Company Report: Microsoft Leads Selloff; Parametric Walloped

Author:: Eileen Kinsella
Publish date:: Apr 3, 2000 6:13 PM EDT

Shares of Microsoft (MSFT) - Get Report were pounded in regular trading, sinking 15 7/16, or 14.5%, to 90 13/16 as investors nervously awaited news of the decision in the government's antitrust case against it. Judge Thomas Penfield Jackson released his decision at 5 p.m. EDT, finding that Microsoft violated antitrust laws. The company plans to appeal.

Microsoft shares actually ticked a bit higher in after-hours

Instinet

trading, adding 2 3/64 to 92 59/64.

Settlement talks

ended Saturday. Judge Jackson previously issued findings of fact in the case that harshly criticized Microsoft.

CIBC World Markets

sliced its rating on the stock to hold from buy, while

SG Cowen

reiterated its strong buy rating and 140 price target on the tech giant.

Parametric Technology

(PMTC)

was also punished, falling 10 5/16, or 49%, to 10 3/4 after it said second-quarter results would fall below the nine-analyst estimate of 9 cents a share. The company said earnings per share would either break even or show a small loss including charges.

Mergers, acquisitions and joint ventures

Anadarko Petroleum

(APC) - Get Report

dropped 4 3/8, or 10.8%, to 34 1/2 after it said it s buying

Union Pacific Resources

for $4.4 billion in stock. Union Pacific inched up 3/16 to 14 11/16. Under terms of the deal, UPR shareholders will receive 0.4550 shares of Anadarko for each UPR share they own, or $17.60 a share in stock, a 21% premium to UPR's closing price of 14 1/2 on Friday. Following the deal, UPR will be a wholly owned subsidiary of Anadarko. Anadarko and UPR are oil and gas exploration and production companies.

ACTV

(IATV)

shed 6 1/16, or 17.3%, to 29 said

Liberty Digital

(LDIG)

, a media company, lost 1 3/8 to 37 1/8 after Liberty said it would invest another $20 million in ACTV, boosting its interest in the software maker to 16%.

Advanced Micro Devices

(AMD) - Get Report

added 1 7/8 to 60 7/8 after it agreed to a $300 million two-year deal with French-based telecom equipment provider

Alcatel

. The deal calls for AMD to supply Alcatel with memory units to run its modems, cell phones and telecom infrastructure.

AppNet

(APNT)

, a consulting services provider, lost 4 3/4, or 10.1%, to 42 1/4 and

Commerce One

(CMRC)

plummeted 31 1/4, or 21%, to 118 after the companies said they have agreed to a venture that would create Web exchanges for companies to trade their products. The companies said the pact would start by setting up online marketplaces for the financial services, automotive and oil industries. The deal also tags AppNet as the preferred consultant for Commerce One customers.

DuPont

(DD) - Get Report

climbed 4 5/8, or 8.7%, to 57 9/16 after it said it intends to form a polyester yarn manufacturing alliance in the U.S. with

Unifi

(UFI) - Get Report

. Unifi added 3/4, or 8.4%, to 9 11/16.

Duke Energy

(DUK) - Get Report

climbed 1 3/8 to 53 7/8 and

ExxonMobil

(XOM) - Get Report

gained 2 1/2 to 80 1/2 after the companies announced that one of Duke's affiliates is buying

Mobil Europe Gas

, a European gas trading and marketing company.

El Paso Energy

(EPG)

gained 1 1/8 to 41 1/2 after it said it will be acquiring a U.S. Southeast natural gas pipeline and gathering system in a deal to be unveiled later this week. The company also said it was comfortable with the first-quarter EPS estimate of 65 cents, as well as the 2000 estimate of $2.40.

Funco

surged 5, or 42.1%, to 16 7/8 after

Electronics Boutique

(ELBO)

agreed to buy it for $110 million in cash. Electronics Boutique inched up 1/8 to 19 1/4.

Troubled toymaker

Mattel

(MAT) - Get Report

gained 7/16 to 10 15/16 after it said it has hired

Credit Suisse First Boston

to sell its software business, most of which includes the assets of the company formerly known as the

Learning Co.

, which Mattel bought last May. Mattel has suffered significant operating losses from that acquisition.

The Wall Street Journal

, citing people familiar with the situation, reported that the company could get less than a third of the $3.5 billion it paid for the Learning Co.

The

European Commission

gave the final OK for

3M's

(MMM) - Get Report

purchase of the voting stock of the closely held German telecom equipment maker

Quante

. According to the Commission, the agreement, which relates to components for telecom and data transmission equipment, does not create any antitrust concerns because it does not increase 3M's status in the market. Shares rose 3 5/16 to 91 7/8.

