Company Report: Medical Manager Surges After Merger News and Diversa's IPO a Hit

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Healtheon/WebMD (HLTH) rose 1 5/8 to 56 5/8 after it said it is buying Medical Manager (MMGR) , a provider of physician practice management (PPM) systems, and its publicly traded subsidiary CarInsite (CARI) .

Medical Manager jumped 21 3/4, or 33.5%, to 86 3/4 while CareInsite gained 4 1/8, or 6.1%, to 72. Under terms of the deal, Healtheon/WebMD will pay 1.65 shares, or $90.75 a share, for a total of $3.2 billion in stock, for Medical Manager, and 1.3 shares, or $71.50 a share for CareInsite shares not owned by Medical Manager. Medical Manager owns 69% of CareInsite.

For more on this

story see the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

Diversa

(DVSA)

soared 51, or 212.5%, to 75 in its trading debut.

Bear Stearns

priced 7.25 million shares above range at $24 each. Diversa collects genetic material from organisms and stores genes in DNA libraries.

For more on Diversa's

debut see the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

Amerada Hess

(AHC) - Get Report

rose 5/8 to 48 7/8 after it said it will pay $168 million for the 51% of

Meadville

stock it does not already own. The purchase includes 178 gas stations.

AT&T

(T) - Get Report

lost 3/16 to 48 7/16 after it agreed to purchase all the outstanding shares of

GRCI International

(GRH)

for roughly $221 million. GRCI gained 1 7/16, or 10.8%, to 14 13/16.

Separately, H. Eugene Lockhart, head of AT&T's shrinking $22 billion consumer business, will leave the long-distance company after one year to join a small start-up company.

Computer Associates

(CA) - Get Report

fell 7/16 to 69 5/16 after it said it is buying

Sterling Software

(SSW) - Get Report

. Sterling Software rose 1 7/8, or 5.4%, to 36 5/16. Under the terms of the deal, a unit of Computer Associates will begin an offer to swap 0.5634 shares of Computer Associates stock for each outstanding share of Sterling. The exchange ratio is subject to a collar.

If the average price of Computer Associates for the period designated prior to the closing of the offer is greater than $77.12, the exchange ratio will be reduced so that each Sterling share tendered in the offer would be exchanged for $43.45 worth of Computer Associates stock. If the average price of Computer Associates shares for the period is less than $63.10, the exchange ratio will be bumped up so each Sterling share tendered in the offer will be exchanged for $35.55 worth of Computer Associates stock. In that case, Computer Associates may elect to cut the exchange ratio and make up the difference in cash and or stock.

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story see the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

CMGI

(CMGI)

gained 3 7/16 to 115 1/2 after saying it will buy

Tallan

for $920 million in stock and cash. Tallan provides Internet and e-commerce professional services. CMGI said the purchase will grow its billable resources by 350% and expects the deal to close by May.

For more on this

story see the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

Corning

(GLW) - Get Report

had a busy day. The shares jumped 12 1/4, or 7.4%, to 178 after the company said it will buy

NetOptix

(OPTX)

for about $2 billion in stock. Corning will swap 0.9 of its shares for each NetOptix share and said the deal will be mildly dilutive in 2000 and accretive in 2001. NetOptix popped 20, or 14.7%, to 156.

Corning also said it formed an equity venture named Samsung Corning Micro-Optics. And

British Telecommunications

(BTY)

said it agreed to a $62 million deal to license its photonics technology to Corning. British Telecommunications fell 2 to 161.

See the separate

story from

TheStreet.com/NYTimes.com's

joint newsroom for more details.

Dealtime.com

, an independent online comparison shopping service, said it has secured $50 million in financing, including some from merger partners

Time Warner

(TWX)

and

America Online

(AOL)

. Time Warner fell 7/8 to 82 3/4 while AOL lost 1 1/2 to 55 3/4.

Entergy

(ETR) - Get Report

added 3/8 to 23 1/2 after it agreed to buy two New York power authority nuclear plants. The company agreed to pay $638 million over seven years, plus $168 million for fuel.

Ford

(F) - Get Report

added 15/16 to 47 1/16 and

General Motors

(GM) - Get Report

gained 1 5/16 to 75 1/4 after

The Wall Street Journal

reported the two are set to enter a bidding war over

Daewoo Motor

, an insolvent South Korean car maker.

DaimlerChrysler

(DCX)

is also considering making a move, the story said. DaimlerChrysler rose 1 13/16 to 65 3/4. The successful bidder will have the potential to be the world's biggest automaker.

