Ast Research, Wal-Mart Team Up On Computers

AST Research Inc. said Thursday it will begin selling $1,000 multimedia computers at Wal-Mart stores this month to create a new market for low-price machines.

The personal computer maker said it began shipping the machines to the stores under an exclusive marketing agreement with Bentonville, Arkansas-based Wal-Mart Stores Inc., the nation’s largest retailer.

The computers, called “Advantage! Adventure” PCs, will come with CD-ROM drives, stereo sound, multimedia software packages and Microsoft Corp.’s “Windows 95” operating system.

“What AST is doing is going for lower income consumers,” said Wendy Abramowitz, an analyst with Argus Research. “They’re going for the portion of the PC home market that basically doesn’t exist yet.”

The new systems will “jointly deliver exceptional computing value for home-office and education consumers,” Ian Diery, AST president and chief executive officer, said in a statement. Irvine, Calif.-based AST makes several lines of PCs.

Chuck Kerby, Wal-Mart vicepresident and divisional merchandise manager, said in a statement that “computer products have become one of the fastest growing categories throughout our nationwide network of stores.”

AST Research shares rose 1/8 to 7 in Thursday trading. Wal-Mart shares rose 1/8 to 24-5/8.

Stocks that traded heavily or moved substantially Friday.

NYSE

American Airlines, up 1-3/4 at 95-7/8 and British Airways American depositary shares, up 2-7/8 at 84-1/2.

The carriers are discussing an alliance, according to The Wall Street Journal. The report said plans for a global network with new trans-Atlantic service could be announced next week and that British and U.S. aviation negotiators are to discuss the possible arrangement Monday. Officials of both airlines declined comment. One complication could be British Air’s 24.6 percent voting stake in USAir Group, which competes with American in some U.S. markets that serve as connecting points for flights to Europe.

Morrison Knudsen, halted at 1-1/2 and Washington Construction, up 1-5/8 at 10.

The troubled engineering company said Thursday it will merge with Washington Construction Group in a deal that would erase its $350 million debt by giving creditors a 45 percent stake in the new company.

Washington Construction is a much-smaller construction outfit controlled by Montana business magnate Dennis Washington. The deal allows existing Morrison shareholders to buy 2,765,000 shares of stock in the new company - or a 5 percent stake - at $12 each over five years.

NASDAQ

Biogen, up 1/2 at 65-1/2 and Chiron, down 1/4 at 96-3/4.

The FDA approved Biogen’s Avonex, the first drug to slow the progression of multiple sclerosis, or MS. But Berlex, which has sold a similar medicine since 1993, said it plans to ask a court to block Avonex’s introduction. Berlex, which licensed the competing drug Betaseron from Chiron, contends Avonex is so close that its approval would violate a seven-year period of exclusive marketing rights granted to Betaseron. Unless the court acts, however, Biogen plans to make Avonex available starting Monday.

Autodesk, down 4-3/4 at 35-3/4.

The maker of computer-aided-design software issued a lackluster forecast for second-quarter sales of AutoCAD, the company’s core product. Autodesk reported its first-quarter results late Thursday, showing a decline in AutoCAD sales to new users since the fourth quarter.

Aksys, up at 20-1/2 from intial offering at 16.

Investor interest in what could be a cost-effective, at-home kidney dialysis system lifted Aksys on the first day of trading after an initial public offering at $16.