Reuters Group Plc. (RTRSY) and Aether Systems (AETH) said they have initiated their wireless data services venture and are reviewing possible acquisitions. London-based Sila Communications will develop and operate services to wireless customers through data centers in Europe. The venture will initially concentrate on financial service markets, supplying information from Reuters and the Web. Aether holds a 60% stake in the unit, with Reuters owning the remainder. Reuters slipped 4 5/16 to 105 1/8 and Aether Systems jumped 8 1/2, or 5.2%, to 171 3/8.

Cisco Systems

(CSCO) - Get Report

said it agreed to acquire



for roughly $5.7 billion. According to the terms, Cisco would swap 2.12 shares for each share of Arrowpoint. The companies' boards have both favored the merger.

Cisco CFO Larry Carter said the purchase would have no effect on fiscal 2000 earnings but would be accretive in calendar 2001. Cisco lifted 3 1/4, or 5.1%, to 66 7/8 and Arrowpoint bounced 3 1/4 to 138 1/16.

Mergers, acquisitions and joint ventures

ADC Telecommunications

(ADCT) - Get Report

will pay $888 million to acquire unlisted Swedish laser manufacturer

Altitun AB

. The company also announced it will buy Denmark-based

IBSEN Micro Structures

for $80 million.

Altitun has developed a laser product with a variable wavelength, which is used in optical communications networks and permits the delivery of broadband links with a capacity 100 times greater than at present.

IBSEN makes micro-optical and opto-electronic products for high-speed telecommunications and data networks. ADC Telecom added 5 9/16, or 9.7%, to 62 13/16.



is bringing a lawsuit against

Morgan Stanley Dean Witter


, claiming the investment bank tried to interfere with its acquisition of

J.C. Bradford

, as reported in

The Wall Street Journal

. PaineWebber advanced 1 to 43 1/8 and Morgan Stanley tacked on 3/4 to 72 3/8.

R.J. Reynolds


is considering an offer for its former parent company



that would bring the two companies together again. Nabisco, which has been for sale for the past month, dropped its former name, RJR Nabisco, after spinning off its RJ Reynolds tobacco division last year. The


reported that if the deal should go through, RJ Reynolds would secure an asset that would give the tobacco giant cash to cover litigation and stock repurchases. R.J. Reynolds declined 3/16 to 22 5/8, while Nabisco was up 7/8 to 17 7/16.

For more on this story, take a look at the

piece written this morning by's

joint newsroom.

Earnings/revenue reports and previews


Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.


Business-to-business software company

J.D. Edwards


lost 7/8, or 5.4%, to 15 3/16 after it warned that it expects to report a second-quarter operating loss of $20 million to $25 million, mainly due to lower-than-anticipated margins on license-fee revenue. The current 12-analyst First Call/Thomson Financial estimate calls for earnings of 2 cents a share. The company said it expects to report revenue in the range of $225 million to $235 million, in line with the company's prior second quarter, in what it called a "transitional quarter." Second-quarter results will be released May 24.

QLT Phototherapeutics


bounced 13/16 to 54 1/8 after it reported a first-quarter loss of about 13 cents, or 19 Canadian cents, beating the five-analyst estimate of a 15-cent loss, but higher than the year-ago loss of 6 cents, or 10 Canadian cents. Kenneth Galbraith, QLT's CFO, attributed the increased loss to QLT's share of costs for the


expanded access program and accelerated premarketing activities by

CIBA Vision


Selective Insurance

(SIGI) - Get Report

gained 3/8 to 18 1/2 after it posted first-quarter earnings of 35 cents a share, missing the six-analyst estimate of 37 cents but up from the year-ago 29-cent profit.


skidded 15/16, or 5.9%, to 14 13/16 after it posted a first-quarter loss of 28 cents a share, narrower than the 13-analyst estimate of 31-cent loss but wider than the year-ago 22-cent loss.



stumbled 1 5/8, or 15.3%, to 8 15/16 after it reported earnings of 53 cents, including a pretax gain of 42 cents related to the sale of the company's investment in Interworld and $6.5 million in severance costs. The 11-analyst estimate was 40 cents and earnings a year ago were 39 cents.

