Small-cap stocks ultimately got locked in with the two trailing major indices -- the S&P 500 and the Dow Jones Industrial Average -- despite a number of upward-propelling deals and acquisitions.

Michigan's Tecumseh Products ( TECUA), for example, catapulted 51.7% on late Tuesday's news it will sell most of its electrical-components business operations to Regal Beloit ( RBC) for $220 million in cash. Proceeds are planned for substantial debt payoff; the transaction will probably close in the third quarter.

Tecumseh shares, up $8.17 to $23.97, lent support to the Russell 2000 along with Regal Beloit, which added 2.5% at $48.46 also as a member of the S&P SmallCap 600. Still, both indices spent most of the day underwater and were each virtually flat in recent trading.

Among other small-cap winners, ACR Group ( BRR) was soaring after Watsco ( WSO) agreed to buy the Houston-based distributor of air conditioning and related equipment for $6.75 a share in cash. Watsco says this is a 42% premium to ACR stock's prior 90-day average closing price. And restaurant operator Champps Entertainment ( CMPP) agreed to a $5.60 per-share cash takeout by Fox & Hound Restaurant Group.

ACR surged 43.7% to $6.61 as Watsco added 3.4%. Champps, whose deal is worth $74.8 million, jumped 16.6% to $5.40.

Meanwhile, Local.com ( LOCM) of Irvine, Calif., leapt 26% after media company Hearst Communications reported a 22.4% stake in the search-engine operator, or about 2.7 million shares. The stake newly reflects warrants to purchase around 1.2 million shares, which weren't included in Hearst's April ownership filing because they had replaced old warrants for an identical amount of shares. In a March filing, which reflected the old warrants, Hearst reported 22% ownership in the company. Local.com shares were changing hands at $11.18.

On the losing side, however, First Aviation Services ( FAVS) plunged 23% after the Westport, Conn., firm decided to voluntarily delist itself from the Nasdaq on July 16. The company expects "financially significant" savings from the change, saying "the incremental cost of compliance with Sarbanes Oxley and other reporting requirements does not provide any discernable benefit to the company and cannot be justified." Shares were off 61 cents at $2.04.

Tefron ( TFR) also traded lower after the Israel-based apparel maker estimated second-quarter will decline sharply from last year to around $40.5 million. The company also said it now expects 2007 profitability to be "significantly lower" than that of 2006 due to the waning revenue, among other factors. Shares were sinking $1.37, or 15.1%, to $7.71.

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