Xerox Shuffling the Deck and the Drug Wars Heat Up

Also, American Home Products gets rapped by a Mississippi jury.
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Xerox (XRX) - Get Report said tonight that, effective the beginning of 2000, it will reorganize several of its business units. The announcement comes after the copier giant has delivered several consecutive disappointing financial statements and warned investors that its fourth-quarter earnings could be much lower than estimated.

On Dec. 10, the company said that earnings for the fourth quarter could be as much as 40% below expectations. Analysts had been estimating the company would earn 66 cents a share during the quarter, according to

First Call/Thomson Financial

. Since it gave this warning, Xerox shares have lost about 18% of their value. On Tuesday, the shares fell about 1/8 to 20 3/4. The stock had been as high as 63 15/16 within the past year.

Tonight's announcement dealt with the company's sales and customer support divisions. However, a company spokesman also said that more changes will likely be announced prior to the Christmas holiday.

Warner-Lambert

(WLA)

said its has filed paperwork with the

SEC

to prevent

Pfizer's

(PFE) - Get Report

efforts to oust Warner-Lambert's board of directors.

The motion follows Pfizer's Dec 16. application to the SEC for authorization to initiate a proxy battle to replace Warner-Lambert's 10 directors with seven people hand picked by Pfizer. In November, Pfizer launched a $72 billion takeover bid for Warner-Lambert, which decided to merge with

America Home Products

(AHP)

.

Last Friday, Warner-Lambert asked the

Delaware Chancery Court

for a preliminary injunction to block Pfizer's proxy battle, which includes Pfizer formally questioning Warner-Lambert shareholders to change its board's representation. .

Seperately, a Mississippi jury ordered American Home to pay $150 million to 5 plaintiffs for damages resulting from the use of fen-phen. The company said it would appeal the verdict and said it would not affect the nationwide settlement of fen-phen cases.

American Home has already agreed to pay about $4.8 billion in a settlement that could cover six million users across the country.

After-Hours Trading

The GEEK shall disinherit the Earth.

In the first hour of trading,

Internet America

(GEEK)

was up more than 3 points. Well, pucker up and kiss those gains goodbye. It dropped 3 3/4 amidst profit-taking, the most-active stock in after-hours trading on

Island ECN

. During the day session, the company rose 12 11/16, or 152.6%, to 21.

3Com

(COMS)

announced second-quarter earnings of 37 cents a share, better than the

First Call/Thomson Financial

of 34 cents a share, and a penny better than last year's quarter. Tonight's drop of 7 3/16 in heavy volume seemed to indicate that the company missed its "whisper number," informal Wall Street expectations that are usually higher than official data suggest. 3Com also announced the departure of its chief financial officer, who is retiring in the summer of 2000.

Talk.com

(TALK)

proved that talk isn't that cheap, while

Juno Online Services

(JWEB)

extended its gains from the last two sessions.

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.

Confused?

TheStreet.com

explains how the rules change when the sun goes down in Investing Basics: Night Owl, a section devoted to after-hours trading.

--

Eric Gillin

In other post-close news (earnings estimates from

First Call/Thomson Financial

; earnings reported on a diluted basis unless otherwise specified):

Mergers, acquisitions and joint ventures

Bank One

(ONE) - Get Report

interim CEO Verne Istock said during an interview with

Reuters

, that neither the bank nor its floundering

First USA

credit card division are for sale. Earlier today, CEO John McCoy announced his retirement after facing pressure as a result of its credit card arm. Analysts had the bank pegged as a takeover target after the stock declined sharply due to the division's problems.

Healtheon/WebMD

(HLTH)

said it has entered a deal to buy the

Kinetra

joint venture from

Electronic Data Systems

(EDS)

and

Eli Lilly

(LLY) - Get Report

. In addition, the companies said Lilly has decided to use Healtheon's Web content and services.

EDS and Healtheon have also agreed to a pact, which would use Healtheon's provider and consumer Internet service along with EDS' health care solutions product. Healtheon said that the alliances and the purchase of the Kinetra venture total roughly $300 million.

Kinnard Investments

(KINN)

said it has turned down

Stockwalk.com's

(STOK) - Get Report

unsolicited $7.50 a share cash tender offer, calling it inadequate. A spokesperson for a group of directors, which is examining the offer, said that Stockwalk's bid for the company may not be feasible, since it is based on several stipulations, including financing.

Earnings/revenue reports and previews

Consolidated Graphics

(CGX)

said it expects to post third-quarter earnings of 56 cents a share, missing the nine-analyst estimate of 70 cents. The company blamed the disappointing results on a decline in sales volume.

Conagra

(CAG) - Get Report

posted second-quarter earnings of 53 cents a share, beating the 12-analyst estimate of 51 cents a share and up from the year-ago 46 cents.

DuPont Photomasks

(DPMI)

cautioned investors that it sees second-quarter earnings missing the nine-analyst estimate of 44 cents a share. The company said it expects to report second-quarter earnings between 19 to 24 cents a share. The company cited softer than expected North American and European revenues for the results.

Fairchild Semiconductor

(FCS)

posted second-quarter earnings of 33 cents a share, beating the three-analyst estimate of 27 cents and up from the year-ago loss of 14 cents.

Herman Miller

(MLHR) - Get Report

reported second-quarter earnings of 41 cents a share, missing the seven-analyst estimate of 44 cents. The company posted 1999 second-quarter earnings of 45 cents, which included a gain.

IMRglobal

(IMRS)

said it would assume a fourth-quarter charge of $11 million to $13 million, or 28 cents to 32 cents a share, as a result of its business restructuring plans. The company said it would cut its workforce and capital investment in its global delivery centers and retrain some of its employees. IMRglobal said it would also stop investing in some mainframe applications software. The six-analyst consensus estimates forecasts the company to report fourth-quarter earnings of 12 cents a share.

Liberate Tech

(LBRT) - Get Report

posted a second-quarter pro forma loss of 23 cents a share, narrower than the four-analyst estimate of a 31 cent-loss, but wider from the year-ago 21 cent-loss. Separately, the company set a 2-for-1 stock split.

Research in Motion

(RIMM)

reported third-quarter earnings of 5 cents a share, in line with the four-analyst estimate and up from the year-ago 4 cents.

Speedfam-Ipec

(SFAM)

posted a second-quarter loss of 29 cents a share, wider than the six-analyst estimate of a 27 cent loss but narrower from the year-ago 59 cent loss.

3Com

(COMS)

reported second-quarter earnings of 37 cents a share, beating the 26-analyst estimate of 34 cents and up from the year-ago 36 cents.

Offerings and stock actions

Cerus

(CERS) - Get Report

said it has agreed to sell one million newly issued shares of common stock for $25 a share to certain investors, which include

Baxter International

(BAX) - Get Report

.

Prudential Securities

division

Prudential Vector Healthcare Group

helped Cerus in the financing.

Unocal

(UCL)

said it has set a fiscal 2000 capital spending budget of between $1.1 billion to $1.2 billion, basically in line with its estimated 1999 level. Chairman and CEO Roger Beach said that over 90% of its capital spending budget would be put towards oil and gas exploration and production projects.

Miscellany

Boeing

(BA) - Get Report

said it has received an order from

Delta Airlines

(DAL) - Get Report

for five jetliners, a portion of the 163 orders to "unidentified customers" that its competitor, Airbus Industrie, dismissed last week as implausible.

Airbus's published 1999 order book doubled Boeing's, before Boeing decided to follow Airbus and include orders from companies who did not want to be identified. Boeing said that its 1999 aircraft sales, which include the unidentified 163, bring its total to368 sales.