LDK Solar Shares Jumped: What You Need to Know

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 Chinese solar player LDK Solar (NYSE: LDK  ) are enjoying time in the sun today, rising by as much as 10%, fueled by buyout speculation within the sector.

So what: Bloomberg reports that domestic rival First Solar (Nasdaq: FSLR  ) has become so cheap recently that it could be a potential acquisition target. This notion is one that fellow Fool Travis Hoium has discussed, even as recently as yesterday.

Now what: Possible suitors could include General Electric (NYSE: GE  ) or Siemens (NYSE: SI  ) , and would be seen as a boon for the solar sector. LDK and other Chinese players use polysilicon, whereas First Solar uses cadmium tellluride in its panels. Other companies like Suntech Power (NYSE: STP  ) and JA Solar (Nasdaq: JASO  ) are also enjoying gains today. The industry has been ravaged by plummeting prices and rampant competition, so some acquisition activity could help give it a much-needed boost.

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