Tuesday, Oct. 5, 1999

Genzyme and MCI WorldCom topped the action tonight on both Island ECN and Market XT.
Author:
Publish date:

After-Hours Markets

Genzyme

(GENZ)

and

MCI WorldCom

(WCOM)

are the most-active in after-hours trading on both

Island ECN

and

Market XT

.

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

Dow Jones Industrial Average

closed down 0.64 to 10,400.59 today after the

Federal Reserve's

announcement that it will move toward a tightening bias triggered a broad selloff in the markets. The

Nasdaq Composite Index

managed to hang onto some of its gains, advancing 3.7 to 2799.67.

The big European indices finished with sizable gains, with France's

CAC

climbing 57.09 to 4661.13, Germany's

Dax

adding 82.99 to 5301.85 and London's

FTSE

jumping 31.60 to 6084.50.

In Asia, Japan's

Nikkei

ended the trading session up 20.44 to 17784.15, while Hong Kong's

Hang Seng

hopped 123.03 to 12998.89.

Mergers, Acquisitions and Joint Ventures

Ashland

(ASH) - Get Report

said it is considering strategic options for its

Arch Coal

(ACI)

division. The company said that a tax-free spinoff of the unit to its shareholders appears to be the most viable alternative but is in talks with a special committee of Arch Coal board members to discuss other solutions..

Boeing

(BA) - Get Report

said that it inked a $2 billion agreement with

DHL

to change 44 jets into freighters, while providing ongoing maintenance for the international delivery service,

The Wall Street Journal

reported.

British Airways

(BAB) - Get Report

said that it would provide 34 of the 44 Boeing 757-200 aircraft used in the deal.

CBS

(CBS) - Get Report

said it plans to unveil a "major" stake in a new Internet "destination portal." The company's announcement, which was scheduled for late this morning, is expected to involve an Internet start-up company.

CD Warehouse

(CDWI)

and Canada-based

CD Plus.com

announced plans to merge. The merged company will run 500 stores, with total revenue forecasted to surpass $85 million a year.

DTE Energy

(DTE) - Get Report

unveiled plans to buy

MCN Energy

(MCN) - Get Report

, in a cash and stock deal valued at $2.6 billion. The agreement calls for DTE to pay $28.50 for each share of MCN. DTE said, including MCN's debt, the acquisition is worth roughly $4.6 billion.

EG&G

(EGG)

announced its plans to acquire

Vivid Technologies

(VVID)

in a stock swap worth about $62.5 million. According to the deal's terms, Vivid stockholders would get one share of EG&G for 6.2 Vivid shares.

Intel

(INTC) - Get Report

said it plans to acquire

IPivot

for $500 million.

iXL

(IIXL)

said it has inked a $120 million deal to buy

Tessera Enterprises

.

MCI WorldCom

(WCOM)

said it has forged a $115 billion deal to acquire the No. 3 long-distance carrier Sprint in the largest corporate buyout ever.

The Wall Street Journal

reported that MCI WorldCom upped its offer to rival

BellSouth's

(BLS)

higher bid. According to the agreement, MCI WorldCom said it would pay $76 in stock for each Sprint share, while each share of

Sprint PCS

(PCS)

would be exchanged for one new

WorldCom PCS

tracking stock. After the merger, MCI WorldCom said Sprint CEO William Esprey would serve as chairman, while MCI WorldCom CEO Bernard Ebbers has been tapped as president and CEO.

TheStreet.com

speculated on BellSouth's next move in

a story last night.

Today, MCI WorldCom president and CEO Bernard Ebbers said he feels the merger will be good for competition and said it would not cause a workforce reduction. However,

Federal Communications Commission

Chairman William Kennard said the agreement was a "surrender" of competition, leaving the firms with the heavy burden of convincing customers that the deal is good.

Separately,

Deutsche Telecom

(DT) - Get Report

said it would not rival MCI WorldCom's bid and said it would sell its 10% interest in Sprint. A spokesman for Deutsche said the telecom company would rake in a $7.5 billion profit from the sale.

