IBM (IBM) - Get Report climbed 1 7/16 to 104 7/16 after it said agreed to an Internet B2B commerce pact with i2 (ITWO) and Ariba (ARBA) . The deal, which will help firms launch B2B marketplaces, calls for IBM to make minority investments in i2 and Ariba. i2 shot up 14 5/8, or 8.6%, to 184 and Ariba bounced 9 5/8 to 334 1/8.

Separately,

J.P. Morgan

started coverage of Ariba with a buy rating.

Payless Shoesource

(PSS)

jumped 7 3/8, or 17.6%, to 49 1/8 after it said it would self-tender up to 25% of its 29.6 million outstanding shares. Payless said it would buy 7.5 million shares through the offering, which has a set price range between $48 and $53 a share. Separately, Payless said it upped its fiscal 2000 growth estimate to 20% from 15%.

Mergers, acquisitions and joint ventures

APEX

(APEX) - Get Report

added 2 3/8, or 6.6%, to 38 3/8 after it said it has agreed to a merger with

Cybex Computer

(CBXC)

. APEX said its shareholders would own 55% of the newly formed company. The deal would be accretive to earnings before extraordinary items within a year. APEX said it has tapped Stephen Thorton as chairman, president and CEO of the merged company. Cybex fell 6, or 14.4%, to 38.

CNA

(CNA) - Get Report

shed 1/8 to 25 after it said it is contemplating a possible sale of its individual life insurance and life reinsurance divisions. The insurer said it has brought

Donaldson Lufkin & Jenrette

on board to explore the possible sale.

DaimlerChrysler

(DCX)

and

Mitsubishi

are negotiating a possible deal that could form the world's third-biggest carmaker,

The Wall Street Journal

reported. Sources told the

Journal

that the pact is not certain. DaimlerChrysler gained 1 5/8 to 61 5/8.

Deutsche Bank

and

Dresdner Bank

are moving closer to a $29.74 billion merger,

The Wall Street Journal

reported. According to the paper, the potential merger would create a financial services operation with over $1.2 trillion in assets.

Internet Capital Group

(ICGE)

sank 6 5/8 to 134 9/16 after it said it would pay $22 million in cash and $635 million in stock for a majority stake in

Rightworks

. J.P. Morgan initiated coverage of the stock with a buy rating.

Jackpot Enterprises

(J)

hopped 4 3/4, or 33.6%, to 18 7/8 after it said it would examine alternatives for its traditional gaming business. The company said it would create a $100 million Internet fund and take a 35% interest in

Digital Boardwalk

.

Occidental Petroleum

(OXY) - Get Report

edged up 3/8 to 17 15/16 after it said it has entered a $3.6 billion deal to acquire

Altura Energy

from

BP Amoco

(BPA)

and

Shell

. Occidental said the purchase would add 50 cents a share to its fiscal 2000 earnings. BP Amoco lifted 2 to 52 11/16.

Pinnacle

(PNK) - Get Report

gained 1 5/8, or 8.4%, to 20 7/8 after it said

Harveys Casino Resorts

has launched a $625 million offer for Pinnacle. According to the terms, Harveys would pay $25 a share for Pinnacle, which owns eight casinos in Nevada, Mississippi, Louisiana and Argentina.

PNC Bank

(PNC) - Get Report

and

Perot Systems

(PER) - Get Report

said they have entered a venture to create a B2B digital marketplace for billing called

Billingzone

. PNC advanced 5/16 to 37 and Perot Systems mounted 1 1/16 to 22 1/16.

Offerings and stock actions

Lehman Brothers

priced a 10 million-share IPO for

FirstWorld Communications

(FWIS)

at $17 each, the top of the estimated 15-17 range. The company provides network-based Internet, data and communications services. FirstWorld Communications advanced 6 13/16, or 40%, to 23 13/16.

Be Free

(BFRE)

fell 8 3/4, or 9%, to 88 1/4 after it said it filed for a 4.5 million-share secondary offering.

Mechanical Technology

(MKTY)

advanced 3 1/2, or 5.3%, to 69 1/4 after it set a 3-for-1 stock split.

M-Systems

(FLSH)

popped 2 7/8 to 73 1/2 after it said it priced a 2.45 million-share secondary offering at $68.25 a share.

Analyst actions

Donaldson Lufkin & Jenrette

cut its rating for the oilfield services group to market perform from outperform. The company slashed the rating of

Cooper Cameron

(CAM)

,

Halliburton

(HAL) - Get Report

,

Santa Fe International

(SDC) - Get Report

and

Transocean

(RIG) - Get Report

.

Cooper Cameron slipped 3 1/4 to 66; Haliburton skidded 3 1/8, or 7%, to 41 3/8; while Santa Fe stumbled 3 7/16, or 9.4%, to 33 1/16. Transocean lost 5 1/8, or 10.4%, to 44 3/16.

