Updated from 3:53 p.m. EDT

Deutsche Telekom

(DT) - Get Report

made an offer to acquire

VoiceStream

(VSTR)

that values the U.S. mobile phone company at more than $30 billion, the

Financial Times

reported. A deal could be valued at over $40 billion, according to

The Wall Street Journal

. Deutsche Telekom dropped 2 3/64 to 56 7/16, while VoiceStream soared 14 1/8, or 11.3%, to 139 1/16 .

The article said VoiceStream is about 56%-owned by foreign organizations with

Hutchison Whampoa

and

Sonera Group

the biggest shareholders. It also noted that Deutsche Telekom is still interested in acquiring

Sprint

(FON)

, while

France Telecom

(FTE)

, through its Orange mobile phone subsidiary, and

SBC Communications

(SBC)

have both expressed interest in making bids for VoiceStream. Sprint dropped 4 1/8, or 8%, to 47 5/8, while France Telecom fell 3 1/4 to 141 1/2 and SBC Communications slipped 7/16 to 44 3/8.

Dutch carrier

KPN Telecom

(KPN)

, its Japanese partner

NTT DoCoMo

and Hutchison Whampoa said they will call a London news conference tomorrow to unveil a European joint venture. The three groups are expected to pool their resources to form a powerful venture which could challenge giants such as British-based

Vodafone AirTouch

(VOD) - Get Report

KPN fell 1/2 to 47 1/8, while Vodafone AirTouch lost 1 3/4 to 45 3/4.

Alteon WebSystems

(ATON)

soared 30 3/16, or 29.9%, to 131 1/8 after it said it reached operating profitability in its fourth quarter, three quarters ahead of previous expectations. The company, which makes Web switches, server adapters and traffic management software, also said it expects to post revenues of about $51 million, an 80% sequential increase over the previous quarter. The five-analyst expectation was for a loss of 1 cent a share.

Aspect Communications

(ASPT)

tumbled 23 7/8, or 54.4%, to 20 after it warned it will miss its second-quarter earnings because of lower business levels and delays in government contracts.

First Call/Thomson Financial's

current five-analyst estimate for the company's second-quarter is 8 cents a share, which was up from the year-ago loss of 18 cents a share. Aspect said it expects to report a pro forma net profit of 1 cent to 3 cents a share, excluding the impact of amortizing certain assets, but including a 6-cent gain per share from selling securities.

Mergers, acquisitions and joint ventures

Compaq

(CPQ)

lost 1/2 to 25 1/2 and

CMGI

(CMGI)

fell 2 1/2, or 6.4%, to 36 1/2 after it announced the creation of a new joint venture company,

Freeup

, that will provide Internet-based products for a range of employee groups. The company will launch a business-to-employee Web site,

Freeup.com

, designed to simplify work processes and increase productivity.

Intuit

(INTU) - Get Report

lost 1 to 43 3/4 after it said it will acquire the remaining shares of

Venture Finance Software

, a joint venture company, for $120 million to $150 million in cash. Intuit, an electronic finances services provider, is currently a minority investor in the venture. The deal is expected to close in the first quarter of fiscal 2001.

In a press release, Intuit said Venture Finance has developed technology that has enabled it to move certain functionality of its Quicken desktop software onto the Web. Venture Finance's technology currently is licensed to Intuit to provide services through Quicken and Quicken.com.

Chemical and mineral products manufacturer

International Specialty Products

(ISP)

was unchanged at 6 after it formally dropped its seven-month-old $930 million hostile bid for

Dexter

(DEX) - Get Report

, after the manufacturing company agreed to a $1.5 billion deal with

Invitrogen

(IVGN)

, a manufacturer of research tools to improve gene cloning. Dexter climbed 2 11/64 to 54 11/16, while Invitrogen climbed 6 1/2, or 11.1%, to 64 7/8.

Interwoven

(IWOV)

lost 1 7/16 to 127 1/8 after it announced it will buy

Neonyoyo

, a privately held developer of wireless technology which delivers targeted XML content, for $70 million in common stock and cash. Interwoven, an Internet software company, said the acquisition would help it cater the growing number of handheld Internet devices. The deal is expected to close in Interwoven's third quarter.

Metromedia Fiber

(MFNX)

slipped 1/16 to 41 7/16 after it said it will market Internet protocol services to

America Online

(AOL)

data centers.

Spanish Internet company

Terra Networks

(TRRA)

fell 1/8 to 10 3/4 after it said it is in an Internet pact with business software developer

Lotus Development

to create an instant messaging service and to provide content for Lotus.

Unilever

(UL) - Get Report

was unchanged at 24 7/8 after it said it will sell its European bakery supp lies business to Dutch food products and ingredients company

CSM

for about $669 million.

