Updated from 2:07 p.m. EDT with new stock prices

Small-cap stocks suffered a selloff Friday, reflecting a downward slide in the broader market. The Russell 2000 shed 3% to 740.70, and the S&P SmallCap 600 lost 2.9% to 390.40.

Among the losers, MRV Communications ( MRVC) fell 24.2% to $1.44. The Chatsworth, Calif., semiconductor company said it may restate results following a review of its stock-option practices from 2002 through the first quarter of 2004.

Also sliding, shares of Entravision ( EVC) gave up 18.3% to $4.72. Citigroup downgraded the Santa Monica, Calif.-based Spanish-language media company to hold from buy.

Shares of GeoResources ( GEOI), a Houston-based oil and natural gas company, tumbled 17.8% to $23.17. The firm announced a 1.53 million-share private stock offering priced at $22.50 a share.

On the winning side, a buyout bid lifted Tumbleweed Communications ( TMWD), shares of which skyrocketed 45.2% to $2.57. Sopra Group said its Axway subsidiary is buying Tumbleweed, a Redwood City, Calif.-based provider of managed file transfer, email security and identity validation products, for $138 million, or $2.70 a share.

ExpressJet ( XJT), which operates Continental Express Airlines, climbed about 9% but is now trading up about 1% at $1.97. The Houston-based company announced it reached a seven-year capacity deal with Continental Airlines ( CAL). The contract allows ExpressJet to fly for other carriers and explore strategic alternatives.

China Architectural Engineering ( RCH) announced it will begin trading on the Nasdaq under ticker symbol "CAEI" on June 10. Shares climbed 7.6% to $9.91 on the Amex Friday.

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