Software maker Mentor Graphics Corp. is in a unique position of being both a target and an acquirer in two separate hostile takeovers. Shares of Mentor skyrocketed on a $1.6 billion cash-and-debt hostile bid from rival Cadence Design Systems Inc. on Tuesday while the markets were wavering in midday trading. The Dow is down 72.06, or .54%, to 12,202.24, while the Nasdaq was up slightly 20.28, or 0.83%, to 2,474.78.
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The Cadence deal for Mentor [MENT] pushed shares of the Wilsonville, Ore.-based company up $3.10, or 25.14%, to $15.43. Meanwhile, Cadence fell 67 cents, or 5.78%, to $10.92. The combination would create a company that potentially would have a 49% share of the electronic design automation software market. The Cadence offer raises the question of what Mentor will do with its own hostile offer, launched in May for competitor Flomerics Group plc for $46.1 million.
Meanwhile, another Deal Stock that saw big movement is cargo shipping company Genco Shipping & Trading Ltd. [GNK], which jumped nearly $6, or 10.56%, to $62.73 on its acquisition of six drybulk new-builds from Lambert Navigation, Northville Navigation, Providence Navigation and Prime Bulk Navigation, for $530 million.
Lastly, in other middle-market deals, real estate service firm Jones Lang LaSalle Inc. [JLL] acquired Staubach Co., a private company owned by former Dallas Cowboy quarterback Roger Staubach, for $613 million. Staubach Co. provides strategic consulting, site selection, management and administration services to 3,000 clients. The news sent Jones Lang shares down slightly. - Gerald Magpily
