Mentor May Raise Bid for Quickturn

Mentor Graphics Corp. said it was prepared to raise its takeover bid for Quickturn Design Systems Inc., and it filed suit in an effort to stop Quickturn’s proposed merger with Cadence Design Systems Inc. Mentor, in papers filed in the Delaware Chancery Court, asked the court to block the merger, declare the companies’ merger pact void and force the Quickturn board to auction the company to the highest bidder. The moves were the latest in the acrimonious takeover battle begun by Mentor in August. The Wilsonville, Ore., company has offered $216 million for Quickturn, a San Jose-based maker of diagnostic tools that test semiconductor designs. Cadence, also based in San Jose, emerged as a white knight last week when it offered to buy Quickturn in a stock swap worth $253 million, or $14 per share. Mentor’s competing bid is $12.125 per share in cash. Mentor said it was prepared to raise its bid above $14 a share. Quickturn shares rose 75 cents to close at $14.56 on Nasdaq; Mentor Graphics fell 25 cents to close at $8.38 on Nasdaq; Cadence, which makes electronic design automation products, rose $1.13 to close at $26.38 on the NYSE.