Updated from 6:47 p.m. ET Friday

Leading the headlines on Monday morning was news that

3Com

(COMS)

plans to fire 3,000 workers, or about 30% of its staff. 3Com also cut 1,200 employees in February.

Mergers, acquisitions and joint ventures

Proxicom

(PXCM)

said

Dimension Data

offered to buy the Internet consulting firm for $7.50 a share in cash.

Compaq

(CPQ)

last month offered to buy the company for $5.75 a share in cash. Separately, Compaq said its plan to acquire Proxicom remains in effect.

Energy companies were stealing headlines Monday morning as refiner

Valero Energy

(VLO) - Get Report

said it agreed to buy rival

Ultramar Diamond Shamrock

(UDS)

for about $4 billion in cash and stock, plus the assumption of about $2 billion of debt. The deal would create the second largest oil refiner.

Energy company

Williams

(WMB) - Get Report

agreed to acquire oil and natural gas company

Barrett Resources

(BRR)

for about $2.5 billion in cash and stock, trumping a hostile $2 billion bid submitted by

Royal Dutch/Shell Group

.

After Friday's Close

Micrel

(MCRL)

said Friday it agreed to buy semiconductor company

Kendin Communications

for $215 million in stock.

Micrel said it will issue 6.2 million common shares and options for Kendin. The company expects to close the deal in the quarter ending June 30. Micrel also expects to record a charge of $8 million to $10 million for the acquisition.

The company expects the acquisition to start adding to earnings in the third calendar quarter.

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Earnings/revenue reports and previews

Networker

Cisco

(CSCO) - Get Report

reports earnings tomorrow after the market closes. If its CEO, John Chambers, has positive comments about the company, that could help reinvigorate investors' views about the networking sector. The company last month warned of a sharp third-quarter earnings shortfall and set more than $3 billion in charges to restructure its business and write off unsold gear.

After Friday's Close

Nordstrom

(JWN) - Get Report

said its same-store sales fell 6% in April.

The retailer also said preliminary sales totaled $425.1 million for April, an increase of 1.8% from revenue of $417.6 million in the same month a year ago.

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Miscellany

Lucent

(LU)

, which has struggled with financial problems over the past year, said Sunday that its chief financial officer is departing.

The supplier of telecom equipment said Deborah Hopkins, 46, is leaving "to pursue other opportunities now that Lucent's turnaround plan is well under way and the required financing to execute that plan is in place." Frank D'Amelio, who has headed the company's Switching Solutions Group, was named to succeed Hopkins. D'Amelio is 43 years old.

Separately, Lucent scrapped a deal to sell its metals, plastics and tooling manufacturing plant in Bydgoszcz, Poland, to

APW

(APW)

. The companies said they mutually terminated the agreement because of market conditions.

After Friday's Close

Biotech company

Genentech

(DNA)

said a federal jury in Delaware found that its drugs Herceptin and Rituxan don't infringe patents held by

GlaxoSmithKline

(GSK) - Get Report

.

Genentech said the jury unanimously found that all the patent claims GlaxoSmithKline asserted against it were invalid. GlaxoSmithKline filed the lawsuit in May 1999, saying that Genentech infringed on four of its patents. Two of the patents related to the use of specific kinds of antibodies for the treatment of human disease, including cancer. The other two were the above-mentioned drugs.

A dispute between

Guidant

(GDT)

and the

Food and Drug Administration

about claims the company made in a recent press release made the headlines Friday. Guidant appears to have violated the law by making improper claims recently about the safety and effectiveness of its experimental pacemaker Contak CD, according to the FDA, but the company denied that allegation. The agency also said the statements indicated the device would receive regulatory approval.

At issue is the lack of disclosure in the release that the trial failed to meet one of its primary objectives. On Friday, Guidant said its claims comply with regulatory rules. And now, according to a published report, regulators may reconsider their position, saying the company may have complied with FDA standards after all.

International Lease Finance

, a unit of

American International Group

(AIG) - Get Report

, filed with the

Securities and Exchange Commission

on Friday to periodically sell up to $4 billion in debt securities. The Los Angeles company, which buys commercial jets and leases and sells them to airlines, plans to use the proceeds for general corporate purposes. Under the shelf registration, the company may sell securities from time to time in one or more separate offerings, at prices and terms decided at the time of the offering.

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