Updated from 3:37 p.m.

It's time for the airline shuffle.

American Airlines

(AMR)

is reportedly about to buy troubled rival

TWA

(TWA)

and

a stake in

US Airways

(U)

.

The TWA purchase would allow AMR, the parent of American, to take over the St. Louis-based Trans World Airways, which for years has been unable to get its financial house in order. The investment in US Airways would broaden American's reach even further and help American's chief rival, United, clear antitrust concerns in its purchase of US Airways. United, a unit of UAL, is the nation's largest carrier; American is the second-biggest.

If the deals go through, American and United would control more than half of all air travel in the U.S.

The purchases are reportedly going to be announced this week.

The Wall Street Journal

said the plan calls for TWA to file for bankruptcy -- which would mark the third time it's sought legal shelter for its financial problems. American would then provide financing for the airline's restructuring. The total value of the deal would be about $2 billion.

Almost at the same time, American would pay $1.2 billion for a 20% stake in US Airways, a stake that would include planes, coveted gates and landing slots, a piece of the Boston-New York-Washington shuttle and part ownership of US Air's new regional carrier. American ended the day off by $2.25, or 5.1%, to $41.50; TWA closed flat at $1.32; US Air was up $4.50, or 11.4%, to $44.

Mergers, acquisitions and joint ventures

Utility holding company

Allegheny Energy

(AYE)

will buy

Merrill Lynch's

(MER)

energy trading unit for $490 million and a 2% stake in its energy generation unit. Allegheny closed up $3.31, or 7.9%, to $45.38; Merrill was down 31 cents, or 0.4%, to $71.25.

Circuitmaker

Broadcom

(BRCM)

will acquire independent circuit supplier

ServerWorks

for about $957 million. The acquisition is expected to add to Broadcom's diluted earnings to the tune of about 2 cents to 3 cents per share, per quarter throughout 2001.

ServerWorks is a supplier of high-performance system input/output integrated circuits for servers. Its server platforms are used in the markets for Web servers, data-center servers, network-attached storage, storage-area networks and high-performance workstations.

A release from the company says the addition of ServerWorks' product portfolio and system knowledge will enable Broadcom to deploy wire-speed 10 Gigabit per second communications topologies such as InfiniBand, Ethernet and Fibre Channel into server and storage platforms, and expand Broadcom's participation in these markets. That particular speed, 10Gbps, is anticipated to be the speed at which local area, wide- and storage-area networks converge. Broadcom closed up $6.44, or 7.4%, to $93.44.

U.K.-based telecom

Vodafone

(VOD) - Get Report

was down after Hong Kong's

Hutchison Whampoa

said it would divest part of its stake in the phone company through a convertible bond issue. Vodafone closed down $1.63, or 4.5%, to $34.25.

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Earnings/revenue reports and previews

Boyd Gaming

(BYD) - Get Report

said it expects to report a fourth-quarter loss. Wall Street analysts had expected the company to make a profit of 7 cents a share for the quarter. Boyd closed down 19 cents, or 4.8%, to $3.69.

Ciphergen Biosystems

(CIPH)

warned that its fourth-quarter revenue would be 10% to 15% below earlier expectations, citing orders that had been anticipated but didn't come through in that quarter.

The company said it will post revenue of about $3 million, about 50% higher than the year-ago figure. Ciphergen Biosystems closed down $3.56, or 30%, to $8.31.

COR Therapeutics

(CORR) - Get Report

confirmed consensus estimates of a slight profit in 2000's fourth quarter and also said sales of its Integrilin drug will be as predicted earlier.

The six-analyst estimate currently projects earnings of 1 cent a share. The 2000 year-end sales of the drug are expected to be about $172 million, within the previous guidance of $170 million and $175 million. Its 2001 sales estimates were revised upward to a range of $250 million and $270 million, from a prior guidance of between $221 million and $263 million. COR closed up $4.38, or 16.3%, to $31.19.

Masco

(MAS) - Get Report

, a home-improvement and building products company, warned that its fourth-quarter and 2001 estimates will miss estimates because of continuing softening in sales as well as higher energy costs.

The company said it now expects fourth-quarter earnings of 30 cents a share, a nickel below the 14-analyst estimate. Also, its earnings for the first quarter of 2001 are now expected to be in a range of 25 cents to 30 cents. The six-analyst estimate is currently 36 cents a share. And full-year earnings for 2001 are expected to be $1.40, well below the 15-analyst estimate of $1.65 a share. Masco closed down $3.19, or 12.3%, to $22.75.

PepsiCo

(PEP) - Get Report

announced that it is comfortable with consensus estimates for the fourth quarter of 2000 and with earnings growth forecasts for 2001. PepsiCo closed up 75 cents, or 1.7%, to $46.06.

German softwaremaker

SAP

(SAP) - Get Report

announced better-than-expected fourth-quarter earnings, which sent the stock bouncing.

SAP, which announced results earlier than anticipated, said the earnings represent a 27% increase over the same period a year ago. It also said sales growth was fueled by strong software license sales.