Back to top

Earnings/revenue reports and previews

AMB Property

(AMB)

slipped 1/16 to 23 15/15 after it reported second-quarter earnings of 58 cents a share, beating the 11-analyst estimate by a penny and up from the year-ago earnings of 53 cents.

CVS

(CVS) - Get Report

fell 3/16 to 43 3/8 after it said same-store sales rose 12.8% in June.

Cintas

(CTAS) - Get Report

dropped 1 13/16 to 45 1/4 after it posted fourth-quarter earnings of 31 cents a share, in line with the 13-analyst estimate and above the year-ago 26 cent profit.

Bakery products manufacturer

Earthgrains

(EGR)

lost 1/2 to 18 3/8 after it posted first-quarter earnings of 27 cents a share, in line with the seven-analyst estimate but below the year-ago 30 cents.

Genome Therapeutics

(GENE) - Get Report

gained 2 3/8, or 7.8%, to 30 5/16 after it posted third-quarter losses of 4 cents a share, ahead of the one-analyst eight cent loss estimate and the year ago 9 cent loss.

Executive search firm

Heidrick & Struggles

(HSII) - Get Report

rose 2 1/4 to 60 1/8 after it announced that it expects earnings per share to be approximately 45 cents, compared to Wall Street's estimate of 38 cents per share.

International Paper

(IP) - Get Report

rose 3, or 9.3%, to 35 1/4 after it reported second-quarter earnings of 75 cents a share, before special items, which beat the 11-analyst estimate by a penny and was up from the year-ago earnings of 24 cents a share, excluding extraordinary items.

International Speedway

(ISCA) - Get Report

shed 8 1/2, or 19.8%, to 34 1/2 after it posted second-quarter earnings of 17 cents a share, a penny better than the nine-analyst estimate and the year-ago earnings. Citing lower-than-expected attendance at its July 1 Daytona event, the company said it will slow seat expansion for 2001and warned 2001 EPS could be between 6 cents to 8 cents below the consensus estimate of $1.72.

Interstate Bakeries

(IBC)

added 9/16 to 14 9/16 after it posted fourth-quarter earnings of 34 cents a share, better than the eight-analyst estimate of 27 cents, but lower than the year-ago earnings of 42 cents.

Krispy Kreme

(KREM)

dropped 8 1/8, or 11.1%, to 65 after it said it expects second-quarter same-store sales growth in the "midteens range," a figure above analysts' expectations of growth in the high single digits. The company also noted that some of the stores that were scheduled to close for remodeling in the quarter stayed open longer than expected, which helped boost the growth rate. The four-analyst estimate is currently 18 cents a share for Krispy Kreme's second quarter.

Mueller Industries

(MLI) - Get Report

moved up 1/8 to 29 1/4 after it reported second-quarter earnings of 78 cents a share, a penny better than the three-analyst estimate and up from the year-ago 64 cents.

Pinnacle Systems

(PCLE)

shed 13 7/16, or 59.4%, to 9 3/16 after it warned it warned it sees fourth-quarter earnings below analyst estimates, saying the quarter was back-end loaded and a significant amount of business closed in the last week on terms less favorable than expected. Pinnacle said it now expects to post earnings of 6 cents to 8 cents a share, below the five-analyst estimate of 16 cents a share.

Quest Diagnostics

(DGX) - Get Report

popped 12, or 14.8%, to 93 after it said it sees second-quarter earnings above analyst expectations. The company expects to report 64 cents a share, above the five-analyst estimate of 49 cents. Questcited good volume trends, and revenue and also said it sees 2000 EPS above estimates.

Reynolds & Reynolds

(REY)

, which provides computer systems and services for the auto and health-care markets, lost 1/4 to 17 1/4 after it said it expects its third-quarter earnings to miss analysts' expectations. The one-analyst estimate on

First Call/Thomson Financial

is 38 cents a share.

Scientific Learning

(SCIL)

sank 9 3/4 , or 47.3%, to 10 7/8 after it reported a second-quarter loss of 56 cents a share, missing the three-analyst estimate of a loss of 46 cents, but up from the year-ago loss of $1.35 a share.

Service Corp.

(SRV) - Get Report

slipped 1/4, or 7.7%, to 3 after it warned it will miss analysts' second-quarter earnings estimates of 13 cents a share. The company said it now anticipates earnings of between 7 cents and 10 cents a share, excluding extraordinary gains on early extinguishments of debt and nonrecurring charges. The year-ago earnings for the company was 28 cents a share.

The funeral and cemetery company also announced it reached an agreement with

Mederic Assurances

of France to sell its insurance operations in France, generating pretax cash proceeds of about $75.1 million.

Valspar

(VAL) - Get Report

fell 1 7/8, or 5.4%, to 33 after it said it expects third-quarter earnings to be flat with the year-ago's 59 cents a share, missing the six-analyst estimate of 64 cents. It blamed its missed earnings on soft sales in its architectural coatings and coating intermediates product lines.

