Chip design software company Cadence Design Systems Inc. [CDNS] on Friday afternoon withdrew its $16 per share, or $1.6 billion, hostile cash bid for rival Mentor Graphics Corp [MENT], sending shares of the target skidding more than 20% to $11.09. Cadence accused Mentor's management of refusing to enter talks, hindering Cadence's abilitly to secure financing for the deal.
"Mentor Graphics' failure to engage in substantive discussions on our all-cash premium proposal prevented us from confirming for our financing sources the significant synergies associated with this transaction," Cadence said in a statement. "That, along with our revised outlook and the present economic climate, led us to conclude that financing terms for the transaction are no longer attractive for our shareholders.
In ending the bid, Cadence also said it will move to buy an additional $500 million in company stock under its repurchasing program. The company has authorized repurchasing of roughly $912 million in common stock. -- Alain Sherter
See Aug. 15 announcement from Cadence ending its offer for Mentor
See June 17 post from Tech Confidential on the Cadence's pursuit of Mentor
For more see Bloomberg, MarketWatch and Tech Trader Daily
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