Midday Movers: IBM, Qwest, OpenTV

IBM and Qwest will deliver e-business services and applications through their new deal.
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IBM

(IBM) - Get Report

and

Qwest Communications

(Q)

set a multiyear pact to deliver e-business services and applications via the creation and deployment of Qwest's Internet data centers. The companies expect more than $5 billion in revenue from the agreement, which will be split almost equally between the two companies. IBM lifted 5 7/8 to 126 1/2, while Qwest Communications gained 2 13/16, or 5.9%, to 49 5/16.

OpenTV

(OPTV)

is buying

Spyglass

(SPYG) - Get Report

in a stock swap valued at $2.5 billion. Under terms of the deal, OpenTV will acquire all of Spyglass' outstanding stock in a tax-free stock swap. Spyglass shareholders will receive 0.7236 OpenTV Series A ordinary share in exchange for each share of Spyglass stock they own. Based on OpenTV's closing price March 24, the deal values Spyglass at $122.28 a share, a whopping premium to Spyglass' closing price Friday of 69 7/8. OpenTV lost 35 7/8, or 21.2%, to 133 11/32, while Spyglass jumped 16 5/8, or 23.8%, to 86 1/2.

Mergers, acquisitions and joint ventures

Ahold

(AHO)

, the Dutch supermarket group, said the

Federal Trade Commission

has approved its takeover of

U.S. Foodservice

(UFS) - Get Report

. Ahold is buying U.S. Foodservice for $3.6 billion. Ahold fell 1 1/8 to 25 1/8, while U.S. Foodservice rose 9/16 to 25 3/4.

DaimlerChrysler

(DCX)

has

agreed to take a 34% stake in Japanese automaker

Mitsubishi Motors

for $2 billion. DaimlerChrysler moved up 3/8 to 67 7/8.

Deutsche Telekom

(DT) - Get Report

has bought a controlling stake in DaimlerChrysler's IT services firm

Debis Systemhaus

. Deutsche Telekom dropped 13/16 to 85 5/8, while DaimlerChrysler edged up 3/8 to 67 7/8.

Home Properties

(HME)

said it is considering strategic alternatives for its affordable housing development unit,

Conifer Realty

, including a public spinoff or a sale of all or part of Conifer. Home Properties ascended 3/16 to 27 1/4.

Spain's

Iberdrola

is in talks to buy

FPL Group

(FPL) - Get Report

, the parent of

Florida Power & Light

, in a transaction valued at up to $11 billion,

The Wall Street Journal

reported, citing people familiar with the matter. FPL Group hopped 3 5/8, or 8.4%, to 46 15/16.

Liberty Media

(LMG.A)

said it will buy a 9% stake in

IDT

(IDTC)

for $130 million. Liberty Media rose 7/8 to 57 3/4, while IDT was up 2 11/16 to 34 5/8.

Monsanto

(MTC) - Get Report

said it will sell its sweetener ingredient business to

JW Childs

for $440 million in cash. Monsanto lifted 3/16 to 47 7/16.

PaineWebber

(PWJ)

is in discussions to buy regional brokerage firm

J.C. Bradford

, which is based in Nashville, the

Journal

reported, citing people familiar with the talks. The

Journal

story said PaineWebber declined to comment, while closely held J.C. Bradford said it doesn't comment on rumors. PaineWebber dropped 2 15/16, or 6.2%, to 44 1/8.

Sigma-Aldrich

(SIAL)

and

Cooper Industries

(CBE)

announced that Cooper will purchase Sigma's B-Line Systems business for $425 million. B-Line Systems manufactures and markets a complete line of metal products. Sigma-Aldrich stayed flat at 23 1/8, while Cooper Industries fell 3/16 to 34 15/16.

Talk.com

(TALK)

is buying privately held

Access One Communications

, a private, local telecommunications service provider to nine states in the Southeast, for $200 million in stock.

Separately, Talk.com said it reached a deal with

Soros Private Equity Partners

to invest $80 million in the company in exchange for 80,000 shares of 7% convertible preferred Talk.com stock, which is convertible into 4.5 million shares of Talk.com's common stock and warrants to acquire 200,000 shares of stock at $17.91 a share. Also, the company said a partner of Soros Private Equity Partners will join the company's board. Talk.com moved up 2 15/16, or 19.3%, to 17 3/8.

Earnings/revenue reports and previews

(

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

)

A.G. Edwards

(AGE) - Get Report

posted fourth-quarter earnings of $1.11 a share, well above the two-analyst estimate of 88 cents and the year-ago 78 cents. A.G. Edwards declined 1 1/2 to 37 3/16.

