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Weekend Report: Olivetti Calls the Whole Deutsche Telekom Thing Off

At least Lehman Brothers, Chase and Donaldson Lufkin & Jenrette have no regrets.

You love him, but he loves, her. But she loves somebody else, you just can't win. I've been through, diamonds, minks and European telecom deals. Through it all: Love Stinks.

Having just formally completed its contemptuous takeover of

Telecom Italia

(TI)

on Saturday,

Olivetti

confirmed Sunday it will not -- repeat not -- proceed with Telecom Italia's previously agreed to merger with

Deutsche Telekom

(DT) - Get Dynatrace, Inc. Report

. While the end of the Deutsche Telecom deal was expected, a source "close to" Olivetti said the organization is "open to alliances" and may consider reopening talks with the German phone giant,

Reuters

reported.

Additional deal-making would be like gravy on an iced cake to

Lehman Brothers

(LEH)

,

Chase

(CMB)

, and

Donaldson Lufkin & Jenrette

(DLJ)

, which stand to earn as much as $200 million in fees from Olivetti following the Telecom Italia deal,

Bloomberg

reported.

Boeing

(BA) - Get Boeing Company Report

could get knocked Monday after the

Federal Aviation Administration

requested an emergency test of on all 727s, citing concerns about potentially faulty wiring in the airplane's fuel tanks.

Dead Sea Bromine

of Israel inked a 5-year, $60 million deal to supply bromine products and flame-retardant materials to

Dow Chemical

(DOW) - Get Dow, Inc. Report

.

PeopleSoft

(PSFT)

will name Craig Conway as its president Monday. He will take over day-to-day operations from chairman and CEO Dave Duffield, according to

Reuters

.

Late Friday,

Burlington Northern Santa Fe

(BNI)

announced it will eliminate up to 1,400 jobs in an effort to lower costs. Due to costs associated with the cuts, the railroad said its second-quarter earnings will fall shy of the 15-analyst estimate of 60 cents a share and year-ago results of 58 cents.

In the Papers

Interestingly, Burlington's announcement comes the same weekend

Barron's

cover story is entitled "Riding the Rails." The weekly was spared potential embarrassment as the article does not even mention Burlington, focusing instead on

Norfolk Southern

(NSC) - Get Norfolk Southern Corporation Report

and

CSX

(CSX) - Get CSX Corporation Report

. The piece details the potential positives of Norfolk and CSX's joint purchase of

Conrail

, so it will be interesting to see if the red flag from Burlington or the favorable press dictates trading in these transports Monday.

The weekly's Alan Abelson offers some negative commentary on recent Internet IPOs

eToys

(ETYS)

and (via John Babyak of

WHB/Wolverine Asset Management

)

TheStreet.com

(TSCM)

, the publisher of this Web site. Ableson delivers a positive mention (via Charles Peabody of

Mitchell Securities

) for

KeyCorp

(KEY) - Get KeyCorp (KEY) Report

and

Huntington Bancshares

(HBAN) - Get Huntington Bancshares Incorporated (HBAN) Report

.

Additionally,

Barron's

discusses how

Hasbro

(HAB)

TheStreet Recommends

may yet prosper although

Star Wars Episode I - The Phantom Menace

failed to set the record for sales on an opening weekend. This, despite a seemingly record level of (somewhat nauseating) pre-opening hype.

Elsewhere, a column on suddenly in-favor small-caps focuses positively on

Protocol Systems

(PCOL)

.

Circus Circus Enterprises

(CIR) - Get CIRCOR International, Inc. Report

is riding a hot streak, but might turn up snake-eyes come the millennium, another piece says.

Howard Ward, manager of the

(GABGX) - Get GAMCO Growth AAA Report

Gabelli Growth fund, describes dumping holdings in

General Electric

(GE) - Get General Electric Company (GE) Report

,

Wal-Mart

(WMT) - Get Walmart Inc. Report

,

Coca-Cola

(KO) - Get Coca-Cola Company Report

,

Procter & Gamble

(PG) - Get Procter & Gamble Company Report

, and

Gillette

(G) - Get Genpact Limited Report

due to concerns about valuations. The fund manager is currently bullish on

Intel

(INTC) - Get Intel Corporation (INTC) Report

and

IBM

(IBM) - Get International Business Machines (IBM) Report

, however.

The

New York Times

leads with a word of caution for

Renault's

planned investment in

Nissan Motors

(NSANF)

. The paper notes difficulties

Ford

(F) - Get Ford Motor Company Report

faced with its investment in

Mazda

(MZDAF)

.

Kevin Parke, chief equity officer at

MFS Investment Management

gives positive mention to

American Home Products

(AHP)

,

Pharmacia Upjohn

(PNU)

, and

United Technologies

(UTX) - Get United Technologies Corporation Report

. The strategist also says investment banking firms like

Merrill Lynch

(MER)

,

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

,

Morgan Stanley Dean Witter

(MWD)

and

Citigroup

(C) - Get Citigroup Inc. Report

have benefited from the recent struggles of Asian counterparts.

Meanwhile, the

Financial Times'

online site reports founder John Meriwether is discussing a possible buyout of

Long Term Capital Management

with former Goldman Sachs partner Christopher Flowers and former Citigroup COO Jamie Dimon.