Tuesday, June 17, 2008

Mentor Graphics Gets, Rejects Takeover Offer

Wilsonville, Oregon-based Mentor Graphics Corporation, a developer of electronic design automation (EDA) software, said today that it has received, and rejected, an offer by Cadence Design Systems for the firm. According to Mentor, it was offered $16.00 per share for the company, and that it rejected the offer, citing the price proposal and risks associated with obtaining antitrust approval for combing the two companies. Mentor Chairman and CEO Walden C. Rhines said in a statement that "not only was the price insufficient to support a transaction but that the risks of not gaining regulatory approval were sufficiently high that the ability of the parties to consummate the transaction would be in jeopardy." Cadence said that it first made the offer for Mentor Graphics in May.