Midday Movers: Research in Motion Motoring Higher and Conexant Flopping After Downgrade
Research in Motion (RIMM) jumped 11 15/16, or 8.6%, to 150 7/8 after it said it struck a supply deal with America Online (AOL) and Compaq (CPQ) for its interactive pagers. America Online, which announced other deals today as well, was gaining 1 to 60 5/8, while Compaq, which said it has cut prices on its DeskPro PCs by up to 16%, fell 3/4 to 25 1/4.
Separately,
Nokia
and America Online said AOL's
Instant Messenger
will be offered on Nokia mobile phones. Nokia dropped 4 7/8 to 200.
For more on today's wave of
wireless deals that hit the market today, check out the coverage from
TheStreet.com/NYTimes.com's
joint newsroom.
Online auctioneering giant
eBay
could make a $1.6 billion bid to acquire
Sotheby's
TheStreet Recommends
, London's
Independent on Sunday
reported. Citing unnamed industry sources, the newspaper reported that five-year-old eBay was said to be interested in buying 256-year-old Sotheby's. The
U.S. Justice Department
has been investigating price-fixing allegations involving Sotheby's and rival
Christie's
. Also, the two auction houses face dozens of civil lawsuits accusing them of collusion.Last week, two key execs at Sotheby's resigned. Today, eBay was down 4 5/16 to 146 3/4 while Sotheby's inched up 7/8 to 20 3/8.
Mergers, acquisitions and joint ventures
Dexter
(DEX) - Get Delaware Enhanced Global Dividend & Income Fund Report
rose 4 11/16, or 12.5%, to 42 1/8 after it said it had decided to explore strategic alternatives and would allow suitors to look at confidential data. Dexter is the target of a $930 million unsolicited bid from
International Specialty Products
(ISP)
.
Ericsson
(ERICY)
,
Volvo
(VOLVY)
and telecom operator
Telia
said they are forming a joint firm, called
WirelessCar
, to deliver mobile Web services to the automotive industry. Ericsson lost 2 to 95 5/8 while Volvo was unchanged at 23 1/2.
Getty Images
(GETY)
gained 11/16 to 50 1/16 after it said it agreed to buy its competitor, Visual Communications, from Britain-based
United News & Media
in a cash deal valued at $220 million. Getty said that the purchase would bring its collection to a total of more than 70 million images and 27,000 hours of footage.
Qualcomm
(QCOM) - Get Qualcomm Inc Report
rose 3 1/2 to 137 1/4 and
Microsoft
(MSFT) - Get Microsoft Corporation Report
moved down 2 15/16 to 88 3/8 after the companies said they formed a wireless multimedia device pact.
Separately, Microsoft and
Software AG
said they would team up to link the Windows operating system to non-Windows systems.
NiSource
(NI) - Get NiSource Inc Report
is buying
Columbia Energy
(CG) - Get Carlyle Group Inc Report
for $6 billion. NiSource will also assume $2.5 billion in Columbia debt. Upon completion of the deal, Columbia and NiSource will become wholly owned divisions of a new holding company.
Under the terms of the deal, Columbia shareholders may receive $70 a share in cash for each share of Columbia they own, plus $2.60 in a zero coupon debt security with a forward equity contract, called SAILS. Columbia shareholders also have the option to receive, in lieu of cash and SAILS, new holding company stock for up to 30% of outstanding Columbia shares.
Under the common stock option, each Columbia share will be exchanged for $74 a share in new holding company stock, subject to a collar. If the average NiSource share price during the 30 days preceding the closing of the deal is greater than $16.50, Columbia shareholders will receive shares of new holding company stock valued at $74 for each Columbia share.
However, if the average NiSource share price during the 30 days prior to closing of the transaction is $16.50 or below, Columbia shareholders will receive 4.4848 shares of new holding company stock for each Columbia share. NiSource fell 1 15/16, or 12.5%, to 13 5/8 while Columbia Energy gained 2 9/16 to 59 5/8.
For more on this
story, check out the coverage from
TheStreet.com/NYTimes.com's
joint newsroom.
.
NetIQ
(NTIQ)
lost 4 5/8, or 6.3%, to 68 7/8 and
Mission Critical
(MCSW)
rose 1/2 to 62 3/4 after the companies said they will merge in a stock swap. Mission Critical shareholders will get 0.9413 shares of NetIQ per share.
