Shares of Msystems ( FLSH) surged 12.7% in Monday trading after the company announced it is being bought out by SanDisk ( SNDK) for $1.35 billion in stock.

The companies said each Msystems ordinary share will be converted into 0.76368 of a share of SanDisk common stock, a 26% premium over the average closing price of Msystems' shares for the last 30 trading days. The close of the transaction is subject to conditions, including Israeli court approval, regulatory approval and Msystems shareholder approval, among others. The deal is expected to close in the fourth quarter of 2006. Msystems shares recently added $4.03 to $35.82.

Sirius ( SIRI) shares popped on news of a deal with Mitsubishi, adding 5.8%, or 24 cents to $4.38.

The company said its radios will be standard equipment on four models of Mitsubishi's 2007 car line and in all the 2008 models. The radios will be available in the Galant Ralliart and Endeavor SE cars, along with the Raider LS and DuroCross double-cab pickup trucks, and will be an option on other levels of the 2007 Galant, Endeavor and Raider and the Outlander. All Sirius-equipped vehicles will include a six-month, pre-paid subscription.

Sirius is scheduled to report second-quarter earnings before the market opens Tuesday. Analysts expect a loss of 15 cents a share on sales of $147 million.

Meanwhile, rival XM Satellite Radio ( XMSR) dropped 5.5%, slipping 69 cents to $11.98.

Conexant ( CNXT) rebounded after taking its lumps on Friday after a disappointing third quarter. The semiconductor firm moved up 7.5%, adding 13 cents to $1.86.

For the fourth quarter, the company's core net income will range from 3 cents to 4 cents. Revenue for the quarter will range from $244.1 million to $254.1 million. Thomson analysts are looking for 4 cents on sales of $261.9 million.

Investors were not pleased with Itron's ( ITRI) plans to offer $300 million in convertible notes, and bid down the stock 8%.

The company, which makes utility meters, said Monday that it would offer about $300 million principal amount of Convertible Senior Subordinated Notes due 2026 under its effective shelf registration statement previously filed with the Securities and Exchange Commission.

In addition, the company plans to grant the underwriters an option to purchase up to $45 million aggregate principal amount of additional notes.

Itron said it intends to use the net proceeds from the offering to acquire or invest in complementary businesses, products or technologies and for general corporate purposes, including capital expenditures and working capital. The company said it does not have any agreements at this time. Itron shares recently lost $4.10 to $47.48.

Other Monday movers included Cisco Systems ( CSCO), dipping a penny to $18.07, Apple Computer ( AAPL), rising $2.44 to $68.03, Intel ( INTC), down 13 cents to $18.05, Microsoft ( MSFT), off 9 cents to $24.16, Sun Microsystems ( SUNW), up by 2 cents to $4.35, Oracle ( ORCL) down 22 cents to $14.95, Dell ( DELL), off 59 cents to $21.63, JDSU ( JDSU), slipping a penny to $2.13 and Applied Materials ( AMAT), up 17 cents to $15.76.