Mergers, acquisitions and joint ventures

Allegheny Energy

(AYE)

and

PPL

(PPL) - Get Report

would pay

Pepco

(POM)

$152.5 million for its 9.72% stake in the

Conemaugh

generating station, according to Pepco. Pepco said that the sale's price is more the two times the net book value of the plant. Allegheny Energy slipped 11/16 to 29 9/16; PPL fell 1/4 to 23 5/16; Pepco advanced 3/16 to 24 13/16.

Back to top

Earnings/revenue reports and previews

Carlisle Holdings

(CLHL)

reported fourth-quarter earnings of 26 cents a share, in line with the one-analyst estimate and up from the year-ago earnings of 18 cents a share. Carlisle Holdings dropped 15/32, or 6.3%, to 7.

Back to top

Offerings and stock actions

Donaldson Lufkin & Jenrette

(DLJ)

said it would buy back 10 million shares. Donaldson Lufkin & Jenrette climbed 1/4 to 42 3/8.

Estee Lauder

(EL) - Get Report

said the Lauder family filed with the

Securities and Exchange Commission

to sell 10 million common shares. Estee Lauder declined 4, or 8.1%, to 45 9/16.

Level 3 Communications

(LVLT)

CEO James Crowe said he would continue a plan, which he initiated last year, to sell 1 million of his Level 3 shares this year. The sale represents roughly 5% of his common stock and 4% of his total holdings. Level 3 Communications moved down 2 5/8 to 73 13/16.

Goldman Sachs

priced an ADR IPO of

Parthus

(PRTHV)

at $12 a share. Parthus jumped 7 3/8, or 58.42%, to 20.

Salomon Smith Barney

priced a 5.75 million-share IPO for

Pixelworks

(PXLW) - Get Report

below its expected range of $12 to $14 at $10 a share. Pixelworks moved up 1 57/64, or 18.8%, to 11 7/8.

Suiza Foods

(SZA)

added 100 million shares to its current stock buyback. Suiza rose 1/2 to 43 7/8.

Back to top

Analyst actions

Credit Suisse First Boston

downgraded several energy and oil companies this morning. Analyst Philip Pace downgraded

Swift Energy

(SFY) - Get Report

,

Apache

(APA) - Get Report

and

Noble Affiliates

(NBL) - Get Report

to buy from strong buy and

Pogo Producing

(PPP)

and

Vastar Resources

(VRI)

to hold from buy. Swift Energy declined 15/16 to 23 13/16, Apache was off 1 3/32 to 59 3/8, Noble was off 1 1/8 to 39 1/16, Pogo was off 1/4 to 25 1/16 and Vastar was down 1 5/16 to 79 7/8.

Upgrades

ADC Telecommunications

(ADCT) - Get Report

: price target UP to 75 at

WR Hambrecht

. ADC Telecom popped 2 11/16 to 63 1/16.

Idexx Laboratories

(IDXX) - Get Report

: price target UP to 30 from 20 at

Prudential

. Idexx skidded 7/16 to 25 1/2.

Kana Communications

(KANA)

: UP to strong buy from buy at

ING Barings

; price target: 100. Kana Communication hopped 1 7/16 to 41.

Mandalay Resorts

(MBG)

: UP to attractive from neutral at

Bear Stearns

; price target: 28-30 ; fiscal 2001 earnings estimate UP to $1.60 from $1.35 a share at

Goldman Sachs

. Mandalay Resorts tacked on 7/16 to 22 7/16.

Network Appliance

(NTAP) - Get Report

: UP to buy from outperform at

Salomon Smith Barney

. Network Appliance slid 1 3/4 to 67 3/8.

Niku

(NIKU)

: fiscal 2002 loss estimate DOWN to 59 cents from $1.12. Niku stumbled 4 1/4, or 16.1%, to 22.

USFreightways

(USFC)

: UP to strong buy from buy at ING Barings; price target: 55. USFreightways added 15/16 to 31 11/16.

Downgrades

Equant

(ENT) - Get Report

: DOWN to neutral from buy at

Lehman Brothers

. Equant shed 6 5/8, or 14.1%, to 40 1/4.

Flowers Industries

(FLO) - Get Report

: DOWN to trading buy from recommended list at Goldman Sachs. Flowers tacked on 3/8 to 18 3/16.

Four Seasons

(FS)

: DOWN to hold from accumulate at Prudential. Four Seasons lost 1 7/8 to 57 1/8.

National Computer

(NLCS)

: DOWN to market perform from buy at

Donaldson Lufkin & Jenrette

. National Computer plummeted 10 1/16, or 17.7%, to 46 9/16.

