Mentor Graphics, a company currently headquartered in Wilsonville, might be acquired by the Icahn Group for $17 per share in cash ($1.73 billion total). Carl Icahn already holds a 14.7% stake in Mentor Graphics. Many years ago, I use to work for Mentor Graphics. It was one of the best company I ever worked at. I would hate to see Mentor go private because when that happens, investors usually lay off a bunch of people, cut other expenses, and sell off assets. For those who don’t know, Mentor Graphics develops and markets software and hardware design tools for engineers.
Here is the letter Carl C. Icahn sent to Mentor’s Board of Directors:
I hereby offer to have one or more of my affiliated entities purchase Mentor Graphics in a transaction, the form of which will be determined, designed to yield its shareholders $17 per share net in cash. That price represents an approximate premium of about 40% above the price at the beginning of January 2011. This offer is conditioned on completion of cursory due diligence, and the redemption and waiver of anti-takeover devices and laws such as the poison pill. There will be no financing conditions. Furthermore, we will not insist upon providing for a break-up fee in the transaction so as not to provide a roadblock to others who may want to consider bidding higher than our bid. As we have told you, we believe that there are potential strategic bidders for Mentor Graphics whose bid will reflect inherent synergies and should be superior to our $17 offer. However, in any event, we believe that our fellow shareholders should have the opportunity to accept our offer or a higher one, if one emerges as we think it will.
