Tuesday's Winner and Losers: AT&T, Network Appliance, Veritas, ESC Medical

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Updated from 1:41 p.m.

Would you like chicken or beef with that?

No, it's not a wedding, but a union of another kind.

Big chicken-producer

Tyson Foods

(TSN) - Get Report

announced this morning that it has agreed to buy beef producer

IBP

(IBP) - Get Report

for about $3.2 billion in cash and stock, broadening Tyson's food business.

The deal, which also calls for Tyson to assume about $1.5 billion in IBP debt, comes as a bit of a surprise. It had been rumored that IBP would be bought by either

DLJ Merchant Banking

or pork producer

Smithfield Foods

(SFD)

.

During the first full year of the deal, Tyson said IBP will add to its net income by 15% and to its cash earnings by 20%. Tyson closed down 94 cents, or 7.4%, to $11.81; IBP was up $1.25, or 4.7%, to $28; Smithfield Foods, acquisition-light for the moment, closed up $2.07, or 6.8%, to $32.47.

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Earnings/revenue reports and previews

Adaptive Broadband

(ADAP) - Get Report

has lowered its revenue forecasts for the second quarter of fiscal year 2001 because of a deferral to a major customer of $13 million in contracted shipments of its AB-Access product.

The data-networking company, based in shimmery Sunnyvale, Calif., said it now expects about $8 million in second-quarter revenue, compared with $2 million for the same period last year. Second-quarter gross margins should be in the mid-30% range, the company said.

In its first-quarter financial results announcement, Adaptive Broadband said it had a revenue-growth goal of greater than 30% each quarter, which would have required revenue of more than $31 million for the second quarter, in line with the one-analyst estimate of

First Call/Thomson Financial

.

The company said it recently made a $15 million strategic equity investment in

Fuzion Technologies

, and that financing issues between the two companies have caused a delay in the $13 million shipment and a $12 million payment for an overdue receivable from a Fuzion subsidiary. In addition, $4 million in international orders were delayed, the company said.

Adaptive Broadband also cited the rapid and continuing decline in the state of the domestic competitive local exchange carrier market, which it said led to significant delays in both existing and new-customer deployments in the U.S. Adaptive Broadband closed down $2.94, or 47.96%, to $3.19.

ESC Medical Systems

(ESCM)

, an Israeli company that develops laser technologies for health care, announced that it expected to post revenues of $46 million in the fourth quarter, in line with Wall Street forecasts. ESC closed down $1.13, or 9.3%, to $10.94.

theglobe.com

(TGLO)

confirmed projections for fiscal 2001 and named a new CFO. The company said that it would attempt break even by the end of 2001, losing about $10 million to $11 million on $43 million to $45 million in revenue. That's better than 2000's loss of $39 million on $29 million in revenue. Oh, and the new CFO's name is Stephanie J. Hauge. Yes, there will be a quiz later. theglobe.com ended the trading day up 13 cents, or 44.4%, to 41 cents.

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Analyst Actions

This morning, Dow components

Alcoa

(AA) - Get Report

and

Boeing

(BA) - Get Report

both went under analysts' knives. Alcoa was cut to outperform from strong buy at

Morgan Stanley Dean Witter

and Boeing was cut to buy from strong buy at

First Union Securities

.

Alcoa closed down $1.25, or 3.7%, to $32.25; Boeing was down $4, or 6.1%, to $62.

Upgrades

Citrix

(CTXS) - Get Report

: UP to buy from hold at

UBS Warburg

. Citrix closed down $1.56, or 6.9%, to $20.94.

Pall

(PLL) - Get Report

: UP to buy from market perform at

Banc of America Securities

. Pall closed up 25 cents, or 1.2%, to $21.56.

Downgrades

Analog Devices

(ADI) - Get Report

: DOWN to neutral from outperform at Morgan Stanley Dean Witter. Analog Devices closed down $4.19, or 8.2%, to $47.

Bed Bath & Beyond

(BBBY) - Get Report

: DOWN to buy from strong buy at

Deutsche Bank Alex. Brown

. Bed Bath & Beyond closed down $1.06, or 4.8%, to $21.31.

Brinker International

(EAT) - Get Report

: DOWN to neutral from buy at

Lehman Brothers

. Brinker closed down $6.31, or 14.9%, to $35.94.

Cablevision

(CVC)

: DOWN to buy from strong buy at UBS Warburg. Cablevision closed down $3, or 3.5%, to $81.94.

Cacheflow

(CFLO)

: DOWN to buy from strong buy at

Robertson Stephens

. The stock ended the day down $3, or 17.6%, to $14.06.

Capital One Financial

(COF) - Get Report

: DOWN to buy from strong buy at UBS Warburg. Capital One closed down $3.88, or 5.9%, to $61.94.

Certicom

(CERT)

: DOWN to long-term attractive from buy at Robertson Stephens. Certicom closed down $3.75, or 18.4%, to $16.63.

Dow Chemical

(DOW) - Get Report

: DOWN to hold from strong buy at UBS Warburg. Dow Chemical closed down $1.81, or 4.95%, to $34.81.

DuPont

(DD) - Get Report

: DOWN to hold from strong buy at UBS Warburg. DuPont ended the day down 31 cents, or 0.7%, to $48.

