Time Warner's

(TWX)

Time Warner Trade Publishing unit is expected to announce the creation of separate electronic publishing ventures called iPublish.com and iWrite.com, according to published reports. Time Warner is also expected to announce it has signed up distribution partners for the unit, including

netLibrary

,

Microsoft

(MSFT) - Get Report

,

Gemstar International Group

(GMST)

,

Barnes&Noble.com

(BNBN)

and

Ingram Industries'

book distribution unit.

Microsoft is also slated to announce partnerships with

Viacom

(VIA) - Get Report

unit

Simon & Schuster

and

Bertelsmann's

Random House

unit to obtain popular titles for its e-book software.

Microsoft finished behind 1 to 63 3/16; Gemstar closed down 6 1/2, or 14.3%, to 39; Barnes&Noble.com lowered 1/4 to 8 11/16.

BMC Software

(BMCS)

said it will buy

Optisystems

(OPTL)

for $10 a share in cash or $70 million. BMC Software added 5/16 to 43 1/4, while Optisystems lifted 1, or 11.9%, to 9 3/8.

Global Crossing

(GBLX)

said it has brought a $1 billion suit against

Tyco

(TYC)

, claiming breach of contract regarding the installation of a fiber-optic cable system. The suit involves Tyco's deal to set up the South American fiber-optic cable system for Global Crossing.

Atlantic Crossing

, a division of Global Crossing, has also filed proceedings against Tyco, alleging further other breaches of contract. Global Crossing shed 4 25/32, or 15.7%, to 23 5/8, while Tyco dipped 2 to 42.

Toy maker

JAKKS Pacific

(JAKK) - Get Report

will buy

Pentech International

(PNTK)

, a specialty pen, pencil and marker manufacturer. The purchase price will be $1.40 a share in cash for a total of $17.6 million and the assumption of liabilities for a total purchase price of approximately $36.9 million. JAKKS Pacific increased 1/4 to 15 3/8, while Pentech rose 7/32, or 24.1%, to 1 1/8.

Broadband communications company

Nextlink

(NXLK)

has agreed to purchase multiple European metro fiber optic networks from

Level 3 Communications

(LVLT)

for $306 million.

Additionally, Nextlink and private equity firm

Forstmann Little

announced a commitment under which Forstmann will invest an additional $400 million in Nextlink to fund the company's business plan, to expand the company's network and services and to introduce new technologies. Forstmann Little will purchase $400 million of Nextlink convertible preferred stock with a conversion price of $63.25 per share and a 3.75% dividend. Nextlink edged up 7/16 to 56 7/8, while Level 3 dropped 6 1/16, or 8.4%, to 66 1/2.

Nortel Networks

(NT)

said it will buy the remaining two-thirds of Australia's

Photonic Technologies

it does not already own for $35.5 million in cash. Nortel shed 3 3/8, or 6.5%, to 48 1/4.

Oneida

(OCQ)

plans to buy privately held dinnerware marketer

Sakura

for $40 million, the company announced today. Oneida moved up 1/8 to 18 11/16.

Philips Electronics NV

(PHG) - Get Report

has entered a deal to buy a 60% stake in

MedQuist

(MEDQ)

, a transcriber of medical dictation into electronic formatted records, for $51 a share. According to the terms, MedQuist will use Philips speech technology for converting medical records into text. The deal also calls for MedQuist and Philips to create and employ speech recognition technology, which should boost revenue since growth has been hindered by the availability of transcriptionists.

Lehman Brothers

raised Philips' 2000 earnings-per-share view by 11% and its 2001 EPS view by 10%. Philips declined 7/16 to 38 3/4.

Merck

(MRK) - Get Report

and

Schering-Plough

(SGP)

signed a definitive agreement to jointly develop and market cholesterol-management and respiratory therapeutic prescription medicines in the U.S. Financial terms weren't disclosed.

For more on this

story, see coverage from

TheStreet.com/NYTimes.com's

joint newsroom. Merck added 1 1/2 to 73 13/16, while Schering-Plough lifted 1 11/16 to 45 1/2.

