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Carl Icahn Extends Offer to Buy Out Mentor Graphics Corp.

February 23, 2011 | About:
guruyt

guruek

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Carl Icahn the activist investor is very busy these days and cannot be easily discouraged. Shortly after Dynergy shareholders rejected his buyout offer, yesterday he extended an offer to buy another company, Mentor Graphics Corp. (MENT), for $1.91 billion or $17 per share. This is the letter Icahn sent to the BOD of MENT, according to a SEC filing:
I hereby offer to have one or more of my affiliated entities purchase Mentor Graphics in a transaction, the form of which will be determined, designed to yield its shareholders $17 per share net in cash. That price represents an approximate premium of about 40% above the price at the beginning of January 2011. This offer is conditioned on completion of cursory due diligence, and the redemption and waiver of anti-takeover devices and laws such as the poison pill. There will be no financing conditions. Furthermore, we will not insist upon providing for a break-up fee in the transaction so as not to provide a roadblock to others who may want to consider bidding higher than our bid. As we have told you, we believe that there are potential strategic bidders for Mentor Graphics whose bid will reflect inherent synergies and should be superior to our $17 offer. However, in any event, we believe that our fellow shareholders should have the opportunity to accept our offer or a higher one, if one emerges as we think it will.
Over the past few quarters, Icahn built a sizeable position in this stock and the trade by itself has been very profitable.


By extending the offer to Mentor Graphics, Icahn also opens door for selling his own shares to higher bidders.

Check out Carl Icahn’s other latest purchases by clicking on his name.


Rating: 3.8/5 (4 votes)

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