AsiaInfo-Linkage Shares Jumped: What You Need to Know

Updated

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 AsiaInfo-Linkage (NAS: ASIA) have jumped today, up by as much as 11%, on speculation that the company may be acquired.

So what: According to a Reuters report, several global private equity firms, including well-known names like KKR & Co. and TPG Capital, are considering potential bids for AsiaInfo-Linkage. A possible deal could value the company north of $1 billion.

Now what: This comes after a January offer from CITIC Capital, which had sent a proposal letter to the company for an all-cash offer, although the specific price wasn't disclosed. The report even names strategic rivals that may be thinking of swooping in to pick up the software maker, including Oracle and IBM, among others. If a bid emerges, CITIC is expected to play some role in the deal.

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