The company said it will provide more details on Jan. 23. SAP ended the day up $6.88, or 23.5%, to $36.13.

Pharmaceutical

Tularik

(TLRK)

warned that it's now expecting a loss of $65 million for 2001, up from a loss of $25.5 million in 2000, despite having a year-to-year increase in revenue. The company also said it expects research from collaborative research and development to be $30 million in 2001, from $23.8 million in 2000. The stock closed down $2.38, or 8.1%, to $27.06.

Spanish language television company

Univision Communications

(UVN)

said it will meet fourth-quarter and full-year 2000 earnings estimates.

The

First Call/Thomson Financial

10-analyst estimate is currently 16 cents for the fourth quarter and 51 cents for the full year.

Also,

Deutsche Banc Alex. Brown

cut the stock to buy from strong buy. Univision closed down $6.44, or 12.8%, to $43.81.

Versata

(VATA)

said slowing sales will keep it from hitting estimates for the fourth quarter.

The software provider warned that it expects a pro forma loss of between 28 cents and 30 cents, excluding noncash charges. The three-analyst estimate projected a loss of 19 cents. Versata closed down $4.56, or 54.5%, to $3.81.

After Friday's Close

Following the lead of North American automakers,

DaimlerChrysler's

(DCX)

American unit said it will cut its first-quarter vehicle production by about 26% to alleviate buildup in vehicle inventories.

Chrysler said it will make 678,000 vehicles, down from the 916,000 the company produced in the same quarter last year. The cutbacks will affect plants in the U.S., Canada, Mexico and Austria.

Last month, the troubled carmaker said it would lose about $1.25 billion in the fourth quarter. DaimlerChrysler closed down 24 cents, of 0.6%, to $43.72.

Fairchild Semiconductor

(FCS)

said its fourth-quarter sales were in the range of $468 million to $470 million, well below the First Call/Thomson Financial three-analyst estimate of $492 million.

The chipmaker also said that while its 2001 first-quarter earnings will be "seasonally soft," or lower by about 5% to 8% than the previous quarter, Fairchild believes it's in a "reasonably short term inventory correction" and that its revenue will rebound in the second quarter, with growth accelerating in the second half of 2001 and into 2002. Fairchild closed down 19 cents, or 1.3%, to $14.81.

Iomega

(IOM)

, a data-storage hardware and software provider, warned of lower-than-expected fourth-quarter results, primarily because of the company's lower worldwide sales of Zip drive and media.

Iomega expects fourth-quarter earnings of 7 cents to 9 cents a share, including about 5 cents a share from an expected decrease in the company's allowance for net-deferred tax assets. Two analysts polled by First Call expect earnings of 11 cents a share for the quarter. The company earned 9 cents a share last year.

As for fourth-quarter revenue, the company expects $325 million to $330 million, compared with $434 million last year. Iomega also said it is taking cost-controlling steps and expects to remain profitable. Iomega closed down 71 cents, or 17.5%, to $3.34.

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Analyst actions

Bear Stearns

cut computermaker

Dell's

(DELL) - Get Report

earnings-per-share estimates for the next two years to reflect lower sales and margins, according to news service

Reuters

.

The firm trimmed Dell's 2001 EPS outlook to 87 cents from 92 cents and its 2002 EPS view to 90 cents from $1.05.

Reuters also said Bear Stearns expects outer PC-related companies to guide down estimates during earnings season. But Dell closed up, due to a late-day tech rally that limited losses on the major indices. Dell was up 13 cents, or 0.7%, to $19.13 at the close.

Goldman Sachs

did some rejiggering on its recommended list, returning

Spieker Properties

(SPK)

to it and removing

Developers Diversified Realty

(DDR)

. Also,

W.P. Stewart

(WPL)

was started at Goldman with a recommended list rating. Its EPS was set at $1.95 for 2001 and $2.35 for 2002.

Spieker ended the day up 75 cents, or 1.6%, to $49.06; Developers Diversified was flat at $13.38; and W.P. Stewart was up 13 cents, or 0.5%, to $25.88.

Upgrades

Calpine

(CPN)

: 2000 EPS view UP to $1.05 from 92 at

ABN Amro

; and 2001 EPS view UP to $1.32 from $1.19. Calpine closed down 88 cents, or 2.5%, to $34.19.

Glenborough

(GLB)

: UP to strong buy from buy at

Robertson Stephens

. Glenborough closed up 38 cents, or 2.2%, to $17.44.

Lafarge

(LAF)

: UP to buy from accumulate at

Merrill Lynch

. Lafarge closed down 44 cents, or 1.8%, to $24.63.

UTI Energy

(UTI) - Get Report

: 2001 EPS view UP to $1.10 from $1 at Merrill Lynch and its 12-month price target UP to $46.25 from $30. UTI closed up $1.50, or 5.3%, to $29.63.

Downgrades

Backweb

(BWEB)

: DOWN to long-term attractive from buy at Robbie Stephens. Backweb ended the trading day down 3 cents, or 1.2%, to $2.59.

