Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of chemical maker Georgia Gulf (NYS: GGC) exploded higher today, climbing 36% after getting a hostile takeover bid.
So what:Westlake Chemical (NYS: WLK) offered $1.03 billion for the company in an unsolicited bid for $30 per share. The company previously attempted to discuss an acquisition with Georgia Gulf and had to resort to a hostile takeover attempt this time.
Now what: The market obviously thinks that not only is a deal likely, but the offer price will be increased considering shares are trading above $33 per share. That could very well be the case, but betting on takeovers is risky business. If you're sitting on big gains today, I would take some of it off the table to hedge the possibility that the deal falls through all together.
Interested in more info on Georgia Gulf? Add it to your watchlist byclicking here.
At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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