Monday, Oct. 4, 1999

After-hours trading is listless tonight, and to call anything 'most active' is a bit of a stretch. But Yahoo! was tops on Island ECN, and Altera on MarketXT.
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After-Hours Markets

Most active? Uh ... well, that's a tough one tonight. Sure, some stocks were technically "most active," but nothing really moved much.

Island ECN

was topped by

Yahoo!

(YHOO)

on a measly 25,736 shares.

MarketXT

was topped by

Altera

(ALTR) - Get Report

on a paltry 1,500 shares.

Island ECN, owned by Datek Online, offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 8 p.m. EDT. Prior to Sept. 15 Island offered trading from 8 a.m. to 5:15 p.m. EDT

.

MarketXT, formerly Eclipse Trading, offers after-hours trading to retail clients of Morgan Stanley Dean Witter's (MWD) Discover Brokerage 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, 6 p.m. to 8 p.m. EDT Monday through Thursday.

TheStreet.com

updates the most active issues on both MarketXT and Island ECN in Got a Minute? and in the Evening Update.

--

Eric Gillin

Day-Session Report

The major stock indices ended the day on a positive note, despite tomorrow's

Fed

meeting. The

Dow Jones Industrial Average

gained 128.23 to 10,401.23, while the

Nasdaq Composite Index

leaped 59.1 to 2795.9.

The big European indices finished off the trading session higher, with France's

CAC

gaining 52.67 to 4603.24, Germany's

Dax

jumping 94.31 to 5218.86 and London's

FTSE

climbing 82.20 to 6052.90.

In Asia, Japan's

Nikkei

finished the trading session up 51.45 to 17,763.71, while Hong Kong's

Hang Seng

closed up 142.62 to 12,875.86.

Gemstar

(GMST)

and

TV Guide

(TVGIA)

inked a $9.2 billion merger agreement in an effort to boost their electronic advertising and e-commerce businesses. According to the deal's terms, TV Guide will hold a 45% interest in the new venture known as

TV Guide International

, while Gemstar CEO Henry Yuen will serve as its chairman and CEO.

BellSouth

(BLS)

has upped its unsolicited offer for

Sprint

, according to

Bloomberg

, after earlier reports indicated that Sprint favored a bid from

MCI WorldCom

(WCOM)

. The report did not specify the amount of the new offer.

The Wall Street Journal

and

The New York Times

reported today that Sprint's board convened Sunday night to discuss the rival takeover bids.

The Journal

said that although BellSouth's initial offer of $72 billion outbid MCI WorldCom, a special committee voted unanimously to accept MCI WorldCom's $65 billion bid.

Mergers, Acquisitions and Joint Ventures

Merger hopefuls

AlliedSignal

(ALD)

and

Honeywell

(HON) - Get Report

said they expect their third-quarter earnings to be in line with eight-analyst estimate of $1.28 per share and the 14-analyst estimate of 67 cents a share, respectively.

Clear Channel Communications

(CCU) - Get Report

is acquiring

AMFM

(AFM)

. The transaction calls for AMFM shareholders to receive 0.94 of a Clear Channel share for each AMFM share.

America Online

(AOL)

and

Travelocity.com

set a multiyear content and commerce pact valued at up to $200 million. Under the deal, Travelocity.com will handle all travel reservations made through AOL's sites. Separately,

Sabre Holdings'

(TSG) - Get Report

Travelocity and

Preview Travel

(PTVL)

announced they're merging. Sabre also announced it agreed on terms with

Yahoo!

(YHOO)

for an extension of their existing contract.

CBS

(CBS) - Get Report

and

Medscape

(MSCP)

unveiled plans to start a consumer health Web site called

cbs.medscape.com

. After buying a 35% interest in Medscape in July, CBS licensed its trademark and logo to the health site. CBS also forged a deal to give the company $150 million worth of promotions and branding through its media outlets over the next seven years.

Eskimo Pie

(EPIE)

said it has halted talks with

Guernsey Bel

regarding the sale of Eskimo Pie's Flavors and Ingredients division after deciding to sell the company as a whole or in strategic assets. On Sept. 8, Eskimo Pie unveiled its plans to sell all of its assets, which marked the end of a takeover battle with Canada-based

Yogen Fruz

.

Net2Phone

(NTOP)

said that it has forged a deal with

America Online

(AOL)

division

ICQ

to launch a prepaid "virtual calling card" that will direct calls through Net2Phone's Internet protocol network. The companies said the card, which can be found at ICQ's Web site,

icqphone.com

, may be used to make worldwide calls from the U.S. at up to a 70% discount to other cards.

