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Terra Networks


announced a $12.5 billion merger deal after today's close. The deal creates one of the world's largest Web companies, with about 50 million unique users and 175 million page views a day. According to sources familiar with the transaction, Terra, a division of


(TEF) - Get Free Report

, will exchange $97.55 worth of its shares for each share of Lycos. Lycos jumped 10 11/16, or 17.3%, to 72 5/8 ahead of the confirmation, while Terra Networks slipped 2 7/8, or 5.1%, to 53 9/16. Telefonica added 7/8 to 66 3/4.

Coca-Cola Enterprises


was slammed 5 13/16, or 27.2%, to 15 9/16 after saying it sees 2000 earnings before items of about 50 cents a share, below the current 17-analyst estimate of 71 cents a share. The company cited weakness in the British market caused by sterling's gains against the euro. The company said it expects a charge of 2 cents a share related to its U.K. restructuring and sees North American volume for the remainder of 2000 up 1% to 2% over 1999.

Coca-Cola Enterprises' fiscal 2000 estimates were cut to 50 cents from 68 cents a share at

UBS Warburg

; and for fiscal 2001 to 70 cents from 90 cents.

Merrill Lynch

slashed the company's fiscal 2000 estimate to 45-50 cents a share from 68 cents and for fiscal 2001 to 65 cents from 95 cents a share. Merrill also cut its intermediate-term rating to neutral from buy. Elsewhere,

J.P. Morgan

cut the stock to market performer from buy.

In related news,


(KO) - Get Free Report

, which owns 40% of Coke Enterprises, said today it expects its 2000 earnings per share to fall 1 cent on lower Coke Enterprises earnings.

Mergers, acquisitions and joint ventures


(EBAY) - Get Free Report


Sun Microsystems

(SUNW) - Get Free Report

its premier supplier of servers, software, storage and professional services. Terms of the deal were not disclosed. eBay advanced 7 1/4, or 5.7%, to 134 3/4, while Sun Microsystems increased 3 5/16 to 87 5/8.

General Motors

(GM) - Get Free Report


Reynolds & Reynolds


, an auto industry computer system supplier, agreed to a pact that would streamline retailing at U.S. dealerships. The terms call for GM to buy a 10% interest in Reynolds, which would help supply dealers with online technology. The deal also makes Reynolds the auto company's preferred e-business technology provider. General Motors rose 2 7/8 to 89 5/16, while Reynolds & Reynolds gained 15/16 to 26 3/4.


(IBM) - Get Free Report




signed a 10-year information technology services deal worth $1.5 billion. The deal calls for IBM Global Services to manage and run core elements of Aventis' IT operations. IBM gained 4 13/16 to 109, while Aventis lost 1 11/16 to 58 15/16.


(MCD) - Get Free Report

said the a bankruptcy court favored a restructuring plan for

Boston Chicken

, opening the door for McDonald's to buy the floundering Boston Market restaurant chain. McDonald's Executive Vice President Jeffrey Kindler said some of the Boston Market sites would become McDonald's,

Donatos Pizza


Chipotle Mexican Grill

locations in 2000, while several sites will continue to carry the Boston Market name. McDonald's gained 1 to 39 3/16. Boston Chicken, trading on the

OTC Bulletin Board

, was unchanged at 7 cents.


is negotiating the termination of its $1.37 billion acquisition of



and its affiliate


. Separately, Eclipsys said the companies were considering whether the deal's cancellation warrants a fee. said it would not comment further on the deal until an agreement is finalized. improved 23/32, or 7.9%, to 9 7/8.

SFX Entertainment


said it would settle $34.5 million in shareholder lawsuits, in order to seal its $4.4 billion merger agreement with

Clear Channel Communications

(CCU) - Get Free Report

. SFX said it entered a memorandum of understanding with Class A holders, who are the plaintiffs involved in the proceedings, according to a

Securities and Exchange Commission

filing. The deal calls for SFX Class A shareholders to get 0.6 shares of Clear Channel for each of their SFX shares, while SFX Class B holders will get one share of Clear Channel for each of the shares they hold. According to the settlement, plaintiffs would be given another $34.5 million, excluding fees and costs. SFX Entertainment closed up 1 7/16 to 44 13/16, while Clear Channel Communications gained 2 15/16 to 76 3/16.


(UN) - Get Free Report

Chairman Niall FitzGerald told


the company will not launch a hostile bid for


(BFO) - Get Free Report

after it rejected Unilever's $18.4 billion takeover bid. FitzGerald, one of two co-chairmen, said he is content to wait for Bestfoods to consider its alternatives and conclude that a deal with Unilever is in its best interests. Unilever declined 9/16 to 48 5/16, while Bestfoods traded up 1 15/16 to 63 15/16.

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Earnings/revenue reports and previews



said it is launching wildfire alpha servers and expects to post $1 billion in revenue for fiscal 2000. Compaq boosted 1 3/16, to 28 9/16.

Computer Associates

(CA) - Get Free Report

posted fourth-quarter earnings of $1.13 a share last night, in line with the 22-analyst estimate, dispelling jitters about its delayed report. The year-ago earnings were 90 cents a share.

Goldman Sachs

lifted its rating on the stock to market outperformer from market performer but lowered its 2001 earnings-per-share estimate to $2.65 from $3.25. Computer Associates hopped 2 15/16, or 5.6%, to 55.


(DE) - Get Free Report

reported second-quarter earnings of 87 cents a share, beating the 19-analyst estimate of 71 cents and up from the year-ago earnings of 65 cents a share. Deere increased 1 13/16 to 46 3/4.

Home Depot

(HD) - Get Free Report

posted first-quarter earnings of 27 cents a share, in line with the 22-analyst estimate and up from the year-ago 21-cent profit. The hard-line retailer also said that it would meet the 20-analyst estimate of 36 cents a share. Home Depot was off 3 1/4, or 5.8%, to 53 1/4.

