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Tech Industry

Quintus shares slide on Mustang.com deal

    E-commerce software developer Quintus Corp. watched its shares fall 9 1/16, or 19 percent, to 39 3/16 Monday after announcing it will buy Mustang.com in a stock swap valued at around $290 million.

    Mustang.com (Nasdaq: MSTG), which specializes in e-mail management software, picked up 2 9/16, or 10 percent, to 28 7/16.

    Under the terms of the deal, Quintus will exchange 0.793 shares of its stock for each outstanding share of Mustang.com stock, roughly a 48 percent premium above Mustang's closing price Friday.

    All outstanding options and warrants to purchase Mustang.com common stock will also be assumed by Quintus and the purchase is expected to close in the second quarter.

    "This business combination adds Mustang's e-mail management leadership to Quintus' existing strength in integrating multiple channels of customer communication," said Quintus CEO Alan Anderson in a prepared release. "In addition, Mustang.com's recent announcement of an online hosted delivery model will be the basis of Quintus' expansion of offerings available through this channel."

    Mustang.com CEO Jim Harrer will stay on board the newly combined company as president of its Quintus Online unit.

    First Call consensus expects Quintus to lose 10 cents a share in its fourth quarter and 23 cents a share in fiscal 2001.

    All three analysts tracking the stock maintain a "buy" recommendation.