Mentor Graphics to consider $1.6 billion all-cash offer from Cadence Design Systems

By Lisa Kerner

Charlotte, N.C., June 30 - Mentor Graphics Corp. retained Goldman Sachs and Merrill Lynch as financial advisers as it reviews the unsolicited written offer from Cadence Design Systems, Inc. to acquire the company for $16 per share, it was announced on Monday.

Latham & Watkins LLP is Mentor Graphics' legal adviser, a company news release said.

Cadence Design's all-cash offer is valued at $1.6 billion, including Mentor Graphics' net debt of $69 million, it was previously reported.

In its proposal to Mentor Graphics' board of directors, Cadence Design noted the acquisition is not subject to a financing condition and that the offer price is a 30% premium over the closing price of Mentor Graphics common stock on June 16, one day prior to public disclosure of the offer, a prior Cadence Design news release stated.

While Cadence Design said it has tried to discuss the proposal with Mentor Graphics for two months, Mentor Graphics chairman and chief executive officer Walden C. Rhines said in a previous statement that the offer price was insufficient.

Cadence Design is a San Jose, Calif.-based computer software and hardware developer.

Mentor Graphics provides electronic hardware and software design solutions, products, consulting services and support for electronics and semiconductor companies. The company is located in Wilsonville, Ore.

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