Takeover speculation dominated the news in the Internet sector on Wednesday, although most of the day’s initial public offerings also rocketed.
internet.com’s Internet Stock Index rose 9.43, or 1.87 percent, to 514.65, the Nasdaq Composite gained 17.87 to 2,598.13 and the Dow Jones industrial average shed 55.09 to 10,666.54.
EarthLink Network Inc. (ELNK) gained 4 to 61-1/4 amid continuing reports that Gateway Inc. is considering buying the Internet service provider. Both companies have refused to comment on the speculation, which caused EarthLink shares to climb 20 percent Tuesday.
CMGI Inc. (CMGI) gained 4 to 98-15/16. The Wall Street Journal reported Wednesday the company may buy Compaq Computer Corp.’s Internet assets for $2 billion to $3 billion. Those include the AltaVista search engine as well as e-commerce site Shopping.com and local directory Zip2.
Multex.com (MLTX), which provides research reports to individual investors, lost 2-5/16 to 26-11/16 on news that was acquiring Market Guide Inc. (MARG) in a stock deal worth $162.4 million. Market Guide shareholders will receive one share of Multex.com stock for each outstanding share of
Market Guide stock, or approximately 5.6 million shares. Market Guide shares lost 1-3/8 to 21-5/8.
It was also a busy day for initial public offerings. TD Waterhouse Group Inc. (TWE) rose 1-5/8 to 25-5/8. The online broker, a unit of Canada’s Toronto-Dominion Bank, sold 42 million shares at $24, raising slightly more than $1 billion. That’s the largest Internet IPO ever.
Globespan Inc. (GSPN) also had a stellar introduction, rising 27-5/16 to 42-5/16. The company, which supplies chipsets for Digital Subscriber Line equipment, sold 3.25 million shares at $15 Tuesday, raising $48.75 million.
Introducing Internet StockTracker, the new weekly e-mail newsletter from
internet.com LLC. Every Friday internet.com will deliver to your e-mail
in-box the latest performance data on individual Internet companies and
their competitors. Internet StockTracker will deliver to you all the
statistics you need to assess the week’s activity.
Subscribe today and receive the Charter Rate of $157 — a savings of
$100 off the regular subscription price!