Aladdin Knowledge Systems Ltd. (NDAQ: ALDN) shares jumped sharply earlier this week on media reports of a pending sale, but investors may want to wait for some solid numbers before taking action. Israel’s “TheMarker” reported that the security software provider may be sold to an affiliate of Vector Capital for $11 to $12 a share – well above the stock’s current trading price.

The numbers are mere speculation, however, given the deterioration in the financial markets. Originally, Aladdin received a non-binding proposal from Jasmine Holdco LLC, the affiliate of Vector, to buy all of Aladdin’s shares for $14.50 per share. However, the deal failed to materialize to date as the financing environment has presumably deteriorated for the acquiring company.

Regulatory filings show that it is unlikely that Jasmine will back off, however. The Vector Capital disclosed a 14.17% stake in the security company. The same regulatory filing also showed that the company extended its standstill agreement with Jasmine in order to presumably complete the financing on the deal. The large stake and agreement to extend are two signals that a deal is definitely in the works.

Investors are now waiting for a special meeting of the shareholders slated for January 9, 2009 where the terms of the deal are expected to be released. The price remains up in the air…