Updated from 1:42 p.m. EDT

Mandalay Resort

(MBG)

zoomed Monday, rising nearly 17% after the company received a $7.65 billion buyout bid from

MGM Mirage

( MGG).

Late Friday, Mandalay Resort said MGM offered to purchase it for $68 a share in cash and assume $2.8 billion in debt. The $68 price tag for Mandalay represents a 12.8% premium over Friday's closing price of $60.27.

Shares of Mandalay traded up $9.96 to $70.23 on volume of 21.4 million shares vs. its 30-day daily average of 1.5 million shares. The MGM-Mandalay Resort combination would create the nation's largest gambling company.

The offer comes just a day after Mandalay reported blowout earnings that lifted its shares more than 10%. On Thursday, the casino company reported first-quarter earnings of $1.30 a share on revenue of $729.4 million. Analysts were looking for the company to post earnings of $1.12 a share. What's more, Mandalay generated $77.4 million in cash flow, up from the $46.4 million it reported a year ago.

Shares of

ImClone Systems

(IMCL)

rose 12.3% Monday after the company said its cancer drug, Erbitux -- coupled with radiation therapy --

nearly doubles survival for patients with advanced head and neck cancer. The phase III results were made public at the American Society of Clinical Oncology (ASCO) 40th annual meeting.

Shares of ImClone traded up $8.89 to $81.38 on volume of 19.5 million shares vs. its 30-day daily average of 2.9 million shares.

Monday's action wasn't nearly as nice for

Genta

( GNTA), which said that its experimental cancer drug, called Genasense, did not achieve statistical significance in its primary endpoint: survival. The study enrolled 771 patients spread out over nine countries. In May, an advisory panel recommended that the Food and Drug Administration reject the drug.

Shares of Genta traded down 43 cents, or 14.8%, to $2.47 on volume of 5.5 million shares.

In addition to ImClone and Genta,

Nasdaq

volume leaders included

Cisco

(CSCO) - Get Report

, up $1.11 to $23.89;

Microsoft

(MSFT) - Get Report

, up 48 cents to $26.43;

Oracle

(ORCL) - Get Report

, up 38 cents to $11.42; and

Intel

(INTC) - Get Report

, up 61 cents to $28.75.

In addition to Mandalay Resort,

NYSE

volume leaders included

Lucent

( LU), up 5 cents to $3.45;

General Electric

(GE) - Get Report

, up 45 cents to $31.68;

Nortel Networks

( NT), up 13 cents to $4; and

Corning

(GLW) - Get Report

, up 57 cents to $12.87.

More Mergers, More ASCO Fallout

Among notable Nasdaq price movers,

J.B. Oxford

(JBOH)

soared after it agreed to sell all of its online retail brokerage business to

Ameritrade

(AMTD) - Get Report

for roughly $26 million in cash. Ameritrade expects the transaction to be accretive immediately to its earnings; the transaction is expected to close this summer.

Shares of J.B. Oxford traded up 82 cents, or 32.6%, to $3.33. Shares of Ameritrade traded up 54 cents, or 4.4%, to $12.83.

RC2

( RCRC) jumped $3.45, or 11.8%, to $32.76 after the toys and collectibles company announced it was buying

First Years

(KIDD)

and privately held Playing Mantis for about $156 million. The merger agreement calls for RC2 to buy First Years' stock for about $18.60 a share in cash, or about $137 million. RC2 is purchasing Playing Mantis for $17 million in cash and $2.5 million in RC2 stock. The acquisitions are expected to add 8 cents to 10 cents a share in earnings during 2004 and 20 cents to 25 cents a share during 2005.

Shares of

Biomira

(BIOM)

slid 11 cents, or 7%, to $1.47 after the company announced

Merck KgaA

of Germany is returning the rights to Biomira's Theratope drug. Merck decided not to pursue Theratope (a breast cancer drug), Biomira said, because additional trials are likely to be required. The time frame for developing Theratope doesn't meet Merck KgaA's commercial timetable for delivering the product to market.

WebEx Communications

( WEBX) fell $2.44, or 9.9%, to $22.11 after an analyst at ThinkEquity downgraded the company's shares to sell from underweight.

Over on the Big Board, shares of

Drew Industries

(DW)

rallied after the company was mentioned positively in

BusinessWeek's

"Hot Growth Companies," a special report published in its June 7 edition. Drew Industries was ranked 64 out of 100 companies profiled in the issue.

Shares of Drew Industries traded up $2.21, or 5.8%, to $40.21.

Entravision Communications

(EVC) - Get Report

rose 48 cents, or 5.9%, to $8.63 after Deutsche Securities raised its rating on the Santa Monica, Calif.-based company to buy from hold.

Shares of

Caesars Entertainment

(CZR) - Get Report

rose 60 cents, or 4.3%, to $14.72 after Banc of America Securities raised its rating on the stock to buy from neutral. In light of Monday's merger activity in the casino space, Banc of America speculated that Caesars could be viewed as a potential takeover target as casinos look to strengthen and increase their gambling operations.

Key Energy

(KEG) - Get Report

got slammed Monday after the Midland, Texas-based company withdrew its earnings guidance for 2004. The earnings withdrawal came after it received a notice of default on its 6.375% and 8.375% senior notes. The company also cited uncertainties affecting the costs of an ongoing audit of the company's 2003 financial statements and restatement of prior years' financial statements and an ongoing audit committee and SEC investigation as several reasons for its earnings guidance withdrawal.

Shares of Key Energy traded down 95 cents, or 9.9%, to $8.67.

Chicago Bridge & Iron

(CBI)

fell $2.06, or 7.6%, to $24.91 after the company lowered second-quarter and full-year expectations. The earnings reduction is because the company might not able to recover costs from two contracts, one in Saudi Arabia and the other in North America.

For the second quarter, it now expects to earn 7 cents to 10 cents a share vs. previous expectations of 36 cents to 39 cents a share. For all of 2004 the company expects to earn $1.27 to $1.32 a share vs. previous expectations of $1.57 to $1.62 a share. Analysts polled by Thomson First Call were expecting the company to earn 39 cents a share during the second quarter and $1.63 for the entire year.