, 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.
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.
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
$967 million bid for two New York nuclear plants beat out a $947 million rival offer from
. 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
. 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
to supply its
restaurants with the CO2 systems.
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
priced an 11 million-share IPO for
at the top of its expected $10 to $12 price range at $12 a share.
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.
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