Dow Drops 370 Points

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Richard S. Fuld Jr., chief executive of Lehman Brothers Holdings Inc., in his prepared testimony before a House Government Reform Committee, portrayed Lehman Brothers as mistaken in its assumptions about the health of mortgage markets, but also the victim of happenstance and financial markets that eroded too quickly for Lehman executives to contain the firm's losses.

Among other stocks in the news Monday, ImClone Systems (IMCL) and Eli Lilly (LLY) announced that the boards of directors of both companies have approved a definitive agreement under which Lilly will acquire ImClone through an all cash tender offer of $70 per share, or about $6.5 billion.

eBay (EBAY) expects to hit the low end of its third quarter revenue guidance, but exceed GAAP and non-GAAP EPS guidance. Separately, EBAY acquired U.S.-based online payments business Bill Me Later for $820 million in cash and $125 million in outstanding options. It also acquired Denmark's leading online classifieds site for $390 million in cash. The company plans to reduce its global workforce by about 10%, affecting about 1,000 employees, expected to result in pretax restructuring charges of $70 million-$80 million.

SAP AG (SAP) shares fell after the company warns that it expects third quarter 2008 U.S. GAAP software and software-related service revenues to increase 13%-14% from the third quarter of 2007. It says the market developments of the past several weeks have been dramatic and worrying to many businesses. These concerns triggered a very sudden and unexpected drop in business activity at the end of the quarter.

Andrews is managing editor of the Investing Channel for BusinessWeek.com . McCormack is senior producer for BusinessWeek.com's Investing channel .