For more on this

story see the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

NiSource

(NI) - Get Report

was unchanged at 17 7/16 after it said its tender for

Columbia Energy

(CG) - Get Report

is not being extended. Columbia gained 5/8 to 64 9/16. NiSource said 58.6% of Columbia's shares had been tendered at the expiration.

Nortel

(NT)

. rose 1 7/8 to 120 1/2 after it said it will invest $260 million in its optical networking business and create 3,400 new jobs globally. Nortel also announced a broad patent cross-licensing agreement with

Tellabs

(TLAB)

, under which the companies will have rights to each other's patent portfolios. Tellabs was unchanged at 60 9/16.

Occidental Petroleum

(OXY) - Get Report

lost 1 1/4, or 6.8%, to 17 1/4 after it won an auction for

Altura Energy

, a U.S. oil exploration joint venture of

BP Amoco

(BPA)

and

Shell Oil

, with a bid of more than $3.5 billion. BP Amoco rose 13/16 to 47 7/16.

Apollo Management

,

The Yucaipa Companies

,

Pequot Capital Management

and

GRP II

are investing a total of $120 million in

Peapod

(PPOD)

, an Internet grocer. Peapod slipped 1 1/16, or 9.7%, to 9 15/16 despite the news.

Phone.com

(PHCM)

lost 2 5/8 to 118 1/2 after it said it will buy

OneBox.com

for $850 million in stock. OneBox.com shareholders will get 6.5 million Phone.com shares.

Russ Berrie

(RUS)

shed 5 7/8, or 24.4%, to 18 1/4 after it said that it has ended negotiations for a possible sale of the company to

Evercore Partners

for $27 a share. Evercore had offered to buy all of Russ Berrie's outstanding stock, except the shares held by the company's chairman and CEO.

Starbucks

(SBUX) - Get Report

climbed 1 1/8 to 34 after it set a five-year pact with

Kozmo.com

, an "Internet-to-door delivery service," under which Starbucks will receive $150 million from Kozmo.com for in-store exposure and co-marketing. Kozmo.com said the deal with Starbucks will help its planned expansion into new markets around the country. Kozmo.com currently has operations in New York City; Boston; Washington, D.C.; San Francisco and Seattle.

Teligent

(TGNT)

tacked on 2 to 82 1/2 after it set a deal with

Mannesmann Arcor

, the telecommunications unit of industrial powerhouse

Mannesmann

(MNNSY)

, to offer fixed wireless communications services in Germany.

Texaco

(TX) - Get Report

rose 13/16 to 49 1/8 after it and

TradeCapture.com

set a strategic pact for the global trading of energy commodities. Texaco will take a minority equity stake in TradeCapture.com and use its Internet-based trading platform for its crude oil and refined products trading activities.

United Technologies

(UTX) - Get Report

rose 1 15/16 to 50 5/16 ,

Honeywell

(HON) - Get Report

rose 1 1/4 to 43 1/2 and

i2 Technologies

(ITWO)

hopped 19 1/8, or 7.9%, to 259 7/8 after the companies announced plans to launch

MyAircraft.com

, a joint venture devoted to developing and operating an open electronic marketplace for aerospace products and services available to all industry players.

World Access

(WAXS)

lost 1 1/8 to 21 3/4 and

Star Telecommunications

(STRX)

gained 3/4, or 12.5%, to 6 3/4 after the companies agreed to merge in a deal that could be worth about $523 million. World Access also agreed to acquire privately held

Communication Telesystems International

for about 31 million shares, or about $709 million.

For more on this

story see the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

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.

)

Formula Systems

(FORTY) - Get Report

gained 7 3/16, or 10.7%, to 74 3/16 after it said it expects to post fourth-quarter earnings above the two-analyst estimate of 50 cents a share.

International Home Foods

(IHF) - Get Report

rose 3/16 to 16 7/16 after it reported fourth-quarter earnings of 43 cents a share, a penny ahead of the six-analyst estimate and the year-ago 33 cents.

JDN Realty

(JDN)

dropped 6 3/4, or 40.8%, to 9 13/16 after it said it discovered millions of dollars in undisclosed compensation arrangements in real estate transactions between 1994 to 1998. The compensation arrangements were inaccurately recorded and the company will be required to restate its financial results for those years.

The inaccuracies may cause a credit default as the company breached nonfinancial and nonoperating covenants in its credit facility, though it is discussing a waiver with banks. JDN said CEO J. Donald Nichols and directors Jeb L. Hughes and C. Sheldon Whittelsey IV resigned effective immediately.

Donaldson Lufkin & Jenrette

cut JDN to underperform from buy.

Lear

(LEA) - Get Report

lifted 1 1/4, or 5.5%, to 24 after it reported fourth-quarter operating net income of $1.36 a share, 3 cents ahead of the

First Call/Thomson Financial

19-analyst estimate and up from the year-ago $1.09.

