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 California bank holding company Hanmi Financial
So what: Nara is paying $286 million for Center Financial, in a deal that will make it the largest U.S.-based Korean-American bank. Why does this matter to Hanmi? Because it boosts expectations that more consolidation will go on in the Korean-American banking sector. Hanmi has already attracted significant attention; South Korea's Woori Finance
Now what: Investors love takeover rumors. I don't. When a buyout does materialize, it can often give investors a quick bump as the company gets snatched away from them. However, many rumored acquisitions, even ones that seem to make a lot of sense, never materialize. Of course, in the case of Hanmi, we're talking about a very unhealthy bank, so investors will be speculating here one way or another. Either that the bank does get acquired, or it raises new capital some other way (possibly the Woori deal going through) and is able to get its act together as a stand-alone bank.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy assures you no Wookiees were harmed in the making of this article.