EMC

(EMC)

: DOWN to long-term attractive from buy at Robertson Stephens. The stock closed down $12.19, or 18.3%, to $54.31.

Inktomi

(INKT)

: DOWN to long-term attractive from buy at Robertson Stephens. Inktomi closed down $3.31, or 18.5%, to $14.56.

Internet Security Systems

(ISSX)

: DOWN to long-term attractive from buy at Robertson Stephens. ISS ended the day down $13.25, or 16.9%, to $65.19.

Linens 'n Things

(LIN) - Get Report

: DOWN to buy from strong buy at Deutsche Bank Alex. Brown. The stock closed down $2.38, or 8.6%, to $25.25.

Netegrity

(NETE) - Get Report

: DOWN to buy from strong buy at Robertson Stephens. Netegrity closed down $13.69, or 25.2%, to $40.69.

Netiq

(NTIQ)

: DOWN to long-term attractive from buy at Robertson Stephens. Netiq closed down $21.75, or 24.9%, to $65.63.

Network Appliance

(NTAP) - Get Report

: DOWN to long-term attractive from buy at Robertson Stephens. Network Appliance closed down $12.75, or 19.9%, to $51.44.

Network Engines

(NENG)

: DOWN to long-term attractive from buy at Robertson Stephens. Network Engines closed down $1.91, or 45.5%, to $2.28.

Priority Healthcare

(PHCC)

: DOWN to market outperform from trading buy at Morgan Stanley Dean Witter. The stock ended the trading day down $4.50, or 11%, to $36.31.

Providian Financial

(PVN)

: DOWN to buy from strong buy at UBS Warburg. Providian Financial closed down $4.06, or 7.1%, to $53.44.

Proxim

(PROX)

: DOWN to neutral from outperform at Morgan Stanley Dean Witter. Proxim closed down $10.31, or 23.98%, to $32.69.

Quest Software

(QSFT)

: DOWN to buy from strong buy at Robertson Stephens. Quest closed down $4.38, or 15.6%, to $23.69.

Rogers Wireless Communications

(RCN)

: DOWN to neutral from outperform at Morgan Stanley Dean Witter. Rogers closed down $1.31, or 7.4%, to $16.38.

Verisign

(VRSN) - Get Report

: DOWN to long-term attractive from buy at Robertson Stephens. Verisign closed down $12.38, or 16.7%, to $61.81.

Veritas

(VRTS) - Get Report

: DOWN to long-term attractive from buy at Robertson Stephens. Veritas closed down $21.50, or 24.6%, to $66.

Waste Connections

(WCNX)

: DOWN to hold from buy at

Credit Suisse First Boston

. Waste Connections closed down $1.56, or 4.7%, to $31.50.

Initiations

APAC TeleServices

(APAC)

: NEW buy at

ABN Amro

; price target: $20. APAC ended the day down 31 cents, or 8.5%, to $3.38.

Garmin

(GRMN) - Get Report

: NEW strong buy at Credit Suisse First Boston; price target: $28. Garmin closed down 50 cents, or 2.5%, to $19.25.

Rigel Pharmaceuticals

(RIGL) - Get Report

: NEW buy at Robertson Stephens; price target: $26. Rigel closed up $1.38, or 13.8%, to $11.38.

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Offerings and stock actions

California Pizza Kitchen

(CPKI)

filed for an offering of 3.4 million shares.

The restaurant chain will offer 200,000 shares; shareholders will offer 3.2 million shares. The proceeds from the shares will be used for "general corporate purposes."

Banc of America Securities

and

Deutsche Banc Alex. Brown

will underwrite the offering. California Pizza ended the day down $3.38, or 11.95%, to $24.88.

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Miscellany

Sigh. The bills don't get any cheaper, do they? Today,

AT&T Broadband

, the soon-to-be-spun cable division of

AT&T

(T) - Get Report

, announced that it would be hiking cable prices to offset costs in providing service and customer service. The rate change will mostly affect the company's "Standard Cable" package, which is the regular package received by almost two-thirds of AT&T's customers.

This package will get a 4.3% hike, but that's not even the worst part. People who get three or more premium channels a month will see their bills jacked up 6.55%. Overall, the average AT&T increase, across the board, regardless of the channels received, was 4.8%. AT&T, one of today's few winners, closed up $1, or 5.8%, to $18.25.

There's a new boss over at

Global Crossing

(GX)

. David Walsh, one-half of the company's chief operating office, will become the company's chief executive and president. Global Crossing closed down 13 cents, or 0.9%, to $14.19.

Johnson & Johnson

(JNJ) - Get Report

said the

Food and Drug Administration

granted approval for the combination of Remicade -- a common treatment for rheumatoid arthritis -- and methotrexate to be used to slow joint damage that results from rheumatoid arthritis. J&J ended the day down $3.06, or 2.9%, to $102.

In a move to cut costs,

Nacco Industries

(NC) - Get Report

said it's closing its lift truck manufacturing plant and cutting about 5% of its work force over the next 12 to 18 months. Nacco closed down $1.06, or 2.4%, to $42.63.

PG&E

(PCG) - Get Report

announced that its Pacific Gas & Electric unit expects to use all its $1.2 billion cash reserve by the third week of January unless creditors back off a demand for advance payment for natural gas and power deliveries. PG&E closed down 44 cents, or 2.2%, to $19.56.

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