Lear CEO Kenneth Way said the company was comfortable with 2000 earnings estimates of $4.48 a share compared with 1999 profit of $3.76.

Maytag

(MYG)

tumbled 3 7/8, or 10.7%, to 32 1/2 after it said first-quarter earnings could be off 10% from the year-ago 95 cents per share. Maytag said it sees full-year results within the lower end of the $3.80 to $4.00 range.

The current nine-analyst estimate calls for $3.91 a share.

Salomon Smith Barney

cut Maytag to neutral from outperform and dropped its price target to 40 from 50, and lowered its earnings per share estimate on the stock.

For more on this

story see the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

Tickets.com

(TIXX)

slipped 1/2 to 15 5/8 after it reported a fourth-quarter pro forma loss of 45 cents a share, narrower than the three-analyst expected loss of 59 cents a share.

Offerings and stock actions

Anheuser-Busch

(BUD) - Get Report

lost 2 15/16 to 62 1/8 after it said it would buy back some of its shares after the stock hit a 14-month low during today's trading session.

Dana

(DCN)

gained 2 1/16, or 9.8%, to 23 1/16 after it said it added $250 million in stock to its current share repurchasing program.

The

Nasdaq Stock Market

said the board of

Nasdaq Investment Product Services

, the sponsor of the

Nasdaq 100 Trust

(QQQ) - Get Report

approved a 2-for-1 stock split. The payment date for the split will be March 17, payable to stockholders of record on Feb. 28.

See the separate

story from

TheStreet.com/NYTimes.com's

joint newsroom for more details. Nasdaq 100 Trust lost 1 19/32 to 198 5/32.

Strattec

(STRT) - Get Report

set an additional 500,000 share repurchase, or 10% of its stock. Strattec added 1 5/8 to 35 1/2.

Symbol Technologies

(SBL)

said it set a 3-for-2 stock split. Symbol Technologies gained 2 5/16 to 79 3/4.

Xoma

(XOMA) - Get Report

said it sold 6.1 million common shares in a private placement offering. Xoma tacked on 5/8, or 8.9%, to 7 5/8.

Analyst actions

Warburg Dillon Read

upgraded

Accredo

(ACDO)

to strong buy from buy. Accredo edged up 9/16 to 32 7/8.

Goldman Sachs

upped

Advanced Micro Devices

(AMD) - Get Report

to market outperform. Advanced Micro Devices skidded 2 1/4 to 43 1/4.

Lehman Brothers

raised its rating on

Alcatel

(ALA)

to outperform from neutral. Alcatel declined 1/16 to 54.

ING Barings

raised

American Airlines

parent

AMR

(AMR)

to strong buy from buy. AMR lifted 9/16 to 54.

Deutsche Banc Alex Brown

cut

Banco Rio de la Plata

(BRS) - Get Report

to market perform from buy. Banco Rio de la Plata was unchanged at 14 1/8.

Wit Soundview

upped its price target on

Brocade Communications

(BRCD)

to 300 from 195. Brocade Communications jumped 17, or 8.2%, to 222.

Morgan Stanley Dean Witter

analyst Mary Meeker resumed coverage of

Chemdex

(CMDX)

with an outperform rating.

U.S. Bancorp Piper Jaffray

initiated coverage with a buy rating.

Bank of America Securities

said it upped Chemdex to strong buy from buy and raised its price target to 175 from 130. Chemdex edged up 1/2 to 125 1/2.

PaineWebber

upped its price target on

Digex

(DIGX)

to 130 from 100. Digex hopped 9 15/16, or 10.4%, to 104 15/16.

Warburg downgraded

Enzon

(ENZN)

to hold from buy. Enzon slid 6 3/16, or 11.9%, to 45 3/4.

PaineWebber

raised

FleetBoston

(FBF)

to buy from neutral. FleetBoston mounted 1/4 to 27 7/8.

Merrill Lynch

initiated coverage of

A.J. Gallagher

(AJG) - Get Report

with an intermediate-term accumulate rating.

For more on this

story see the coverage from

TheStreet.com/NYTimes.com's

joint newsroom. A.J. Gallagher declined 13/16 to 53 7/16.

Banc of America

rolled out coverage of

ImageX.com

(IMGX)

with a buy rating and a price target of 35.

SG Cowen

also started coverage of the stock with a strong buy rating and a price target of 56. ImageX.com advanced 1/4 to 24 3/4.

Goldman Sachs

cut its 2000 earnings estimate on

Micron Tech

(MU) - Get Report

to $3.75 from $4.00 a share. Micron Tech stumbled 3 3/8 to 67 3/4.

