Updated from 2:49 p.m.

Donaldson Lufkin & Jenrette

(DLJ)

is in "serious" talks to be acquired by

Credit Suisse First Boston

, a unit of

Credit Suisse Group

, according to

Dow Jones

, which cited people with indirect knowledge of the talks.

Both companies declined to comment. DLJ lately was up about 21% at $79.38. The

American Stock Exchange Broker/Dealer Index

was up more than 5%, with most components of the index, including

Raymond James Financial

(RJF) - Get Report

,

A.G. Edwards

(AGE) - Get Report

and

Legg Mason

(LM) - Get Report

higher on the reports. (

TSC

covered the latest news in a separate

story.)

After the close Monday,

AT&T

(T) - Get Report

lowered its third-quarter earnings forecast by a nickel, because of dilution from its merger with

Excite@Home

(ATHM) - Get Report

. Analysts had expected the deal to cost Ma Bell about 4 cents.

AT&T announced that it would begin consolidating Excite@Home's results with its own financial results in September. As a result, the phone giant expects to earn 35 cents to 38 cents a share in the third quarter, not the 40 cents to 43 cents it previously expected. For the year, results will fall by 1 cent to 2 cents a share. The company had previously expected to earn $1.75 to $1.80 a share this year. (

TSC

covered AT&T's latest news in a separate

story.)

Mergers, acquisitions and joint ventures

Aluminum producer

Alcoa

(AA) - Get Report

agreed to sell its majority stake in an Australian alumina refinery to British mining company

Billiton

for $1.5 billion,

The Wall Street Journal

reported. Alumina is the main ingredient used in producing aluminum. The story also said Alcoa is in advanced talks to sell its interest in two other facilities recently bought in Texas and Germany.

Engineered-products maker

Eaton

(ETN) - Get Report

plans to sell its $330 million vehicle switch/electronics division by year's end, saying it wants to concentrate on automotive applications and subsystems with greater growth possibilities. The company hired

Morgan Stanley Dean Witter

to help sell the unit, which employs 4,017 workers.

Johnson Controls

(JCI) - Get Report

, a manufacturer of control systems, will acquire

Gylling Optima

, a manufacturer of high performance lead-acid batteries. Johnson Controls expects to pay approximately $62 million in cash for the company.

Motorola

(MOT)

said it will buy

Printrak

(AFIS)

for about $160 million. Under terms of the cash and stock deal, Motorola will pay $12.14 a share in cash.

British airline

Virgin Atlantic

will buy two

Boeing

(BA) - Get Report

747-400 planes. The aircraft will be fitted with

General Electric

(GE) - Get Report

CF6-80 engines and will be financed through a leasing deal with GE unit

GE Capital Aviation Services

.

Internet-messaging company

Critical Path

(CPTH)

said it is in an outsourcing deal with

Circuit City

(CC) - Get Report

to supply Web and computer services and to link the chain's employees with their instructors.

After Monday's Close

Guilford Pharmaceuticals

(GLFD)

and medical-device manufacturer

Gliatech

(GLIA)

have called off their $203 million merger plan. The companies recognize a need for Gliatech to focus on regulatory and product development concerns.

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Earnings/revenue reports and previews

Telecommunications equipment maker

ADC Telecommunications

(ADCT) - Get Report

announced that it expects fourth-quarter earnings to meet Wall Street expectations. The company anticipates sales to surge about 50%, thanks to strong demand.

Gtech

(GTK)

said it will record a $40 million pretax charge in the second quarter and that it plans more charges of $5.2 million related mainly to its stock plan. The company said it will cut about 175 workers, or 4% of its staff, as part of a value assessment, and expects the actions to generate $24 million to $26 million in savings starting in 2002.

Mitchell Energy

(MND)

posted second-quarter earnings of $1.11 a share, better than the four-analyst estimate of 97 cents and the year-ago 55 cents.

After Monday's Close

Exide

(EX)

, an automotive and industrial lead-acid battery maker, said it would take a $17 million charge in the second quarter and close 11 North American distribution plants. According to the company, the changes were made because of its pending acquisition of

GNB Technologies

and a desire to improve the profitability of its transportation business.

FSI International

(FSII)

, a manufacturer of microlithography, announced that it will record approximately $4.1 million in fourth-quarter charges associated with an infrastructure realignment.

