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 machinery systems-maker Sauer-Danfoss (NYSE:SHS) jumped in midday trading today, gaining as much as 34% on news of a buyout offer from majority owner Danfoss.

So what: In a deal valued at $580 million, Danfoss plans to purchase the remaining 24% share of Sauer-Danfoss for a per-share price of $49. Danfoss had sent a letter to Sauer-Danfoss' board saying it hoped an amicable agreement could be worked out by the end of the year. Sauer-Danfoss makes electronic and hydraulic systems involved in steering and other functions in machinery, while the Denmark-based Danfoss is a major player in energy-efficient industrial systems.

Now what: This one looks pretty straightforward. Shares of Sauer-Danfoss notably rose above the $49 threshold, indicating that the market may be expecting a higher price. Shareholders may want to sell now while they can get a premium over the $49 buyout offer. Considering Danfoss already owns a majority of the smaller company, the deal is likely to go through.

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Jeremy Bowman and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.