Business Briefs

Reported by Star-Bulletin staff & wire

Thursday, June 24, 1999

CMGI may purchase Compaq's AltaVista

ANDOVER, Mass. -- CMGI Inc., an Internet venture fund company, said it's in talks to acquire a controlling stake in Compaq Computer Corp.'s AltaVista online search service.

An agreement isn't assured, the companies said. CMGI is negotiating to buy AltaVista from Compaq, the world's largest personal computer maker, for $2 billion to $3 billion in stock, the Wall Street Journal reported yesterday.

Buying AltaVista would mark a change in strategy for CMGI, which has funded Internet start-ups such as Lycos Inc. and then reaped large returns when the companies go public or are bought. Compaq is restructuring as it battles slumping PC prices.

CMGI may want to become a media company or to consolidate content from its other investments on the Web site, analysts said.

30-year mortgages average 7.63%

McLEAN, Va. -- The benchmark U.S. home mortgage rate fell this week, although it remained near its highest level in more than two years, according to a weekly survey of mortgage rates from Freddie Mac.

The average rate on a 30-year fixed-rate mortgage was 7.63 percent this week, down from last week's 7.65 percent.

The mortgage broker also said the average rate on a one-year adjustable mortgage fell to 5.93 percent from 5.94 percent last week, and 15-year mortgage rates rose to 7.28 percent from 7.26 percent.

U.S. economic report shows more strength

WASHINGTON -- Orders to U.S. factories for big-ticket manufactured goods jumped a solid 1.4 percent in May, led by a big gains in aircraft, autos and other transportation products. The Commerce Department said today that orders for durable goods -- items expected to last at least three years -- increased $2.8 billion last month to a seasonally adjusted $197.6 billion.

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