For more on the
merger, check out the coverage from
TheStreet.com/NYTimes.com's
joint newsroom.
Oracle
(ORCL) - Get Oracle Corporation Report
announced a "second major industry exchange."
Last week,
General Motors
(GM) - Get General Motors Company Report
,
Ford
(F) - Get Ford Motor Company Report
and
DaimlerChrysler
(DCX)
said they planned to combine their online buying efforts for suppliers in a single Net portal. Ford and GM said as part of their combo, Ford would swap half of its stake in Oracle's
Oracle Exchange
unit for half of GM's stake in
Commerce One
(CMRC)
.
Salomon Smith Barney
raised its price target on Oracle to 85 from 50.
Separately,
Sears
(S) - Get SentinelOne, Inc. Class A Report
, Oracle and
Carrefour
said they have entered an online procurement deal. Oracle lost 1 1/8 to 69 7/16, Ford lost 1/4 to 42 11/16, GM gained 13/16 and Commerce One climbed 6 31/32 to 220 1/32.
Britain's
PowerGen
(PWG)
lost 1 to 27 1/2 after it agreed to acquire Kentucky-based
LG&E Energy
(LGE)
for $3.2 billion. PowerGen is offering $24.85 a share and expects the deal to be complete by early 2001.LG&E lifted 6 1/8, or 38.9%, to 21 7/8.
Quintus
(QNTS)
shed 9 1/4, or 19.2%, to 39 after it said it is acquiring
Mustang.com
(MSTG)
in a stock swap valued at $290 million. Mustang.com moved up 1 15/16, or 7.5%, to 27 15/16.
3Com
(COMS)
lost 1 1/4 to 79 7/16 after it and
Samsung
said they will offer high-speed wireless networks
. Lehman Brothers
raised its rating on 3Com to outperform from neutral.
Earnings/revenue reports and previews
(
Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified.
)
DaimlerChrysler
(DCX)
gained 1 1/4 to 64 3/4 after it posted fourth-quarter operating profit of $2.4 billion. Adjusted for onetime effects, the company's operating profit was $2.7 billion. Fourth-quarter net income came in at $1.1 billion and on an adjusted basis $1.6 billion. Fourth-quarter revenues totaled $41.7 billion.
Offerings and stock actions
Clorox
(CLX) - Get Clorox Company Report
climbed 1 1/2 to 38 13/16 after it said it will repurchase up to 2 million shares during the fiscal year ended June.
EchoStar Communications
(DISH) - Get DISH Network Corporation Class A Report
rose 4 3/16 to 113 11/16 after it approved a 2-for-1 stock split.
Analyst actions
Credit Suisse First Boston
initiated coverage of
Alamosa PCS
(APCS)
with a buy rating. Alamosa PCS declined 3/16 to 28 13/16.
Merrill Lynch
raised
Alstom
(ALS)
to near-term accumulate from neutral. Alstom added 1/4 to 22 5/8.
Morgan Stanley Dean Witter
lifted
American International Group
(AIG) - Get American International Group, Inc. Report
to strong buy from outperform. American International Group bounced 3 11/16 to 87 5/16.
PaineWebber
upped its fiscal 2000 earnings estimates on
Anheuser-Busch
(BUD) - Get Anheuser-Busch InBev SA/NV Report
to $3.30 a share from $3.26 and raised its fiscal 2001 estimates $3.68 a share from $3.64. Anheuser-Busch lifted 15/16 to 60 15/16.
SG Cowen
cut
Conexant
(CNXT) - Get VanEck Vectors ChinaAMC SME-ChiNext ETF Report
to buy from strong buy. Conexant plummeted 18, or 16.3%, to 96.
PaineWebber started coverage of
Digital Lightwave
(DIGL)
as attractive. Digital Lightwave shed 2 1/2 to 87 1/4.
Merrill Lynch initiated coverage of
Dobson Communications
(DCEL)
with an intermediate-term accumulate rating and a long-term buy rating. Dobson Communications tacked on 7/16 to 22 1/8.
ING Barings
started
Hispanic Broadcasting
(HBCCA)
as a buy. Hispanic Broadcasting advanced 2 3/16 to 88 7/16.
Merrill Lynch upped its long-term rating on
ICG
(ICGX)
to buy from accumulate and raised its price target to 42 from 35. ICG stumbled 2 1/16, or 6.6%, to 28 7/8.
