GM Approves Spinoff of Parts Division

Plus, IBM to expand telecommunications services; broadcast.com, Enron report results.
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General Motors'

(GM) - Get Report

board approved the tax-free spinoff of its parts division,

Delphi Automotive Systems

(DPH)

. Following the spinoff -- to be completed May 28 -- GM will maintain its quarterly dividend of 50 cents a share. GM also announced plans to invest more than $400 million in its Arlington, Texas, truck assembly plant to build new models of full-size trucks, creating 500 new jobs.

IBM

(IBM) - Get Report

said it will unveil details Tuesday of a separate business unit to expand its sales to the fast-growing market for telecommunications services delivered by the Internet. The new business will be an arm of IBM's Global Industries group.

In other postclose news (earnings estimates from

First Call

; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

broadcast.com

(BCST)

posted a first-quarter loss of 9 cents a share, 3 cents narrower than the five-analyst estimate and a repeat of the year-ago loss.

CellStar

(CLST)

restated first-quarter results to 26 cents a share to adjust the timing of revenue recognition. The company initially reported 27 cents.

Enron Oil & Gas

(EOG) - Get Report

posted first-quarter net earnings of 3 cents a share, including a 12-cent gain. The 15-analyst view called for an operating loss of 5 cents vs. the year-ago profit of 17 cents.

Harley Davidson

(HDI)

reported first-quarter earnings of 38 cents a share, 2 cents above the 14-analyst outlook and higher than the year-ago 29 cents.

Kinder Morgan Energy

(ENP)

reported first-quarter earnings of 57 cents a share, topping the nine-analyst prediction by 2 cents and moving ahead of the year-ago 52 cents.

Rare Hospitality

(RARE) - Get Report

said it sees first-quarter earnings of 33 cents to 34 cents a share, excluding items. The six-analyst outlook called for 29 cents vs. the year-ago 22 cents. The company said its

LongHorn Steakhouse

unit provided most of the growth, with a 5.2% increase in same-store sales for the quarter.

Rent-A-Center

(RCII) - Get Report

expects first-quarter earnings coming 20% higher than the eight-analyst forecast for 28 cents a share, reflecting its acquisition of

Thorn Americas

. The company earned 31 cents in the year-ago period.

UnitedAuto Group

(UAG) - Get Report

said

Penske Capital Partners

agreed to invest $83 million in the company in exchange for a possible 38% equity stake. After the first $33.5 million installment, Roger Penske will succeed UAG's founder, Marshall Cogan, as chairman and CEO.

ValueVision

(VVTV)

said it will record a first-quarter gain of $10 million related to the sale of three TV stations to

Paxson Communications

(PAX)

.

Versant

(VSNT)

warned of a first-quarter loss of 14 cents to 17 cents a share, including restructuring charges. The three-analyst view calls for an operating loss of 20 cents. The company lost 65 cents in the year-ago period.

VocalTec Communications

(VOCLF)

said it expects to post a first-quarter loss of 85 cents to 87 cents a share, which would be wider than the six-analyst estimate of a 43-cent loss. The software maker, which blamed lower sales and higher operating costs, lost 23 cents in the year-earlier period.

Mergers, acquisitions and joint ventures

Hewlett-Packard

(HWP)

selected

Tech Data

(TECD) - Get Report

as the exclusive distributor and logistics provider of the HP Mopier network copier product line. Terms of the deal were not disclosed.

Rohm and Haas

(ROH)

said it reached a tentative agreement with the

Federal Trade Commission

calling for the company to sell off its worldwide floor care polymers business so that it could proceed with its acquisition of

Morton

(MII)

.

Offerings and stock actions

Kushner-Locke

(KLOC)

said its majority-owned subsidiary,

US Search Corp.com

, filed with regulators for an IPO. US Search is a research service for a broad range of public-record information about individuals.

Merrill Lynch

priced

MIH's

(MIHL:Nasdaq) 9.1-million-share IPO top range at $18 a share. MIH is a multinational provider of pay-TV services and technology based in the British Virgin Islands.

Miscellany

America West Holdings

(AWA)

said its chairman, William Franke, will reassume duties of president and chief executive of its subsidiary,

America West Airlines

.