Monday's Winners & Losers: Nabisco, Philip Morris, R.J. Reynolds

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Updated from 4:09 PM ET

Philip Morris

(MO) - Get Report

on Sunday said it agreed to buy food giant

Nabisco Holdings

(NA)

for $55 a share in cash, or about $14.9 billion, plus the assumption of $4 billion in debt and a $450 million breakup fee. Philip Morris said Nabisco's CEO James Kilts will leave after the merger is completed.

And

R.J. Reynolds Tobacco

(RJR)

agreed to buy the holding company,

Nabisco Group Holdings

(NGH)

for $30 a share in cash, or about $9.8 billion. Nabisco Group Holdings owns 80.6% interest in Nabisco Holdings. RJR's acquisition will take place after Philip Morris's purchase of Nabisco Holdings is completed.

Credit Suisse First Boston

upgraded shares of RJR to buy from hold, while

Goldman Sachs

raised its fiscal 2000 earnings to $4.05 a share from $3.85 and its fiscal 2001 estimates to $4.75 a share from $4.05 a share. Philip Morris lifted 3 13/16, or 16.2%, to 27 1/4 and RJR popped 1 1/2, or 5.5%, to 28 3/8, while Nabisco Holdings climbed 1 1/8 to 52 3/4. Nabisco Group Holdings edged up 1 to 26 9/16.

TheStreet.com

on Sunday wrote a

story about the deal.

Calpine

(CPN)

entered two deals valued at roughly $576 million that would add 60% to its net electrical generating capacity in four years. Calpine said it would buy

Skygen Energy LLC

for $450 million, while paying

Panda Energy International

$126 million for the rights to develop a 1,000 megawatt natural gas-fired power plant in Oklahoma. Calpine leaped 5 3/4, or 9.8%, to 64 1/4.

Cardinal Health's

(CAH) - Get Report

Allegiance unit agreed to pay about $181 million for

Bergen Brunswig Medical

, the medical-supply distribution unit of

Bergen Brunswig

(BBC) - Get Report

. No other financial terms were disclosed. The companies expect the deal to close in the next 90 days. Cardinal Health climbed 1 13/16 to 67 3/8, while Bergen Brunswig declined 3/8, or 6%, to 5 13/16.

Corning

(GLW) - Get Report

shot up 20 3/16, or 8.4%, to 260 3/16 after it said it had been awarded a $1 billion four-year deal to sell optical fiber to

Aerie Networks

, a networking start-up that is developing a nationwide fiber optic system. The terms call for Corning to provide optical fiber for the 20,000-mile network. The deal would make Aerie the biggest customer for its

Leaf

fiber.

British-based music publisher

EMI Group

received shareholder approval for its merger with

Time Warner's

(TWX)

music division. Time Warner stumbled 2 1/16 to 75 1/2.

Eastman Kodak

(EK)

made an equity investment in privately held

Snapfish

, Kodak's first investment in an online photo-processing company. Terms of the agreement call for Kodak to be the exclusive provider of online digital printing services through its new Print@Kodak service, as well as the gain of a board observer seat for Kodak. Eastman Kodak hopped 1 5/16 to 60 3/8.

Ford

(F) - Get Report

made a nonbinding proposal for South Korea's

Daewoo Motor

on Monday. The company said Daewoo's strength is in Asia and Eastern Europe, where Ford has made the least headway. Ford is the only auto maker to submit a solo bid for Daewoo. Ford slid 1 9/16 to 47 7/8.

In an effort to boost earnings and focus on its investment-banking and brokerage unit,

First Union

(FTU)

will close its consumer-finance company

Money Store

, assuming a huge charge that could exceed $1 billion,

The Wall Street Journal

reported.

First Union bought the company, which lends to people with poor credit histories, for $2.1 billion two years ago. Also, First Union is expected to announce it is selling its mortgage-servicing and credit-card units, the article cited people familiar with the matter as saying. First Union added 1/16 to 27 7/8.

