Midday Movers: 3Com Soaring on Palm's IPO Boost and Tritel Rockets on Merger News - TheStreet

TeleCorp (TLCP) has entered a $5.3 billion stock deal to buy wireless phone company Tritel (TTEL) , The Wall Street Journal reported.

TeleCorp is the biggest affiliate of

AT&T's

(T) - Get Report

wireless division. TeleCorp dropped 10, or 18.5%, to 44 1/16, Tritel tacked on 6 3/16, or 25.8%, to 30 3/16 and AT&T gained 2 to 47.

3Com

(COMS)

subsidiary

Palm

(PALM)

raised the expected price range of its IPO to between $30 and $32 a share from between $14 and $16 a share.

After the offering, its parent, 3Com, will receive 532 million shares and will divest the shares within six months by handing them over to its stockholders. 3Com was up 9 15/16, or 12.6%, to 89.

Elsewhere, three stocks made trading debuts today. (See table below for latest results)

Mergers, acquisitions and joint ventures

Amdocs

(DOX) - Get Report

climbed 7 11/16, or 11.7%, to 73 3/16 after it said it has entered a $1 billion stock deal to buy Canadian customer-service software maker

Solect Technology

. Amdocs will issue 15.5 million shares and options for all of Solect's shares.

Merger partners

America Online

(AOL)

slipped 7/8 to 59 3/4 and

Time Warner

(TWX)

lost 7/16 to 86 1/4 after the

The Wall Street Journal

reported the companies will announce that they will open their cable-TV lines to several Web providers.

According to the

Journal

, the announcement could ease regulators' concerns related to the deal, but could also face criticism on whether it allows for nondiscriminatory access.

Clear Channel

(CCU) - Get Report

dropped 8 3/8, or 11.2%, to 66 3/4 after it agreed to pay $4.4 billion in stock for

SFX Entertainment

(SFX)

, the companies said. The acquisition, which includes $1.1 billion in SFX debt, would close in the third quarter of fiscal 2000. SFX climbed 11/16 to 38 11/16.

DLJdirect

(DIR)

gained 9/16, or 5.9%, to 10 1/8 after it agreed to an Asian Internet venture with

Hutchinson Whampoa

.

MGM Grand

(MGG)

informed

Mirage

(MIR)

that it has obtained financing for its proposed acquisition of Mirage,

The Wall Street Journal

reported. According to the

Journal

, MGM is troubled that

Harrah's

(HET)

could launch an offer to rival its $3.4 billion bid. MGM Grand lost 1/8 to 20 1/16, Mirage slipped 1/16 to 15 7/8 and Harrah's lost 3/16 to 19 1/2.

24-7 Media

(TFSM)

lost 3 1/8, or 6.3%, to 46 3/8 after it said it will acquire

Exactis.com

(XACT)

in a $490 million stock swap. 24-7 Media said it will issue 0.60 shares for each Exactis.com share. Exactis popped 7 7/16, or 39.8%, to 26 1/8.

Veeco Instruments

(VECO) - Get Report

hopped 12 3/4, or 17.2%, to 87 1/16 after it agreed to acquire

CVC

(CVCI)

in a stock deal valued at $380 million. CVC jumped 5 3/8, or 18.5%, to 34 3/8. According to the terms, CVC shareholders would receive 0.43 Veeco share in exchange for each of their CVC shares. The deal values CVC at a 10% premium to Monday's closing price of 29, based on Veeco's closing price of 74 15/16.

Yellow

(YELL)

inched up 1/8 to 16 3/4 after it agreed to pact with

TL Ventures

and

EnerTech Capital Partners

to start a Web site to target suppliers and carriers called

Transportation.com

. James Ritchie, former Ryder Integrated Logistics vice president, has been tapped as the site's president and CEO.

Earnings/revenue reports and previews

(

Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.

)

BJ's Wholesale

(BJ) - Get Report

rose 1 13/16, or 6.3%, to 30 7/16 after it reported fourth-quarter earnings of 63 cents a share, a penny better than the eight-analyst estimate and up from the year-ago 50 cents.

National Discount Brokers

(NDB)

popped 9 5/8, or 31.1%, to 40 3/4 after saying it expects its third-quarter earnings to greatly beat the two-analyst estimate of 8 cents a share.

United Rentals

(URI) - Get Report

slipped 1/4 to 15 5/8 after it reported fourth-quarter earnings of 48 cents a share, a penny better than the nine-analyst estimate and up from the year-ago 33 cents.

Vlasic

(VL)

inched up 1/4, or 8.3% to 3 1/4 after it reported second-quarter loss of 36 cents, in line with the four-analyst estimate but down from the year-ago 26 cents.

Offerings and stock actions

Analyst actions

Lehman Brothers

initiated coverage of

Avanex

(AVNX)

with a buy rating and a price target of 250.

Morgan Stanley Dean Witter

started Avanex at outperform and also set a 250 target, while

U.S. Bancorp Piper Jaffray

started it at strong buy with a target of 240. Avanex's post-IPO quiet period ended yesterday. Avanex jumped 14 7/8, or 7.1%, to 222 7/8.

