STOCKS TO WATCH: Alteon Websystems, Aspect, Paradyne and Yahoo!

VoiceStream will be worth watching today, as reports of its possible acquisition fly. The Financial Times and the Wall Street Journal both reported that Germany's Deutsche Telekom AG was making a bid to buy the company.

The Financial Times said Deutsche Telekom had offered to buy VoiceStream in a deal that would value the U.S. company at more than $30 billion, which some traders said looked expensive.

Alteon shares should gain ground Tuesday after the company said fourth-quarter sales improved 80 percent from the previous quarter and that it will report a profit in the quarter.

Its shares closed up 5 1/16 to 100 15/16.

Company officials said late Monday that Alteon recorded sales in the neighborhood of $51 million, up from the $28.2 million it posted last quarter.

It also said it will turn a slight profit in the quarter, three quarters ahead of previous expectations.

First Call Corp. consensus was predicting a loss of 1 cent a share in the quarter.

Aspect shares figure to slide Tuesday after it warned that it will miss analysts' estimates in its second quarter.

The provider of Web technology for managing customer relationships said it expects to report second quarter earnings ranging between 1 cent and 3 cents a share, excluding goodwill writedowns but including gains from stock sales.

Analysts were expecting a profit of 8 cents a share in the quarter.

Shares of Aspect fell in after-hours activity immediately following the profit warning. Soon after the close of regular trading, Aspect slid to 37 on the Island ECN. The stock closed Monday's regular trading at 43 7/8, up 5/8 for the session.

Aspect sees third quarter revenue ranging between $139 million and $143 million, with 60 to 65 percent growth year-over-year in license revenue. The company sees fourth quarter sales between $153 million and $163 million in the fourth quarter, with license revenue increasing 55 to 60 percent from the year-earlier period.

Paradyne shares should be on the move Tuesday after the Frank Russell Company said the stock will be added to the Russell 2000 and Russell 3000 indices.

Paradyne shares closed up 1 to 36 1/2 ahead of the announcement.

Membership in Russell's 21 U.S. equity indexes -- widely used by investment managers as benchmarks for both passive and active investment strategies -- is determined strictly by market capitalization rankings and style attributes, rather than by subjective opinion or committee decisions.

Paradyne shares peaked at 58 last July before falling to a low of 17 1/4 in April.

Five of the six analysts following the stock rate it either a "buy" or "strong buy."

Yahoo! will be worth watching ahead of its second quarter earnings report due out after the bell.

The world's largest and most successful Internet portal is expected to earn 10 cents a share in the quarter.

In its latest quarter, Yahoo! topped analysts' estimates, earning $63.2 million, or 10 cents a share, on sales of $228.4 million.

However, analysts have been bemoaning Yahoo!'s margins of late, worried that deteriorating online advertising sales will crimp Yahoo!'s impressive growth.

"There aren't as many people spending dollars to advertise like they were six or eight months ago," said Lise Buyer, an analyst at CS First Boston. "But for every dotcom that goes away there's another established company that will find a way to work with Yahoo!."

Its shares closed off 6 1/2 to 110 Monday.

Reuters contributed to this report