Gannett

(GCI) - Get Report

expressed interest in acquiring Britain's unlisted

Regional Independent Media Holdings

, which said it was reviewing its strategic options, including a flotation, with advisers

Credit Suisse First Boston

and

Arthur Andersen

. Gannett slipped 2 to 57 5/16.

Mapquest.com

(MQST)

declined 3/8 to 16 1/8 after it said shareholders approved the previously announced merger plan with

America Online

(AOL)

. America Online shed 1 1/2 to 52.

McGraw-Hill

(MHP)

slipped 3 3/16, or 5.4%, to 55 9/16 after it said it will buy educational-materials publisher

Tribune Education

for about $635 million, according to

Reuters

. The deal is expected to cut McGraw-Hill's 2000 earnings by 5 cents a share, but add to 2001 earnings.

Nokia

(NOK) - Get Report

and

AT&T Wireless

(AWE)

entered into an agreement to develop and test enhancements to a third-generation wireless standard that enables simultaneous delivery of voice and data. Nokia lost 3/8 to 52 7/8, while AT&T Wireless climbed 1/4 to 24 1/4.

Las Vegas-based

National Airlines

will buy eight 757-200 jets from

Boeing

(BA) - Get Report

with options to buy 12 more,

Reuters

reported. The value of the deal was not disclosed, but

Reuters

said Boeing lists the aircraft at between $69.5 million and $77.5 million each. Boeing slipped 1/8 to 39 3/4.

Safeway

(SWY)

and

CIBC

announced a strategic alliance to offer electronic banking services throughout the supermarket chain under the name Safeway Select Bank.

CIBC Chairman and CEO John Hunkin said it was another step toward the company's goal to more than double its retail customer base in the next few years at low cost, and put it on track to become one of the leading players in e-banking in North America. Safeway skidded 1 to 41 1/16.

UnitedGlobalCom

(UCOMA)

popped 7 3/16, or 16.5%, to 50 3/4 after agreed to acquire most of

Liberty Media's

international broadband distribution and programming assets for $200 million in cash and 75.3 million Class B shares, according to the

Journal

. The article said the transaction is valued at about $3.3 billion, citing people familiar with the matter.

The acquisition ups Liberty's stake in the company to 45% and its voting interest in United to 82%. Terms of the deal call for Liberty to be bound by voting and standstill agreements with UnitedGlobalCom and certain of its controlling shareholders, and will have the right to appoint four out of 12 representatives to UnitedGlobalCom's board.

Part of Liberty's international broadband interests include a nonvoting, 99% economic interest in a company that holds a 25% stake in U.K.-based

Telewest Communications

(TWSTY)

. That stake will be acquired by United, which will pass it on to its

United Pan-Europe Communications

unit. Shares of Telewest mounted 4 5/8, or 11.3%, to 45 3/8.

Valspar

(VAL) - Get Report

said it entered a $762 million deal to purchase

Lilly Industries

(LI)

, a wood and metal coatings maker. According to the terms, Valspar would also take on roughly $213 million of Lilly's debt. Valspar, also a coatings maker, said it would have yearly revenues of about $2.25 billion after the merger is completed, up from the year-ago report of $1.4 billion. The deal is expected to be accretive to cash in earnings in its first year and EPS in the second year. Valspar stumbled 1 1/4 to 35 7/8, while Lilly Industries jumped 17 7/16, or 135.4%, to 30 5/16.

Online grocers

Webvan

(WBVN)

and

HomeGrocer.com

(HOMG)

said they have agreed to merge in a $1.2 billion stock swap. According to the terms, Webvan would exchange 1.07605 shares for each share of Homegrocer.com, based on Webvan's Friday closing price of 8 23/32. The deal values Homegrocer at about $9.38 a share, a 16% premium to Friday's closing price of 8 3/32. The new company would retain the name

WebVan Group

. Webvan lost 1 13/32, or 16.1%, to 7 5/16, while HomeGrocer.com fell 1 7/32, or 15%, to 6 7/8.

Yahoo!

