Morgan Stanley Dean Witter
priced a 109.4 million-share initial public offering for
United Parcel Service
above its expected $47-to-$49 price range at $50, making it the largest IPO ever. Through its offering, the package delivery service will raise $5.5 billion, with 10% of the company now up for grabs. According to
First Call/Thomson Financial
, UPS stole the IPO heavyweight title away from
, which brought in $4.4 billion internationally and over $3.9 billion domestically through its IPO in October 1998. As a delivery service, UPS could serve as a major player in the e-commerce explosion, making it even more appealing to investors. UPS is set to begin trading tomorrow on the
New York Stock Exchange
. TheStreet.com/nytimes joint newsroom previewed UPS' initial public offering plans in
a story this morning.
Compaq Net Announcement Drawing Attention
Things have been relatively quiet at
ever since CEO Michael Capellas took over the reins of this bucking Houston-based PC and server company back in July. But Compaq's stock may receive a boost Wednesday morning when the company's top brass invade New York City to unveil new commercial Internet products and services.
What makes this announcement a bit unusual, and maybe even a little exciting for beleaguered shareholders, is that
CEO David Wetherell and Rick Beluzzo -- now a vice president of
and former CEO of
-- will also be in attendance.
Wetherell's presence makes sense because his company just bought
from Compaq, which still retains a minority stake in the portal. But Belluzzo, who now runs Mister Softee's Internet operations, including
, is another story. His presence could mean Compaq may be rolling out an Internet strategy (finally) that includes Microsoft's content on a new line of commercial desktops. It's a good bet that AltaVista's portal will be very easy to access on these new boxes. Now if Compaq can lure a top CFO candidate to Houston, it might really get some momentum going in its stock.
FlashPoint Wins Big Backers
A group of companies including
Wind River Systems
are investing a combined $27.5 million in
. FlashPoint is pushing for its digital-photo software to become the dominant standard on devices such as digital cameras and photo printers.
The Big News:
just released first-quarter earnings of 24 cents a share, which beat a 23 cent
First Call/Thomson Financial
estimate. This latest good news comes on the heels of Cisco's announcement that it was purchasing rival
in a $799 million stock swap.
As a result, Cisco was trading well past its day-session 52-week high of 76 1/2, which it reached earlier today. It was the most-active name on
, dominating all other issues.
The Little News:
gained 9 1/8 during the day session and was still trading heavily on news that the company would support
Java language in its new cross-platform operating system. That news, coupled with the recent weaknesses in
has made the company a very popular issue.
Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 8 p.m. EST.
MarketXT, formerly Eclipse Trading, offers after-hours trading to retail clients of Morgan Stanley Dean Witter's (MWD) Morgan Stanley Dean Witter Online and Mellon Bank's (MEL) Dreyfus Brokerage Services. Clients can trade 200 of the most actively traded New York Stock Exchange and Nasdaq Stock Market issues, 4:30 p.m. to 8 p.m. EST Monday through Thursday.
explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.
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
offical said that
Royal Dutch/Shell Group
have decided to pull their 60% stake in a $3 billion oil extraction and pipeline project in Chad. The World Bank and
, which are spearheading the project, hope plans will continue to proceed.
Earnings/revenue reports and previews
Abercrombie & Fitch
posted third-quarter earnings of 36 cents a share, beating the 24-analyst estimate of 31 cents a share and up from the year-ago 24 cents a share.
Separately, CFO Seth Johnson said that the company was sufficiently insured to assume any possible settlements which may occur after legal proceedings were brought against the retailer, claiming that the company violated securities laws. In October, the lawsuits were filed after rumors circulated that Abercrombie's same-store sales would fall below expectations, which cause a sharp decline in the stock's price.
reported fourth-quarter earnings of 15 cents a share, edging out the 14-analyst estimate by a penny and up from the year-ago 6 cents, which included a charge.
posted third-quarter pro forma earnings of 16 cents a share, in line with the six-analyst estimate and up from the year-ago 12 cents, also reported on a pro forma basis.
posted first-quarter earnings of 24 cents a share, beating the 32-analyst estimate by a penny and up from the year-ago 17 cents. Tonight,
joint newsroom covered Cisco's
third-quarter earnings report .
posted third-quarter earnings of 12 cents a share, missing the six-analyst estimate by a penny and down from the year-ago 21-cent profit.
posted a fourth-quarter loss of 16 cents a share, narrower than both the three-analyst estimate of a 17-cent loss and the year-ago $2.82 loss.
reported a third-quarter loss of $2.50 a share, narrower than the 11-analyst estimate of a $3.28 loss and the year-ago $2.98 loss.
reported a third-quarter loss of $2.66 a share, narrower than the 11-analyst estimate of a $2.69 loss but wider than the year-ago $1.49 loss.
posted third-quarter earnings of 30 cents a share, in line with the three-analyst estimate but down from the year-ago 75 cents.
adjusted its third-quarter loss to 37 cents a share. On Oct. 21, the company initially reported a third-quarter loss of 32 cents a share. The company said the wider loss includes additional legal accruals to reflect a judicial decision after Oct. 21.
reported third-quarter earnings of 44 cents a share, missing the 10-analyst estimate of 47 cents and down from the year-ago 49 cent-profit. Tonight,
joint newsroom covered Waste Management's
third-quarter earnings report .
Offerings and stock actions
has decided to ax its IPO plans, citing unfavorable market conditions. Merrill Lynch was expected to price Centerprise Advisors' 10.5 million-share IPO on Wednesday, in a price range of $11.50 to $13.50 a share.
priced a 5.2 million-share IPO for
above its expected $10 to $12 price range at $14.
International Flavors & Fragrances
said it is seeking a replacement for its CEO Eugene Grisanti. The company said it would designate a successor before Grisanti leaves his post, which he has held for 15 years.
said that it has upped its prices for its highest volume hard disk drive product lines due to great demand and inadequate supply at key capacity points. In addition, the company also said it has increased prices at certain original equipment makers for the past four weeks.