Updated from 2:39 p.m.

3Com

(COMS)

and

Broadcom

(BRCM)

announced an agreement to develop and jointly market products for high-speed network connectivity based on the Gigabit Ethernet standard.

Gigabit Ethernet provides a data rate of 1 billion bits per second, accelerating the convergence of voice, video and data in corporate networks and enabling users to easily exchange larger graphics and imaging files.

3Com also said it will sell up to 7.1 million shares, or 2% of its common shares, to Broadcom through Dec. 4, 2002. The companies said the per-share and purchase price of the warrant will be based upon 3Com's closing price during the current month. 3Com is already a shareholder in Broadcom. 3Com closed up 34 cents, or 3.6%, to $9.97.

Mergers, acquisitions and joint ventures

British drug firm

Shire Pharmaceutical

(SHPGY)

said it would buy

Biochem Pharma

(BCHE)

for about $4 billion in stock. Shire closed down $7.88, or 15.3%, to $43.69; Biochem was up $2.50, or 9.4%, to $29..

After Friday's Close

American Union Insurance

said it was withdrawing its $25 a share offer to buy 50.1% of

Meridian Insurance Group

(MIGI)

. American Union said the offer, which was to expire Dec. 15, is being withdrawn because it was unable to structure a transaction comparable to another offer for Meridian from

State Automobile Mutual Insurance

.

American Union also filed a motion requesting preliminary injunction of the proposed merger of Meridian and State Automobile. As reported in October, the two companies signed an agreement to merge. The deal calls for State Automobile Mutual to buy Meridian shares for $30 each. Meridian closed down 19 cents, or 0.7%, to $28.56.

Johns Manville

(JM)

said it has ended its $3 billion merger deal with an investor group led by affiliates of

Hicks, Muse, Tate & Furst

.

The companies mutually agreed to break off the agreement, citing weak industry conditions, an increasingly negative outlook for the economy and unfavorable financing markets.

Also, Johns Manville's board announced a quarterly dividend of 6 cents a share. Johns Manville ended the day up 88 cents, or 9.5%, to $10.13.

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Earnings/revenue reports and previews

Anadigics

(ANAD)

, which makes circuits for the telecom industry, warned that its fourth quarter and 2001 earnings will come in lower than expected.

The company said it now expects a fourth-quarter loss of 3 cents. The

I/B/E/S

10-analyst estimate is currently break-even for the quarter. Its 2001 earnings are now projected to be about 20 cents a share, while the estimate is currently 79 cents a share. Anadigics closed up $1.19, or 5.99%, to $21.

Autoliv

(ALV) - Get Report

said it won't make 2000 and 2001 EPS estimates, citing falling car production. The company forecast its 2000 EPS to be $1.65 to $1.75. The I/B/E/S 15-analyst estimates for 2000 EPS is currently $2.09 and for 2001 EPS, $2.15. Autoliv closed down $3.13, or 15.1%, to $17.63.

JNI

(JNIC)

, which makes fiber channel equipment, said its expects its fourth-quarter income to grow between 110% and 140%. The higher end of that would be roughly in line with analysts' forecasts, but the lower end of that range could mean JNI was as much as 12% short of expectations. The fiber-channel equipment maker said it now expects earnings of between 18 cents and 22 cents a share for the fourth quarter. The

First Call/Thomson Financial

four-analyst estimate is currently 20 cents a share. JNI fell by a whopping (why is it always a "whopping"?) 44.8%, or $28.25, to $34.75.

Lowes

(LOW) - Get Report

warned that its fourth-quarter earnings will come in lower than expected at 40 cents to 42 cents a share, missing the

I/B/E/S

23-analyst estimate of 46 cents a share. Lowes closed up $1.94, or 4.9%, to $41.81.

The company cited slower sales for the missed earnings. Lowe's said total sales for the quarter will be up 19% over the same quarter last year, but same-store sales will be below the company's prior guidance of 1% to 3%. The home improvement retailer said 2001 EPS estimates are now projected to grow 20% to 22%, compared to its previous indication of 22% to 23% growth.

After Friday's Close

Adtran

(ADTN) - Get Report

lowered its fourth-quarter revenue and earnings estimates, citing a slowdown in order rates.

The communications equipment company, which is based in Huntsville, Ala., said it expects fourth-quarter earnings of $6.5 million to $8 million, and earnings per share of 16 cents to 20 cents. Adtran earned 43 cents a share in the same period last year. According to

First Call/Thomson Financial's

11-analyst survey, Wall Street expects Adtran to earn 55 cents a share in the quarter.

The company also said it expects revenue for the quarter of $110 million to $115 million, compared with $127.3 million in 1999. Four analysts expect fourth-quarter revenue of $135.1 million. Adtran closed down $4.20, or 14.97%, to $23.88.

Dow Plastics

, a unit of

Dow Chemical

(DOW) - Get Report

, said it expected global sales of its plastics products to increase by 15% from the year-ago period.

The unit said strong customer demand should boost the sales to $11 billion from $9.6 billion in the previous year. Dow Chemical closed down 44 cents, or 1.3%, to $33.38.

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Analyst actions

Yahoo!

(YHOO)

hasn't had much to cheer about lately. And it didn't again today, with a downgrade to long-term attractive from buy at

Robertson Stephens

. The firm also lowered Yahoo!'s 2000 EPS view to 47 cents from 49 cents and its 2001 EPS view to 52 cents from 57 cents. Yahoo closed down $1.06, or 3%, to $33.88.

