Shares of the Britain-based company soared some 88% after Japan's Sumitomo agreed to buy it for a gigantic premium of $12 a share, or $285 million, in an all-cash deal that will likely close during the third or fourth quarter. Cambridge Display shares traded up $5.43 to $11.58.
Midwest Airlines (MEH) also gained on M&A news. The Wisconsin-based company, which has been pursued by Airtran (AAI) since late 2006 in the face of repeated rejection, now says it will begin discussions with the discount airline. AirTran's current bid is for around $15 a share in cash and stock.
Midwest also says it has recently attracted interest from "other strategic and financial parties" that it intends to explore. Its shares rose 12.9% to $14.23 in support of the Russell 2000, which lately climbed 4.69 points, or 0.6%, to 788.92.The S&P SmallCap 600 similarly gained 0.7% as member Headwaters (HW - Get Report) blew away fiscal third-quarter expectations. The Utah-based company, which sells products and services to the energy and construction-materials markets, said earnings leapt by 40 cents a share from last year to 98 cents -- double the amount analysts were seeking. Revenue, at $336.3 million, was also well above the consensus. Shares surged 13.4% to $16.99.