STOCKS TO WATCH: Apple, Compaq, CBS and Vodafone
Expect the following technology stocks to be among Tuesday's most actively traded issues: Apple, Compaq, CBS and Vodafone AirTouch.
When a stock makes as dramatic a rise as Apple has in the past year there's bound to be shareholder issues. Especially when you consider the PC makers veritable return from the dead in the past three years. It wasn't too long ago you couldn't give Apple shares away.
On Friday, Apple said it reached a settlement, subject to court approval, of a shareholder derivative action that has been pending since January 1996.
Under the settlement in the action known as Kostick vs. Crisp, the company's board will take certain actions involving amendments to the company's by-laws and securities trading policies.
Apple shares closed at a 52-week high of 73 1/2 Friday.
CBS and Viacom Inc. are expected to announce Tuesday they are joining forces, in what would be the biggest media merger to date.
The resulting media powerhouse would own the CBS network, several major cable networks, including MTV, Nickelodeon, Country Music Television and the Nashville Network, and storied film studio Paramount Pictures. It would likely be run by CBS's chief executive officer, Mel Karmazin.
CBS's market valuation is about $37 billion at Friday's closing stock price of $48.9375, while Viacom's market capitalization is about $31 billion. Viacom's Class A shares closed Friday at $45.3125.
Compaq said it's going to cut prices in Japan by up to 10 percent for its Prosignia Desktop line, a move designed to capitalize on the suddenly thriving Japanese economy. After watching Apple, Hewlett-Packard Co. (NYSE: HWP), Dell Computer Corp. (Nasdaq: DELL) and others rake in big profits from the recovering economy.
It's not that big of a deal, but following a holiday weekend, it might for a nice starting point in early trading Tuesday.
Compaq shares closed up 3/16 to 23 1/4 Friday.
Here's your stock of the day.
Vodafone, the largest mobile phone company in the world, confirmed it's in talks with Bell Atlantic Corp. (NYSE: BEL) to creating a pan-U.S. mobile 'phone network."
As you read this, the stock has already shot through the roof in London.
The statement, issued in response to long-standing press speculation about a possible merger of Vodafone's western U.S. operations with Bell Atlantic's eastern networks, added that the Bell talks were continuing but ``there could be no assurance that any agreement will be reached.''
A deal with Bell would give Vodafone access to over 20 million U.S. customers -- including in the highly prized New York City area -- and would fulfil what analysts have been saying has long been the most pressing issue for the company: winning the race to achieve nationwide U.S. coverage.
In addition to hopes for a positive outcome to the Bell talks this month, analysts -- many of whom met Vodafone's management last Friday -- were positive about the company's future plans.
Goldman Sachs upped the stock on its top-ranking ``Europe Recommended'' list with a price target of 16 pounds, while CSFB recommends investors ``buy.''
CSFB said on Monday that the company's core business was progressing well worldwide and that strong subscriber growth should underpin positive short-term news.
Vodafone shares closed up 8 to 202 1/2 Friday.
Reuters contributed to this report.>