Hughes Supply


posted first-quarter earnings of 62 cents a share, beating the six-analyst estimate of 60 cents and up from the year-ago 55-cent profit. Hughes Supply increased 1 5/8, or 9.5%, to 18 3/4.

J.C. Penney

(JCP) - Get Free Report

reported first-quarter earnings of 28 cents a share, topping the 11-analyst estimate of 23 cents but sharply down from the year-ago 61 cent-profit. J.C. Penney dropped 3/8 to 18 3/8.



posted first-quarter earnings of 10 cents a share, a penny better than the two-analyst estimate of 9 cents but down from the year-ago 11-cent profit. Staples slid 1 13/16, or 9.5%, to 17 5/16.


(TGT) - Get Free Report

reported first-quarter earnings of 52 cents a share, beating the 16-analyst estimate of 49 cents and up from the year-ago earnings of 41cents a share. Target climbed 7/16 to 71 7/16.


(TIF) - Get Free Report

reported first-quarter earnings of 40 cents a share, beating the 20-analyst estimate of 37 cents and up from the year-ago earnings of 22 cents. The company said the earnings figure was adjusted to reflect a 2-for-1 stock split in July 1999. Tiffany moved down 2 1/4 to 72 15/16.


(WSM) - Get Free Report

posted first-quarter earnings of 8 cents a share, beating the 19-analyst estimate of six cents and the year-ago report of a 6-cent profit. Williams-Sonoma lifted 1 3/16 to 37 3/16.

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Offerings and stock actions

News Corp.

(NWS) - Get Free Report

said it would merge several of its satellites and digital media into one company. News Corp. said it would combine assets including

News Digital Systems


, Asia's

Star TV


British Sky Broadcasting

(BSY) - Get Free Report


TV Guide International


. The company holds a 40% stake in BSkyB, an 82% interest in NDS and 20% of TV Guide. News Corp. lifted 1 7/8 to 50, NDS rose 2 to 60 and TV Guide jumped 2 15/16, or 9.8%, to 32 7/8.


(NUE) - Get Free Report

gained 13/16 to 42 3/4 after it added 5 million shares to its current share buyback program.

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Analyst actions

ING Barings

started coverage of three U.S.-traded Latin American soft-drinks bottlers: Mexico's Coca-Cola bottler


(KOF) - Get Free Report

as a new strong buy;

Panamerican Beverages

(PB) - Get Free Report

as a new strong buy; Mexico's


(GEM) - Get Free Report

as buy.

Femsa declined 1/8 to 16 5/8 and Panamerican Beverages slid 1/16 to 16 15/16, while Pepsi-Gemex tacked on 1/8 to 5.

The firm also started coverage of Mexico-listed

Grupo Continental

, at buy.


Credence Systems


: fiscal 2000 estimates UP to $5.05 a share from $4.25 at

Credit Suisse First Boston

; fiscal 2001 estimates UP to $7.10 from $6.10. Credence Systems slipped 1 1/4 to 133 3/4.


(PGR) - Get Free Report

: UP to market outperformer from performer at Goldman. Progressive advanced 4 3/8, or 5.3%, to 86 3/8.


Embarcadero Technologies


: NEW buy at

Donaldson Lufkin & Jenrette

; price target of 40. Embarcadero Technologies added 3/8 to 14 1/4.



: NEW intermediate accumulate, long-term buy rating at Merrill Lynch. Keane lifted 7/8 to 27 1/4.

Quest Diagnostics

(DGX) - Get Free Report

: NEW strong buy at

U.S. Bancorp Piper Jaffray

; price target of 87. Quest Diagnostics bounced 3 1/4 to 69 3/4.

XL Capital

(XL) - Get Free Report

: NEW strong buy at UBS Warburg; price target of 65. XL Capital climbed 1 9/16 to 51 9/16.

Group Moves

SG Cowen

upgraded the following biotech stocks:

  • Genzyme Molecularundefined: NEW strong buy; price target: 25. The stock advanced 2 13/16, or 18.7%, to 17 13/16.
  • Genzyme Transgenicsundefined: NEW strong buy; price target: 28. The stock advanced 3 9/16, or 19.7%, to 21 9/16.
  • Millennium Pharmaceuticalsundefined: NEW strong buy. The stock jumped 7 3/16, or 8.6%, to 90.

Lehman Brothers

upgraded the following retail stocks:

  • Dollar General (DG) - Get Free Report: NEW outperform. Dollar General declined 3/16 to 24 11/16.
  • Family Dollar (FDO) : NEW outperform. Family Dollar skidded 9/16 to 21 7/16.

Chase H&Q

started coverage of the following HMOs:

  • Oxford Health Plansundefined as a strong buy. Oxford climbed 1 3/16, or 5.7%, to 22.
  • UnitedHealth (UNH) - Get Free Report with a strong buy. UnitedHealth gained 1 to 75 5/8.
  • WellPoint Health Networks (WLP) with a strong buy. Wellpoint moved up 3/16 to 77 1/16.

Chase H&Q started coverage of two biotech stocks:

    Packard Biosciencesundefined as a buy; price target of 21. Packard Biosciences added 1 3/8, or 10.7%, to 14 1/8.
  • PE Biosystems (PEB) - Get Free Report as a strong buy. The stock advanced 4 1/16, or 7.2%, to 60 7/16.

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popped 3/16 to 7 5/8 after it said it has begun a formal search for a new CEO to succeed Floyd Hall, the company announced. Hall announced that an IPO for

is planned for next year.

United Asset Management


fell 1, or 5%, to 18 7/8 after it tapped James Orr as its president and CEO.

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