(YHOO)

skidded 6 to 119 5/16 after said it has agreed to a deal with

Tibco Software

(TIBX)

to offer customized Web portals to business. The pact would enable companies to integrate corporate content with Yahoo's Internet services. Tibco, which is 60% owned by

Reuters

(RTRSY)

, makes real-time electronic business software. Tibco climbed 3 15/16 to 93 7/16.

Also, Yahoo! said closely held

Google

would now perform its Internet searches, replacing

Inktomi

(INKT)

. Yahoo! said it would continue to use Inktomi's search services for corporate systems that use Yahoo! as a home page and for its own corporate system. According to a source in

Reuters

, the loss of business would not affect Inktomi's earnings. Inktomi plummeted 25 5/16, or 18%, to 115 1/16.

And Yahoo! extended its agreement to use

Akamai Technologies'

(AKAM) - Get Report

Web content delivery service. Akamai speeds the delivery of video, audio and Web pages over the Internet. Akamai jumped 16 3/4, or 16.3%, to 119 1/4.

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Arrow Electronics

(ARW) - Get Report

added 7/16 to 34 13/16 after it said its second-quarter sales would hit $3 billion, while its earnings would top its first-quarter report by 25%. The electric components distributor said it expects to post first-quarter EPS of 81 cents, beating the six-analyst estimate of 70 cents.

Great Atlantic & Pacific Tea

(GAP)

declined 3/4 to 17 1/8 after it cautioned investors that it would post first-quarter EPS of 40 cents, down from the year-ago 50-cent profit. The five-analyst estimate expects the company to report a 36-cent profit.

Omnicare

(OCR)

stumbled 8 13/16, or 48.4%, to 9 3/8 after it warned investors that it would miss the second-quarter nine-analyst estimate of 22 cents a share. The pharmaceutical eye-care company, which expects to post EPS between 15 cents and 18 cents, blamed the shortfall on lower-than-expected revenue in its institutional pharmacy unit and in its contract research organization.

Owens Corning

(OWC)

fell 3, or 20.3%, to 11 3/4 after it said excluding special items, the company's second-quarter earnings will fall short of analyst estimates. The company said it expects earnings of about $1 a share. The nine-analyst estimate is currently $1.24, while the year-ago earnings were $1.31 a share. The company blamed the softening housing market and related decrease in demand for building materials, coupled with sharp increases in raw material and energy costs, which reduced sales and income from operations for the second quarter ending June 30, 2000. For the full year, the company anticipates sales growth of about 4%.

Tyco

(TYC)

lifted 5 5/8, or 13%, to 48 7/8 after it said that it has revised its fiscal 1999 and first-quarter earnings report following a review from the

Securities and Exchange Commission

. The industrial company said it would up its fiscal 1999 EPS by 2 cents after a one-time charge, and scale 2 cents off its first-quarter 2000 earnings following one-time charges. Tyco said the revisions primarily involved a merger, restructuring and other nonrecurring charges. Tyco has been scrutinized for its use of pooling of interest accounting and is under an SEC inquiry.

Walgreens

(WAG)

tacked on 9/16 to 29 1/16 after it posted third-quarter earnings of 19 cents a share, a penny better than the 16-analyst estimate and up from the year-ago 16-cent report.

Analyst actions

Upgrades

Air Products

(APD) - Get Report

: UP to outperform from neutral at

Lehman Brothers

; price target of 40. It edged up 1/8 to 31 1/8.

Alza

(AZA)

rose 4 13/16, or 8.5%, to 61 1/4 after its rating was raised to intermediate, long-term buy from accumulate at

Merrill Lynch

.

Atlantic Coast

(ACAI)

was up 1 1/4 to 28 after its rating was lifted to strong buy from outperform at

Morgan Stanley Dean Witter

.

ConAgra

(CAG) - Get Report

: UP to top pick from buy at

Donaldson Lufkin & Jenrette

. ConAgra was 1 1/4, or 6.8%, higher to 19 3/4.

