TECHNOLOGY - Aug. 25, 1998

Quickturn Design Systems Inc., a maker of automation tools used to design semiconductors and electronics, rejected Mentor Graphics Corp.’s $216-million takeover offer as inadequate in light of Quickturn’s growth potential and Asia’s economic troubles. Quickturn’s board rejected the bid because the company felt it can increase its stake in the emulation market after Asia’s economic crisis eases, according to a document San Jose-based Quickturn filed with the Securities and Exchange Commission. Emulation technology allows a chip maker to test a microprocessor’s performance before a prototype is made. Quickturn also took action to make it easier for the company to use a “poison pill,” which guards against hostile takeovers by allowing stockholders to buy shares at low prices. In Nasdaq trading, Quickturn shares fell 50 cents to close at $10.75, and shares of Wilsonville, Ore.-based Mentor fell 6 cents to $8.75.