The IPO for

ONI Systems

(ONIS)

was soaring 56 11/16, or 227%, to 82 11/16 after

Goldman Sachs

priced 8 million shares at $25 a share, above its expected $21 to $23 price range. The San Jose, Calif.-based company develops and sells all-optical networking equipment designed to reduce bandwidth and service bottlenecks.

Mergers, acquisitions and joint ventures

Aetna

(AET)

climbed 2 3/16 to 68 15/16 after it confirmed yesterday that it had resumed talks with Dutch financial services company

ING Groep

(ING) - Get Report

about a sale of Aetna's profitable financial services and international units. ING Groep slipped 1/16 to 60 1/4. Aetna's statement came after a report on

CNBC

, which said ING could pay as much as $9 billion for the units.

Canada-based

Alcan Aluminum

(AL) - Get Report

lost 7/16 to 32 1/2 after it upped its bid to acquire Swiss aluminum-maker

Algroup

, which locked in support from a major Algroup shareholder. If the deal is completed, it would form a company with annual sales of about $12.5 billion. The terms call for Alcan to exchange 17.1 of its common shares for each share of Algroup. In addition, Algroup shareholders would receive a repayment of capital of 90 Swiss francs and a special dividend of 135 Swiss francs for each of the Algroup shares they own.

BZ Group Holdings

, one of Algroup's biggest holders, and its affiliates favored tendering 34% of their Algroup shares for the revised offer. Alcan initially offered 20.1745 Alcan shares for each Algroup share.

Biosite Diagnostics

(BSTE)

jumped 5 1/2, or 25%, to 28 1/8 and

Medarex

(MEDX)

moved up 3 7/16, or 7.6%, to 48 15/16 after the companies said they will form an alliance aimed at accelerating drug research via Trans-Phage Technology, which is a method to create fully human antibodies by using technology from both companies.

Through this alliance, Biosite and Medarex will offer pharmaceutical and biotechnology companies access to large volumes of human antibodies to validate genomic targets and to identify promising drug candidates.

One of

Costco's

(COST) - Get Report

subsidiaries bought a 20% stake in

Costco Wholesale UK

from

The Littlewoods Organisation

, bringing Costco's ownership in Costco Wholesale UK to 80%. Costco was lately edging up 3/8 to 32 5/16.

Carrefour Nederland B.V.

owns the remaining 20% interest. Costco Wholesale UK currently operates eight Costco warehouse locations -- six in England and two in Scotland -- with three more units to open prior to the end of the year.

Jewelry retailer

Signet Group

(SIGYY)

inched up 1/4 to 32 5/8 after it said it is buying privately owned U.S. retail jeweler

Marks & Morgan

for $115 million in cash, which will strengthen Signet's position in the U.S. market.

Marks & Morgan has 137 stores, mainly in mall locations in the southeastern region of the country. Signet said the purchase is expected to enhance earnings in the current year and beyond, but the company didn't quantify the earnings impact. Under the agreement, Signet will also repay Marks & Morgan's debt.

Procter & Gamble

(PG) - Get Report

fell 9/16 to 65 15/16 after it said it will pay $17 million to up its stake to 16% in

Regeneron Pharmaceuticals

(REGN) - Get Report

. According to

Reuters

, Procter & Gamble will buy 573,630 shares at $29.75, upping the company's holdings to 5.7 million shares of Regeneron. Procter & Gamble also has warrants to purchase an additional 1.45 million shares.

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Earnings/revenue reports and previews

Abercrombie & Fitch

(ANF) - Get Report

lost 1 3/16, or 12.1%, to 8 5/8 after it reported a 14% drop in May same-store sales. The clothing retailer said it has tapped Wesley McDonald as its CFO.

Best Buy

(BBY) - Get Report

rose 3 3/4, or 5.9%, to 67 3/4 after it said May same-store sales climbed 95%. The retailer said it expects to post first-quarter earnings of 34 cents a share, an increase of 50%. The 17-analyst estimate is 28 cents a share.

Covance

(CVD)

lost a mere 3/16 to 6 13/16 after warned its second-quarter earnings will fall more than 50% below forecasts, saying weakness in its late-stage drug test business hurt total profits. The current 11-analyst estimate calls for earnings of 21 cents, while the company said it expects to report earnings between 9 cents and 10 cents a share. Covance said the shortfall would force it to restructure operations, which will involve cutting 200 of its 7,600 worldwide jobs, closing offices and taking a $15 million pretax charge as it aims to reduce overhead and capacity. Covance said the new restructuring is expected to deliver pretax savings of about $16 million by 2001.

