Stocks to Watch: Healtheon/WebMD to Acquire Medical Manager; CMGI to Buy Tallan

Ford and General Motors are reportedly set to enter a bidding war over Daewoo Motor.
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Healtheon/WebMD

(HLTH)

is buying

Medical Manager

(MMGR)

, a provider of physician-practice management systems, and its publicly traded subsidiary

CareInsite

(CARI)

. Under terms of the deal, Healtheon/WebMD will pay 1.65 shares, or $90.75 a share, for a total of $3.2 billion in stock, for Medical Manager, and 1.3 shares, or $71.50 a share for CareInsite shares not owned by Medical Manager. Medical Manager owns 69% of CareInsite.

CMGI

(CMGI)

will buy

Tallan

for $920 million in stock and cash. Tallan provides Internet and e-commerce professional services. CMGI said the purchase will grow its billable resources by 350% and expects the deal to close by May.

Mergers, acquisitions and joint ventures

Corning

(GLW) - Get Report

said it will buy

NetOptix

(OPTX)

for about $2 billion in stock. Corning will swap 0.9 of its shares for each NetOptix share and said the deal will be mildly dilutive in 2000 and accretive in 2001. Corning also said it formed an equity venture named Samsung Corning Micro-Optics.

Ford

(F) - Get Report

and

General Motors

(GM) - Get Report

are set to enter a bidding war over

Daewoo Motor

, an insolvent South Korean car maker,

The Wall Street Journal

reported.

DaimlerChrysler

(DCX)

is also considering making a move, the story said. The successful bidder will have the potential to be the world's biggest automaker.

NiSource

(NI) - Get Report

said its tender for

Columbia Energy

(CG) - Get Report

is not being extended. NiSource said 58.6% of Columbia's shares had been tendered at the expiration.

Nortel

(NT)

. said it will invest $260 million in its optical networking business and create 3400 new jobs globally. Nortel also announced a broad patent cross-licensing agreement with

Tellabs

(TLAB)

, under which the companies will have rights to each other's patent portfolios.

Occidental Petroleum

(OXY) - Get Report

is expected to buy

Altura Energy

, a U.S. oil exploration joint venture of

BP Amoco

(BPA)

and

Shell Oil

, for $3.5 billion, the

Journal

reported.

Apollo Management

,

The Yucaipa Companies

,

Pequot Capital Management

and

GRP II

are investing a total of $120 million in

Peapod

(PPOD)

, an Internet grocer.

Phone.com

(PHCM)

said it will buy

OneBox.com

for $850 million in stock. OneBox.com shareholders will get 6.5 million Phone.com shares.

Starbucks

(SBUX) - Get Report

has set a five-year pact with

Kozmo.com

, an "Internet-to-door delivery service," under which Starbucks will receive $150 million from Kozmo.com for in-store exposure and comarketing. Kozmo.com said the deal with Starbucks will help its planned expansion into new markets around the country. Kozmo.com currently has operations in New York City, Boston, Washington, D.C., San Francisco and Seattle.

Teligent

(TGNT)

set a deal with

Mannesmann Arcor

, the telecommunications unit of industrial powerhouse

Mannesmann

(MNNSY)

, to offer fixed-wireless communications services in Germany.

Texaco

(TX) - Get Report

and

TradeCapture.com

set a strategic pact for the global trading of energy commodities. Texaco will take a minority equity stake in TradeCapture.com and use its Internet-based trading platform for its crude oil and refined products trading activities.

United Technologies

,

Honeywell

(HON) - Get Report

and

i2 Technologies

(ITWO)

plan to launch

MyAircraft.com

, a joint venture devoted to developing and operating an open electronic marketplace for aerospace products and services available to all industry players.

World Access

(WAXS)

and

Star Telecommunications

(STRX)

agreed to merge in a deal that could be worth about $523 million. World Access also agreed to acquire privately-held

Communication Telesystems International

for about 31 million shares, or about $709 million.

Earnings/revenue reports and previews

(

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

)

Lear

(LEA) - Get Report

reported fourth-quarter operating net income of $1.36 a share, 3 cents ahead of the

First Call/Thomson Financial

19-analyst estimate and up from the year-ago $1.09.

Maytag

(MYG)

said first-quarter earnings per share could be off 10% from the year-ago 95 cents. Maytag said it sees full-year results within the lower end of the $3.80 to $4.00 range. The current nine-analyst estimate calls for $3.91 a share.

Offerings and stock actions

The

Nasdaq Stock Market

said the board of

Nasdaq Investment Product Services

, the sponsor of the

Nasdaq 100 Trust

(QQQ) - Get Report

approved a 2-for-1 stock split. The payment date for the split will be March 17, payable to stockholders of record on Feb. 28.

Xoma

(XOMA) - Get Report

said it sold 6.1 million common shares in a private placement offering.

Analyst actions

Lehman Brothers

raised its rating on

Alcatel

(ALA)

to outperform from neutral.

Warburg Dillon Read

upgraded

Accredo

(ACDO)

to strong buy from buy.

Warburg downgraded

Enzon

(ENZN)

to hold from buy.

Merrill Lynch said it cut its rating on

Terra Networks

(TRRA)

to accumulate from buy but kept a long-term buy rating on the stock.

Miscellany

H. Eugene Lockhart, head of

AT&T's

(T) - Get Report

shrinking $22 billion consumer business, will leave the long-distance company after one year to join a small start-up company.

JDN Realty

(JDN)

said J. Donald Nichols has resigned as CEO.

Merrill Lynch

(MER)

named Thomas Patrick CFO and John Steffens was named chairman of the brokerage titan's U.S. private client group.

Switzerland's price regulator said he was launching an investigation into

Microsoft

(MSFT) - Get Report

software prices after an initial probe backed complaints from consumer groups that they were paying too much.

Rupert Murdoch is planning to consolidate

News Corp's

(NWS) - Get Report

global satellite operations and investments into a new public company, the

Journal

reported, citing people familiar with the situation. The move comes in response to criticism the company lacks a digital strategy, the story said.

PetSmart

(PETM)

is expected to announce an aggressive marketing strategy in the wake of

Pets.com's

(IPET)

disappointing IPO last week, the

Journal

reported.

The Heard on the Street column in the

Journal

says shares of Steve Wynn's

Mirage Resorts

(MIR)

are down more than 50% from their 52-week high in May. According to the story, Wynn's lack of good communication with Wall Street analysts hasn't done any favors for Mirage's share price. At times, Wynn has insulted and chastised his investors and withheld key information about hotel operations, the story says. Musing on the analysts who cover Mirage, Wynn is quoted as saying, " I was surprised... They were dumber than I thought".

For analysis of the market's preopen tone and trends, see the Wake-Up Call, now published separately.