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Updated from 3:05 p.m. EDT

Credit Suisse First Boston

has agreed to acquire

Donaldson Lufkin & Jenrette


in a deal valued at $11.5 billion. According to the terms,

Credit Suisse Group

, the parent of CSFB, would pay France's



$90 a share for the investment bank. AXA would receive 30% in cash and 70% in Credit Suisse shares for its stake. AXA is the parent company of

AXA Financial


, which holds a 70% interest in DLJ. CS Group said the acquisition, which would put assets under management at $842 billion, would add to earnings after 2002, and that it sees annual savings between $750 million to $1 billion before taxes by 2002.

For more on the impact of the financial merger, check out an earlier

article from




warned investors that its third- and fourth-quarter earnings would miss analysts' forecasts by a large amount. The company blamed the shortfall on

Circuit City's


move to stop selling major appliances. Whirlpool sees third-quarter earnings coming in between 95 cents and $1.05 a share, well-below the eight-analyst estimate of $1.52, and a fourth-quarter profit between $1.45 a share and $1.55 a share, also missing the six-analyst estimate of $1.68.

The company also said earnings would be further dented by pricing pressures in North America and Europe, explaining that higher material costs and a strong dollar in Europe are expected to cut 20 cents to 25 cents off the second-half results. The announcement comes just days after the stock was downgraded to sell from hold at

Prudential Securities


Mergers, acquisitions and joint ventures

After the close Tuesday, the

Justice Department

announced that it has filed an agreement in federal court that gives



permission to merge with

Clear Channel Communications


. The $15.9 billion deal creates the No. 1 owner of radio stations in the United States.

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Earnings/revenue reports and previews



, a company that makes home fragrance products, posted second-quarter earnings of 38 cents a share, in line with the four-analyst estimate and up from year-ago earnings of 34 cents a share. The company also announced its full-year projections of 7% to 8% sales growth and full-year EPS of $2.10 to $2.15, which would be lower than the four-analyst estimate of $2.20.



, a filtration systems manufacturer, posted fourth-quarter earnings of 40 cents a share, in line with the three-analyst estimate and up from the year-ago 39-cent profit.

Fleetwood Enterprises


posted a first-quarter loss of 95 cents a share, greatly wider than the two-analyst estimate of a 9-cent loss and down from the year-ago 72-cent profit. The recreational-vehicle maker said it expects second-quarter earnings to miss the single-analyst estimate of a 17-cent profit due to weakness in the manufacturing housing market.

Tower Automotive


announced that



decision to cut output will cause it to reduce third-quarter earnings by 3 to 5 cents a share. Tower manufactures vehicle frames for the Ford







posted fourth-quarter earnings of 32 cents a share, beating the 16-analyst estimate of 29 cents and up from the year-ago 23-cent profit. The retailer also announced the retirement of Chairman Robert Dinicola, who will be replaced by CEO Beryl Raff.

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Analyst actions

Goldman Sachs



as a trading buy, calling its leverage and outlook positive.




: price target UP to $400 from $375 at

Merrill Lynch

; fiscal 2001 EPS estimates UP to $4.05 a share from $4.10.

Gtech Holding


: UP to intermediate-term buy from accumulate at Merrill Lynch; price target of 23.

J.P. Morgan


: UP to buy from a hold at

ING Barings

; price target of 200.

Manulife Financial


: ADDED to U.S. recommended list at Goldman Sachs.

Nuevo Grupo Iusacell


: UP to buy from hold at

Credit Suisse First Boston





: DOWN to neutral from buy at

Salmon Smith Barney




: DOWN to market performer from market outperformer at Goldman.

Transworld Entertainment


: DOWN to market performer from market outperformer at Goldman.



: DOWN to accumulate from strong buy at

Prudential Securities





: NEW buy at Salomon Smith Barney; price target of 92.



: NEW buy at CSFB; 12-month price target: 35.

EXE Technologies


: NEW strong buy at

Banc of America

; NEW buy at Salomon Smith Barney; price target of 25.

Financial Federal


: NEW outperform at Salomon Smith Barney; price target of 24.



