Nanotech Firms Plan Merger

Unidym, an Arrowhead Research subsidiary in California, is acquiring Carbon Nanotechnologies Inc., which was formed in 2000 by the late Nobel Laureate and Rice University chemistry professor Richard E. Smalley. Houston-based CNI boasts more than 50 patents, pilot plants to produce carbon nanotubes, and partnerships with major companies. University of California, Los Angeles, physics professor George Gruner founded Unidym, which develops nanotube-based electronic devices. Under the deal, Arrowhead will exchange $5.4 million worth of its stock for stock in CNI. Arrowhead will also contribute $4 million in cash to Unidym.