Rite Aid

(RAD) - Get Report

said it has brought

J.P. Morgan

on board to evaluate the sale of its

PCS Health Systems

. According to a statement, the company said it will consider either the complete sale or a strategic investment of PCS.

Paul Allen's

Vulcan Ventures

plans to take a $1.65 billion stake in

RCN

(RCNC)

, a telecommunications company. Allen is a co-founder of

Microsoft

(MSFT) - Get Report

.

Summit Bancorp

(SUB) - Get Report

is buying

NMBT

(NMBT)

for $69.4 million.

Temple-Inland

(TIN)

said it plans to sell its bleached paperboard unit to

Westvaco

(W) - Get Report

for roughly $625 million in an attempt to concentrate on its core corrugated packaging business. The deal is expected to be completed by the end of the year.

Earnings/Revenue Reports and Previews

Applied Power

(APW)

posted fourth-quarter earnings of 75 cents a share, beating both the 11-analyst estimate of 57 cents and the year-ago 64 cents.

Actrade

(ACRT)

reported fourth-quarter earnings of 27 cents a share, beating both the single-analyst estimate of 24 cents and the year-ago 15 cents a share.

Catalytica

(CTAL)

said it expects to post third-quarter earnings between 1 cent to 3 cents a share, greatly missing the five-analyst estimate of 11 cents a share. The company blamed the weak results on operation problems caused by Hurricane Floyd.

Harleysville

(HGIC)

warned its second-half results will fall well below analysts' estimates due, in part, to higher catastrophe losses resulting from Hurricane Floyd.

Humana

(HUM) - Get Report

said that it is facing a class-action lawsuit claiming that the HMO did not release details associated with its coverage for subscribers, the plaintiff's lawyers reported.

Information Resource Engineering

(IREG)

warned investors that it would post a third-quarter loss of 27 cents a share, worse than the two-analyst estimate of a 1-cent loss and the year-ago 1-cent profit.

Mattel

(MAT) - Get Report

warned investors that it expects third-quarter earnings to be between 30 cents to 40 cents a share, greatly missing the nine-analyst estimate of 67 cents a share and the year-ago 66 cents a share. The toy company said that its Learning Company division has a sharp decline in revenue for the quarter.

Mobius Management Systems

(MOBI)

warned investors that it expects to report a third-quarter loss between 12 cents to 13 cents a share, missing the four-analyst estimate of a 1-cent profit and the year-ago 5 cent-profit.

Policy Management Systems

(PMS)

cautioned investors that its third-quarter results would be between 31 cents to 36 cents a share, missing the nine-analyst estimate of 50 cents and the year-ago 41 cents.

Showcase

(SHWC)

warned investors that it would report a second-quarter loss between 16 cents to 18 cents a share, missing the four-analyst estimate of a two-cent profit and worse than the year-ago 3-cent loss.

SunGard Data

(SDS) - Get Report

cautioned that it expects third-quarter earnings to be between 30 to 33 cents a share, missing the seven-analyst estimate of 37 cents and possibly below the year-ago 31 cents a share.

Tiffany

(TIF) - Get Report

President and CEO Michael Kowalski told investors at a

BancBoston Robertson Stevens

conference that he is comfortable with the 19-analyst earnings estimate of 22 cents a share for Tiffany's third quarter, which would beat the year-ago 17 cents a share the company recorded.

Walgreen

(WAG)

reported fourth-quarter earnings of 16 cents a share,in line with the 16-anlyst estimate of 16 and up from the year-ago 15 cents. In addition, a spokesman said the company pushed back its online pharmacy's debut until late October in order to ensure that it is capable of handing heavy traffic.

Offerings and Stock Action

In an effort to increase shareholders' return,

AT&T

(T) - Get Report

is pondering issuing several tracking stocks, the

Journal

reported, citing people familiar with the matter. Under one proposal, Ma Bell would issue three stocks that would track AT&T's wireless division, its cable and Net undertakings and its outsourcing unit for businesses.

Computer Horizons

(CHRZ)

announced its plans to spin off its Princeton Softech and Network Services divisions. The company said the offerings, which will be about 20% in both divisions, would take place next year.

IDEXX Laboratories

(IDXX) - Get Report

said it added another 2 million shares to its current 2 million-share repurchasing program set in August.

iVillage

(IVIL)

said it filed with the

Securities and Exchange Commission

to offer 3 million shares of common stock.