Calpine

(CPN)

said it expects to beat 2000 earnings-per-share estimates. The current seven-analyst estimate is for $2.26 a share. Calpine lost 3 7/16 to 86 5/16.

Datalink

(DTLK)

said it will modify its earnings in response to the

Securities and Exchange Commission's

revenue policy. The company said it will take an undetermined first-quarter charge due to the accounting change. Datalink dropped 5 1/4, or 18.3%, to 23 1/2.

ESC Medical Systems

(ESCM)

expects to report fourth-quarter sales of about $40 million and operating profit of $1 million. The company also noted that it has settled the longstanding litigation between

Reliant Technologies

and ESC units

Laser Industries

and

Sharplan Lasers

. ESC Medical Systems advanced 11/16, or 5.3%, to 13 11/16.

Finova

(FNV) - Get Report

is taking a special charge of $80 million to bolster loss reserves and provide payment of deferred compensation and executive severance. The additional loss reserves will be used to cover write-offs in the first quarter related to a $70 million loss on a major customer of Finova's Distribution & Channel Finance unit. The remainder of the charge will be used to provide payment of deferred compensation and severance to Samuel L. Eichenfield, chairman, president and CEO, who, it was announced this morning, is taking an early retirement for health and personal reasons. Finova said that excluding the charge, the company expects to meet Wall Street's expectations for the first quarter. The company also said it's "comfortable" with meeting consensus earnings estimates for the rest of the quarters of the year. Finova fell 10 13/16, or 33.9%, to 21 1/8.

Red Hat

(RHAT)

posted a fourth-quarter loss of 4 cents a share, a penny narrower than the four-analyst estimate, but wider than the year-ago loss of 3 cents a share. Red Hat fell 3 3/4, or 6.2%, to 56 3/4.

Walgreen

(WAG)

posted second-quarter earnings of 23 cents a share, a penny shy of the 17-analyst estimate, but up from the year-ago 20 cents. Walgreen declined 1 3/4, or 6.3%, to 26 1/4.

Waste Management

(WMI)

posted fourth-quarter pro forma net income of 32 cents a share, 2 cents shy of the eight-analyst estimate. Waste Management expects proceeds of $3 billion from the sale of international and nonstrategic or underperforming assets, the majority of which is expected during the second and third quarters of this year. The company plans to use $2 billion of these expected proceeds to pay down debt. Waste Management anticipates posting revenue in the range of $3 billion to $3.1 billion in the first quarter. Waste Management edged up 1/2 to 14 1/16.

Offerings and stock actions

Fairchild

edged up 5 /16, or 5.3%, to 6 1/8 after it said it will spin off to its shareholders the shares of its Bermuda unit and then exchange about 95% of the unit for 100% of

Global Sources

, an Asia-based B2B online and traditional marketplace provider.

Philips Electronics

(PHG) - Get Report

popped 4 1/4 to 184 5/16 after it said it sold 20% of its holding in U.S. fiber-optics firm

JDS Uniphase

(JDSU)

. Philips said its first-quarter results would include a $509.7 million after-tax gain from the sale. JDS Uniphase bounced 1/2 to 133.

Analyst actions

Angiotech Pharma

(ANPI)

: NEW buy at

Deutsche Banc Alex. Brown

; 12-month price target: 70. The stock advanced 1 9/16 to 54 9/16.

Avenue A

(AVEA)

: NEW buy at

Salomon Smith Barney

; 12-month price target: 80. Avenue A lost 2 13/16 to 51 7/8.

Carbo Ceramics

(CRBO)

: NEW buy at

Lehman Brothers

; 12-month price target: 37-38. Carbo Ceramics added 1 1/8 to 28 1/2.

Cigna

(CI) - Get Report

: NEW buy at

Bear Stearns

; 12-month price target: 95. Cigna declined 7/16 to 75 13/16.

Donaldson Lufkin & Jenrette

(DLJ)

: DOWN to neutral from outperform at Morgan Stanley Dean Witter. Donaldson Lufkin & Jenrette fell 8 3/8, or 12.4%, to 58 15/16.

Eastman Chemical

(EMN) - Get Report

: UP to buy from accumulate at

Merrill Lynch

. Eastman Chemical lifted 1 1/4 to 44 1/8.

IBM

(IBM) - Get Report

: UP to outperform from neutral at

Morgan Stanley Dean Witter

. IBM moved up 5 7/16 to 126 5/16.

