Carl Icahn to Buy Mentor Graphics

Billionaire investor Carl Icahn has offered $17 per share, or $1.73 billion, to buy chip-design software maker Mentor Graphics Corp., Reuters reported. The offer represents a 17% premium over the company’s closing price Friday. Icahn currently holds a 14.7% stake in Mentor.

(Reuters) – Billionaire activist investor Carl Icahn offered to buy Mentor Graphics Corp for $17 a share in a deal that values the chip-design software maker at about $1.73 billion.

The offer from Icahn, who holds a 14.7 percent stake in Mentor, represents a 17 percent premium to the company’s Friday closing price of $14.52.

“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,” Icahn said in a letter to the company’s board.

Earlier this month, Icahn put pressure on the company saying it should be put up for sale and threatened a proxy battle to control its board. (Reporting by Sayantani Ghosh; Editing by Saumyadeb Chakrabarty)