Updated from 1:36 p.m. EST

Shares of

Perot Systems

(PER) - Get Report

were among technology's losers Tuesday, falling 15.1% after the information technology services company said that it lost its Harvard Pilgrim Health Care contract.

Perot Systems said Harvard Pilgrim would replace Perot's transaction processing platform with a new system provided by UnitedHealth Group. The new system, which is expected to be phased in during the next three years, is not expected to have a material impact on Perot's financial results during the next 15 months, it said. According to Perot, Harvard Pilgrim currently represents about 5.5% of Perot's sales and gross profit. Finally, Perot said that it is entitled to a break-up fee associated with the cancellation of the contract. The amount of the fee, which should be finalized during the next several months, is expected to be material and realized in 2006. Shares traded down $2.27 to $12.75.


(SINA) - Get Report

rose 11% after

Shanda Interactive Entertainment

( SNDA) disclosed that it acquired 19.5% of Sina through open-market stock purchases. Shanda, which made the disclosure in a regulatory filing, said that it acquired the shares for "strategic investment purposes with the intention of acquiring a substantial ownership position" in Sina. In connection with the investment, Shanda also said that it may "engage in discussions" with Sina to explore the possibility of a merger.

In response to Shanda's regulatory filing, Sina adopted a shareholder rights plan, also known as a "poison pill," that would become exercisable if a person or group obtains 10% or more of the company's shares or if Shanda acquires an additional 0.5% of its shares. The triggering of the shareholder rights plan would result in an increase in shares and give rights holders the ability to buy Sina shares at half price. Shares of Sina traded up $2.82 to $28.42. Shanda traded down 19 cents to $29.82.

Shares of

Level 3 Communications


surged 18.1% after the company terminated its shareholder rights plan. "At the time Level 3 was founded, it was common practice for public companies to implement stockholder rights plans," the company said. "Over the course of the past year, we have been considering the elimination of the plan in consultation with certain of our institutional investors. After careful consideration, we have concluded that doing so is in the current interest of the company and its stockholders."

The rights plan was implemented in 1998 and was scheduled to expire in 2008. Level 3 said the termination of the rights plan was not made in connection with any pending business transaction. Shares of Level 3 have fallen by almost 50% during the last year. Shares traded up 35 cents to $2.28.


(SRT) - Get Report

fell 23.9% after the company announced the resignation of William Meade. Meade had served as the company's president and CEO since 2001. StarTek said the board "mutually agreed that a change in leadership is in the best interests of StarTek's shareholders."

StarTek said Meade is leaving to pursue other interests. Steven Butler, the company's chief financial officer, will serve as interim CEO until a permanent replacement is found. StarTek is scheduled to announce fourth-quarter earnings on March 3. Analysts are expecting the company to post earnings of 43 cents a share on sales of $68 million. Shares traded down $6.15 to $19.60.

Shares of


(SYX) - Get Report

fell 9.3% after the maker of personal computer hardware said that it would restate its financial reports because of accounting errors at its U.K. subsidiary. The restatement will cover all of 2003 and the first nine months of 2004. Systemax anticipates that 2003 earnings, previously reported at $5.6 million, will be reduced by $2.1 million to $2.5 million and earnings for the first nine months of 2004, previously reported at $5.8 million, will be reduced by $1.3 million to $1.6 million. The company, which is not currently required to comply with section 404 of the Sarbanes-Oxley Act, said that it "is devoting appropriate resources to reviewing its internal controls over the financial reporting of inventory and has begun the process of making appropriate improvements." Shares traded down 64 cents to $6.23.

Other technology movers included


(MSFT) - Get Report

, down 25 cents to $25.23;

Sirius Satellite Radio

(SIRI) - Get Report

, down 31 cents to $5.56;


(INTC) - Get Report

, down 26 cents to $23.76;


(CSCO) - Get Report

, up 1 cent to $17.31;


(ORCL) - Get Report

, down 28 cents to $12.66;

Applied Materials

(AMAT) - Get Report

, up 6 cents to $17.46;


( LU), down 5 cents to $3.19; and

Sun Microsystems

(SUNW) - Get Report

, down 9 cents to $4.07.