Celestica

(CLS) - Get Report

: fiscal 2001 EPS UP to $1.42 from $1.40 at

Credit Suisse First Boston

. The stock was up 1 9/16 to 53 1/2.

Informatica

(INFA)

was up 1 1/16 to 69 7/8 after its price target was upped to 91 at CSFB.

Insight Enterprises

(NSIT) - Get Report

: price target UP to 60 from 50 at Morgan Stanley. The news helped push the stock up 3 1/2, or 6.8%, to 55 3/8.

Johnson & Johnson

(JNJ) - Get Report

was 5 3/4, or 6.4%, higher to 95 1/2 after being added to the "highlighted" list stocks at

PaineWebber

.

R.J. Reynolds

(RJR)

jumped 1 1/2, or 5.6%, to 28 3/8. Acquisition news garnered analyst attention for the stock: UP to buy from hold at Credit Suisse First Boston while

Goldman Sachs

raised its fiscal 2000 earnings to $4.05 a share from $3.85 and its fiscal 2001 estimates to $4.75 a share from $4.05 a share.

Reuters

(RTRSY)

: UP to buy from market perform at

Deutsche Banc Alex. Brown

. It finished the day up 3 to 111 3/4.

Downgrades

AT&T

(T) - Get Report

fell 1 1/2 to 32 7/8 after its estimated 2000 earnings per share were lowered to 2 cents from 3 cents at DLJ and

UBS Warburg

.

First Tennessee

(FTN)

: DOWN to outperform from buy at

Salomon Smith Barney

. First Tennessee was down 1/16 to 17 3/4.

International Home Foods

(IHF) - Get Report

: DOWN to market perform from top pick at DLJ. Still, the stock finished up 1/4 to 20 7/8.

Motorola

(MOT)

dropped 2 3/8, or 7.3%, to 30 after Lehman Brothers lowered its price target to 55 from 67.

Scient

(SCNT)

: DOWN to market performer from buy at

Banc of America

. Scient sunk 9 5/8, or 20.5%, to 37 7/16.

Unilever

(UL) - Get Report

: DOWN to underperform from neutral at Lehman Brothers; DOWN to neutral from outperform from Morgan Stanley. The stock edged up 1/4 to 25 7/8.

Initiations

Centennial Communications

(CYCL)

: NEW buy at Lehman Brothers; year-end price target of 30. The stock climbed 1 5/8, or 9.9%, to 18.

Digex

(DIGX)

: NEW intermediate, long-term buy at Merrill Lynch. Digex was up 3 3/8, or 5%, to 70 5/8.

First Horizon's

(FHRX)

initiation as a NEW strong buy at

Thomas Weisel

with price target of 20, helped lift the stock 7/8, or 8.6%, to 11 .

Newhall Land & Farming

(NHL)

: NEW intermediate accumulate at Merrill Lynch. The stock was unchanged at the end of the day.

Oni Systems

(ONIS)

: NEW market outperformer at Goldman Sachs; NEW strong buy at

Chase Hambrecht & Quist

; NEW buy at Banc of America; price target, 150. Despite the positive initiations, the stock fell 8 3/4, or 7.6%, to 106 3/4.

Quantum Effect Devices

(QEDI)

: NEW outperform at Lehman Brothers; price target of 75. It was up 1 5/8 to 57 5/8.

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Jaco Electronics

(JACO)

climbed 1 1/2, or 6.8%, to 23 1/2 after it set a 3-for-2 stock split.

Kopin

(KOPN) - Get Report

edged up 3/4 to 79 1/4 after it set a 2-for-1 stock split.

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Intel

(INTC) - Get Report

declined 3/16 to 134 3/16 after it said it will set up a new microchip plant in Israel at an investment of $2 billion to $3 billion. The Israeli government has yet to decide what type of subsidies and tax breaks it will offer the world's largest chipmaker.

Sempra Energy

(SRE) - Get Report

shed 1/8 to 18 3/16 after it said it has tapped Stephen Baum to become its new CEO.

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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.