: NEW buy at Lehman Brothers.



: NEW buy at Lehman Brothers.



: NEW market outperformer at Goldman Sachs; NEW strong buy at

SG Cowen

; NEW buy at

Chase Hambrecht & Quist

; and NEW buy at

Bear Stearns


NS Group


: NEW intermediate-accumulate, long-term buy rating at Merrill Lynch; price target of 25.

Watson Pharmaceuticals


: NEW buy at Bear Stearns.

Group Moves

CIBC World Markets

rolled out coverage of gaming stocks:

  • UTStarcom (UTSI) : buy.
  • MTR Gaming (MNTG) : buy.
  • Hollywood Casinoundefined: NEW strong buy.
  • Ameristar (ASCA) : NEW hold.

Credit Suisse First Boston downgraded several Web consulting firms:

  • Modem Mediaundefined: buy from strong buy.
  • Rare Medium (RRR) : buy from strong buy.
  • Viantundefined: buy from strong buy.
  • Cambridge Technology Partnersundefined: hold from buy.
  • iGate Capital (IGTE) : hold from buy.

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Offerings and stock actions

Apollo Group


, which runs private colleges, said that its shareholders favored creating a tracking stock for its online business of the

University of Phoenix


Big Dog


said it has completed its $6.25-a-share tender offer for 3.5 million shares.



set a 1 million share buyback plan.




agricultural unit set an initial public offering at 35 million shares of common stock with an estimated range of $20 to $25 each.

Philip Morris


said it will increase its quarterly dividend more than 10% to 53 cents a share

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said it expects to cut $1 billion in costs over the next several years and increase sales 50% to $30 billion by 2006. The company plans to reach its goals by reducing material costs, lead-times and inventory.



will offer up to five months of free phone service to customers who register for phone service transmitted over cable lines, also known as cable telephony,

The Wall Street Journal


Irish-based global food ingredients company

Kerry Group

is interested in buying New Jersey-based flavors and fragrances business

Bush Boake Allen




announced that it was restructuring top management as

Time Warner


focuses on growing competition. Philip Kent will assume the new position of president and COO of the group. Additionally, the company announced in a memo that Richard Kaplan, president of the network's news operation, plans to resign to pursue other opportunities. Kaplan held the position for three years.



said it was warned about faulty tires on its


SUVs in Venezuela in 1998, more than a year before a recall was rolled out there,

The Wall Street Journal

reported. According to the


, U.S. regulators do not mandate carmakers to report recalls in foreign countries, and the government isn't sure that it can enforce the disclosures.

Separately, the


reported that Bridgestone will increase its production of replacement tires at Japanese plants.



said that it has tapped CEO and President Robert Lane to also be its chairman.


said its new management team is cutting the company's work force a third to reduce costs. In May, the company laid off 35% of its staff, cutting the number of employees to 120.






have entered a pact with



to set up an independent lab for Linux developers, in which they will increase the computer system's ability to handle heavy business tasks. The companies will provide equipment and financial support for the lab over the next several years. According to

Giga Group

analyst Stacy Quandt, the move is an attempt to rival

Sun Microsystems'


Solaris operating system, which has the largest presence in data centers that hold Web-based business technology.

SBC Communications





were told by the Justice Department that they would have to sell businesses in 16 markets to help resolve antitrust concerns over their joint venture, which would create the country's second-largest wireless carrier.

Tower Semiconductor



Alliance Semiconductor


signed a definitive agreement in which Alliance will invest $75 million in Tower's new wafer-fabrication plant in Israel.

After Tuesday's Close



, which sells microcomputer and Unix workstation hardware, has been granted an $857.2 million U.S. defense contract for worldwide military government and communications work.



, a provider of business-to-business solutions to the retail industry, said it's searching for new independent accountants. On Aug. 21,

Deloitte & Touche

resigned as the company's independent accountants. The CEO of QRS told

Tuesday evening that the company and Deloitte parted ways because QRS wanted closer attention from its accountants as it pursued acquisitions. He stressed that there was no disagreement on accounting practices.

wrote about the accounting change in a separate


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