Mentor rejects Cadence's proposal

WILSONVILLE, USA: Mentor Graphics Corp. acknowledged the receipt of an unsolicited proposal by Cadence Design Systems to acquire Mentor Graphics at a price of $16.00 per share. Mentor Graphics confirmed that it had previously rejected the proposal.

"As we recently indicated to Cadence, we reviewed Cadence's proposal and analyzed both the price proposed and the risks associated with obtaining anti-trust approval for a combination between the companies,” said Walden C. Rhines, chairman and CEO of Mentor Graphics.

"Following this review, we concluded 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.  For these and other reasons, our Board unanimously rejected the proposal."