Tuesday, January 12, 1999

Still a tough day for the stock market, while the dollar surges against the yen on Japanese intervention and Disney and Infoseek say it's time to Go.
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Markets

U.S. stocks continued their pullback at midafternoon amid heavy profit taking in tech and Net stocks.

European bourses closed lower, while Asian markets were mixed, with Hong Kong's

Hang Seng

up 77.29 to 10,711.56, and Japan's

Nikkei 225

down 7.51 to 13,360.97.

The yen fell sharply against the dollar amid rumors that the

Bank of Japan

intervened in the Japanese currency market by buying dollars and selling yen.

For more markets action and news, click

here.

Companies

Bermuda-based insurer

Ace

(ACL)

said it has agreed to buy

Cigna's

(CI) - Get Report

property/casualty business for $3.45 billion in cash.

Aetna

(AET)

agreed to make its decisions to deny HMO members coverage subject to external review by outside experts.

Drug wholesaler

Bergen Brunswig

(BBC) - Get Report

has agreed to buy

PharMerica

(DOSE)

, a provider of pharmacy services to nursing homes and prisons, in a deal worth $1.4 billion.

Jon Corzine

will step down as co-CEO of

Goldman Sachs

, leaving

Henry Paulson

to serve as sole CEO. Paulson and Corzine will continue as co-chairmen. Last night

TSC

offered a

take on the shake-up.

For more news on companies and stocks, click

here.

Tech

Compaq

(CPQ)

agreed to acquire

Shopping.com

for about $220 million.

Disney

(DIS) - Get Report

and

Infoseek

(SEEK)

launched their

Go Network

portal today.

E*Trade

(EGRP)

said it will take a 28% share in

E*Offering

, an online investment bank that will raise capital over the Internet.

Intel

(INTC) - Get Report

and

Yahoo!

(YHOO)

are scheduled to report fourth-quarter earnings after the market close today.

TSC

tells you what to expect from

Intel and

Yahoo! in stories today.

Lucent

(LU)

will acquire billing software company

Kenan Systems

for $1.48 billion in stock. The company is also in talks to acquire networking supplier

Ascend

(ASND) - Get Report

. Yesterday

TSC

discussed how an Ascend deal could affect the networking industry.

For more tech news and commentary, click

here.

International

The Russian government has cut its 1999 budget for foreign debt servicing to $4.6 billion from $9.5 billion.

British American Tobacco

(BTI) - Get Report

agreed to acquire

Rothmans International

from

Compagnie Financiere Richemont

(RCHMY)

and

Rembrandt Group

(RBDGY)

for about $7.5 billion in stock.

Luxury goods manufacturer

LVMH Moet Hennessy Louis Vuitton

(LVMHY)

upped its holdings in

Gucci Group

(GUC)

to more than 14.5% after buying out

Prada's

9.5% stake in the fashion house.

For more international news and commentary, click

here.

General News

Defense

Secretary

William Cohen

told North Korea that it would forfeit aid for a nuclear power project from the U.S., Japan and South Korea if it hindered the inspection of a suspected nuclear weapons site.

A U.S. fighter jet fired on another air-defense installation today in northern Iraq after it was targeted by Iraqi radar.

The

Securities and Exchange Commission

settled its investigation of improper trading practices on the

Nasdaq Stock Market

by levying $26.3 million in penalties to 28 brokerages.

Elsewhere

Basketball great

Michael Jordan

is expected to announce his retirement tomorrow.

Hustler

publisher

Larry Flynt

yesterday accused Rep.

Bob Barr

(R, Ga.) of having an extramarital affair.