ONI Systems

(ONIS)

flexed and kicked sand in the face of the other IPO issue today, soaring 57 9/16, or 230.2%, to 82 9/16 after

Goldman Sachs

priced 8 million shares above its expected $21-to-$23-a-share range at $25 each. The San Jose, Calif.-based company develops and sells all-optical networking equipment designed to reduce bandwidth and service bottlenecks.

Meanwhile,

First Horizon Pharmaceutical

(FHRX)

was looking like a 98-pound weakling with a scrawny gain of 1/16 to end at 8 1/16.

Chase Hambrecht & Quist

priced 3.8 million shares at $8 each, the low end of the estimated $8-to-$10 range. The company markets and sells brand-name prescription drugs largely focused on chronic conditions. Earlier today, the range was lowered from $12 to $14 a share.

Mergers, acquisitions and joint ventures

Aetna

(AET)

climbed 1 13/16 to 68 9/16 after it confirmed it resumed talks with Dutch financial services company

ING Groep

(ING) - Get Report

about a sale of Aetna's profitable financial services and international units. ING Groep added 3/4 to 61 1/16. Aetna's statement came after a report on

CNBC

, which said ING could pay as much as $9 billion for the units.

Canada-based

Alcan Aluminum

(AL) - Get Report

slipped 15/16 to 32 after it upped its bid to acquire Swiss aluminum-maker

Algroup

, which locked in support from a major Algroup shareholder. If the deal is completed, it would form a company with annual sales of about $12.5 billion. The terms call for Alcan to exchange 17.1 of its common shares for each share of Algroup. In addition, Algroup shareholders would receive a repayment of capital of 90 Swiss francs and a special dividend of 135 Swiss francs for each of the Algroup shares they own.

BZ Group Holdings

, one of Algroup's biggest holders, and its affiliates favored tendering 34% of their Algroup shares for the revised offer. Alcan initially offered 20.1745 Alcan shares for each Algroup share.

Biosite Diagnostics

(BSTE)

jumped 6 17/64, or 27.9%, to 28 49/64 and

Medarex

(MEDX)

moved up 3 5/8, or 8%, to 49 1/8 after the companies said they will form an alliance aimed at accelerating drug research via Trans-Phage Technology, which is a method to create fully human antibodies by using technology from both companies. Through this alliance, Biosite and Medarex will offer pharmaceutical and biotechnology companies access to large volumes of human antibodies to validate genomic targets and to identify promising drug candidates.

The Web site of collapsed Internet retailer

boo.com

has been bought by U.S. fashion portal

fashionmall.com

, according to

Reuters

, which said the news appeared on fashionmall.com's Web site today. The report said neither company could be contacted, though a spokesman for boo.com's receivers

KPMG

said he was unaware of the deal.

One of

Costco's

(COST) - Get Report

subsidiaries bought a 20% stake in

Costco Wholesale UK

from

The Littlewoods Organisation PLC

, bringing Costco's ownership in Costco Wholesale UK to 80%.

Carrefour Nederland B.V.

owns the remaining 20% interest. Costco Wholesale UK currently operates eight Costco warehouse locations -- six in England and two in Scotland -- with three more units to open prior to the end of the year. Costco edged up 7/16 to 32 3/8.

Jewelry retailer

Signet Group PLC

(SIGYY)

inched up 1/4 to 23 5/8 after it said it is buying privately owned U.S. retail jeweler

Marks & Morgan

for $115 million in cash, which will strengthen Signet's position in the U.S. market.

Marks & Morgan has 137 stores, mainly in mall locations in the southeastern region of the country. Signet said the purchase is expected to enhance earnings in the current year and beyond, but the company didn't quantify the earnings impact. Under the agreement, Signet will also repay Marks & Morgan's debt.

Procter & Gamble

(PG) - Get Report

slipped 7/8 to 65 5/8 after it said it will pay $17 million to up its stake to 16% in

Regeneron Pharmaceuticals

(REGN) - Get Report

. Regeneron rose 4 1/2, or 22.1%, to 24 7/8. According to

Reuters

, Procter & Gamble will buy 573,630 shares at $29.75, upping the company's holdings to 5.7 million shares of Regeneron. Procter & Gamble also has warrants to purchase an additional 1.45 million shares.

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Earnings/revenue reports and previews

Abercrombie & Fitch

(ANF) - Get Report

fell 1 1/8, or 11.5%, to 8 11/16 after it reported a 14% drop in May same-store sales. The clothing retailer said it has tapped Wesley McDonald as its CFO.

Best Buy

(BBY) - Get Report

jumped 6 11/16, or 10.5%, to 70 11/16 after it said May same-store sales climbed 95%. The retailer said it expects to post first-quarter earnings of 34 cents a share, an increase of 50%. The 17-analyst estimate is 28 cents a share.