Roslyn Bancorp

(RSLN)

announced it would take a $7.6 million charge in the third quarter. The cost comes from the sale and liquidation of its mortgage unit to focus on more lucrative operations.

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Offerings and stock actions

AXT

(AXTI) - Get Report

said it had filed to sell 2.2 million shares of common stock.

CIBA Vision

, the eye care unit of

Novartis

(NVS) - Get Report

, announced that

WJ Acquisition

, an indirect wholly owned subsidiary of Novartis, is extending the offer to acquire all the outstanding common stock of

Wesley Jessen VisionCare

to 5 p.m. EDT on Sept. 7. The offer was scheduled to expire a week earlier, at 5 pm EDT on Aug. 30.

After Monday's Close

Wireless-network manufacturer

Metricom

(MCOM)

announced that it has filed with regulators to sell up to $1.2 billion of common and preferred stock, bonds and their guarantees and equity and debt warrants.

Computer-switch manufacturer

Network Peripherals

(NPIX)

announced that it has authorized the repurchase of 3 million shares. The company also announced that its president and chief operating officer has been appointed co-CEO.

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Analyst actions

PaineWebber

analyst Chris Dixon stepped up to defend

Yahoo!

(YHOO)

in the wake of cautious comments from

Lehman Brothers

analyst Holly Becker, who said the outlook for the Internet media company remains worrisome. PaineWebber's Dixon reiterated a buy rating on the stock and said the real growth opportunities for Yahoo! depend on its ability to develop new platforms.

Merrill Lynch

netmeister

Henry Blodget also came to Yahoo!'s defense, reiterating a buy rating and commenting that Merrill continues to think "sentiment toward the leading consumer net stocks is gradually improving and that YHOO will have a solid finish to the year." Still, Blodget also touched on last week's remarks that Yahoo is having a challenging quarter.

Upgrades

Cypress Semiconductor

(CY) - Get Report

: third-quarter EPS view UP to 63 cents from 58 cents at

UBS Warburg

.

Martin Marietta Materials

(MLM) - Get Report

: UP to strong buy from outperform at

Morgan Stanley Dean Witter

.

Downgrades

Powertel

(PTEL)

DOWN to neutral from buy at Lehman Brothers.

Initiations

3-Dimensional Pharmaceuticals

(DDDP)

: NEW strong buy at

Chase H&Q

and NEW buy at

Bear Stearns

.

Giganet

(GGNT)

: NEW buy at Lehman Brothers.

Microtune

(TUNE)

: NEW strong buy at

SG Cowen

; and NEW buy at Chase H&Q

Opnet

(OPNT) - Get Report

: NEW outperform at Morgan Stanley Dean Witter; price target: 35.

Rosetta Inpharmics

(RSTA)

: NEW buy at Lehman Brothers.

Valicert

(VLCT)

: NEW buy at

Donaldson Lufkin & Jenrette

; price target: 20.

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Miscellany

Corning

(GLW) - Get Report

said it will spend $20 million to expand its liquid crystal manufacturing.

Ford

(F) - Get Report

faces new questions from Venezuela about the safety of its Explorer sport utility vehicles, including reports that the SUVs are still having rollover accidents even with non-

Firestone

tires,

The Wall Street Journal

reported.

Semiconductor-maker

Micron Technology

(MU) - Get Report

said is suing rival

Rambus

(RMBS) - Get Report

in federal court, seeking to invalidate some Rambus patents on grounds of antitrust violations.

Pacific Aerospace & Electronics

(PCTH)

issued a 10-K warning of possible staff reductions, reduced product-line offerings, selling of excess inventory, and general and administrative cost controls.

Stone Energy

(SGY)

said COO/President Peter Canty will succeed CEO James Stone, who retires Dec. 31.

After Monday's Close

Pharmaceutical company

American Home Products

(AHP)

announced that a federal judge has approved its proposed $3.75 billion national settlement. Thousands of former users of medicines used in the once-popular "fen-phen" diet cocktail sued American Home, charging that the company had failed to warn them about side effects of the two drugs.

E-business software provider,

MicroStrategy

(MSTR) - Get Report

announced it would lay off 234 employees, or 10% of its work force. Back in March, MicroStrategy's shares plunged more than 60% after the company said it would restate its reported revenues for the last two years to comply with new accounting methods required by the

Securities and Exchange Commission.

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