Mentor picks advisors to deal with takeover attempt
Mentor Graphics has taken on Goldman Sachs and Merrill Lynch to advise on the unsolicited bid made by Cadence Design Systems to take over Mentor.
In June, Cadence said it had offered to buy all outstanding shares of Mentor at a price of $16 per share. At that point, Mentor rejected the offer claiming that regulatory problems would make any takeover by Cadence difficult and expensive.
According to analyst Gary Smith, head of Gary Smith EDA, the takeover would provide Cadence with near-monopoly positions in several parts of the electronic design automation market, including logic simulation, mixed-signal simulation, hardware emulation and design-rule checking, with dominant positions in printed-circuit board design, analogue design and formal verification.