Updated from 4:13 p.m. EDT

News Corp.

(NWS) - Get Report

announced that it will buy

Chris-Craft Industries

(CCN)

and its

BHC Communications

(BHC) - Get Report

and

United Television

(UTVI)

divisions in a cash and stock deal valued at $5.35 billion. According to the terms, News Corp would pay $2.13 billion in cash and 73 million ADRs, which represent 292 million News Corp. preferred shares for Chris-Craft. Shareholders of Chris-Craft can plan to get $34 in cash and 1.1591 News Corp ADR, or under certain rules, may chose to receive $85 in cash or 1.9318 in preferred ADRs for each share of Chris- Craft they hold.

According to News Corp, its Fox Entertainment Group will run the newly acquired stations under its Fox Television Stations unit.

Chris-Craft ended down on Friday, on news that

Viacom

(VIA) - Get Report

was quitting acquisition talks with Chris-Craft and its units, BHC Communications and United Television. Chris-Craft had countered that it was "engaged in intensive negotiations with another major media company with respect to a merger with Chris-Craft and its subsidiaries,"

Reuters

reported.

TheStreet.com/NYTimes.com

joint newsroom wrote an earlier

story about the acquisition.

Shares of News Corp. closed up 3/8 to 50 1/8; Chris-Craft Industries lifted 17, or 27.4%, to 79; BHC Communications improved 11 1/4, or 7.9%, to 153; United Television boosted 6 3/4, or 5%, to 142 3/4.

Red Hat

(RHAT)

signed a definitive agreement to buy

C2Net Software

, an Oakland, Calif., developer of the Apache-based Stronghold secure Web server software, for more than 1.9 million common shares. Open source software and services developer Red Hat said the transaction's value will be based on an average closing price of its common shares for the seven-day period ending Aug. 16. The acquisition is expected to close by Aug.31.

Also, Red Hat announced it formed an alliance with Indrema, creator of the first Linux-based video game console and digital entertainment platform, to jointly manage branding and distribution of DV Linux, a coming universal standard operating system for console video gaming and TV-based entertainment applications. Red Hat increased 1 3/4, or 8.7%, to 21 13/16.

Mergers, acquisitions and joint ventures

Broadcom

(BRCM)

closed up 15 11/16, or 7%, to 240 3/4 after it said it will buy privately held optical communications chipmaker

NewPort Communications

in a stock deal worth $1.24 billion.

Cisco

(CSCO) - Get Report

,

Lucent

(LU)

and

Sumitomo

are strategic investors in NewPort and are currently among its largest customers. Cisco lifted 3/16 to 64 1/2, while Lucent gained 9/16 to 40 9/16.

Broadcom's president and CEO, Henry Nicholas, said in a statement that the acquisition is "not only synergistic with our 10-gigabit Ethernet technology but is also complementary to the communications processor technology that we are acquiring through our merger with Silicon Spice." Last week, the company announced its acquisition of Silicon Spice.

Chiron

(CHIR) - Get Report

, a biotech company, said it entered a $700 million cash deal to acquire

PathoGenesis

(PGNS)

. The terms call for Chiron to make a $38.50 per share tender offer for all of PathoGenesis stock. The companies expect the purchase to be completed in the third or fourth quarter. Chiron slid 1 15/16 to 46 11/16, while PathoGenesis increased 5 7/32, or 15.9%, to 37 31/32.

Compaq

(CPQ)

gained 9/16 to 32 after it entered into a software distribution deal with German software company

Brokat

to sell, implement and support Brokat's electronic cash management solutions to North American financial institutions.

Estonian state energy firm

Eesti Energia

closed up 1 1/4, or 5.1%, to 25 3/4 after announcing that

NRG

(NRG) - Get Report

will have to pay $70.5 million to buy a 49% stake in two of Estonia's power plants, which supply most of the country's energy.

FreeMarkets

(FMKT)

signed an agreement with

Alcoa

(AA) - Get Report

, the world's largest aluminum maker, to provide Alcoa with access to its business-to-business

eMarketplace

, which Alcoa will use to source goods and services for its operations around the world. FreeMarkets lifted 1 15/32 to 56 15/16, while Alcoa improved 13/16 to 34 1/8.

