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Updated from 7:20 p.m. EST Monday.


While stock markets here were closed in observance of Martin Luther King Jr. Day, traders and investors around the globe were buying stock and reacting to the as-expected news of a mammoth

drug deal.

Meanwhile, today



posted fourth-quarter earnings of 82 cents a share, excluding special items, a penny ahead of the

First Call/Thomson Financial

29-analyst estimate and up sharply from the year-ago 26 cents. Excluding special items, fourth-quarter earnings came in at $514 million, compared to the year-ago $159 million.

As for the aforementioned drug deal,

Glaxo Wellcome



SmithKline Beecham

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made it official: Glaxo is buying SmithKline for $76 billion. The new company will be called

Glaxo SmithKline

, with combined sales of $24.9 billion and a projected 7.3% share of the global pharmaceutical market, the companies said. Glaxo SmithKline will have its corporate headquarters in London with operational headquarters in a new location in the U.S. Glaxo SmithKline expects its shares will be listed on the London and New York stock exchanges.

The companies on Friday confirmed they were in merger talks.

As for foreign markets, from Europe to Asia to North America, stocks enjoyed solid gains.

In Europe, Frankfurt's

Xetra Dax

rose 85.68, or 1.2%, to 7258.90. Elsewhere, London's


gained 11.3, or 0.2%, to 6669.5, while the Paris


surged 55.34, or 1%, to 5842.78.

In Asia, the

Nikkei 225

index soared 480.68, or 2.5%, to 19,437.23. Meanwhile, in Hong Kong, traders were less enthusiastic, with the

Hang Seng

index closing up 32.23 to 15,574.56. For a complete summary of the Monday action in Asia, check out the

Asian Markets Update.

(Stocks sold off in Tuesday's Tokyo session, with the Nikkei down 1.2%. The Hang Seng jumped 1.4%, but indices in Indonesia, Singapore, Korea and Taiwan declined.)

In Toronto on Monday, Canada's

TSE 300

hopped 121.81, or 1.5%, to 8479.27.

In other corporate news today,

Tyco International


said its undersea fiber-optics business is going to design, build and operate its own undersea network. Tyco said that

Tyco Submarine Systems

, a Tyco subsidiary, has already begun the implementation of the first phase of the network's construction. Tyco plans to offer up to 20% of its undersea fiber-optics cable business for sale in an IPO, with plans for the offering by midyear, subject to market conditions. Tyco expects a registration statement will be filed with the

Securities and Exchange Commission

in the first quarter of 2000.


Parker Hannifin

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is buying

Commercial Intertech


for $366 million in cash and stock.


of Germany is buying

Moore Products


for $170 million in cash.

Some investors and analysts think


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should lower its annual growth targets of 7% to 8% in volumes and 15% to 20% for earnings, the Heard on the Street column in

The Wall Street Journal



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plans to unify its fragmented sales and marketing force instead of the separate teams that now sell FDX's




delivery services, the





this weekend, the publication rolled out the first part of its Roundtable feature. Archie MacAllaster, chairman of

MacAllaster Pitfield MacKay

, offered up the following stock picks:




MONY Group



Manulife Financial

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Summit Bancorp

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M&T Bank

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Frontier Oil



Old Republic International

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ReliaStar Financial



Harleysville Group



National City



Partner Re



Elsewhere in the publication,



is the subject of a mostly favorable article.



is also the subject of a piece in


, in which the article said the bank's shares have suffered lately from market uncertainties over its strategic direction.