MicroTouch Systems (Nasdaq: MTSI) shares gained over 38 percent Tuesday buoyed by yesterday's news that Minnesota Mining and Manufacturing (NYSE: MMM) will purchase the company for around $160 million.
Shares of the manufacturer of computer touch screens were up 5.69 to 20.56. 3M's shares were off 1.19 to 93.63.
Yesterday, 3M said it had agreed to purchase Methuen, Mass.-based MicroTouch after some period of negotiation. Upon completion, MicroTouch will become a wholly-owned subsidiary of 3M.
According to the deal, 3M will tender a cash offer to acquire 100 percent, but not less than a majority, of the outstanding MicroTouch shares for $21 per share in cash. If a majority of the outstanding MicroTouch shares are purchased, any remaining shares will snapped up by 3M's acquisition subsidiary for $21 per share in cash.
Newly-issued MicroTouch common stock may be acquired at 3M's option in an amount equal to 19.9 percent of MicroTouch's outstanding common stock. As well, all MicroTouch directors and certain officers have agreed to tender their shares to 3M.
The deal, expected to close early next year, is still subject to the approval of MicroTouch shareholders, customary customary closing conditions and regulatory approvals.
Reuters contributed to this report.