Oracle

(ORCL) - Get Report

said that it has united with

Exodus Communications

(EXDS)

, allowing Exodus customers to get Oracle software through the Internet and with a Web browser, instead of downloading it themselves.

In a joint statement,

Perot Systems

(PER) - Get Report

and

Harvard Pilgrim Health Care

said they have inked a 10-year, $700 million services pact. According to the deal's terms, Perot will assist Harvard Pilgrim in setting up and maintaining its computer systems, reorganizing Pilgrim's claims department and enhancing its technology infrastructure.

Storage Technology

(STK) - Get Report

said it has forged an $400 agreement to offer data storage services to

Level 3 Communications

(LVLT)

. The transaction calls for Storage Technology to set up storage services in Level 3's New York, Dallas, Denver and Seattle gateways by the fourth quarter of 1999, giving customers a link to the network.

Earnings/Revenue Reports and Previews

Bed Bath & Beyond

(BBBY) - Get Report

CFO Ronald Curwin said he is comfortable with both the 17-analyst third-quarter estimate of 22 cents a share and the 18-analyst fiscal 1999 estimate of 87 cents a share. Last year, the company posted third-quarter and fiscal 1999 earnings of 17 cents a share and 68 cents respectively.

Concur Technologies

(CNQR)

said it expects to post revenue between $8.6 million to $9.2 million, missing analysts' estimates of $12.3 million to $12.7 million, but up from the year-ago $6.3 million.

Foundry Networks

(FDRY)

said it will post third-quarter revenue between $36 million to $38 million, beating internal expectations.

Eclipse Surgical Technologies

(ESTI)

said it expects to post a third-quarter loss between 15 cents to 18 cents a share, not specifying if the estimates were based on operating or net income. The five-analyst estimate was for the company to report a loss of 6 cents, less than the year-ago loss of 32 cents.

Halliburton

(HAL) - Get Report

warned investors that it would post third-quarter earnings between 11 cents to 13 cents, missing the 28-analyst estimate of 19 cents a share. Today,

Ingersoll-Rand

(IR) - Get Report

said it would buy Halliburton's interest in their two joint ventures.

Invacare

(IVC) - Get Report

said it expects to post third-quarter earnings in line with the five-analyst estimate of 46 cents a share, beating the year-ago 43 cents a share.

Luby's

(LUB) - Get Report

said it posted fourth-quarter earnings of 31 cents a share, missing the six-analyst estimate of 32 cents and the year-ago 32 cents.

Micron

(MU) - Get Report

posted a fourth-quarter loss after yesterday's close of 7 cents a share, which included $600,000 from an issuance of unit stock and an income-tax benefit of $7.4 million. The loss was less than the 21-analyst estimate of an 18-cent loss and the year-ago loss of 43 cents.

Selective Insurance

(SIGI) - Get Report

said it would report third-quarter earnings between 8 cents and 14 cents a share, greatly missing the four-analyst estimate of 45 cents a share and the year-ago 43 cents.

Talbots

(TLB)

said it expects to post third-quarter earnings of between 56 and 60 cents a share, beating both the 14-analyst estimate of 51 cents and the year-ago 40 cents.

Winnebago Industries

(WGO) - Get Report

reported fourth-quarter earnings of 44 cents a share, greatly beating the two-analyst estimate of 36 cents a share and the year-ago 32 cents.

Offerings and Stock Actions

Altigen

(ATGN)

jumped 7 1/2, or 75%, to 17 5/8, in its first day of trading. The IPO priced at $10.

Century Business Services

(CBIZ)

said it has brought

Merrill Lynch

on board to help the company explore options that would raise its stock's price.

Silicon Image

(SIMG:Nasdaq) has raised the expected price range of its upcoming 3.9 million-share IPO to $10 to $12 a share from $8 to $10 a share.

Analyst Actions

Goldman Sachs

raised its rating on

Colgate

(CL) - Get Report

to market outperform from market perform.

