Canaccord Genuity Morning Coffee on Mentor Graphics (MENT): Icahn’t Be Your...
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Price: $37.25 --0%
Rating Summary:
2 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 6 | New: 33
Rating Summary:
2 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 6 | New: 33
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Canaccord Genuity Morning Coffee on Mentor Graphics (Nasdaq: MENT): Icahn’t be your...
Canaccord analyst says, "Mentor Graphics has turned down a takeover proposal from billionaire investor Carl Icahn, saying the offer from its largest shareholder undervalues the company and that it is not in shareholders best interests to sell at this time. Icahn had offered $1.73 billion to purchase the software company in late February, approximately $17 per share, in hopes of attracting a larger buyer such as Synopsys (Nasdaq: SNPS) or Cadence Design Systems (Nasdaq: CDNS). The company said Icahn’s suggestion that Mentor should seek a purchaser within its industry poses significant commercial and regulatory risk, noting that talk of partnering up with Synopsis or Cadence could have a negative impact on the growth and overall stability of its client base. CEO Walden Rhines said, “Our board believes that the continued execution of our strategic plan offers the greatest value to Mentor shareholders and that it will drive further growth and continued success.” This is another hurdle for Icahn as he continues to seek a stronger position in Mentor as the company recently urged shareholders to reject Icahn’s nominees for the board, and last June put a poison pill in place to limit shareholders to a maximum 15% holding in the company. One Wall Street analyst says that he does not believe Icahn will make a larger offer for the company, or that Synopsys or Cadence will step up, but does see Icahn getting a seat on the board. He notes that since Icahn has increased his stake in the company, it has become better at controlling costs and has stopped overextending itself with acquisitions, becoming more efficient just having Icahn in the background."
Canaccord analyst says, "Mentor Graphics has turned down a takeover proposal from billionaire investor Carl Icahn, saying the offer from its largest shareholder undervalues the company and that it is not in shareholders best interests to sell at this time. Icahn had offered $1.73 billion to purchase the software company in late February, approximately $17 per share, in hopes of attracting a larger buyer such as Synopsys (Nasdaq: SNPS) or Cadence Design Systems (Nasdaq: CDNS). The company said Icahn’s suggestion that Mentor should seek a purchaser within its industry poses significant commercial and regulatory risk, noting that talk of partnering up with Synopsis or Cadence could have a negative impact on the growth and overall stability of its client base. CEO Walden Rhines said, “Our board believes that the continued execution of our strategic plan offers the greatest value to Mentor shareholders and that it will drive further growth and continued success.” This is another hurdle for Icahn as he continues to seek a stronger position in Mentor as the company recently urged shareholders to reject Icahn’s nominees for the board, and last June put a poison pill in place to limit shareholders to a maximum 15% holding in the company. One Wall Street analyst says that he does not believe Icahn will make a larger offer for the company, or that Synopsys or Cadence will step up, but does see Icahn getting a seat on the board. He notes that since Icahn has increased his stake in the company, it has become better at controlling costs and has stopped overextending itself with acquisitions, becoming more efficient just having Icahn in the background."
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