Westamerica Bancorp.

(WABC) - Get Report

moved up 1/8 to 28 1/4 after it reported record second-quarter earnings of 54 cents a share, beating the eight-analyst estimate by a penny and up from the year-ago earnings of 48 cents a share.

Back to top

Analyst actions

Lehman Brothers

said it sees some near-term weakening in

RealNetworks

(RNWK) - Get Report

stock. However, Lehman said it remains bullish and said the impact on online ads should be minor. RealNetworks dropped 5 13/16, or 13%, to close at 38 15/16.

Upgrades

Halliburton

(HAL) - Get Report

: UP to buy from market performer at

Donaldson Lufkin & Jenrette

. The stock was up 4 3/4, or 11.3%, to 46 3/4.

New York Times

(NYT) - Get Report

: 2000 earnings estimate UP to $2.10 from $2.04 at DLJ. Despite the good news, it fell 13/16 to 40 1/8.

SDL

(SDLI)

, up 3 1/4 to 196 7/16, after its price target was raised to 350 at

W.R. Hambrecht

.

Stanley Works

(SWK) - Get Report

: UP to buy from hold at

UBS Warbug

. The stock was 1/2 higher to 24 15/16.

Downgrades

Career Education

(CECO) - Get Report

: DOWN to buy from strong buy at

Credit Suisse First Boston

. Career Education was off 1 31/32 to 52 1/32.

Entrust Technologies

(ENTU)

sunk 4 15/16, or 15.5%, to 26 15/16 after its rating was cut DOWN to attractive from buy at

Bear Stearns

.

Gannett

(GCI) - Get Report

: 2000 earnings estimate DOWN to $3.61 from $3.84. 2001 earnings estimate DOWN to $3.85 from $4.25 at DLJ. Gannett fell 1 1/2 to 55 9/16.

HCA

(HCA) - Get Report

, edged down 3/4 to 30 7/8, after it was knocked DOWN to neutral from buy at

SG Cowen

.

Initiations

AmSouth

(ASO)

, was 5/16 lower to 16 7/8, after it was started as a NEW attractive at

PaineWebber

.

Dendreon

(DNDN)

, which rose 2 3/16, or 12.8%, to 19 5/16, after SG Cowen started coverage on the stock as a NEW buy at with a 12-month price target of $26.

Fifth Third

(FITB) - Get Report

: NEW attractive at PaineWebber. It slid down 7/8 to 68 1/16.

GoAmerica

(GOAM)

went up 9/16 to 13 3/8 after it was started as a NEW buy at Chase H&Q with an 18-month price-target of 30.

Internet Gold

(IGLD) - Get Report

edged up 11/16, or 8.5%, to 8 3/4. It was started as a NEW buy at

Deutsche Banc. Alex. Brown

with a price target of 13.20.

Intersil Holding

(ISIL)

: NEW strong buy at Deutsche Banc Alex. Brown. Price target: 63. The stock jumped up 2 1/2, or 5.2%, to 51.

Intuitive Surgical

(ISRG) - Get Report

: NEW buy at Lehman Brothers. 12-month price target: 17. Intuitive Surgical crept up 3/16 to 12 3/4.

Visteon

(VC) - Get Report

: NEW buy at CSFB; price target: 17. It was up 5/16 to 13 5/8.

Xoma

(XOMA) - Get Report

: NEW strong buy at

US Bancorp Piper Jaffray

. Two-year price target: 14. The news gave the stock a jumpstart. It rocketed up nearly 64%, which translates to 2 23/32 to 6 31/32.

Group Moves

Chase H&Q initiated coverage of three biotechnology companies:

  • Biogen (BGEN) : NEW strong buy. It was off 1/16 to 70
  • Chiron (CHIR) - Get Report: NEW market perform. Chiron was down 2 3/4 to 56 3/8
  • Genentech (DNA) : NEW buy. It was 1 9/16 lower to 172 7/8.

J.P. Morgan

initiated coverage of two wireless communications services firms:

  • Sprint PCS Group (PCS) : NEW buy. The phone company was up 1 3/8 to 60 1/2.
  • Nextel Communications (NXTL) : NEW buy. Nextel rose 1 3/4 to 65 7/8.

Morgan Stanley Dean Witter initiated coverage of six high-speed Internet service provider companies:

  • Allied Riser Communications (ARCC) - Get Report: NEW outperform; price target: 21. The stock was up 9/16 to 15.
  • Covad Communications (COVD) ; price target: 45. The stock bounced up 1, or 5.6%, to 18 3/4.
  • Cypress Communications (CYCO) : NEW neutral. The stock was off 5/16, or nearly 5%, to 6 3/16.
  • Network Access Solutions (NASC) : NEW outperform; price target: 15. Network Access Solutions was 1 1/2, or 15.1%, higher to 11 7/16.
  • Northpoint Communications (NPNT) : NEW outperform; price target: 27. The stock was up 1 1/32, or 8.1%, to 13 27/32.
  • Rhythms Netconnections (RTHM) : NEW strong buy; price target: 26. Rhythms Netconnections was up 1 7/8, or 13.2%, to 16 1/16.