Gap

(GPS) - Get Report

slipped 7/16 to 34 5/8 after last night reporting its May same-store sales fell 2%. Today,

Prudential

reiterated the stock as a strong buy and said it would build positions now.

J.C. Penney

(JCP) - Get Report

lost 1/8 to 18 after it said May same-store sales rose 1.1%.

Limited

(LTD)

lost 7/16 to 23 11/16 after it posted a 7% increase in same-store sales.

Kohl's

(KSS) - Get Report

gained 2 1/2 to 54 1/4 after it reported a 9.8% increase in May same-store sales.

Mitchell Energy

(MNDA)

moved up 1 1/16 to 30 1/8 after it posted first-quarter earnings of 78 cents a share, beating the three-analyst estimate of 73 and up from the year-ago 11-cent profit.

Sears

(S) - Get Report

sailed up 1 1/8 to 38 1/16 after it posted a 3.5% increase in May same-store sales.

Talbots

(TLB)

tacked on 1 1/8 to 58 1/16 after it posted a 29.4% increase in same-store sales.

Wal-Mart

(WMT) - Get Report

lost 1/2 to 57 1/8 despite reporting a 7.4% increase in May same-store sales.

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Analyst actions

Pharmaceutical company

Pfizer

(PFE) - Get Report

was up 7/8 to 45 3/8 after

Merrill Lynch

added it to its Focus One list of recommended stocks. Merrill's drug analyst Steven Tighe said the company is the strongest in the space and has the strongest products in its pipeline.

He also praised the company's proposed merger with

Warner-Lambert

(WLA)

. Warner-Lambert shares were up 2 9/16 to 124 11/16.

Chip and semiconductor manufacturer

Motorola

(MOT)

was up 5 5/8, or 6%, to 99 3/8, after

ABN Amro

upgraded the stock to buy from outperform and raised the stock's price target to 130. ABN Amro also raised Motorola's earnings estimates for 2001 to $4.32 from $4.25 a share.

Upgrades

Colgate-Palmolive

(CL) - Get Report

was up 1 5/16 to 53 15/16: UP to recommended list from market outperformer at

Goldman Sachs

.

E-Tek Dynamics

(ETEK)

was riding high, up 20 1/16, or 10.9%, to 203 7/8: 2000 EPS view UP to 88 cents from 86 cents at

Wit Soundview

; 2000 revenue view up to $332.2 million from $327.6 million.

Hewlett-Packard

(HWP)

shares grew 11 9/16, or 9.6%, to 31 3/4: UP to strong buy from buy at

Banc of America

.

Net2Phone

(NTOP)

hopped 3 3/8, or 11.4%, to 32 7/8: 2001 loss-per-share estimate cut to 84 cents from a loss of $1.03.

UAL

(UAL) - Get Report

grew 2 1/8 to 53 5/8: intermediate-term UP to accumulate from hold and long-term UP to buy from accumulate at

Merrill Lynch

.

Universal Foods

(UFC)

climbed 1/2 to 17 3/4: UP to buy from market perform at

DLJ

.

Downgrades

Mark IV Industries

(IV)

was up 3/16 to 21 7/16: DOWN to market perform from buy at

Deutsche Banc Alex. Brown

.

Marsh & McClennan

(MMC) - Get Report

slipped 7/8 to 109 3/16: DOWN to hold from buy at

UBS Warburg

.

Pacific Sunwear

(PSUN)

shares tanked, falling 3 15/16, or 24.5%, to 12 1/8: DOWN to buy from strong buy at

First Union

.

Verio

(VRIO)

lost 2 11/16 to 54 3/16: DOWN to sell from buy at

DLJ

.

Initiations

American Express

(AXP) - Get Report

gained 3/8 to 54 3/8: NEW market performer at

Banc of America

.

Comerica

(CMA) - Get Report

shares bounced up 3 1/2, or 6.9%, to 54 1/8: NEW buy at

DLJ

; price target: 58.

Hain Food

(HAIN) - Get Report

bumped up 1 3/8 to 30 7/8: RESTARTED with a buy at

Bear Stearns

; price target: 48.

Intuit

(INTU) - Get Report

grew 2 1/8, or 5.9%, to 38 3/8: NEW buy at Banc of America; price target: 46.