Hearst-Argyle Television

(HTV)

reached a long-term agreement with

Time Warner Cable

(TWX)

relating to carriage of the signals of local Hearst-Argyle television stations in all markets where Time Warner cable systems carry Hearst-Argyle stations. The agreement was part of the retransmission-consent negotiations being conducted between television broadcasters and cable television operators. Terms of the agreement were not disclosed. Hearst-Argyle Television fell 1/16 to 20 7/16, while Time Warner Cable improved 1 9/16 to 77 1/16.

Heico

(HEI) - Get Report

signed a definitive agreement to sell its Trilectron Industries unit to a unit of

Illinois Tool Works

(ITW) - Get Report

for $52.5 million cash and the assumption of $4.3 million in long-term debt. The company said it expects to record a $9 million to $11 million gain in the fourth quarter from the transaction. Heico increased 7/16 to 17, while Illinois Tool Works fell 1/4 to 59.

Intel

(INTC) - Get Report

agreed to buy privately held

Ziatech

in a cash deal valued at about $240 million. Ziatech designs and markets Intel architecture-based circuit boards, hardware platforms and development systems primarily sold to telecommunications equipment manufacturers. The acquisition supports and expands Intel's communications products group's ability to provide hardware and software Internet building blocks for telecommunications and networking. Intel added 3 1/8 to 66 15/16.

Kmart

(KM)

will invest $55 million, and

Softbank Venture Capital

and

Softbank Capital Partners

, an additional $25 million to continue the successful development of independent e-commerce company

BlueLight.com

, which also recently announced it has reached the 3 million subscriber mark for its totally free Internet service after just seven months. Kmart lowered 1/16 to 7 5/16.

Nokia

(NOK) - Get Report

said it will supply a general packet radio service core network to

Vodafone's

(VOD) - Get Report

New Zealand unit for an undisclosed price. The operator said it plans to launch commercial GPRS services in its fourth quarter. Nokia gained 1/8 to 41 5/8, while Vodafone upped 9/16 to 41 5/16.

Peco

(PE) - Get Report

said it entered a $682 million deal to buy a 49.9% stake in

Sithe Energies'

North American units, with an option to take the rest in five years, reported

The Wall Street Journal

. According to the

Journal

, the acquisition, which will increase Sithe's power generation business, could be announced today. After the deal is completed, the remaining 50.1% interest will be held by France-based

Vivendi

,

Marubeni of Japan

and Sithe Management. Peco edged up 47/64 to 48 1/16.

QXL.com

(QXLC)

said the U.K.'s largest cable operator,

NTL

(NTLI)

agreed to launch QXL's online auctions on NTL's interactive TV, digital cable TV, digital terrestrial TV and narrowband and broadband PC services in the U.K. QXL.com missed 3/8, or 8.3%, to 4 1/8.

VersaTel Telecom International

(VRSA)

, a Dutch telecom company, said it would sell its

Speedport

Web unit to

Conxion

, a U.S. infrastructure provider. After the transaction is completed, Conxion will supply VersaTel with Web transit services. VersaTel Telecom International advanced 13/16 to 31 15/16.

Back to top

Earnings/revenue reports and previews

A.C.L.N.

(ACLNF)

, which ships used cars from Europe and the United States to sell in Africa, said it expects to report second-quarter earnings that are about 60% higher than a year ago and said its board approved a 25% stock dividend. A.C.L.N. declined 1/4 to 38 1/2.

Automatic Data Processing

(AUD)

reported fourth-quarter earnings of 35 cents a share, in line with the 11-analyst estimate and up from year-ago earnings of 30 cents a share. Automatic Data Processing popped 1 7/8 to 58.

Commscope

(CTV) - Get Report

added 2 5/16, or 9.1%, to 27 3/4, despite warning investors that it would post third-quarter earnings between 38 cents and 43 cents a share, missing the four-analyst estimate of a 45-cent profit. The broadband cable maker, which blamed "difficult pricing patterns" for the shortfall, said, however, it is confident that it can achieve year-over-year revenue growth between 20% to 25% in the second half of fiscal 2000.

CIBC

raised the stock to strong buy from buy.

Conectiv

(CIV)

shed 1/8 to 18 3/8 after it revised the allocation of income taxes among its subsidiaries, increasing the previously reported second-quarter earnings on its common stock. But the revision cut earnings attributable to the company's Class-A shares by 13 cents a share to 17 cents.