Drug giant

Pfizer

(PFE) - Get Report

cleared the

European Commission's

conditions to buy its rival

Warner-Lambert

(WLA)

. The takeover will create the biggest pharmaceuticals group in the U.S. and the second largest in the world. The commission said in a statement that the companies had agreed to three divestments to address competition concerns in particular markets. Pfizer traded up 1/4 to 44 3/16.

Starwood Hotels & Resorts

(HOT)

said it would invest in closely held

Zoho

and channel much of its $3 billion a year in purchases through the Internet-based hotel supplier. The move comes after talks with

Marriott International

(MAR) - Get Report

to establish an online supply pact fell apart. Marriott fell 9/16 to 35 5/8.

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Spartech

(SEH)

reported second-quarter earnings of 50 cents a share, beating the six-analyst estimate by a nickel and up from the year-ago earnings of 40 cents. Including goodwill amortization, earnings were 47 cents a share, compared to the year-ago earnings of 40 cents a share. Spartech ascended 5/16 to 32.

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C&D Technologies

(CHP)

approved a 2-for-1 stock split. C&D climbed 9/16 to 74 9/16.

Credit Suisse First Boston

priced 12.5 million shares of

Integrated Circuit Systems

(ICST)

at $13 each, below the estimated $15 to $17 range. The company designs, develops and markets silicon timing devices for electronic goods. Integrated Circuit Systems decreased 1, or 7.7%, to 12.

New York Times

(NYT) - Get Report

said its shareholders approved a proposal to create a new class of common stock to track the performance of its Internet business unit, New York Times Digital. New York Times added 1 1/16 to 38 11/16.

United Rentals

(URI) - Get Report

, an equipment rental company, said it would repurchase up to $200 million of its issued and outstanding common stock. Share repurchases will start immediately, continuing through May 22, 2002. As of May 22, 2000, there were about 72.1 million shares of United Rentals common stock issued and outstanding. United Rentals boosted 1, or 7.1%, to 15 1/16.

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Goldman Sachs

said that

Agilent Technologies'

(A) - Get Report

upcoming distribution of shares would put near-term pressure on the stock but kept the stock's recommended list rating and earnings estimates. Agilent Technologies slipped 5 1/4, or 8.4%, to 57 1/8.

Merrill Lynch

cut

Gillette's

(G) - Get Report

2000 EPS view to $1.23 from $1.25 and its June quarter sales estimate to 2% from 4%. However, Merrill said it sees Gillette meeting the second-quarter consensus estimate of 28 cents. Gillette stumbled 2 5/8, or 6.9%, to 35 1/8.

Upgrades

Affiliated Managers

(AMG) - Get Report

: UP to near-term accumulate from neutral at Merrill Lynch. Affiliated Managers fell 2 1/8, or 6.2%, to 32.

Donaldson Lufkin & Jenrette

said

eBay

(EBAY) - Get Report

should be a core Internet holding and reiterated a buy rating and 12-month target of 300. eBay plummeted 20 3/16, or 14.8%, to 116.

Imclone Systems

(IMCL)

: UP to strong buy from accumulate at

Prudential Securities

. Imclone shed 4 3/4, or 5.7%, to 77 5/16.

Kohl's

(KSS) - Get Report

: UP to buy from outperform at

Lehman Brothers

. Kohl's popped 1 3/8 to 52 5/8.

NDS

(NNDS)

: UP to outperform from neutral at

Morgan Stanley Dean Witter

, price target: 65. NDS jumped 4 3/8, or 8.2%, to 57 3/8.

Raytheon

(RTNA)

: UP to buy from market performer at

Deutsche Banc Alex. Brown

. Raytheon tacked on 1/8 to 22 15/16.

Sawtek

(SAWS)

: UP to strong buy from buy at

Chase H&Q

. Sawtek lost 1 to 52 1/4.

Downgrades

Neuberger Berman

(NEU) - Get Report

: DOWN to near-term neutral from accumulate at Merrill Lynch. Neuberger Berman declined 1/2 to 33 1/2.

Shaw Industries

(SHX)

: DOWN to hold from buy at

Credit Suisse First Boston

by analyst Dennis Rosenberg and DOWN to intermediate-term accumulate from buy at Merrill Lynch. Shaw Industries slipped 3/8 to 13 13/16.