Banc of America

initiated coverage of

Abiomed

(ABMD) - Get Report

with a buy rating and a price target of 90. Abiomed slid 4 1/2, or 7%, to 59 3/4.

DLJ upgraded

Avery Dennison

(AVY) - Get Report

to buy from market perform. Avery Dennison tacked on 1/16 to 55 3/8.

Jefferies

downgraded

Comverse

(CMVT)

to accumulate from buy.

Lehman Brothers

, though, upped the stock's price target to 280 from 240. Comverse bounced 3 1/8 to 225 1/4.

Credit Suisse First Boston

cut its rating on

Baker Hughes

(BHI)

to buy from strong buy. Baker Hughes lost 2 1/8, or 7.3%, to 26 15/16.

PaineWebber

raised its rating on

Bristol-Myers Squibb

(BMY) - Get Report

to buy from attractive. Bristol-Myers Squibb advanced 3 7/16, or 7.9%, to 46 15/16.

Merrill Lynch started coverage of

Dreyer's Grand Ice Cream

(DRYR)

with an intermediate, long-term accumulate rating. Dreyer's Grand Ice Cream fell 3/4 to 19.

CSFB raised

iGate Capital's

(IGTE)

12-month target price to 75. iGate stumbled 1 1/8 to 63 1/16.

J.P. Morgan launched coverage of

Internet Capital Group

(ICGE)

with a buy. Internet Capital Group stumbled 3 3/16 to 138.

Deutsche Banc Alex. Brown

launched coverage of

Lante

(LNTE)

as a buy with a 90 price target. Lante sank 7 1/4, or 9.6%, to 67 3/4.

Wit Soundview

initiated coverage of

Kana Communications

(KANA)

with a buy rating and set a price target of 200. Kana Communications hopped 8, or 5.8%, to 144 3/8.

Merrill Lynch rolled out coverage of

Metricom

(MCOM)

with an intermediate-term accumulate, long-term buy rating. Metricom shot up 5 3/8, or 7.5%, to 76 7/8.

Warburg Dillon Read

initiated coverage of

Medtronic

(MDT) - Get Report

as a buy. Medtronic slipped 3/8 to 49 1/8.

Microsoft

(MSFT) - Get Report

could have a chance to settle the antitrust case brought against it by the

Justice Department

,

Chase H&Q

software analyst Walter Winnitzki said following a briefing by Microsoft's new CFO, John Connors.

Winnitzki told

Reuters

, "There was a feeling there was a near-term opportunity to have this settled, some language being given that they wouldn't have any change in culture or structure." Donaldson Lufkin & Jenrette stamped the stock with a buy with a 118 price target. Microsoft lifted 1 7/8 to 94 11/16.

DLJ upgraded

Quaker Oats

(OAT)

to buy from market perform. Quaker Oats added 1 1/8 to 48 9/16.

Merrill Lynch raised its intermediate, long-term rating on

Rowan

(RDC)

to buy from accumulate. Rowan slipped 2 1/4, or 7.8%, to 26 7/16.

J.P. Morgan reinitiated coverage of

Safeguard Scientifics

(SFE) - Get Report

as a buy with a 378 price target. Safeguard advanced 5 5/8 to 194 5/8.

CSFB initiated coverage of

Skillsoft

(SKIL)

with a strong buy and a 12-month price target of 34. Skillsoft tacked on 1 5/8, or 6.8%, to 25 1/2.

Warburg Dillon Read upgraded

UPS

(UPS) - Get Report

to strong buy from buy.

Goldman Sachs

upgraded the stock to market outperform from market perform. UPS bounced 1 7/8 to 52 1/2.

Morgan Stanley Dean Witter

sliced its rating on

Unilever

(UL) - Get Report

to outperform from strong buy. Unilever edged up 3/8 to 22 9/16.

SG Cowen

upgraded

VeriSign

(VRSN) - Get Report

to strong buy from buy. VeriSign plummeted 8 1/2 to 191 1/4.

CSFB reinstated coverage of

Whittman-Hart

(WHIT)

as a strong buy with a 12-month price target of 100. Whittman-Hart added 2 9/16, or 5.3%, to 50 1/4.

Miscellany

Intel

(INTC) - Get Report

skidded 2 1/8 to 113 9/16 after it said that it developed a 1-gigahertz computer chip.

Advanced Micro Devices

(AMD) - Get Report

beat Intel to the punch on Monday when it announced its own 1-gigahertz chip. Advanced Micro Devices slipped 2 1/8 to 52 7/8.

General Electric's

(GE) - Get Report

broadcast television unit

NBC

is dropping out of the

National Association of Broadcasters

because the group hasn't fought to ease rules on TV station ownership,

The Wall Street Journal

reported. GE mounted 1 to 130 15/16.