McKesson HBOC

(MCK) - Get Report

edged up 1/16 to 16 1/2: NEW hold at

CSFB

.

National Information Consortium

(EGOV) - Get Report

soared 2 1/8, or 14.3%, to 17: NEW strong buy at Banc of America.

PerkinElmer

(PKI) - Get Report

gained 3 3/4, or 7.1%, to 56 1/4: NEW strong buy at

UBS Warburg

; price target: 70.

Seacor Smit

(CKH) - Get Report

dipped 5/8 to 63 1/2: NEW outperform at

Morgan Stanley Dean Witter

; price target: 80.

Group Moves

Lehman Brothers

lowered their earnings- or losses-per-share estimates for several on-line brokers:

  • Ameritrade (AMTD) - Get Report shares popped up 3/8 to 11 3/4: 2000 estimate lowered to a loss of 8 cents from a loss of 6 cents.
  • DLJDirect (DIR) shares were off 1/8 to 8 1/4: 2000 earnings lowered to 11 cents from 25 cents.
  • E*Trade (EGRP) grew 5/8 to 16 3/16: 2000 estimate lowered to loss of 11 cents from a loss of 10 cents.

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Offerings and stock actions

The e-business infrastructure software company

CrossWorlds Software

said its IPO price range for 4 million common shares fell to $10 to $12 a share from $14 to $16 a share. The company will net about $48.9 million, including proceeds from the private sale of more than 901,000 additional shares.

Chase Hambrecht & Quist

,

Dain Rauscher Wessels

and

Thomas Weisel Partners

are handling the IPO, which is expected to begin trading this week. The company applied for the listing "CWLD" on the Nasdaq.

First Horizon Pharmaceutical

(FHRX)

was edging up 1/8 to 8 1/8 after Chase Hambrecht & Quist priced 3.8 million shares at $8 each, the low end of the estimated $8 to $10 range. The company markets and sells brand-name prescription drugs largely focused on chronic conditions. Earlier today, the range was lowered from $12 to $14 a share.

Reuters

reported

IMX Exchange

, an online exchange that links mortgage brokers and lenders, withdrew its $57.5 million IPO because of general market conditions.

The company, which first filed to go public in March, planned to use the proceeds for such general corporate purposes as working capital and capital expenditures.

Deutsche Banc Alex Brown

,

J.P. Morgan

,

SG Cowen

and

E-Offering

were going to handle the IPO. The company had applied for the listing "IMXX" on the Nasdaq.

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Miscellany

Abbott Laboratories

(ABT) - Get Report

rose 5/8 to 41 5/16 after it said it has applied for

Food and Drug Administration

marketing approval for its investigational HIV and AIDS antiretroviral therapy, ABT-378/r. The company said it is requesting accelerated approval for the treatment, citing its Phase II/III trials which examined its safety.

Bank One

(ONE) - Get Report

rose 7/8 to 34 after it tapped former

Citigroup

(C) - Get Report

executive Charles Scharf as its CFO.

Celera Genomics

(CRA)

climbed 1 1/8 to 64 1/4 after it said it has sequenced about 1.15 billion base pairs -- letters of genetic code -- of mouse DNA. The company began sequencing the mouse genome on April 6.

According to

Reuters

, Celera's president and chief scientific officer J. Craig Venter said, "Mice can function as translators of the human genome in that changes in their genetic material can teach us how changes in the letters of human DNA lead to predisposition to disease and responses to medical treatments."

Juno Online

(JWEB)

edged up 1 1/32 to 8 3/8 after it filed a lawsuit against

Qualcomm

(QCOM) - Get Report

and

NetZero

(NZRO)

for patent infringement. The patent protects a technology Juno developed that enables advertisements and other content to be displayed to an Internet user while the user is offline. Qualcomm was lately up 3 3/4, or 6.3%, to 70 1/8,.

Qualcomm is the publisher of the Eudora e-mail software currently being distributed by NetZero, which provides free Internet access. In its suit, Juno asserts that NetZero and Qualcomm are infringing its patent by producing, distributing, and encouraging the use of software that unlawfully implements Juno's patented offline architecture.

Microsoft

(MSFT) - Get Report

moved up 2 15/16 to 65 1/2 after it criticized a government proposal to split up the firm in order to prevent future antitrust violations, calling it defective, vague and ambiguous.

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