Deutsche Banc Alex. Brown

raised its rating on

Aether

(AETH)

to buy from market perform. Aether soared 45, or 21.1%, to 258.

Morgan Stanley upgraded

Anheuser-Busch

(BUD) - Get Report

to strong buy from outperform. Anheuser-Busch edged up 2 5/16 to 63 9/16.

U.S. Bancorp Piper Jaffray initiated

Antigenics

(AGEN) - Get Report

at strong buy with a price target of 62. Antigenics leaped 11 1/4, or 27.5%, to 51.

Goldman Sachs

raised

Circuit City

(CC) - Get Report

to the recommended list from market outperformer. Circuit City added 3 11/16, or 10.3%, to 39 1/2.

Goldman started coverage of

Digital Island

(ISLD)

at market outperform. Digital Island mounted 6 5/16, or 5.6%, to 117 11/16.

Deutsche Banc Alex. Brown raised its rating on

Equitable Resources

(EQT) - Get Report

to buy from market perform. Equitable lifted 2 7/16, or 7%, to 37.

Warburg Dillon Read

initiated coverage of

HealthGate Data

(HGAT)

at strong buy with a price target of 21. HealthGate bounced 2 1/2, or 29.8%, to 10 7/8.

Lehman Brothers sliced its rating on

Hershey Foods

(HSY) - Get Report

to outperform from buy. Hershey declined 1 15/16 to 42 3/16.

J.P. Morgan

sliced its rating on

First Tennessee National

(FTN)

to market performer from buy. First Tennessee slid 6 7/16, or 27.3%, to 17 1/16.

Wit Soundview

raised its price target on

Integrated Silicon

(ISSI)

to 35 from 22. Integrated Silicon bounced 1 3/8, or 5.4%, to 26 1/2.

Wit Soundview rolled out coverage of

Juniper Networks

(JNPR) - Get Report

with a strong buy rating and set a price target of 350. Juniper Networks mounted 23 7/16, or 10.1%, to 252 5/16.

Merrill Lynch

raised its fiscal 2000 earnings estimate on

Lehman Brothers

(LEH)

to $8.60 a share from $7.70 and its 2001 estimates to $9.15 a share from $8.65. Lehman tacked on 3 to 70 13/16.

Goldman rolled out coverage of

Mediacom Communications

(MCCC)

, adding it to its recommended list. Mediacom gained 9/16 to 17 1/2.

Credit Suisse First Boston initiated coverage of the following medical device manufacturers:

Johnson & Johnson

(JNJ) - Get Report

with a strong buy. Johnson & Johnson fell 13/16 to 71 15/16;

Abbott Labs

(ABT) - Get Report

with a buy. Abbott Labs lost 1/16 to 33 1/8;

C.R. Bard

(BCR)

with a hold. C.R. Bard edged up 5/16 to 39 9/16;

Becton Dickinson

(BDX) - Get Report

with a hold. Becton Dickinson shed 1/8 to 30 7/8;

Boston Scientific

(BSX) - Get Report

with a hold. Boston Scientific added 1/4 to 18 1/4;

St. Jude

(STJ)

with a hold. St. Jude lifted 1/16 to 24 7/8;

Guidant

(GDT)

with a buy. Guidant stumbled 1/4 to 67 1/8;

Medtronic

(MDT) - Get Report

with a buy. Medtronic skidded 3/8 to 47 5/8.

Merrill Lynch upgraded

Smurfit-Stone Container

(SSCC)

to buy from accumulate. Smurfit-Stone hopped 1 5/16, or 10.4%, to 13 7/8.

Wit Soundview upped its price target

Uniroyal Technology

(UTCI)

to 70 from 55. Uniroyal moved up 6 15/16, or 14.5%, to 54 3/4.

Miscellany

Five of Wall Street's biggest firms --

Merrill Lynch

(MER)

,

Goldman Sachs

(GS) - Get Report

,

Morgan Stanley Dean Witter

(MWD)

,

Edward Jones

and

ABN Amro

-- are calling for a new market system that would have a central display for all stock quotes and one self-regulating group,

The Wall Street Journal

reported. According to the

Journal

, the firms' controversial proposal would give more control to broker-dealers, while lessening the importance of the

New York Stock Exchange

and the

Nasdaq

.

Boeing

(BA) - Get Report

declined 1/4 to 36 3/4 after it said it would begin manufacturing two new long-range versions of its 777 jetliner, with expected delivery on September 2003.

British Telecom

(BTY)

lost 4 9/16 to 175 15/16 after it said it would make its evening Internet access free and cut its subscription charges by 15% in order to compete with other ISPs in Britain.

Philip Morris

(MO) - Get Report

gained 1/16 to 20 1/8 after it said it would give up its fight to block the

Food and Drug Administration

proposals aimed at regulating the tobacco industry, reported in

The Washington Post

.