Magellan Health

(MGL)

stumbled 1/16 to 2 9/16 after it posted third-quarter earnings of 18 cents a share, a penny better than the four-analyst estimate but down from the year-ago 26-cent profit.

RDO Equipment

(RDO)

slipped 3/16 to 3 7/8 after it warned that its second-quarter earnings will fall below the two-analyst estimate of 21 cents a share because of continuing margin pressure and higher-than-expected expenses.

Sunbeam

(SOC)

slid 7/16, or 16.7%, to 2 3/16 after it reported a second-quarter loss of 50 cents a share, missing the three-analyst estimate of a loss of 33 cents and greater than the year-ago loss of 37 cents a share. The company said the results were impacted by lower year-on-year sales of Y2K-related products and products associated with the company's retail Clipper and Eastpak businesses, which were divested in the first and second quarters, respectively.

Toys R Us

(TOY)

edged up 5/8 to 18 after it reported second-quarter earnings of 7 cents a share, topping the seven-analyst estimate of nil and the year-ago 6-cent profit.

Valspar

(VAL) - Get Report

shed 9/16 to 30 5/16 after it posted third-quarter earnings of 59 cents a share, in line with the five-analyst estimate and the year-ago report.

Back to top

Analyst actions

Upgrades

Children's Place

(PLCE) - Get Report

: UP to buy from market perform at

Banc of America

. Children's Place jumped 3 1/2, or 11.9%, to 32 13/16.

Clorox

(CLX) - Get Report

: UP to strong buy from buy at Banc of America. Clorox climbed 3 3/8 to 37.

HCA-Healthcare

(HCA) - Get Report

: Price target UP to 42 from 37 at

Morgan Stanley Dean Witter

. HCA-Healthcare tacked on 3/16 to 35 9/16.

Micron Technology

(MU) - Get Report

: 2000 earnings estimate UP to $2.31 from $2.08 at

Salomon Smith Barney

. 2001 earnings estimate UP to $5.60 from $5.25. Micron leaped 4 5/8, or 6.1%, to 80 1/4.

Sonoco Products

(SON) - Get Report

: UP to buy from hold at

Credit Suisse First Boston

. Sonoco Products moved up 1/8 to 19 15/16.

Downgrades

Galileo International

(GLC)

: DOWN to near-term neutral from accumulate at

Merrill Lynch

. Galileo International tacked on 1/4 to 19 3/16.

IPC Holdings

(IPCR)

: DOWN to near-term neutral from accumulate at

Merrill Lynch

; long-term accumulate from buy. IPC Holdings declined 1/2 to 15 3/4.

Pinnacle West

(PNW) - Get Report

: CUT to outperform from buy at

ABN Amro

. Pinnacle West was unchanged 41 11/16.

Scientific-Atlanta

(SFA)

: DOWN to neutral from buy at

Gerard Klauer Mattison

. Scientific-Atlanta slid 10 7/8, or 11.65%, to 82 1/2.

Initiations

Airspan Networks

(AIRN)

: NEW buy at

Lehman Brothers

; price target between 26 to 28; NEW strong buy at

Deutsche Banc Alex. Brown

; NEW buy at

U.S. Bancorp Piper Jaffray

; price target of 40. Airspan Networks dwindled 2 7/8, or 14%, to 15.

Argonaut

(AGNT)

: NEW strong buy at

UBS Warburg

; price target of 32. Argonaut edged up 1/4 to 22 3/4.

Corvas International

(CVAS)

: NEW buy at U.S. Bancorp Piper Jaffray; price target of 24. Corvas International bounced 1 1/16, or 8.3%, to 13 3/4.

Decode Genetics

(DCGN)

: NEW outperform at Morgan Stanley Dean Witter; price target of 37. Decode Genetics slipped 5/8 to 26 7/8.

TeleCorp PCS

(TLCP)

NEW intermediate-term accumulate, long-term buy rating at Merrill Lynch. The stock finished the day off 15/16 to 38 7/16.

Triton PCS

(TPCS)

: NEW near-term accumulate, long-term buy at Merrill Lynch. Triton fell 1 1/8 to 47 1/2.

