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 ITC Holdings (NYSE: ITC) soared as much as 11% in early trading before closing up 3%. The operator of power distribution systems announced plans to purchase Entergy's (NYSE: ETR) transmission business for $1.78 billion.

So what: Initial enthusiasm faded after investors realized the full price of the deal. Reuters reports that Entergy's transmission business is already the subject of a Department of Justice investigation and will need $2 billion in investment over the next four to five years.

Now what: In the here and now, ITC announced a plan to pay out a $700 million one-time dividend to shareholders ahead of the deal. Management also said it expects $3.90 to $4.05 in per-share profit for 2012. Analysts were calling for $4.03 a share. Do either of these moves matter? Would you buy shares of ITC Holdings at current prices? Please weigh in using the comments box below.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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