Owens-Illinois

(OI) - Get Report

: DOWN to hold from buy at CSFB. Owens-Illinois declined 5/16 to 13 5/8.

Playtex

(PYX) - Get Report

: DOWN to outperform from buy at

Salomon Smith Barney

. Playtex fell 1 9/16, or 12.2%, to 11 1/4.

Initiations

Allmerica

(AFC) - Get Report

: NEW buy at Lehman Brothers; price target: 70. Allmerica added 13/16 to 56 15/16.

MetLife

(MET) - Get Report

: NEW outperform at Salomon Smith Barney; price target of 22. MetLife slipped 17/32 to 18 3/8.

Pactiv

(PTV)

: NEW outperform at

Morgan Stanley Dean Witter

; price target: 13. Pactiv was unchanged at 8 15/16.

RealNetworks

(RNWK) - Get Report

: NEW buy at CSFB; price target: 57. RealNetworks skkidded 7/8 to 35 1/2.

Group Moves

Bear Stearns analyst Jason Ader launched coverage of the online travel sector by placing buy ratings on two stocks:

  • Expedia(EXPE) - Get Report: price target: 26-27. Expedia declined 1 1/8, or 5.7%, to 18 1/2.
  • Travelocity.com (TVLY) : price target: 34-35. Travelocity.com lost 1/2 to 21.

Lehman Brothers initiated coverage of several retailers with buy ratings:

  • Jones Apparel (JNY) : NEW buy; price target: 36. Jones Apparel climbed 1/16 to 27 1/16.
  • Liz Clairborne (LIZ) : NEW buy; price target: 57. Liz fell 5/8 to 41 13/16.
  • Tommy Hilfiger (TOM) : NEW outperform; price target: 10. Tommy Hilfiger slid 1/16 to 7 5/16.

Merrill Lynch reinstated coverage of several regional banks with near-term neutral ratings and long-term accumulate ratings:

  • Compass Bancshares (CBSS) . Compass Bancshares stumbled 7/8 to 19.
  • First Virginia Banks (FVB) . First Virginia Banks skidded 13/16 to 38 1/2.
  • Huntington Valley Bancshares(HBAN) - Get Report. Huntington slipped 1/4 to 17 11/16.
  • National Commerce Bancorporation (NCBC) : with a long-term buy. National Commerce declined 1/2 to 17 3/4.

Miscellany

Aetna

(AET)

fell 3/16 to 58 13/16 after it said Michael Cardillo is retiring as president of its

U.S. Healthcare

division.

The

Federal Aviation Administration

said it would request that airlines inspect Boeing 767 aircraft for defective bolts that attach the engines to the wings after it was discovered that one plane had three damaged pieces. The FAA said it would issue an order for 120 U.S. registered 767s to be examined over the next five to 10 days, depending on their manufacturing date. An FAA spokeswoman said that

Boeing

(BA) - Get Report

notified the agency that the cracked bolts were found in a major airline's 767. Boeing stumbled 1 5/16 to 36 5/16.

CyberOptics

(CYBE) - Get Report

was unchanged at 35 after it announced it's launching a company that it will develop and market automation systems aimed at the broadband telecommunications sector. The company, which will be called CyberOptics Communications, will also process management tools for manufacturing high-precision fiber optic components for broadband telecommunications systems.

The new company will be headed by CyberOptics' Chairman and founder Steven Case. CyberOptics will have a minority equity interest in the new venture. The launch is not expected to have a material impact on the company's 2000 consolidated earnings.

IBM

(IBM) - Get Report

popped 1/16 to 106 1/8 after it issued a recall for 220,000 AC adapters that are used with the IBM ThinkPad notebook computers and other mobile products, according to

The Consumer Product Safety Commission

. The agency said that the adapters could overheat and become flammable. The CPSC said it received nine reports of the parts overheating, including one small fire.

As reported earlier, the

Justice Department

said it reached a tentative settlement with

Columbia/HCA Healthcare

(COL)

on charges of fraud at its hospitals and other facilities. Under the agreement, Columbia/HCA, the nation's largest for-profit hospital operator, will pay the federal government $745 million.

For several years, the Justice Department has been investigating allegations that Columbia made false claims and statements in submitting cost reports under Medicare, Medicaid and other federal programs. Columbia/HCA Healthcare shed 2 5/8, or 8.6%, to 27 7/8.

For more on this

story, see coverage from

TheStreet.com/NYTimes.com

joint newsroom.

Back to top