Covance

(CVD)

edged up 1/2, or 7.1%, to 7 1/2, despite warning its second-quarter earnings will fall more than 50% below forecasts, saying weakness in its late-stage drug test business hurt total profits. The current 11-analyst estimate calls for earnings of 21 cents, while the company said it expects to report earnings between 9 cents and 10 cents a share. Covance said the shortfall would force it to restructure operations, which will involve cutting 200 of its 7,600 worldwide jobs, closing offices and taking a $15 million pretax charge as it aims to reduce overhead and capacity. Covance said the new restructuring is expected to deliver pretax savings of about $16 million by 2001.

Gap

(GPS) - Get Report

slipped 3/8 to 34 11/16 after last night reporting that its May

same-store sales fell 2%. Today,

Prudential

reiterated the stock as a strong buy and said it would build positions now.

J.C. Penney

(JCP) - Get Report

slipped 1/16 to 18 1/16 after it said May same-store sales rose 1.1%.

Limited

(LTD)

lost 1/2 to 23 5/8 after it posted a 7% increase in same-store sales.

Kohl's

(KSS) - Get Report

popped 2 3/4, or 5.3%, to 54 1/2 after it reported a 9.8% increase in May same-store sales.

Mitchell Energy

(MNDA)

moved up 13/16 to 29 7/8 after it posted first-quarter earnings of 78 cents a share, beating the three-analyst estimate of 73 and up from the year-ago 11-cent profit.

Sears

(S) - Get Report

rose 1/2 to 37 7/16 after it posted a 3.5% increase in May same-store sales.

Talbots

(TLB)

tacked on 1 to 57 15/16 after it posted a 29.4% increase in same-store sales.

Wal-Mart

(WMT) - Get Report

lost 1/16 to 57 9/16 after it reported a 7.4% increase in May same-store sales.

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Analyst actions

This morning,

Merrill Lynch

added pharmaceutical company

Pfizer

(PFE) - Get Report

to its Focus One list of recommended stocks. Merrill's drug analyst Steven Tighe said the company is the strongest in the space and has the strongest products in its pipeline.

He also praised the company's proposed merger with

Warner-Lambert

(WLA)

. Pfizer popped 3/4 to 45 1/4, while Warner-Lambert jumped 2 1/2 to 124 5/8.

Also this morning, chip and semiconductor manufacturer

Motorola

(MOT)

was upgraded to buy from outperform by

ABN Amro

and raised the stock's price target to 130. The firm also raised Motorola's earnings estimates for 2001 to $4.32 from $4.25 a share. Motorola climbed 6 1/4, or 6.6%, to 100.

Upgrades

Colgate-Palmolive

(CL) - Get Report

: UP to recommended list from market outperformer at

Goldman Sachs

. Colgate-Palmolive added 11/16 to 53 5/16.

E-Tek Dynamics

(ETEK)

: 2000 EPS view UP to 88 cents from 86 cents at

Wit SoundView

; 2000 revenue view up to $332.2 million from $327.6 million. E-Tek Dynamics soared 25 3/8, or 13.8%, to 209 3/16.

Hewlett-Packard

(HWP)

: UP to strong buy from buy at

Banc of America Securities

. Hewlett-Packard advanced 14 5/16, or 11.9%, to 134 1/2.

Net2Phone

(NTOP)

: 2001 loss-per-share estimate cut to 84 cents from a loss of $1.03. Net2Phone edged up 3 5/16, or 11.2%, to 32 13/16.

UAL

(UAL) - Get Report

: intermediate-term UP to accumulate from hold and long-term UP to buy from accumulate at

Merrill Lynch

. UAL lifted 1 5/8 to 53 1/8.

Universal Foods

(UFC)

: UP to buy from market perform at

DLJ

. Universal Foods moved up 11/16 to 17 15/16.

Downgrades

Mark IV Industries

(IV)

: DOWN to market perform from buy at

Deutsche Banc Alex. Brown

. Mark IV Industries tacked on 3/8 to 21 5/8.

Marsh & McClennan

(MMC) - Get Report

: DOWN to hold from buy at

UBS Warburg

. Marsh & McClennan declined 1 1/8 to 108 15/16.

Pacific Sunwear

(PSUN)

: Down to buy from strong buy at

First Union

. Pacific Sunwear lost 3 5/8, or 22.5%, to 12 7/16.

Verio

(VRIO)

: DOWN to sell from buy at DLJ. Verio stumbled 2 3/16 to 54 11/16.

Initiations

American Express

(AXP) - Get Report

: NEW market performer at Banc of America. American Express skidded 1/8 to 53 7/8.

Comerica

(CMA) - Get Report

: NEW buy at

DLJ

; price target: 58. Comerica climbed 1 5/8 to 52 1/4.