Deutsche Banc Alex. Brown

and

Donaldson Lufkin & Jenrette

cut their ratings on

Comfort Systems USA

(FIX) - Get Report

to a market perform from a buy, while

Merrill Lynch

also lowered its intermediate rating on the shares to a neutral from a buy. The downgrade comes after the company said it expects to report third-quarter earnings between 33 cents to 34 cents a share, greatly missing the 10-analyst estimate of 43 cents a share. Today, the company said it set a 4 million-share buyback.

Lehman Brothers

sliced its rating on

Computer Sciences

(CSC)

to an outperform from a buy.

Goldman slashed its rating on

Dendrite

(DRTE)

to market outperform from trading buy.

U.S. Bancorp Piper Jaffray

rolled out coverage of

Express Scripts

(ESRX)

with a strong buy rating.

Morgan Stanley Dean Witter

upped its rating on

Electronic for Imaging

(EFII) - Get Report

to strong buy from outperform.

Lehman Brothers cut its rating on

Galileo

(GLC)

to an outperform from a buy.

Lehman Brothers

raised its price target on

Gemstar

(GMST)

to $150 from $100.

U.S. Bancorp Piper Jaffray

upped its fourth-quarter estimates on

Hormel Foods

(HRL) - Get Report

to 78 cents from 75 cents a share and upped its price target to $48 from $44.

Warburg Dillon Read

began coverage of

Juniper Networks

(JNPR) - Get Report

with a buy rating.

Goldman Sachs sliced its rating on

K-Swiss

(KSWS)

to a market outperform from trading buy. Merrill Lynch also cut the long-term rating to accumulate from buy.

PaineWebber

started coverage of

Medici Pharmaceutical

(MRX)

with an attractive rating.

Goldman upped its rating on

99 Cents Only

(NDN)

to a trading buy from market outperform.

Banc of America

rolled out coverage of

O'Charley's

(CHUX)

with a strong buy rating.

Donaldson Lufkin & Jenrette

initiated coverage of

Portal Software

(PRSF)

with a buy rating.

Morgan Stanley sliced its rating on

Sungard Data

(SDS) - Get Report

to neutral from strong buy.

BancBoston Robertson Stephens

raised its rating on the stock to buy from long-term attractive.

Salomon Smith Barney

raised its rating on

Trigon Health

(TGH) - Get Report

to a buy from an outperform. The company announced plans to shut down its

Mid-South Insurance

, which accounts for only 5% of its 1.9 million members, due to its weak performance.

PaineWebber sliced its rating on

TV Guide

(TVGIA)

to attractive from buy.

Miscellany

American Express

(AXP) - Get Report

said it plans to introduce an online trading and financial advisory service called

America Express Brokerage

this fall.

Ametek

(AME) - Get Report

announced its plans to divide its electronic instruments division into two sub units. The division will be split into an aerospace and heavy vehicles unit, and a process and industrial products group.

Apple

(APPL)

has launched an iMac personal computer product line starting at $999.

Separately,

Sun Microsystems

(SUNW) - Get Report

slashed the price of its Ultra 5 Unix-based workstation by 20% to $1,995, making it the first Unix workstation to fall below the $2,000 price level.

AT&T

(T) - Get Report

said it will offer Web hosting services to small businesses, which would enable them to develop and manage their own sites. The new service, known as

Small Business Hosting

, will be offered in three levels, starting at $25.

DaimlerChrysler

(DCX)

Chairman Juergen Schrempp denied a magazine report that said the German company would move its headquarters to the U.S., calling it "total rubbish."

Stern Magazine

reported that the company was planning the relocation in order to spark investor interest in the stock.

Pfizer

(PFE) - Get Report

said it has been awarded

FDA

marketing approval for its heart arrhythmia drug

Tikosyn

in the United States.

Wal-Mart

(WMT) - Get Report

said it plans to launch an aggressive expansion which includes opening 40 new discount stores as well as 160 to 165 new supercenters. Separately, the company posted an October same-store sales increase of 7.2%, down from the year-ago 9.5% increase, while total sales were $15.7 billion, beating the year-ago $12.4 billion report.

As originally published, this story contained an error. For details, please see our

Corrections and Clarifications.