Updated from 10:23 a.m. ET


A pair of research notes from analysts questioning the near-term health of some well-known tech names had Wall Street buzzing this morning. According to

Morgan Stanley Dean Witter

analyst David Jackson, the much-anticipated second-half recovery in telecommunications equipment might not arrive until the fourth quarter of 2001 or the first quarter of 2002.

In a research note, Jackson said in the worst-case scenario, the recovery won't arrive until the third quarter of 2002. He downgraded

JDS Uniphase








, and



to a neutral rating from market outperform.


Lehman Brothers

analyst Dan Niles reduced his estimates on

Cypress Semiconductor

(CY) - Get Report


Micron Technology

(MU) - Get Report




, saying the memory market will fizzle by July. The analyst attributed the first-quarter stability in orders to inventory replenishment, not increased demand for memory products, and he trimmed his earnings estimates, but not his ratings, on the trio.

Mergers, acquisitions and joint ventures

Tyco International


agreed to acquire

C.R. Bard


, a medical device maker, for about $3.2 billion in stock.

Bermuda-based Tyco is offering $60 in stock for each share of Bard, which represents a 30% premium over Bard's price of $46 at Tuesday's market close. Bard is based in Murray Hill, N.J. The company makes a variety of medical devices and is known for its presence in the incontinence and prostate disease markets.


(MDT) - Get Report

agreed to acquire




Medical Research Group

, which is partly owned by MiniMed, for $3.7 billion.

Medtronic, a Minneapolis-based maker of medical devices, said it will pay $48 in cash for each share of MiniMed, of Northridge, Calif., giving the transaction a value of about $3.28 billion. MiniMed is a maker of insulin pumps used by diabetics. Medtronic said the deal will expand its surgical products beyond its current offerings.

Additionally, Medtronic is paying $420 million in cash and stock for Medical Research Group, a privately held developer of pumps and sensors used to treat diabetes.

General Motors

(GM) - Get Report

has offered to pay about $775.7 million to buy South Korea's bankrupt

Daewoo Motor

, according to published reports. A Korean newspaper said that GM is also expected to assume $17.30 billion of Daewoo's liabilities and offer stakes to creditors in exchange for debt write-offs.

After Tuesday's Close

Merger negotiations between French telecom equipment maker



and U.S. competitor



broke off Tuesday as the two companies couldn't reach an agreement over several issues, including the structure of the board and the ownership split of the merged company. Reportedly, Lucent executives were upset that Alcatel wasn't treating the deal as a partnership, but rather as a takeover. The proposed deal was said to be worth between $23 billion and $32 billion.



, a provider of electronics manufacturing services, said Tuesday it reached an agreement with


(CSCO) - Get Report

to take over the networking giant's optical equipment plant in West Columbia, S.C. The financial terms of the deal weren't disclosed.

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Earnings/revenue reports and previews

Home builder

Toll Brothers

(TOL) - Get Report

said it beat Wall Street's earnings estimates for the second quarter. The company said it earned $45.8 million, or $1.17 a share. Analysts were expecting the company to earn 98 cents a share. Toll earned $28 million, or 75 cents a share, in the year-ago period.

Revenue increased to $514.5 million from $390.5 million in the same period last year.

After Tuesday's Close

Sun Microsystems

(SUNW) - Get Report

on Tuesday slashed its fourth-quarter sales forecast by 10%. The company expects to bring in $3.8 billion to $4 billion in sales, compared with the consensus estimate of $4.4 billion. Sun expects fourth-quarter earnings of 2 cents to 4 cents a share. Analysts polled by research firm

Thomson Financial/First Call

were projecting earnings of 6 cents a share.

Consumer electronics retailer



said Tuesday that its second-quarter earnings will fall short of analysts' expectations, citing lower-than-expected sales. The Fort Worth, Texas, company said it expects earnings to range from 25 cents to 27 cents a share. Analysts on average were expecting the company to earn 34 cents a share, according to

Thomson Financial/First Call


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disclosed plans to fire more than 15% of its workforce in a cost-cutting effort. The San Francisco-based media company also said it will reduce discretionary spending in areas like marketing and travel, among others. The company expects to save more than $9 million and take a restructuring charge.

Defense electronics company


(RTN) - Get Report

named Hansel E. Tookes, 53, as the new president of

Raytheon International

. James E. Schuster, 48, has been named chairman and chief executive of

Raytheon Aircraft

and Robert W. Drewes, 59, has been named president of the company's Aircraft Integration Systems business.

After Tuesday's Close

Williams Communications

(WCG) - Get Report

on Tuesday agreed to sell its stake in Brazilian wireless firm

Algar Telecom Leste

to Mexico's

America Movil

(AMX) - Get Report

. Williams said the deal would enable it to concentrate on its core broadband business. As for America Movil, the move bolsters its position in the Brazilian market as the company continues with its expansion plans.

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