Offerings and stock actions


(ETN) - Get Report

wholly owned subsidiary

Axcelis Technologies

, formerly Eaton Semiconductor Equipment, has filed with the

Securities and Exchange Commission

for an IPO.

Late last month, Eaton, which will own more than 80% of the shares of the spinoff, announced its intent to reorganize its semiconductor equipment operations into an independent company and conduct an IPO for this business. Eaton currently plans to complete its divestiture of the remaining Axcelis stock on a tax-free basis to its shareholders about six months after the completion of the IPO, subject to a favorable tax ruling and the Board of Directors' approval. Eaton added 2 5/8 to 82 3/4.

Warburg Dillon Read

priced a 7 million-share IPO for

Genomic Solutions


at the bottom end of its expected price range, at $8 a share. Genomic Solutions was up 7/16, or 5.4%, to 8 7/16.



KPMG Consulting

filed to raise $1 billion in an initial public offering. The company, which filed for a Nasdaq listing under the symbol KCIN, is one of the world's largest consulting firms specializing in Internet strategies. KPMG Consulting had been a part of


, one of the Big 5 accounting and consulting firms.

Meade Instruments


popped 3 to 72 after it set a 2-for-1 stock split.

Credit Suisse First Boston

priced a 6 million-share IPO for

Orchid Biosciences


at the bottom of its revised price range at $8 a share. Orchid bounced 3 7/8, or 47.6%, to 11 3/4.

Sierra Wireless

(SWIR) - Get Report

slipped 1 to 46 3/4 after it said it would hold a 2.2 million offering at $48.63 a share.

Analyst actions




climbing 1 15/16 to 62 15/16, UP to buy from attractive at




(CVS) - Get Report

climbed 1 5/8, to 43 3/16: price target UP to 52 from 48 at

Morgan Stanley Dean Witter


Mitchell Energy


moving up 1 3/8, or 5.8%, to 25 3/16: UP to strong buy from buy at

Credit Suisse First Boston


Summit Technology


, unchanged at 10 3/4; UP to buy from market perform at

Chase H&Q




rose 2 1/8, or 12.6%, to 18 15/16: UP to buy from market outperform at Chase H&Q.

Winstar Communications


inching up 3/16 to 43 9/16: UP to strong buy from accumulate at






added 3/16 to 7 7/8: DOWN to neutral from outperform at Morgan Stanley.

Plug Power

(PLUG) - Get Report

dropped 10 1/2, or 17.8%, to 48 15/16: DOWN to market performer from outperformer at

Goldman Sachs




inching up 1/16 to 11 15/16 : CUT to neutral from buy at

Bear Stearns


Group Moves

Lehman Brothers

launched coverage on e-tailers:

  • (AMZN) - Get Report added 2 5/16 to 57 5/16: NEW buy, price target: 80.
  • eBay (EBAY) - Get Report lost 1 1/2 to 135 7/16: NEW buy, price target of 200.
  • eToys (ETYS) slipped 1/32 to 6 31/32: NEW neutral.
  • (PCLN) lost 1 1/8 to 56 13/16: NEW outperform, price target of 75.

Chase H&Q upgraded three retailers:

  • Talbots (TLB) tacked on 1 3/16 to 49 15/16: raised to strong buy from buy.
  • Limited (LTD) lifted 1 to 46 11/16 : up to strong buy from buy.
  • Zale (ZLC) rose 1 5/8 to 41 1/4: to strong buy from buy.


24/7 Media


edged up 1/16 to 20 15/16 after it said it brought a patent infringement lawsuit against



. DoubleClick lost 1/16 to 61 7/8. According to the proceedings, 24/7 Media is asking for damages along with injunctive relief. The suit stems from the use of a technology that Doubleclick's DART and serving system uses to direct specific ads to certain users.

CarrAmerica Realty


, which yesterday reported a 20% increase in earnings over last year, climbed 3/16 to 24 7/8 after it said its founder and chairman, Oliver Carr, would retire. CEO Thomas Carr will replace him as chairman.

Salomon Smith Barney

upped shares of CarrAmerica to outperform from neutral.