Additionally, Robertson Stephens slashed

Ameritrade's

(AMTD) - Get Report

2001 EPS view to 14 cents from 28 cents. Ameritrade closed up 75 cents, or 8%, to $10.13.

Goldman Sachs

said shares of

Sun Microsystems

(SUNW) - Get Report

will remain under near-term pressure as economic uncertainties persist. The firm didn't change the company's rating and said it expects Sun to meet estimates -- but not beat them -- through the March quarter. Sun closed down $4.94, or 12.7%, to $34.

Upgrades

Dynegy

(DYN)

: 2001 EPS view UP to $1.75 from $1.70 at Goldman and 2002 EPS view to $2.10 from $2.05. Dynergy closed up $4.19, or 8.5%, to $53.75.

Peoples Energy

(PGL)

: 2001 EPS view UP to $3.10 from $2.85 at

Credit Suisse First Boston

. Peoples Energy ended the day down $1.44, or 3.2%, to $43.75.

Sunoco

(SUN) - Get Report

: 2000 EPS estimate UP to $4.65 from $4.15 at

ABN Amro

; and 2001 EPS UP to $4.20 from $3.50. Sunoco closed up 38 cents, or 1.3%, to $29.81.

Downgrades

Adtran

(ADTN) - Get Report

: DOWN to market perform from buy at

Deutsche Banc Alex. Brown

; 2000 EPS view DOWN to $1.59 from $1.97; and 2001 EPS view DOWN to $1.50 from $2.30. As noted above, Adtran closed down $4.20, or 14.97%, to $23.88.

Ballard Power Systems

(BLDP) - Get Report

: DOWN to buy from strong buy at CSFB. Ballard closed down $4, or 4.7%, to $82.

Microchip

(MCHP) - Get Report

: DOWN to outperform from strong buy at

Morgan Stanley Dean Witter

. Microchip closed down $2.69, or 9.1%, to $26.81.

PG&E

(PCG) - Get Report

: DOWN to neutral from strong buy at Morgan Stanley. The stock closed down $1.63, or 6.9%, to $21.94.

Yankee Candle

(YCC)

: 12-month price target DOWN to $20 from $27 at CSFB. Yankee Candle closed down 19 cents, or 1.5%, to $12.56.

Group Moves

CSFB cut five retailers to hold from buy:

  • Tiffany (TIF) - Get Report. Tiffany closed up 31 cents, or 0.9%, to $33.88.
  • TJX (TJX) - Get Report. TJX closed down $1.13, or 4%, to $26.69.
  • Charlotte Russe Holding (CHIC) - Get Report. The stock ended the day down $1, or 6.9%, to $13.50.
  • Hot Topic (HOTT) . Hot Topic closed down $4.19, or 10.2%, to $37.
  • Pacific Sunwear (PSUN) . Pacific Sunwear closed down $2.13, or 8.4%, to $23.25.

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Offerings and stock actions

Comstock

(CRK) - Get Report

said it would buy back about 4%, or $10 million, of its outstanding shares. Comstock closed up 63 cents, or 6.3%, to $10.63.

After Friday's Close

Reliant Energy's

(REI) - Get Report

unregulated energy business, Reliant Resources, set its planned IPO at 52 million shares in a range of $14 to $19 a share. After the offering, Reliant Energy will hold about 80% of its unit. Reliant closed up 38 cents, or 0.95%, to $39.88.

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Miscellany

Irish pharmaceuticals group

Elan

(ELN)

said the Food and Drug Administration approved its Myobloc muscle spasm treatment, which was cleared last month in the European Union under the name NeuroBloc. Elan closed down $3.25, or 6.3%, to $48.63.

Intel

(INTC) - Get Report

, the world's largest chip-maker, said it has developed a low-voltage transistor that will enable a new generation of faster processors within the next five to 10 years.

The Santa Clara, Calif., company said the new transistors -- which act like switches, controlling the flow of electrons inside a microchip -- could complete 400 million calculations in the blink of an eye or finish 2 million calculations in the time it takes a speeding bullet to travel 1 inch. These transistors could enable processor chips operating as fast as 10 gigahertz and requiring less than 1 volt to operate. In contrast, today's fastest Pentium 4 processor operates at 1.5 gigahertz.

One possible application for such powerful microprocessors could be instantaneous, real-time voice translation, Intel said. Intel closed up $3.44, or 10.1%, to $37.44.

Qualcomm

(QCOM) - Get Report

said it was ordered by an international arbitration panel to pay Korean Electronics and Telecommunications Research Institute certain royalties on sales of its technology in South Korea. Qualcomm will take an $80 million charge to cover that cost.

Along with back-payments, Qualcomm will have to continue to share royalties it receives on certain code division multiple access, or CDMA, equipment used in South Korea. The figure is expected to be about $4 million a quarter. Qualcomm closed down $3.75, or 3.6%, to $99.50.

After Friday's Close

Standard & Poor's

announced yet another change to its widely tracked

S&P 500 index.

Kinder Morgan

(KMI) - Get Report

, a natural gas and pipeline operator, will replace

Nabisco Group Holdings

(NGH)

, which is being acquired by

R.J. Reynolds Tobacco

(RJR)

. The date of the change has not been determined. Kinder Morgan closed up $1.94, or 4.2%, to $47.63; Nabisco was up 6 cents, or 0.2%, to $29.94; R.J. Reynolds was down 50 cents, or 1.2%, to $42.44.

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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.

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