Westpoint Stevens

(WXS)

: DOWN to near-term accumulate from buy at Merrill Lynch. Westpoint Stevens skidded 1, or 7.5%, to 12 1/4.

Wisconsin Central Transportation

(WCLX)

: DOWN to market performer from buy at Donaldson Lufkin & Jenrette. Wisconsin Central fell 1/2 to 12 1/16.

Initiations

Morgan Stanley Dean Witter and Chase H&Q started coverage of former

Motorola

(MOT)

unit

ON Semiconductor

(ONNN)

:

Morgan Stanley rated the shares outperform and set a price target of 30.

Chase H&Q rated the shares a buy.

Motorola gained 7/8 to 88 3/4, while ON Semiconductor lost 1/8 to 19 7/8.

American Capital Strategies

(ACAS)

: NEW buy at

PaineWebber

, price target: 30. American Capital tumbled 3/16 to 20 15/16.

BJ Services

(BJS)

: NEW strong buy at

Banc of America

, price target: 90. BJ Services hopped 2 5/16 to 69 7/16.

Eagle Global

(EAGL)

: NEW market outperformer at Goldman Sachs. Eagle Global tacked on 5/16 to 22 3/16.

Echelon

(ELON)

: NEW strong buy at

Thomas Weisel

, price target: 80. Echelon added 2 3/16 to 55 3/16.

Genuine Parts

(GPC) - Get Report

: NEW neutral rating at

Bear Stearns

, price target: 26. Genuine Parts declined 1/16 to 25.

Honeywell

(HON) - Get Report

: NEW buy rating at PaineWebber, price target: 69. Honeywell edged up 1/8 to 53 3/8.

Proxim

(PROX)

: NEW strong buy at Thomas Weisel, price target: 100. Proxim sank 8 13/16, or 12.5%, to 61 3/16.

RadiSys

(RSYS) - Get Report

: NEW strong buy at

CIBC

. Radiosys stumbled 1 5/16 to 39 1/8.

Group Moves

Merrill Lynch cut its near-term ratings on two investment management firms:

  • Federated Investors (FII) - Get Report: DOWN to near-term accumulate from buy. Federated Investors lost 1 to 28 1/2.
  • Blackrock (BLK) - Get Report: DOWN to near-term neutral from buy. Blackrock skidded 2 1/16, or 7.9%, to 23 3/4.

Back to top

Ameritrade

(AMTD) - Get Report

fell 13/16, or 6.4%, to 11 3/4 after it appointed Thomas Lewis Jr. as its chief executive officer. Lewis joined the company in March 1999 as co-CEO, sharing responsibilities with Ameritrade's founder and chairman J. Joe Ricketts. Lewis now assumes full CEO responsibilities, as Ricketts will focus more of his time on strategic and personal interests.

For more on this

story, check out the coverage provided by

TheStreet.com/NYTimes.com's

joint newsroom.

R.R. Donnelley & Sons

(DNY)

, which provides printing and related services to a number of markets including merchandising, magazine, financial and healthcare, advanced 5/16 to 24 1/2 after it said it launched an Internet company called Red Rover Digital.

The unit, which was actually formed in 1997 as Donnelley's Online Service group, provides Web consulting, strategy, technology and design.

The Heard on the Street column in

The Wall Street Journal

looks at

General Motors

(GM) - Get Report

in the wake of the stock's worst one-day drop in over a decade -- more than 10%-- and says some managers think a rebound is not imminent.

Investors punished the stock following General Motors' news that demand for its $8 billion exchange offer of its

Hughes Electronics

(GMH)

unit was so strong that far more shares were tendered than the company could accept. General Motors shed 3 to 75, while Hughes Electronics tacked on 1 1/8 to 97 7/8.

Internet strategy consultant

Razorfish

(RAZF)

named chief operating officer Michael Pehl president. He takes the position from Jeffrey Dachis, who will remain chief executive. Razorfish sank 1 7/16, or 8.9%, to 14 9/16.

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As originally published, this story contained an error. Please see

Corrections and Clarifications.