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: Verigy (Nasdaq: VRGY) popped 11% in intraday trading today after the board indicated it intends to accept an offer to sell the company and back out of a separate agreement to buy a company.

So what: Last November, Verigy agreed to purchase rival LTX-Credence (Nasdaq: LTXC). Subsequently, Advantest (NYSE: ATE) offered to buy Verigy for $15 per share.

Now what: Today, Verigy's board announced the Advantest offer is "superior" and it will withdraw its recommendation in favor of acquiring LTX-Credence. This sets the stage for a legal battle, with a likely outcome that Verigy can get out of the agreement with LTX-Credence (though there may be a fee involved to quit the deal). This gives Verigy good odds of being acquired by Advantest for $15 per share, an 18% premium to Friday's close.

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Fool contributor Cindy Johnson does not own shares of any company named above. 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.