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 Quest Software
So what: Management said it had received a $2.15 billion bid from an undisclosed strategic bidder that would pay shareholders $25.50 per share. A previous offer of $23 per share, or $2 billion total, from Insight Venture Partners was topped during a "go-shop" period in which the company could solicit other offers.
Now what: Shares are already trading over $26, indicating the market thinks a bidding war will erupt. Considering this is the offer the company announced, I don't see another outside offer topping this one, but Insight Venture Partners may up its bid. I still think that's a risky bet and would cash my chips in right now at a price above what is currently on the table in a buyout.
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