anticipates posting revenue in the range of $3 billion to $3.1 billion in the first quarter. Waste Management gained 11/16, or 5.1%, to 14 1/4.

For more on this

story, check out the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

Offerings and stock actions

Fairchild

will spin off to its shareholders the shares of its Bermuda unit and then exchange about 95% of the unit for 100% of Global Sources, an Asia-based B2B online and traditional marketplace provider. Fairchild inched up 1/16 to 5 7/8.

Analyst actions

Amkor Technology

(AMKR) - Get Report

: 2001 earnings estimates UP to $1.78 a share from $1.53 at

SG Cowen

. Amkor Technology edged up 1/4 to 62 3/4.

Angiotech Pharma

(ANPI)

: NEW buy at

Deutsche Bank Alex. Brown

; 12-month price target: 70. The stock popped 2 1/2 to 55 1/2.

Avenue A

(AVEA)

: NEW buy at

Salomon Smith Barney

; 12-month price target: 80. Avenue A slipped 3 1/8, or 5.7%, to 51 1/4.

Carbo Ceramics

(CRBO)

: INITIATED at

Lehman Brothers

; 12-month price target: 37-38. Carbo Ceramics bounced 3/4 to 28 1/8.

Cigna

(CI) - Get Report

: NEW buy; 12-month price target: 95 at

Bear Stearns

. Cigna stumbled 1 1/8 to 75 1/8.

Donaldson Lufkin & Jenrette

(DLJ)

: DOWN to neutral from outperform at Morgan Stanley Dean Witter. DLJ fell 9 9/16, or 14.2%, to 57 3/4.

Eastman Chemical

(EMN) - Get Report

: UP to buy from accumulate at

Merrill Lynch

. Eastman Chemical added 15/16 to 43 13/16.

Finova Group

(FNV) - Get Report

: DOWN to market perform from long-term buy at

J.P. Morgan

. Finova Group slipped 12, or 37.5%, to 19 15/16.

IBM

(IBM) - Get Report

: UP to outperform from neutral at

Morgan Stanley Dean Witter

. IBM jumped 5 15/16 to 126 9/16.

Intel

(INTC) - Get Report

: NEW attractive at PaineWebber; 12-month price target: 170. Intel lifted 3 5/8 to 142 11/16.

Matrixone

(MONE)

: INITIATED market outperform at

Goldman Sachs

. Matrixone shed 1 3/4 to 53 5/8.

Nike

(NKE) - Get Report

: UP to strong buy from buy at

Banc of America Securities

; price target: 46. Nike advanced 2 1/16, or 6%, to 35 15/16.

Niku

(NIKU)

: INITIATED recommended list at Goldman Sachs. Niku jumped 10 3/8, or 15.8%, to 75 7/8.

Onvia.com

(ONVI)

: NEW strong buy at

Credit Suisse First Boston

. Onvia.com skidded 9/16 to 30 5/8.

Palm

(PALM)

: INITIATED with an intermediate-term accumulate and long-term buy rating; 12-to-18-month price target of 65 at

Merrill Lynch

. Merrill noted that Palm's stock price will be linked to

3Com's

(COMS)

through August and "arbitrage between the two stocks could push Palm lower, 3Com higher, or both." Palm is majority-owned by 3Com. Palm slid 1 5/8 to 55 3/8.

Powerwave Technologies

(PWAV)

: Price target UP to 190 from 97 at

Warburg Dillon Reed

. Powerwave Technologies fell 7 3/4 to 151 1/8.

Rare Medium

(RRRR)

: INITIATED strong buy at CSFB; 12-month price target: 80. Rare Medium hopped 8 1/16, or 16.1%, to 58 1/16.

Tiffany

(TIF) - Get Report

: 2001 earnings estimate UP to $2.33 a share from $2.30; 2002 earnings estimate UP to $2.80 from $2.75 at Goldman Sachs. Tiffany edged up 2 3/4 to 80 3/4.

Viacom

(VIA) - Get Report

: earnings estimates DOWN at

Thomas Weisel Partners

. Viacom skidded 1 5/16 to 57 1/16.

VeriSign

(VRSN) - Get Report

: UP to strong buy from buy at CSFB; price target: 300. VeriSign fell 1 5/8 to 189 1/4.

TD Waterhouse Group

(TWE)

: UP to strong buy from neutral at Morgan Stanley Dean Witter. TD Waterhouse Group climbed 2 13/16, or 12.3%, to 25 11/16.

Miscellany

Microsoft

(MSFT) - Get Report

has made a proposal to the government to settle the antitrust case against it, which makes several major concessions,

The Journal

reported. The newspaper said that while some government officials said the offer from Microsoft doesn't go far enough, others said it signaled that the software titan is serious about reaching a settlement. The

Journal

reported that under the Microsoft proposal, software and PC makers would be permitted to modify the source code underlying Windows to add rival products, and that Microsoft also would offer a version of Windows without its own Internet software. The stock lost 7 5/8, or 6.8%, to 104 1/16.

Cisco

(CSCO) - Get Report

launched an office-telephone system based on Web technology. Cisco added 11/16 to 80 1/16.

Colgate-Palmolive

(CL) - Get Report

gained 5/8 to 55 after it named Lois D. Juliber COO responsible for operations in Europe, Latin America, Asia, the South Pacific, Central Europe, and Africa. In other personnel news out of the company, it promoted Javier G. Teruel, to the newly created position of chief growth officer; Ian M. Cook was promoted to executive vice president, where he will continue as president of Colgate North America and have additional responsibility for Colgate Oral Pharmaceuticals, the company's professional oral care business. Michael J. Tangney was promoted to executive vice president, where he will continue as president of Colgate Latin America, the company's largest division in terms of sales and profits.

NBC Internet

(NBCI)

bounced 55/8, or 12.6%, to 50 1/4 after it said William J. Lansing, former chairman and CEO of

Fingerhut

, and a former senior exec at

General Electric

(GE) - Get Report

, has been named CEO, succeeding Chris Kitze, who has been appointed vice chairman.

US Airways

(U) - Get Report

and its flight attendants union reached a tentative deal on a new contract this morning. The pact is still subject to ratification by the union membership. US Airways lifted 2 1/4, or 10%, to 24 5/8.

The Heard on the Street column in the

Journal

said quick moves by individual investors have helped power the current stretch of the nearly 10-year-old bull market run. Participation by individual investors also has contributed to the by-now familiar lurches in stock prices and soaring valuations of technology stocks, according to the report. The change comes after years in which the stock market has largely been dominated by big institutions, usually leaving small investors with the leftovers, the report said.