Ibm Bid Adds Up To Big Day For Stocks

The stock market charged ahead to new highs Monday, with technology shares leading the advance.

The gains wiped out the previous session’s losses and propelled several popular market measures, including the Dow Jones industrial average, to record closes.

Enthusiasm for computer, software and other technology stocks was rekindled by news that International Business Machines was offering to pay $60 a share for Lotus Development, a price that nearly doubled the software maker’s close on Friday.

In reaching a record finish of 4,476.55, up 32.16, the Dow industrials overcame a setback for IBM, which shed 2 5/8 to 91 1/4 after announcing the Lotus bid. The Dow improved on the prior record of 4,472.75 set on June 1.

Investors easily overlooked concerns about the flagging economy that recently had been depressing prices of economically sensitive, or cyclical, stocks.

Some of the stocks that moved substantially or traded heavily:

NYSE

International Business Machines, down 2 5/8 to 91 1/4.

IBM’s stock was in the spotlight after the company launched an unsolicited $3.3 billion bid for software maker Lotus Development.

Kmart, up 1 3/8 to 14.

Investors welcomed news that Kmart appointed veteran retailing executive Floyd Hall as its chairman, ending a lengthy search for a replacement for Joseph Antonini. Hall, 56, is a former top executive with Kmart rival Target Stores.

Boeing, up 2 5/8 to 61 5/8.

The stock got a lift from a report in The Wall Street Journal that Boeing apparently has won at least twothirds of a $6 billion commercial jetliner order from Saudi Arabian carrier Saudia, with the remainder of the pact going to McDonnell Douglas. McDonnell Douglas was unchanged at 72 7/8.

Morrison Knudsen, up 1 1/8 to 6 1/2.

The company’s stock rebounded following news that the company had won a reprieve from its lenders. The agreement extends a waiver on loan covenants until July 31.

NASDAQ

Lotus Development, up 28 15-16 to 61 7-16.

Investors flocked to the stock following IBM’s announcement of a $60-per-share, or $3.3 billion, takeover bid. The news sparked interest in a range of technology issues. Among heavily traded Nasdaq issues, Broderbund rose 3 3/8 to 46 1/2.

Qualcom, up 1 1/2 to 29 1/2.

Interest in the stock was stoked by news that NEC signed a multimillion-dollar worldwide license agreement to use the company’s technology, call code division multiple access technology.