, the handheld computer-maker, reported third-quarter earnings, excluding items, of 3 cents a share, ahead of the six-analyst estimate of a profit of a penny a share, and up from the year-ago pro forma 2 cents. Palm, which was formerly a wholly owned subsidiary of



, went public in March. 3Com owns the vast majority of Palm's common stock.

Palm also said it sees fourth-quarter sales of $280 million to $295 million but warned that gross margins should narrow in fiscal 2001 from fiscal 2000, citing component shortages and price reductions. According to


, Palm CFO Judy Bruner said during a conference call that the company scaled down Palm's prices in February to jump-start sales and forecasted that gross margins would hit 35% to 40% over the next several years. Bruner said that demand from mobile-phone makers triggered a shortage of some Palm components, which could extend into the next several quarters.


(T) - Get Report

plans to issue 360 million shares of

AT&T Wireless Group

tracking stock, with the price range running from $26 to $32 a share, which would raise from $9.36 billion to $11.5 billion. The company said it may issue up to an additional 54 million shares if underwriters exercise their over-allotment option in full. The shares to be offered represent 15.6% of AT&T's interest in the AT&T Wireless Group, based on basic shares outstanding. That percentage could increase to 17.5% if the underwriter's over-allotment option is exercised in full. AT&T plans to list the tracking stock on the

New York Stock Exchange

under the ticker symbol AWE.

Goldman Sachs


Merrill Lynch


Salomon Smith Barney

are serving as global coordinators and joint book-running managers for the IPO.

-- Brian Louis

In other postclose news (earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified)


Mergers, acquisitions and joint ventures


New York Power Authority



(ETR) - Get Report

$967 million bid for two New York nuclear plants beat out a $947 million rival offer from

Dominion Resources

TST Recommends

(D) - Get Report

. Entergy said it would pay $636 million for the plants, about $171 million for fuel, $92 million to secure a part of decommissioning costs and $68 million to commit NYPA to future purchases from one of the nuclear facilities.

Carbon dioxide supplier


said it has entered a dispensing agreement with


(KO) - Get Report

. According to the terms, NuCo2 would set up CO2 dispensing systems and services for Coca-Cola fountain customers. Last year, NuCo2 made a pact with

Darden Restaurants

(DRI) - Get Report

to supply its

Red Lobster


Olive Garden

restaurants with the CO2 systems.

Earnings/revenue reports

Armstrong World Indutries


warned investors that it would post first-quarter earnings between 65 cents to 75 cents a share, greatly missing the 11-analyst estimate of 97 cents a share and the year-ago report of a $1.20 profit. The company blamed the shortfall on slow European sales and increasing raw material expenses.

Offerings and stock actions

Merrill Lynch

priced an 11 million-share IPO for



at the top of its expected $10 to $12 price range at $12 a share.



(DIS) - Get Report

ABC Television Network

president Patricia Fili-Krushel stepped down from her post at the company to become the president and CEO of



consumer unit. Healtheon said Fili-Krushel would assume her new position on April 10.

As originally published, this story contained an error. Please see

Corrections and Clarifications.