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 General Cable Corporation (NYSE:BGC) jumped as much as 26% late in trading today after rumors surfaced about a potential buyout.

So what: Bloomberg reported midday that General Cable's larger competitor Prysmian SpA was considering an acquisition of its rival. The article states that Prysmian has "held preliminary discussions with financial advisors about the U.S. rival," although it hasn't yet approached General Cable with an offer.

A buyout is just speculation at this point, and Prysmian's management was quick to say that it is considering all growth options but has had no talks with General Cable.  

Now what: Companies consider acquisitions or divestitures of businesses all the time, and at this point a potential deal is just rumor. We don't even know if General Cable would be open to a deal or what price they would consider.

For today, I certainly wouldn't be a buyer at more than a 20% premium over yesterday's close on speculation alone. This will be an interesting potential deal to watch, but not one worth buying today.