Monday's most actively traded issues may include: Ancor, Cisco Systems, Microsoft, Verio, WorldGate Communications and CDNow.
High-speed electronic connector component maker QLogic Corp. (Nasdaq: QLGC) said on Monday it had signed a deal to buy Ancor Communications (Nasdaq: ANCR), a provider of fiber switches for data storage networks, in a stock deal worth about $1.7 billion.
The computer-networking equipment maker, which agreed to buy Arrowpoint Communications (Nasdaq: ARPT) for about $5.7 billion Friday was criticized in a Barron's report. Barron's questioned its ability to keep up its rate of aqcuisitions.
The company has a share price and market value driven by its acquisition binge and steady earnings. Cisco has increased its budget for acquisitions each year as its revenues and stock price have soared, and therein lies the problem. According to a Barron's report, growth could suffer if revenue or its acquisition pace slow. Cisco was down 1 5/8 to 66 1/8 in Instinet pre-market trading.
Barron's beef with Cisco comes as the company preps its earnings report for Tuesday.
The software giant will follow a federal judge's order and this week propose restrictions on its business practices, taking an approach radically different from the government's plan to split it into two firms.
Microsoft spokesman Mark Murray said on Sunday that the judge ordered the company "to provide our proposal for what we would see as a reasonable and appropriate remedy for the violations the court found, recognizing Microsoft disagrees with many of the court's findings and plans to appeal."
Under a court deadline, the company will file its plan with Jackson by Wednesday. Once he has that, and a government reply due May 17, the judge will conduct a hearing on May 24.
Murray said the company was preparing its brief and declined comment on a Washington Post report in Sunday's editions outlining approaches said to be in a draft. The paper reported that Microsoft will propose:
Verio, which provides Web-hosting services for small and medium-sized companies has agreed to be bought by NTT Communications Corp., the international unit of Nippon Telegraph & Telephone Corp. for $60 a share in cash, or $5 billion. Verio fell 15/16 to 35 15/16 at Friday's close.
The provider of high- speed Internet access to cable-television subscribers said its service will be used with Microsoft Corp.'s (Nasdaq: MSFT) operating system on set-top boxes made by Motorola Inc. (NYSE: MOT). WorldGate rose 5/16 to 21 7/8 before Friday's bell.
Things could be looking up again for the cash-tight company. Mexican billionaire Carlos Slim Helu has bought a 9.2 percent stake in the troubled online music retailer for $52.8 million, according to a filing with the U.S. Securities and Exchange Commission Friday.
Slim, one of the richest men in Latin America, bought 3.03 million shares in the money-losing company, which announced in March that it was looking for an investment or a merger partner after a proposed merger with Columbia House fell through.>