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 RDA Microelectronics (NASDAQ:RDA) rose nearly 12% Friday after the Shanghai-based fabless semiconductor company announced it has received a non-binding acquisition proposal from China's state-owned Shanghai Pudong Science and Technology Investment Company.

So what: Shanghai PSTI is offering to buy all outstanding shares of RDA it doesn't already own for $15.50 per share, a premium of approximately 11.7% over Thursday's close of $13.88 per share. However, RDA's Board says it is reviewing the proposal and has yet to decide how they will respond.

Now what: Chardan Capital Markets analyst Jay Srivatsa has already chimed in to say he believes the bid is likely too low, which explains why shares are currently trading slightly above the offer price. In addition, Srivatsa stated, "I would expect the RDA board to potentially renegotiate" the bid.

To be sure, that wouldn't be particularly surprising. Even after today's pop, shares of RDA Microelectronics appear relatively cheap at just 14 times last year's earnings and 10.5 times next year's estimates. However, investors should be sure to tread lightly considering this by no means guarantees the deal will come to fruition.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.