Acquisitions Help Internet Stocks

Internet investors had several pieces of news to digest following the holiday weekend and were generally pleased with what they were hearing.

Just after noon Eastern,’s Internet Stock Index was up 3.26, or 0.44 percent, to 738.32, the Nasdaq Composite had gained 6.93 to 3,454.74 and the Dow Jones industrial average had slumped 42.52 to 10,946.39.

Strong movers included Inc. (AMZN) up 3 to 96-1/2, America Online Inc. (AOL) off 2-1/8 to 81-1/4, and Healtheon/WebMD Corp. (HLTH) was up 3-1/8 to 47-5/8.

Redback Networks (RBAK) had jumped 15-1/2 to 152 on news the company will merge with Siara Systems in a $4.3 billion deal. Redback will issue 31.3 million shares for all outstanding Siara shares and options.

CMGI Inc. (CMGI) was up 17-15/16 to 154-9/16. The company’s AltaVista unit Monday purchased online investment community Raging Bull.

Upgrades were also helping several Internet components, including Open Market Inc. (OMKT), up 7-3/16 to 36-1/2. SoundView Technology raised its rating to “strong buy” from a “buy.”

Doubleclick Network (DCLK) was off 3-1/4 to 173-3/4. Merrill Lynch initiated coverage Monday with a “long-term buy,” setting a $225 price target.

iVillage Inc. (IVIL) was up 4-5/16 to 31-9/16 after US Bancorp Piper Jaffray initiated coverage with a “strong buy.”

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