Nabisco

(NGH)

inched up 3/16 to 12 1/4 after it said it is exploring alternatives to maximize shareholder value. Nabisco said it will consider a sale of the company or interest in

Nabisco Holdings

(NA)

. Nabisco Holdings edged up 1/8 to 32 3/8 . The company called

Carl Icahn's

$13-a-share acquisition offer inadequate.

Nokia

(NOK) - Get Report

shed 18, or 8.1%, to 204 after it said that it would enter a $500 million handset and global service market expansion pact with

VoiceStream

(VSTR)

. VoiceStream sank 13 7/8, or 10.8%, to 114 15/16.

Reed Elsevier

(RUK)

fell 1 7/16 to 28 1/2 and

Aspect

(ASDV)

dropped 14 9/16, or 22.6%, to 49 13/16 after the companies said they will form a manufacturing B2B exchange.

Rexam

(REXMY)

, a British packaging concern, inched up 1/4, or 6.7%, to 4 after it said it is buying

American National Can Group

(CAN)

for $18 a share, a 37% premium over American National's closing price of 13 1/8 on Friday, or $990 million. American National, which was lately climbed 4 1/16, or 31%, to 17 3/16, makes aluminum and steel beverage cans.

SAP

(SAP) - Get Report

, the German business software company, sank 5 1/4, or 8.8%, to 54 1/2 after it said it is combining its information technology service operations into a unit called

SAP Systems Integration

. An IPO is slated this year for the unit.

Tribune

(TRB)

tacked on 1 5/16 to 37 7/8 after it announced that it is exploring alternatives, including a possible sale, of its education businesses following its pending $8 billion merger with

Times Mirror

(TMC)

. Times Mirror gained 1 1/4 to 94 3/16.

Warner Bros.

, a unit of

Time Warner

(TWX)

, and

Disney's

(DIS) - Get Report

Buena Vista International

are buying stakes in

Yes Television

, a U.K. pay TV company, ahead of Yes Television's IPO. Time Warner dropped 5 1/2, or 5.5%, to 94 1/2, while Disney added 7/16.

Earnings/revenue reports and previews

(

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.

)

Enterprise software company

Legato Systems

(LGTO)

shed 24 3/4, or 55.5%, to 19 7/8 after it announced that it will be late in filing its Form 10-K for the year ended Dec. 31, 1999, with the

Securities and Exchange Commission

. During its ordinary-course review of collection matters, the company discovered that a small number of sales representatives had entered into unauthorized side agreements involving about $7 million in fourth-quarter 1999 revenue. Legato and its outside auditors are reviewing 1999 financial results and will file a Form 10-K on or before April 14. Additionally, the company stated that it expects first-quarter revenue to be between $54 million and $56 million.

Aurora Foods

(AOR) - Get Report

added 3/8, or 12.5%, to 3 3/8 after it said it restated its 1998 and 1999 results. The company said it lost 7 cents a share in 1999. The company also named James T. Smith president and CEO, and Christopher T. Sortwell CFO. Both will join the company's board.

Charles Schwab

(SCH)

added 7/16 to 57 7/16 after it said it expects first-quarter net income to come in at 31 cents to 33 cents a share, well above the nine-analyst estimate of 26 cents. Separately Schwab's first-quarter EPS estimate was lifted to 27 cents a share from 23 cents at

Chase H&Q

Shaw Group

(SGR)

gained 1 1/16 to 36 5/16 after it posted second-quarter earnings of 44 cents a share, a penny ahead of the eight-analyst estimate and up from the year-ago 36 cents.

Offerings and stock actions

Track Data

(TRAC)

jumped 11/32 to 7 11/16 after its board approved a 3-for-2 stock split. Track Data is a financial market data, news and research provider.

Andrx

(ADRX)

dropped 5 7/8, or 5.1%, to 109 5/8 after it said it plans to offer 3 million presplit shares. The sale could bring in proceeds of roughly $350 million.

First Security

inched up 1/16 to 12 1/16 after it said it set a stock buyback for up to 15 million shares.

Global Sports

(GSPT)

dropped 3 5/8, or 19.5%, to 15 after it announced that it will file an initial public offering of 5 million shares.

Robertson Stephens

is the deal's lead underwriter.

HNC Software

(HNCS)

dropped 2 1/6 to 70 after it said it is comfortable with analysts estimates and said its board authorized the repurchase of up to about 250,000 shares of its common stock. The four-analyst expected loss is for 28 cents a share.