Vascular Solutions

(VASC)

was 1/4 lower to 15 1/4 after being started as a NEW buy at Salomon Smith Barney; price target of 24.

Back to top

Offerings and stock actions

Abiomed

(ABMD) - Get Report

set a 2-for-1 stock split. The news boosted the stock up 2 3/4, or 6.9%, to 42 3/8.

Aspect Communications

(ASPT)

was lifted 1 5/8, or 9.7%, to 18 5/16, after it set a 5 million-share stock buyback.

Ceridian

(CEN) - Get Report

was up 1/4 to 25 after it said it would call a special shareholders meeting on Oct. 5 to vote on a reverse stock split. At the meeting, investors will consider amending Ceridan's Certificate of Incorporation. If shareholders favor the amendment, the company could set a reverse stock split, not exceeding a 1-to-5 ratio, after its proposed spinoff. In July, the company said it would divide its company into two publicly traded units, with one concentrating on its human resources and transaction processing business and the other on its Arbitron media research firm. Ceridian shares closed Friday's session at 24 3/4.

Coulter Pharmaceutical

(CLTR)

entered into definitive purchase agreements for the sale of close to 1.66 million shares of newly issued common stock to selected institutional and other accredited investors for about $35.8 million. The company will use net proceeds to fund its commercialization efforts as well as its research and development activities. The stock was down 5/16 to 25 3/16.

Park Electrochemical

(PKE) - Get Report

announced a three-for-two stock split. The stock slipped 3/4 to 36 3/8.

Pericom Semiconductor

(PSEM)

set a 2-for-1 stock split. Pericom rose 2 7/8, or 5.4%, to 55 13/16.

White Mountains

(WTM) - Get Report

moved up 5 15/16 to 163 after it announced it set a 1.5 million stock repurchasing program for $165 a share. The insurance company said its Chairman would tender 250,000 shares in the buyback.

Back to top

Miscellany

Agilent

(A) - Get Report

said it will restructure its health care unit, Healthcare Solutions Group, cutting 640 jobs in an effort to return the unit to profitability. Agilent said it anticipates a fourth-quarter charge of $25 million. The company said the restructuring should result in annual savings of more than $80 million. The news sat well with investors. Agilent ended the day up 2 15/16, or 7.2%, to 43 9/16.

TheStreet.com/NYTimes.com

joint newsroom wrote an earlier

story about the job cut.

HI/FN

(HIFN)

dropped 2 11/16, or 5.8%, to 43 7/16 after its said that it tapped Chris Kenber as its president and CEO.

Biopharmaceutical company

ImClone Systems

(IMCL)

shot up 13 7/16, or 19%, to 83 15/16 after it announced that it expects to seek marketing approval of its experimental drug C225 by the first quarter of 2001. C225 is designed for patients with colorectal cancer who have failed on chemotherapy treatments. Phase II clinical trials are currently in progress for patients with colorectal, head and neck cancer.

Earlier in the day,

Morgan Stanley

reiterated its outperform rating on ImClone. Research analyst Douglas Lind wrote, "we believe the product (C225) will qualify for accelerated review by the

U.S. Food and Drug Administration

."

In separate statements, carpetmakers

Mohawk

(MHK) - Get Report

and

Shaw

(SHX)

said they agreed to settle class-action lawsuits related to claims of price-fixing. Mohawk said it would pay $13.5 million and take a $7 million charge during the third quarter to settle the claims. Shaw will pay $27.5 million, including attorneys' fees and costs. Both companies denied the charges. Mohawk was unchanged at 26 7/8, while Shaw was off 5/16 to 12 7/8.

The

Food and Drug Administration

sent

Novartis

(NVS) - Get Report

an "approvable" letter concerning its drug Zelmac, which will be used for treating irritable bowel syndrome. Novartis considers the drug a future blockbuster because 25 million Americans suffer from the disease. Such letters typically mean the FDA finds the product generally acceptable, but wants to resolve certain issues with the manufacturer. Novartis edged up 5/16 to 38 5/16.

Back to top

By the Numbers

The data on NYSE and Nasdaq percent winners and losers are filtered to exclude stocks whose previous day's volume was less than 25,000 shares; whose last price was less than 5; and whose net change was less than 1/2.

Dow point gain and loss data are based on New York closing prices and do not reflect late composite trading.

Back to top