PaineWebber initiated coverage of several bank holding companies:

  • Summit Bancorp (SUB) - Get Report: INITIATED neutral. The stock was up 1/16 to 26.
  • Union Planters (UPC) : NEW neutral. It was up 3/16 to 30 1/8.
  • Comerica (CMA) - Get Report: NEW neutral. Comerica slid down 1/16 to 49 3/4.
  • Synovus (SNV) - Get Report: NEW buy. The stock was up 9/16 to 19 3/16.
  • TCF Financial (TCB) : NEW buy. TCF edged up 5/16 to 28 5/8.

Salomon Smith Barney

initiated coverage of four telecommunications equipment companies:

  • Juniper Networks (JNPR) - Get Report: NEW buy; price target: 200. Juniper was up 1 3/16 to 148 3/4.
  • Foundry Networks (FDRY) : NEW buy; price target: 170. Foundry dropped 5 9/16 to 117 1/4.
  • Extreme Networks (EXTR) - Get Report: NEW buy; price target: 150. Extreme jumped 11, or 9.8%, to 123.
  • Alteon WebSystems (ATON) : NEW buy; price target: 150. Alteon rocketed up 30 3/16, or 29.9%, to 131 1/8.
  • Salomon Smith Barney analyst B. Alexander Henderson assumed coverage of Cisco Systems (CSCO) - Get Report, down 1 to 62 1/8, Lucent Technologies (LU) , down 1 5/8 to 54 5/8, and Nortel Networks (NT) , up 1/4 to 71 1/4. Cisco: buy; price target: 100. Lucent: neutral; price target: UP to 65 from 50. Nortel: buy; price target: UP to 110 from 75.

Back to top

Offerings and stock actions

A.O. Smith's

(AOS) - Get Report

board announced an 8% increase in the company's quarterly cash dividend to a rate of 13 cents a share from 12 cents. The new dividend will apply to both common stock and Class A common stock and will be payable August 15 to shareholders of record July 31. The news didn't help the stock much. It was up only 1/16 to 20 9/16.

Entegris

(ENTG) - Get Report

priced its 8.6 million-share IPO at $11 per share, the bottom of the lowered estimated range. The Chaska, Minn.-based company lowered the estimated pricing range last night, to $11 to $13 a share, from $13 to $15 a share. Entegris makes polymer materials that are used in the semiconductor manufacturing process.

Merrill Lynch

was the lead underwriter. The stock rose 3/16 to 11 3/16.

Pharmaceutical company

Syncor International

(SCOR) - Get Report

announced that it has set a two-for-one stock split. Syncor was boosted 7 13/16, or 9.8%, to 87 1/4.

Back to top

Miscellany

Internet giant

America Online

(AOL)

, which finished the day down 3/8 to 55 3/8 initiated services in Mexico, the company's second Latin American launch. AOL is planning an initial public offering of shares in its regional company,

AOL Latin America

.

AstraZeneca

(AZN) - Get Report

said studies show its Atacand medication was more effective in lowering blood pressure than

Merck's

(MRK) - Get Report

Cozaar, when taken in daily doses. AstraZeneca was up 5/8 to 48 1/16, while Merck was off 3/16 to 74 11/16.

ICO-Teledesic Global

, the holding company controlling the satellite assets of Craig McCaw, said it had commitments for about $1 billion in investments from investors including

Microsoft

(MSFT) - Get Report

chairman Bill Gates and private equity firm

Clayton Dubilier & Rice

. Microsoft was down 5/16 to 79 1/8.

Monster.com

, the careers Web site of online advertising and marketing firm

TMP Worldwide

(TMPW)

, down 1 7/16 to 69 5/8, said that it would conduct a competitive review of advertising agencies for its $75-80 million advertising account.

Storage Technology

(STK) - Get Report

, a maker of storage devices for large computer networks, named former

Xerox

(XRX) - Get Report

executive Patrick Martin as president, chief executive and chairman. Storage Technology ended the day down 5/8, or 5.2%, to 11 7/16.

US Airways

(U)

was lifted 1 1/16 to 40 3/4 after it said it will cut fares by 25% for travel during the period from July 21 to December 15.

Back to top

By the Numbers

The data on NYSE and Nasdaq percent winners and losers are filtered to exclude stocks whose previous day's volume was less than 25,000 shares; whose last price was less than 5; and whose net change was less than 1/2.

Dow point gain and loss data are based on New York closing prices and do not reflect late composite trading.

Back to top