GREENSPAN ATTACKS PROTECTIONISM: Federal Reserve chairman Alan Greenspan expressed concern the economic slowdown could trigger a protectionist backlash against free trade, which he said would be a "great tragedy" for the country. In an appearance before the Senate Finance Committee, Greenspan described anti-globalization protesters as well-meaning but "wrong-headed." Poor nations "need more globalization, not less," Greenspan said, urging rich nations to dismantle trade barriers so more Third World products can be sold in their markets.

AIG BIDS FOR AMERICAN GENERAL: American International Group offered to buy American General Corp. for $23-billion in stock, topping a rival bid by Prudential PLC. AIG is seeking to expand its annuity and asset-management units and said American General would "immediately" boost AIG's earnings by 8 percent to 10 percent. A Prudential spokeswoman said under their agreement, American General would owe Prudential a $600-million break-up fee if it walked away from the purchase. American General said in a news release it will consider AIG's offer.

LUCENT DENIES BANKRUPTCY PLANS: Lucent Technologies Inc. denied speculation it would file for bankruptcy protection after its shares fell as much as 30 percent. Lucent's cash holdings plunged 60 percent to $1.5-billion on Feb. 16 from $3.8-billion on Dec. 31 after the company posted its first loss. Its shares fell below their 1996 initial public offering price Wednesday, and they've lost more than $230-billion in market value since reaching a record in December 1999. Also, Standard & Poor's has Lucent's debt under review for a possible cut to junk status. Still, Lucent chief financial officer Deborah Hopkins called the filing rumors "baseless and irresponsible." Lucent's shares fell $1.07, or 13.63 percent, to $6.78 after sliding to a low of $5.50.

HOMEBUILDERS WEATHERING ECONOMIC SLUMP: The nation's largest homebuilders are reporting increased sales as mortgage rates below 7 percent and a growing population offset the effects of a slowing economy. Lennar Corp., The Ryland Group and M.D.C. Holdings Inc. said orders for the first months of this year were higher than the year-earlier periods. M.D.C. and Beazer Homes USA Inc. said they expect to report results that exceed analysts' estimates for the fiscal quarter ended last month. The Standard & Poor SuperCap Homebuilding Index, a measure of the 14 biggest homebuilders' share performance, gained 3 percent this year, while Standard & Poor's 500 Index dropped 15 percent.

MATTEL TO CLOSE LAST U.S. PLANT: Mattel Inc. will close its last U.S. manufacturing plant and fire 980 workers to cut costs. The Murray, Ky., plant, which makes Fisher-Price toys, will be shut down over the next 18 to 24 months, a spokeswoman said. Production will be moved to Mexico. Shares of Mattel fell 40 cents to $17.25.

MTV JOINS ONLINE MUSIC RUSH: Viacom Inc.'s MTVi Group and Rioport.com Inc. said they have agreements to sell songs from all five major record labels starting this month. The companies said about 10,000 songs from the labels will be available by the end of the month. Prices will range from 99 cents to $1.99 for a single, $11.99 to $18.99 for albums. The deal follows an announcement by RealNetworks Inc. and three top record labels Monday about the creation of a subscription service called MusicNet for downloading and saving music.

COHEN ASSESSES S&P: Goldman, Sachs & Co. strategist Abby Joseph Cohen said the Standard & Poor's 500 Index, down 28 percent from its peak a year ago, is "notably undervalued." Cohen, chairwoman of Goldman's investment policy committee, said, "The declines in share prices have gone well beyond (what) any questions in fundamentals would suggest." Stocks in the index, the benchmark for institutional investors, now trade for 23 times recent profits, down almost one-third from a year ago. Cohen last month recommended investors raise their stock allocation to 70 percent from 65 percent, and she lowered her suggested cash weighting to zero from 5 percent. The S&P 500 would have to surge 50 percent and the Dow 37 percent to meet Cohen's year-end market targets.

VISTEON JOINS IN JOB CUTS: Squeezed by a slowdown in U.S. auto sales, auto parts supplier Visteon Corp. said it plans to cut 1,800 jobs in a restructuring push to pare overhead costs and bolster customer service. Visteon said 950 white-collar jobs -- about 12 percent of its salaried work force -- have been jettisoned, effective immediately. Without offering details, the company said it will cut an additional 850 of its 82,000 jobs worldwide. Visteon's announcement came six days after Delphi Automotive Systems Corp., the world's largest auto parts supplier, said it will cut 11,500 jobs -- 5 percent of its work force -- and close nine plants.

FEDEX MAY MISS TARGET: FedEx Corp., the largest overnight delivery company, said it may not meet its fourth-quarter profit estimates because it isn't shipping as many packages. FedEx said it will be "unlikely" to meet the profit of 85 cents to 90 cents a share it had expected. Analysts forecast the company to earn 82 cents. Rival United Parcel Service Inc. last month said it expects its earnings to fall in the first six months of the year. FedEx shares rose 60 cents to $39.60. The announcement came after the close of regular U.S. trading.

THESTREET.COM CUTS STAFF: TheStreet.com is laying off about 40 people, or 20 percent of its staff, in its latest effort to achieve profitability. The company laid off another 20 percent of its staff in November.

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