Goldman Sachs

,

Credit Suisse First Boston

and

Hambrecht & Quist

are serving as the deal's lead underwriters.

The

NYSE

said it had suspended trading of

Lone Star Industries'

(LCE)

shares and warrants after Germany-based

Dyckerhoff AG

took a 96.6% stake in the company. The exchange deliberates suspending and delisting a stock when fewer than 600,000 shares remain outstanding.

King Pharmaceuticals

(KING)

set a 3-for-2 stock split, which will be paid on Nov. 11 to shareholders of record Oct. 28.

Bear Stearns

said it has cut the anticipated price range for the 10 million-share initial public offering of

XM Satellite Radio Holdings

to $12 to $13 from $14 to $16. The deal, which was expected to price last week, is set for its trading debut later this week.

Analyst Actions

Credit Lyonnais

upped its third-quarter estimate for

American Home Products

(AHP)

to 47 cents a share from 46 cents a share.

Merrill Lynch

reinstated coverage of

AmSouth Bancorp

(ASO)

with an intermediate-term accumulate rating and long-term buy rating.

J.P. Morgan

raised its rating on

Avery Dennison

(AVY) - Get Report

to a buy from market performer.

J.P. Morgan raised its rating on

Colgate-Palmolive

(CL) - Get Report

to a buy from a long-term buy.

Morgan Stanley

upped its rating on

Commonwealth

(CMIN)

to outperform from neutral.

Credit Suisse First Boston

lowered its third-quarter earnings estimate on

Compaq

(CPQ)

to 5 cents a share from 9 cents and its fourth-quarter estimate to 22 cents from 34 cents. CSFB also cut its estimate for fiscal 2000 to $1 from $1.25.

Credit Suisse First Boston

sliced its rating on

Genzyme General

(GENZ)

to buy from strong buy.

SG Cowen

lowered his rating on

Engineering Animation

(EAII)

to a neutral from buy.

Goldman Sachs

upped its rating on

Harrah's Entertainment

(HET)

to a trading buy from market outperformer.

Merrill Lynch sliced its rating on

Hospitality Properties Trust

(HPT)

to accumulate from buy.

Morgan Stanley upped its rating on

Lamar Advertising

(LAMR) - Get Report

to strong buy from outperform.

Warburg Dillon Read

rolled out coverage of

Lifepoint Hospitals

(LPNT)

with a buy rating.

J.P. Morgan upped its rating on

Estee Lauder

(EL) - Get Report

to buy from long-term buy.

Deutsche Banc Alex. Brown

raised its rating on

Federal-Mogul

(FMO) - Get Report

to buy from market performer.

Merrill Lynch upgraded

Hewlett-Packard

(HWP)

to a long-term buy from accumulate.

Deutsche Banc Alex. Brown upped its rating on

Radio One

(ROIA)

to strong buy from buy.

Warburg Dillon Read cut its rating on

Revlon

(REV) - Get Report

to hold from buy.

Donaldson Lufkin & Jenrette

raised it rating on

USX-Marathon

(MRO) - Get Report

to a buy from market performance

Miscellany

Amazon.com

(AMZN) - Get Report

announced its plans to start a service that would allow customers to shop through Amazon using wireless access products. Amazon said

3Com's

(COMS)

Palm VII handheld computer can be used to access order information. Separately, Amazon said it has bought Internet access software maker

Convergence

for roughly $20 million.

Bausch & Lomb

(BOL)

said it got the

FDA's

stamp of approval to market its

Keracor 116

ophthalmic surgical laser system. In an effort to concentrate on its advanced

Technolas 217

laser, the company has decided not to sell the laser in the U.S.

Boeing

(BA) - Get Report

announced its plans to restructure its customer-finance division in order to enhance its jet-leasing service and increase its profits, the

Journal

reported. The reorganization effort helps put Boeing in closer competition with leasing firms that purchase its planes, the newspaper reported.

Heinz

(HNZ)

unveiled plans to combine its U.S. grocery and food service divisions into a $5 billion Pittsburgh-based "megacompany." The company said that the consolidation involves moving its

Starkist Seafood

and

Heinz Pet Products

units to Newport, Ken., while merging its salesforce into a single

Heinz Sales Company

.

Mylan Laboratories

(MYL) - Get Report

said it was awarded

FDA

marketing approval for its generic version of

DuPont's

(DD) - Get Report

Parkinson's disease remedy

Sinemet

.