Shares of Multi-Fineline Electronix ( MFLX) were among technology's winners Tuesday, climbing 7% after a special committee of the company's board withdrew its recommendation to purchase Singapore-based MFS Technology. The committee believes the acquisition, which was first announced on March 30, "is contrary to the best interests of M-Flex and its unaffiliated stockholder," M-Flex said. The committee based its decision, in part, on "significant decreases in MFS' net sales and net income for the third quarter of fiscal year 2006." M-Flex, a maker of assembly systems used by the electronics industry, said it submitted an application with Singaporean officials to immediately withdraw the MFS offer. Shares were trading up $1.33 to $19.59. XM Satellite Radio ( XMSR) rose 12% after Bear Stearns lifted its rating on the stock. The brokerage firm, which boosted its rating to outperform from underperform, said XM's recent difficulties have dissipated. Bear Stearns also said that a pending Federal Communications Commission authorization of XM's devices could provide a boost to the company in the near future. XM shares recently were $1.42 higher to $12.66. Shares of Inter-Tel ( INTL) fell modestly after the company confirmed that it received a revised unsolicited acquisition bid from CEO Steven Mihaylo and Vector Capital for $23.25 a share in cash. Inter-Tel said it plans to review the group's offer, which was made early Monday, in due course. Shares were down 16 cents to $21.53.
Shares of Gateway ( GTW) continued to rally after Monday's disclosure that an investment group had taken a stake in the company. A group including Harbinger Capital Partners and Harbert Management bought a roughly 10.2% stake in the computer maker, according to a Securities and Exchange Commission filing. The investors also sent a letter to Gateway's chairman and interim CEO offering assistance in "efforts to enhance shareholder value." Gateway shares recently were up 18 cents, or 12%, to $1.71. Harmonic ( HLIT) rose 1% after the company agreed to acquire privately held Entone Technologies for $45 million. The deal consists of $26 million in cash and 3.54 million Harmonic shares. Harmonic, a provider of digital video and broadband optical networking systems, expects the deal to add to earnings, before items, in the first quarter of 2007. The acquisition is expected to close in October. Shares of Harmonic were trading up 5 cents to $5.66. Other technology movers included Sirius Satellite Radio ( SIRI), up 7 cents to $3.96; Intel ( INTC), down 11 cents to $18.14; Microsoft ( MSFT), up 6 cents to $26.18; Cisco Systems ( CSCO), up 18 cents to $21.09; Oracle ( ORCL), down 11 cents to $15.53; Dell ( DELL), down 22 cents to $21.40; Apple Computer ( AAPL), up 65 cents to $67.21; and Lucent Technologies ( LU), down 1 cent to $2.25.