Monday, August 18, 2008

Cadence Retracts $1.5B Offer to Buy Mentor Graphics

Cadence Design Systems Inc., a developer of semiconductor design software, has withdrawn its $1.5 billion offer to purchase Wilsonville, Oregon-based competitor Mentor Graphics Corp. Cadence originally tendered its bid to acquire all outstanding shares of Mentor common stock in June. Instead, the San Jose, Calif.-based company said it would add some $500 million to its stock repurchase program. In a Friday press release, Cadence blamed Mentor's board and management for the proposed merger's collapse. Mentor rejected Cadence's offer last month, saying it was too low. Cadence also cited a volatile economic climate and difficulty in obtaining favorable financial terms as reasons for backing out. In its own press release, Mentor countered that Cadence's withdrawal was "inconsistent with both Cadence's recent public statements and recent communications" between the two companies.