Updated from 9:46 a.m. EST

Xerox

(XRX) - Get Report

plans to raise $500 million through an offering of senior notes. Separately, the company said in a regulatory filing that the office of the chief accountant of the Securities and Exchange Commission believes Xerox's methodology for accounting for sales-type leases doesn't follow the requirements of a statement of financial accounting standards. Xerox said its own accounting treatment shouldn't result in a "material difference," and said it believes its financial results comply with generally accepted accounting principles.

Earnings Reports & Outlooks

Kronos

( KRON) raised its guidance for the first quarter and now expects income of 27 cents to 30 cents a share. The company projected revenue of $74 million to $76 million. Analysts expect the company to earn 19 cents on revenue of $72.9 million.

Polycom

(PLCM)

forecast fourth-quarter earnings of 15 cents to 16 cents a share on revenue of $118 million to $120 million. Analysts are projecting income of 14 cents with a top line of $117.3 million. The company also filed with U.S. regulators to sell 7 million shares.

Mergers, Acquisitions & Joint Ventures

Tibco Software

(TIBX)

agreed to acquire

Talarian

(TALR)

for $5.30 a share. The deal will be valued at about $115 million, half to be paid in stock and half in cash.

VeriSign

(VRSN) - Get Report

agreed to acquire H.O. Systems for $340 million in cash and stock. H.O. Systems provides billing and customer care software to wireless carriers. VeriSign also bought the .tv Corp. for $45 million in cash. The company is the exclusive worldwide registry for Web addresses ending in .tv.

Analyst Actions

J.P. Morgan downgraded

Coca-Cola

(KO) - Get Report

to market perform from long-term buy.

Robertson Stephens upgraded

Dell

(DELL) - Get Report

to buy from market perform and raised its price target on the computer maker to $35 from $26. The firm said Dell is seeing stronger-than-expected demand for PCs in the fourth quarter.

ABN Amro upgraded

Microsoft

(MSFT) - Get Report

to buy from add and raised its price target on the stock to $85. The firm cut its second-quarter estimate for the software maker but increased its expectation for the third quarter.

Goldman Sachs listed its best ideas for 2002 in technology and telecom as

Juniper

(JNPR) - Get Report

,

Flextronics

(FLEX) - Get Report

,

Brocade

(BRCD)

TST Recommends

,

Research in Motion

( RIMM),

Dell

(DELL) - Get Report

,

Agilent

(A) - Get Report

,

eBay

(EBAY) - Get Report

,

AOL Time Warner

(AOL)

,

Electronic Data Systems

(EDS)

,

Maxim Integrated Products

(MXIM) - Get Report

,

Marvell Technology

(MRVL) - Get Report

,

Business Objects

( BOBJ),

Microsoft

(MSFT) - Get Report

,

VeriSign

(VRSN) - Get Report

,

Veritas

(VRTS) - Get Report

,

WorldCom

( WCOM),

AT&T Wireless

( AWE) and

American Tower

(AMT) - Get Report

.

Miscellaneous News

Corvis

(CORV) - Get Report

named Lynn Anderson chief financial officer. Anderson replaces Anne Stuart, who has taken an executive position with a biotech company. Prior to joining Corvis, Anderson was financial chief of Optical Capital Group, a technology investment firm.

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