ING Barings started coverage of

Molecular Devices

(MDCC)

with a strong buy rating and a 12-month price target of $100 a share. Molecular Devices soared 30, or 58.5%, to 81 1/4.

Goldman raised its 2000 earnings estimates on

Monsanto

by 15 cents to $1.30

(MTC) - Get Report

. But analyst Avi Nash also lowered the firm's 2001 EPS estimate to $1.60 from $1.75. Monsanto skidded 3/4 to 39 11/16.

Warburg Dillon Read

initiated coverage of

Mpower Communications

(MPWR) - Get Report

with a buy rating and a price target of 90. Mpower Communications gained 1 to 69 13/16.

Joe Battipaglia,

Gruntal's

chief investment strategist said he raised his year-end 2000 target on the

Nasdaq Composite Index

to 5000, citing impressive growth among companies in the tech-heavy index.

Donaldson Lufkin & Jenrette

analyst Thomas Galvin added

Nokia

(NOK) - Get Report

and

IXnet

(EXNT)

to its focus list. Nokia lost 3 1/4 to 193 3/4 and Ixnet bounced 5 11/16, or 13.7%, to 47 1/16.

Warburg initiated coverage of

Priority Healthcare

(PHCC)

with a strong buy rating. Priority Healthcare climbed 2 7/16, or 8.1%, to 32 7/16.

Merrill Lynch cut its rating on

Terra Networks

(TRRA)

to accumulate from buy but kept a long-term buy rating on the stock. Terra popped 3 1/2 to 135 1/2.

Warburg initiated coverage of

Trizetto Group

(TZIX)

with a buy rating. Trizetto Group mounted 5, or 7.8%, to 69.

Banc of America Securities

upgraded

Trammell Crow

(TCC)

to strong buy from buy on valuation. Trammell Crow lifted 1 7/8, or 17.4%, to 12 5/8.

U.S. Bancorp

started coverage of

VerticalNet

(VERT)

with a strong buy rating and a price target of 290. VerticalNet tumbled 10 1/2 to 202 1/2.

PaineWebber raised

Xerox

(XRX) - Get Report

to attractive from neutral. Xerox tacked on 1 13/16, or 8.9%, to 22 1/16.

Merrill reiterated a buy, and raised its price target on

Xilinx

(XLNX) - Get Report

to 70 from 62. Xilinx popped 5, or 8.7%, to 61 15/16.

Wit Soundview rolled out coverage of

Xtal Technology

(AXTI) - Get Report

with a buy rating and set a price target of 50. Xtal Technology flew up 7 3/16, or 22.5%, to 39 1/8.

Miscellany

Dell

(DELL) - Get Report

said its

OptiPlexGX300

, which uses

Intel

(INTC) - Get Report

memory chips made with

Rambus

(RMBS) - Get Report

technology is ready to hit the shelves. The desktop PC, which includes Intel's 820 chips set and Rambus's RDRAM, faced delays after Intel found bugs in the technology. Dell slid 7/16 to 36 7/16 and Intel bounced 4 to 109 7/8, while Rambus shot up 23 3/16, or 26.2%, to 111 7/16.

Merrill Lynch

(MER)

named Thomas Patrick CFO. In addition, John Steffens was named chairman of the brokerage titan's U.S. private client group. Merrill Lynch shed 1 to 90 3/8.

Switzerland's price regulator said he was launching an investigation into

Microsoft

(MSFT) - Get Report

software prices after an initial probe backed complaints from consumer groups that they were paying too much. Microsoft stumbled 5/16 to 99 5/8.

Rupert Murdoch is planning to consolidate

News Corp.'s

(NWS) - Get Report

global satellite operations and investments into a new public company, the

Journal

reported, citing people familiar with the situation. The move comes in response to criticism the company lacks a digital strategy, the story said.

For more on this

story see the coverage from

TheStreet.com/NYTimes.com's

joint newsroom. News Corp slipped 3/4 to 56 1/4.

Rent-Way

(RWY)

lifted 1, or 6.2%, to 17 after it said it would open 400 new stores within the next three or four years. The company said it has agreed to 20 new leases this quarter.

The Heard on the Street column in the

Journal

says shares of Steve Wynn's

Mirage Resorts

(MIR)

are down more than 50% from their 52-week high in May. According to the story, Wynn's lack of good communication with Wall Street analysts hasn't done any favors for Mirage's share price.

At times, Wynn has insulted and chastised his investors and withheld key information about hotel operations, the story says. Musing on the analysts who cover Mirage, Wynn is quoted as saying, "I was surprised ... They were dumber than I thought." Mirage edged up 1/4 to 11 13/16.