An initial public offering set for Thursday by Divine Interventures Inc. looks anything but heavenly to analysts, and some question whether the IPO will happen this week as planned.

Tech stocks took a hammering Wednesday as two software companies warned that their quarterly earnings will fall short of expectations.

The general jitteriness among investors with tech issues could be especially bad for Chicago-based Divine because of an indirect connection to Divine's founder, Andrew "Flip" Filipowski.

Last year Filipowski sold his previous company, Platinum Technology International Inc., for $3.5 billion to Computer Associates International Inc., and Computer Associates was one of the firms Wednesday to say its earnings for the quarter will disappoint analysts.

Computer Associates' stock dropped $21.75, or more than 42 percent, on the news. Joining Computer Associates in taking a beating on Wednesday was the stock of BMC Software Inc., which also issued an earnings warning and declined $14.19, or nearly 40 percent. And a ripple effect of wider worries about mainframe computers saw IBM Corp. shares drop as well, down $4.81, or more than 4 percent.

Divine is an incubator firm that helps accelerate the growth of young Internet companies, taking an equity stake in them. Incubators were hot on Wall Street last year, but they've cooled in the past quarter, and Divine's plans to go public in the spring foundered when its lead investment banker Credit Suisse First Boston advised against an IPO.

In May Filipowski dumped Credit Suisse and hired San Francisco-based Robertson Stephens to push ahead. A late June IPO target was missed, and chances it will proceed this week appear to be fading.

"I've heard nothing concrete, but the IPO market is relatively soft now," said Charles Rustein, an analyst with Rorrester Research in Cambridge, Mass. "It's difficult to see them getting out in this climate."

Filipowski, who has applied his charisma to give Divine's IPO a high profile, faces a difficult timing problem, said Rustein.

"If the market sees him try and try to go public but not make it, then the likelihood of ultimate failure rises," he said.

Citing the firm's "quiet period" imposed by the Securities and Exchange Commission, a Divine spokeswoman wouldn't comment on the IPO.

Even though Divine has attracted investment from big name tech companies like Microsoft Corp. and Dell Computer Corp., it needs the IPO to raise money to fulfill its business plan. After the public offering was delayed in the spring, Divine laid off 29 employes and pushed back plans to construct a new campus headquarters at Goose Island in Chicago.

"They have a good story," said Ullas Naik, senior vice-president for research at First Albany Corp. in Boston. "But the market for incubators isn't sturdy just now."

Two companies similar to Divine—CMGI Inc. and Internet Capital Group—did go public last year when investor enthusiasm for the Internet was high. Since reaching high points late last year, both firms have seen their share value diminish by more than 75 percent. That in itself could spook potential investors in Divine.

"They're in trouble either way they go," said Jeff Hirschkorn, senior marketing analyst with New York based IPO.com. "It's a good concept and six months ago, it would have done well in the market.