CSFB upgraded
Informatica
(INFA)
to strong buy from buy. Informatica jumped 15 3/16, or 10.5%, to 159 3/16.
CSFB reinstated coverage of
King Pharmaceuticals
(KING)
with a buy rating. King Pharmaceuticals declined 1/2 to 50 1/4.
Morgan Stanley upgraded
MBNA
(KRB)
to strong buy from outperform. MBNA edged up 13/16 to 22 3/16.
J.P. Morgan
started coverage of
Maxim Pharmaceuticals
(MMP) - Get Magellan Midstream Partners, L.P. Report
at a buy. Maxim Pharmaceuticals slipped 2 to 70 1/2.
Banc of America
raised its rating on
Pacific Sunwear of California
(PSUN)
to strong buy from buy and set a price target of 37. Pacific Sunwear mounted 2 1/16, or 9.4%, to 23 15/16.
Lehman Brothers
started
Quantum Effect
(QEDI)
at outperform and set a price target of 150. Quantum Effect skidded 12 3/16, or 11.3%, to 95 1/16.
Merrill cut
Sara Lee
(SLE)
to near-term accumulate from buy. Sara Lee moved up 3/16 to 15 1/16.
Bear Stearns
raised
Schering-Plough
(SGP)
to buy from neutral. Schering-Plough declined 15/16 to 34 1/16.
Morgan Stanley raised
Charles Schwab
(SCH)
to outperform from neutral and set a price target of 49. Charles Schwab added 3/8 to 38 1/4.
CSFB initiated coverage of
SkillSoft
(SKIL)
with a strong buy rating. SkillSoft gained 1 3/8, or 8.8%, to 17.
CSFB initiated coverage of
Telaxis Communications
(TLXS)
with a buy rating. Telaxis Communications shed 1 11/16 to 74 1/8.
Goldman Sachs
initiated coverage of
Turnstone Systems
(TSTN)
with a market outperform rating. Turnstone Systems bounced 4 1/2 to 165.
Salomon Smith Barney
upped its price target on
Williams Communications Group
(WCG) - Get WellCare Health Plans, Inc. Report
to 70 from 46. Williams Communications advanced 2 7/16, or 6.2%, to 41 1/2.
Miscellany
In an unexpected announcement,
Citigroup
(C) - Get Citigroup Inc. Report
said that
John Reed
, chairman and co-CEO of the financial services powerhouse, has told the board he is retiring effective at the company's annual shareholders meeting on April 18th.
Sandy Weill
will become chairman and sole CEO of Citigroup, effective at the meeting. Also, Weill has told the board, regarding his plans for retirement, that he intends to work with a committee of the board on a plan of succession, with the goal of coming up with a successor within two years. Citigroup mounted 2 1/8 to 50 1/8.
For more on this
story, check out the coverage from the
TheStreet.com/NYTimes.com's
joint newsroom.
Conseco
(CNC) - Get Centene Corporation Report
fell 3/16 to 14 7/16 after it named Thomas Kilian president and COO.
Excite@Home
(ATHM) - Get Autohome Inc. Report
and
Dow Jones
(DJ)
named Don Hutchinson as CEO of Work.com. Excite@Home slipped 1/2 to 33 7/16, while Dow Jones slid 1/16 to 58 1/16.
Journal Register
(JRC)
rose 1/8 to 12 after it said it is selling its Illinois, Missouri and Ohio newspaper assets.
Midwest Express Airlines'
pilots ratified a five-year contract with the airline, which is based in Milwaukee. The airline is a unit of
Midwest Express Holdings
(MEH)
. Midwest Express was unchanged at 24 1/16.
The
Securities and Exchange Commission
has notified 52 companies audited by
PriceWaterhouseCoopers
that conflicts of interest involving firm employees' personal investments in the companies could affect the integrity of their financial statements
The Wall Street Journal
reported, citing people at the auditing firm. The list of companies notified included
Lucent Technologies
(LU)
and Compaq. Compaq announced last week it was switching auditors. Lucent fell 1 11/16 to 57 9/16.
The Heard on the Street column in the
Journal
says a top rule-making panel at the
Financial Accounting Standards Board
is considering whether the rules should be changed to restrict Internet businesses from including the entire value of product sales or services they arrange between suppliers and buyers online in their revenue figures. For many dot-com companies, such revenue is an important part of their financial health at a time when they have no profits to show, according to the story.