Bausch & Lomb

(BOL)

: 2000 EPS view DOWN to $2.54 from $2.59 at Goldman; and 2001 EPS view DOWN to $2.35 from $2.70. The eyes didn't have it, as the stock closed down 81 cents, or 2.2%, to $36.94.

Crompton

(CK)

: 2000 EPS view DOWN to 89 cents from 91 cents at ABN Amro; and 2001 EPS view to 85 cents from $1.07. Crompton closed up 6 cents, or 0.6%, to $10.31.

Fairchild Semiconductor

(FCS)

: 2000 EPS view DOWN to $2.73 from $2.86 at

Credit Suisse First Boston

; and 2001 EPS view DOWN to $2.05 from $2.90. As noted above, Fairchild closed down 19 cents, or 1.3%, to $14.81.

Ford

(F) - Get Report

: 2001 EPS view DOWN to $2 from $2.70 at Goldman. Ford closed down 63 cents, or 2.4%, to $25.63.

General Motors

(GM) - Get Report

: 2001 EPS view DOWN to $2.50 from $5 at Goldman. GM closed down $1.44, or 2.7%, to $52.56.

Hispanic Broadcasting

(HSP)

: DOWN to outperform and price target cut to $34 at

Salomon Smith Barney

. It was no fiesta today, as the stock closed down $11.13, or 31.8%, to $23.88.

Starwood Hotels & Resorts

(HOT)

: DOWN to buy from strong buy at CSFB. Starwood closed flat at $38.

Tricon Global Restaurants

(YUM) - Get Report

: DOWN to maintain from accumulate at

AG Edwards

. Tricon closed down 19 cents, or 0.6%, to $32.56.

USG

(USG)

: fourth-quarter EPS DOWN to 50 cents from 65 cents at Goldman; and 2001 EPS DOWN to $3 from $3.30. USG ended the day down $2.44, or 10.3%, to $21.31.

VerticalNet

(VERT)

: DOWN to hold from accumulate at

Prudential Securities

and 12-month price target DOWN to $7 from $20. VerticalNet closed down $1.41, or 26.5%, to $3.91.

Initiations

American Electric Power

(AEP) - Get Report

: NEW buy at CSFB; 12-month price target: $50. The stock closed up 69 cents, or 1.7%, to $41.50.

Prologis

(PLD) - Get Report

: NEW outperform at Solly. Prologis closed up 6 cents, or 0.3%, to $22.

Group Moves

Goldman said it expected such beverage companies as

Coca-Cola

(KO) - Get Report

,

PepsiCo

(PEP) - Get Report

and

Anheuser-Busch

(BUD) - Get Report

to meet fourth-quarter EPS estimates.

Coke closed up 94 cents, or 1.6%, to $58.63; PepsiCo, as noted above, closed up 75 cents, or 1.7%, to $46.06; and good ol' BUD was down 69 cents, or 1.7%, to $40.44.

Goldman lowered ratings on two trucking companies to market performers from market outperformers:

  • US Freightways (USFC) ; the stock closed up 31 cents, or 0.9%, to $36.25.
  • CNF (CNF) - Get Report; CNF ended the day up $1, or 2.9%, to $35.81.

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Offerings and stock actions

After Friday's Close

Rechargeable battery maker

Evercel

(EVRC)

filed with the

Securities and Exchange Commission

to sell 3 million shares. Evercel closed down $1.06, or 10.6%, to $8.94.

Krispy Kreme

(KREM)

, which was one of the most successful IPOs last year, filed with U.S. regulators to offer and sell 2 million shares of common stock, including 150,000 new shares. The doughnut stock closed in the hole by $8.31, or 10.9%, to $68.13.

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Miscellany

Danaher

(DHR) - Get Report

, which makes environmental controls, said CEO and President George Sherman will retire at the annual meeting May 1. He is to be replaced by H. Lawrence Culp Jr., who was designated as Sherman's successor when he was named COO last July. Danaher closed down $6.13, or 9.5%, to $58.50.

After Friday's Close

In bankruptcy news,

CinemaStar Luxury Theatres

(LUXY)

said it was filing for bankruptcy protection. The owner or operator of seven theaters in Southern California and one in Tijuana, Mexico, said it was affected by overbuilding in the movie theater industry.

Also, the

New York Stock Exchange suspended trading of steelmaker

LTV

(LTV)

after notification that the company, which recently filed for bankruptcy protection, would trade on the OTC Bulletin Board under the ticker "LTVCQ," starting today (Monday). The stock was flat today at 9 cents.

In an effort to conserve cash during California's power crisis,

Edison International's

(EIX) - Get Report

Southern California unit said it will cut its workforce across the board by 1,450 over the next several months. These layoffs don't include the 400 job eliminations announced last month. The utility will also make a $100 million reduction in spending in 2001 for electric system operations, maintenance and new investments. Edison closed up $1.69, or 16.4%, to $12.

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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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