Intel

(INTC) - Get Report

: NEW attractive at PaineWebber; 12-month price target: 170. Intel hopped 2 5/8 to 141 5/8.

MatrixOne

(MONE)

: INITIATED market outperform at

Goldman Sachs

. MatrixOne slumped 3 9/16, or 6.4%, to 51 7/8.

Nike

(NKE) - Get Report

: UP to strong buy from buy at

Banc of America Securities

; price target: 46. Nike gained 1 3/4, or 5.1%, to 35 5/8.

Niku

(NIKU)

: INITIATED recommended list at Goldman Sachs. Niku bounced 5 1/2, or 8.4%, to 71.

Onvia.com

(ONVI)

: NEW strong buy at

Credit Suisse First Boston

. Onvia.com gained 1 13/16, or 5.8%, to 33.

Palm

(PALM)

: INITIATED at

Merrill Lynch

with an intermediate-term accumulate and long-term buy rating; 12- to 18-month price target: 65. Merrill noted that Palm's stock price will be linked to

3Com's

(COMS)

through August and "arbitrage between the two stocks could push Palm lower, 3Com higher, or both." Palm is majority-owned by 3Com. Palm slipped 1/2 to 56 1/2, and 3Com jumped 2 1/8 to 69 1/16.

Powerwave Technologies

(PWAV)

: Price target UP to 190 from 97 at

Warburg Dillon Read

. Powerwave Technologies stumbled 5 7/16 to 153 1/4.

Rare Medium

(RRRR)

: INITIATED strong buy at CSFB; 12-month price target: 80. Rare Medium climbed 8 3/4, or 17.5%, to 58 3/4.

Tiffany

(TIF) - Get Report

: 2001 earnings estimate UP to $2.33 a share from $2.30; 2002 earnings estimate UP to $2.80 a share from $2.75 at Goldman Sachs. Tiffany advanced 1 1/4 to 79 1/4.

Viacom

(VIA) - Get Report

: earnings estimates DOWN at

Thomas Weisel Partners

. Viacom declined 13/16 to 57 9/16.

TD Waterhouse Group

(TWE)

: UP to strong buy from neutral at Morgan Stanley Dean Witter. TD Waterhouse Group gained 2 5/16, or 10.1%, to 25 1/4.

Miscellany

Cisco

(CSCO) - Get Report

launched an office telephone system based on Web technology. Cisco added 1 7/16 to 80 7/8.

Colgate-Palmolive

(CL) - Get Report

was unchanged after it named COO Lois D. Juliber responsible for operations in Europe, Latin America, Asia, the South Pacific, Central Europe and Africa. In other company personnel news, it promoted Javier G. Teruel, to the newly created position of chief growth officer; Ian M. Cook was promoted to executive vice president, where he will continue as president of Colgate North America and have additional responsibility for Colgate Oral Pharmaceuticals, the company's professional oral care business; and Michael J. Tangney was promoted to executive vice president, where he will continue as president of Colgate Latin America, the company's largest division in terms of sales and profits.

Microsoft

(MSFT) - Get Report

has made a proposal to the government to settle the antitrust case against it, which makes several major concessions, the

Journal

reported. The newspaper said that while some government officials said the offer from Microsoft doesn't go far enough, others said it signaled that the software titan is serious about reaching a settlement. The

Journal

reported that under the Microsoft proposal, software and PC makers would be permitted to modify the source code underlying Windows to add rival products and that Microsoft would also offer a version of Windows without its own Internet software. Microsoft skidded 4 13/16 to 106 7/8.

NBC Internet

(NBCI)

bounced 3 1/4, or 7.2%, to 47 7/8 after it said William J. Lansing, former chairman and CEO of

Fingerhut

, and a former senior exec at

General Electric

(GE) - Get Report

, has been named CEO, succeeding Chris Kitze, who has been appointed vice chairman. General Electric slipped 2 9/16 to 156 7/8.

US Airways

(U) - Get Report

and its flight attendants union reached a tentative deal on a new contract this morning. The pact is still subject to ratification by the union membership. US Airways climbed 3, or 13.4%, to 25 3/8.

The Heard on the Street column in the

Journal

said quick moves by individual investors have helped power the current stretch of the nearly 10-year-old bull market run. Participation by individual investors has also contributed to the by-now familiar lurches in stock prices and soaring valuations of technology stocks, according to the report. The change comes after years in which the stock market has largely been dominated by big institutions, usually leaving small investors with the leftovers, the report said.