E.piphany

(EPNY)

: NEW strong buy at

Credit Suisse First Boston

. E.piphany slid 5/8 to 77 1/2.

Hain Food

(HAIN) - Get Report

: RESTARTED buy at

Bear Stearns

; price target: 48. Hain Food edged up 1 1/2, or 5%, to 31.

Intuit

(INTU) - Get Report

: NEW buy at Banc of America; price target: 46. Intuit bounced 2 1/8, or 5.8%, to 38 3/8.

McKesson HBOC

(MCK) - Get Report

: NEW hold at Credit Suisse First Boston. McKesson HBOC added 1/16 to 16 1/2.

National Information Consortium

(EGOV) - Get Report

: NEW strong buy at Banc of America. National Information Consortium tacked on 2 3/16, or 14.7%, to 17 1/16.

PerkinElmer

(PKI) - Get Report

: NEW strong buy at UBS Warburg; price target: 70. PerkinElmer climbed 4 1/16, or 7.7%, to 56 9/16.

Seacor Smit

(CKH) - Get Report

: NEW outperform at

Morgan Stanley Dean Witter

; price target: 80. Seacor Smit fell 2 1/8 to 62.

Group Moves

Lehman Brothers

lowered its earnings- or losses-per-share estimates for several on-line brokers:

  • Ameritrade (AMTD) - Get Report: 2000 estimate lowered to a loss of 8 cents from a loss of 6 cents. Ameritrade lifted 7/16 to 11 13/16.
  • DLJdirect (DIR) : 2000 earnings lowered to 11 cents from 25 cents. DLJDirect skidded 1/8 to 8 1/4.
  • E*Trade (EGRP) : 2000 estimate lowered to loss of 11 cents from a loss of 10 cents. E*Trade tacked on 13/16, or 5.2%, to 16 3/8.

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Offerings and stock actions

BEI Technologies

(BEIQ)

was unchanged at 18 after it set a 300,000 share buyback.

The e-business infrastructure software company

CrossWorlds Software

(CWLD)

said its initial public offering price range for 4 million common shares fell to $10 to $12 a share from $14 to $16 a share. The company will net about $48.9 million, including proceeds from the private sale of more than 901,000 additional shares. Chase H&Q,

Dain Rauscher Wessels

and

Thomas Weisel Partners

are handling the IPO, which is expected to begin trading this week.

Digitalwork.com

, which provides Internet-based business services to small companies, said it was pulling the plug on its already postponed IPO due to poor market conditions.

Reuters

reported

IMX Exchange

(IMXX)

, an online exchange that links mortgage brokers and lenders, withdrew its $57.5 million IPO because of general market conditions.

The company, which first filed to go public in March, planned to use the proceeds for such general corporate purposes as working capital and capital expenditures. Deutsche Banc Alex. Brown,

J.P. Morgan

,

SG Cowen

and

E-Offering

were going to handle the IPO.

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Miscellany

Abbott Laboratories

(ABT) - Get Report

added 3/16 to 40 7/8 after it said it applied for

Food and Drug Administration

marketing approval for its investigational HIV and AIDS antiretroviral therapy, ABT-378/r. The company said it is requesting accelerated approval for the treatment, citing its Phase II/III trials which examined its safety.

Bank One

(ONE) - Get Report

gained 1 3/16 to 34 5/16 after it said it tapped former

Citigroup

(C) - Get Report

executive Charles Scharf as its CFO.

Celera Genomics

(CRA)

climbed 3 3/8, or 5.6%, to 63 12 after it said it has sequenced about 1.15 billion base pairs -- letters of genetic code -- of mouse DNA. The company began sequencing the mouse genome on April 6.

Celera President and Chief Scientific Officer J. Craig Venter said, "Mice can function as translators of the human genome in that changes in their genetic material can teach us how changes in the letters of human DNA lead to predisposition to disease and responses to medical treatments."

Juno Online Services

(JWEB)

rose 5/16 to 8 3/8 after it filed a lawsuit against

Qualcomm

(QCOM) - Get Report

and

NetZero

(NZRO)

for patent infringement. The patent protects a technology Juno developed that enables advertisements and other content to be displayed to an Internet user while the user is offline. Qualcomm gained 2 5/8 to 69.

Qualcomm is the publisher of the Eudora email software currently being distributed by NetZero, which provides free Internet access. In its suit, Juno asserts that NetZero and Qualcomm are infringing its patent by producing, distributing, and encouraging the use of software that unlawfully implements Juno's patented offline architecture.

Microsoft

(MSFT) - Get Report

moved up 2 to 64 9/16 after it criticized a government proposal to split up the firm in order to prevent future antitrust violations, calling it defective, vague and ambiguous.

United Airlines

parent

UAL

(UAL) - Get Report

moved up 1 5/8 to 53 1/8 after it announced plans to build a $100 million terminal in Denver.

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