Kroger

(KR) - Get Report

gained 1 5/16, or 7.5%, to 18 7/8 after it set a $750 million share-repurchasing program.

Analyst actions

Credit Suisse First Boston

raised its price target on

Circuit City

(CC) - Get Report

to 75 from 52 and lifted

Best Buy

(BBY) - Get Report

to 110 from 88. Circuit City lost 3 3/8, or 5.5%, to 57 1/2 while Best Buy dropped 3 1/16 to 82 15/16 despite the news.

Adobe Systems

(ADBE) - Get Report

fell 5 3/4, or 5.2%, to 105 9/16: NEW outperform; price target of 140 at

Morgan Stanley Dean Witter.

Celgene

(CELG) - Get Report

lost 4 9/16 to 95: UP to buy from long-term attractive at

Robertson Stephens

Chubb

(CB) - Get Report

inched up 7/8 to 68 7/16: DOWN to market perform from buy at

Donaldson Lufkin & Jenrette

Conseco

(CNC) - Get Report

lost 2 3/8, or 20.7%, to 9 1/16 : DOWN to neutral from attractive and target price cut at

PaineWebber

FirstWorld Communications

(FWIS)

fell 2 3/8, or 11.7%, to 18: NEW buy rating and a 39 price target at

Lehman Brothers

Gateway

(GTW)

inched up 1/2 to 55 1/2: NEW strong buy; price target of 80 at Morgan Stanley.

Informix

(IFMX)

gained 7/16 to 17 3/8: UP to buy from neutral at SG Cowen.

Iprint.com

(IPRT)

dropped 3 1/4, or 16.9%, to 16: NEW buy at

Robertson Stephens

Kansas City Power

(KLT)

slipped 5/16 to 28 11/16: DOWN to hold from buy; price target UP to 31 from 29 by

ABN Amro

analyst Daniel Ford.

Louis Dreyfus Natural Gas

(LD) - Get Report

fell 4 15/16, or 14.5%, to 29 1/16: rating DOWN to market perform from buy at

J.P. Morgan

Louisiana-Pacific

(LPX) - Get Report

lifted 11/16 to 14 9/16: coverage INITIATED with a market perform rating at

Goldman Sachs

Marsh & McLennan

(MMC) - Get Report

dropped 4 1/8 to 106 3/16: rating DOWN to market perform from buy at DLJ; to near-term neutral from accumulate at

Merrill Lynch

Net2000 Communications

(NTKK)

lost 3 1/2, or 14.7%, to 20 1/4: coverage INITIATED with a buy rating at DLJ.

Chase H&Q

raised its profit estimates for online brokerages, citing strong share trading volumes:

E*Trade (EGRP) dropped 2 11/16, or 8.9%, to 27 7/16 after its EPS estimates were raised to a loss of 16 cents from a loss of 18 cents.

Knight-Trimark

(NITE)

DLJ Direct fell 13/16, or 6.1%, to 12 1/2 after its first-quarter estimate were raised to earnings of 4 cents a share, from a loss of 1 cent a share.

Pfizer

(PFE) - Get Report

gained 1 11/16 to 38 1/4: UP to buy from market perform at

Deutsche Banc Alex. Brown

Province Healthcare

(PRHC)

unchanged at 28 5/8: NEW buy rating and a 37 12-month price target at J.P. Morgan.

RealNetworks

(RNWK) - Get Report

dropped 5 1/2, or 9.7%, to 51 7/16: UP to buy from outperform at

Salomon Smith Barney.

Starbucks

(SBUX) - Get Report

fell 3 3/8, or 7.5%, to 41 7/16: rating DOWN to outperform from buy at Lehman Brothers; to near-term accumulate from buy at Merrill Lynch.

Ucar

(UCR)

lost 1 1 /16, or 8.1%, to 12 1/8: DOWN to market underperform from market outperform at Goldman Sachs.

Zions Bancorp

(ZION) - Get Report

fell 1 5/8 to 40: UP to buy from market perform from buy at DLJ.

Miscellany

Cisco

(CSCO) - Get Report

fell 4 3/8, or 5.7%, to 72 15/16 after it said that it chief technology officer, Judith Estrin, is departing from the company. Cisco said one of its top dealmakers, Mike Volpi, would take on some of her duties after she leaves on April 28.

The Heard on the Street column in

The Wall Street Journal

takes a look at how

Procter & Gamble's

(PG) - Get Report

tumble this year affects former and current employees. P&G stock accounts for 93% of the contents of its employees' retirement plans. According to the

Journal

, P&G's downturn has vaporized a chunk of employee retirement savings. Procter & Gamble popped 3 1/4, or 5.7%, to 60.