Jackpot Enterprises

(J)

was a big gainer, jumping 7, or 49.6%, to 21 1/8 after it said it was converting itself into an Internet investment company and would examine alternatives for its traditional gaming business. The company said it would create a $100 million Internet fund and take a 35% interest in

Digital Boardwalk

.

(

Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified. New highs and lows on a closing basis unless otherwise specified.

)

Mergers, acquisitions and joint ventures

IBM

(IBM) - Get Report

gained 2 7/8 to 105 7/8 after it agreed to an Internet B2B commerce pact with

i2

(ITWO)

and

Ariba

(ARBA)

. The deal, which will help firms launch B2B marketplaces, calls for IBM to make minority investments in i2 and Ariba. Ariba gained 6 1/2 to 331, while I2 popped 13.2%, to 190 5/8.

J.P. Morgan

started coverage of

Ariba

with a buy rating.

APEX

(APEX) - Get Report

rose 6 1/8, or 17%, to 42 1/8 after it agreed to a merger with

Cybex Computer

(CBXC)

. Cybex lost 3 13/16, or 8.5%, to 41. APEX said its shareholders would own 55% of the newly formed company. The deal would be accretive to earnings before extraordinary items within a year. APEX said it has tapped Stephen Thorton as chairman, president and CEO of the merged company.

CNA

(CNA) - Get Report

slipped 3/8 to 24 3/4 after it said it is contemplating a possible sale of its individual life insurance and life reinsurance divisions. The insurer said it has brought

Donaldson Lufkin & Jenrette

on board to explore the possible sale.

DaimlerChrysler

(DCX)

and

Mitsubishi

are negotiating a possible deal that could form the world's third-biggest carmaker,

The Wall Street Journal

reported. Sources told the

Journal

that the pact is not certain. DaimlerChrysler gained 1 13/16 to 61 13/16.

Deutsche Bank

and

Dresdner Bank

are moving closer to a $29.74 billion merger,

The Wall Street Journal

reported. According to the paper, the potential merger would create a financial-services operation with over $1.2 trillion in assets.

Internet Capital Group

(ICGE)

dropped 3 1/16 to 138 1/8 after it said it would pay $22 million in cash and $635 million in stock for a majority stake in

Rightworks

. J.P. Morgan initiated coverage of the stock with a buy rating.

Occidental Petroleum

(OXY) - Get Report

slipped 1/8 to 17 7/16 after it said it has entered a $3.6 billion deal to acquire

Altura Energy

from

BP Amoco

(BPA)

and

Shell

. BP Amoco gained 2 5/16 to 53. Occidental said the purchase would add 50 cents a share to its fiscal 2000 earnings.

Pinnacle

(PNK) - Get Report

rose 1 3/4, or 9.1%, to 21 after it said

Harveys Casino Resorts

has launched a $625 million offer for Pinnacle. According to the terms, Harveys would pay $25 a share for Pinnacle, which owns eight casinos in Nevada, Mississippi, Louisiana and Argentina.

PNC Bank

(PNC) - Get Report

slipped 1/16 to 36 5/8 and

Perot Systems

(PER) - Get Report

rose 1 1/4, or 5.9%, to 22 5/16 after the companies said they have entered a venture to create a B2B digital marketplace for billing called

Billingzone

.

Qwest

(Q)

fell 2 5/16 to 53 11/16 after CEO Joe Nacchio told

Reuters

that the reason for Qwest's planned merger with

U.S. West

(USW)

"still holds." U.S. West rose 1 1/2 to 69 5/8.

Offerings and stock actions

Crayfish

(CRFH)

, the Japanese email service appealing to investors hungry for Asian stocks, burst out of the IPO gates on the

Nasdaq

Wednesday afternoon.

The stock, which

Morgan Stanley Dean Witter

priced at $24.50 on Monday, opened at 96, 292% above its offer price, soaring to a high of 101 before coming back down. It closed up 101 1/2, or 414.2%, to 126.

The company's success wasn't a surprise (

TheStreet.com

took a look at Crayfish

last week). Investors were eager to welcome the entry by

Hikari Tsushin

, a Japanese Internet investment firm that rivals powerhouse

Softbank

and has a 50.1% stake in Crayfish. Crayfish was also hot on the heels of other Asian Nasdaq successes, including

Chinadotcom

(CHINA)

and

Korea Thrunet

(KOREA)

.

Japanese investors will also have a shot at getting in on Crayfish on Friday, when it goes public on the

Tokyo Stock Exchange's

recently launched high-tech

Mothers

board.

FirstWorld Communications

(FWIS)

gained 8, or 47.1%, to 25 in its trading debut.

Lehman Brothers

priced 10 million shares at $17 last night, the top of the estimated $15 to $17 range. The company provides network-based Internet, data and communications services.

Credit Suisse First Boston

priced a 4.5 million-share IPO for

iPrint

(IPRT)

at $10 a share. The stock jumped 5 3/4, or 57.5%, to 15 3/4.

Be Free

(BFRE)

slid 12 3/4, or 13.1%, to 84 1/4 after it said it filed for a 4.5 million-share secondary offering.

Mechanical Technology

(MKTY)

gained 4, or 6.1%, to 69 3/4 after it set a 3-for-1 stock split.

M-Systems

(FLSH)

rose 1 13/16 to 72 7/16 after it priced a 2.45 million-share secondary offering at $68.25 a share.

Payless Shoesource

(PSS)

jumped 6 5/8, or 15.9%, to 48 3/8 after it said it would self-tender up to 25% of its 29.6 million outstanding shares. Payless said it would buy 7.5 million shares through the offering, which has a set price range between $48 and $53 a share. Separately, Payless said it upped its fiscal 2000 growth estimate to 20% from 15%.

TCF Financial

(TCB)

slipped 7/16 to 18 5/8 after it said it will buy back 4.1 million, or 5%, of its shares.