While everyone was watching acquisition dramas unfold in the online search sector and the game software market this spring, there was a lower-profile opera playing out in the field of semiconductor design software.
Cadence Design Systems
But Cadence is persistent, and has now taken the offer into the open. The $16-per-share bid still stands, and Cadence CEO Michael Fister sent a softly spoken letter of continued interest to his counterparts at Mentor this morning. The takeover offer has not turned hostile, and the buyer is hoping to come to terms with its target in a peaceful manner.
Mentor's stock is trading at about $15.50 now, close to the takeover bid and 25% above the closing price yesterday. Investors seem to expect Mentor to have a change of heart, and I can't blame them.
This stock has not been worth $16 a share for any respectable length of time since 2002. The offer from Cadence sounds more than fair, because Mentor's stock has spent nearly six years at lower prices.
It's a stark contrast to Microsoft's
Let's see if Mentor comes to its senses and agrees. Intel