Quickturn Rejects New Offer From Mentor

Quickturn Design Systems Inc., a maker of software to design electronics, rejected a revised cash takeover offer from rival Mentor Graphics Corp. in favor of an agreement to be acquired for stock by Cadence Design Systems Inc. Mentor Graphics raised its cash takeover offer Wednesday to $15 a share after Quickturn rejected an offer of $14 a share Dec. 30. Mentor wants to purchase 2.1 million Quickturn shares for a total stake of 14.9%, the maximum that it can own without setting off Quickturn’s anti-takeover poison pill. Mentor already owns 591,500 Quickturn shares. Last month, Quickturn agreed to be acquired by Cadence, which raised its offer Wednesday to about $300 million in stock, valuing Quickturn shares at $15 each. San Jose-based Quickturn said Mentor’s offer is “not a real offer to purchase the entire company,” whereas Cadence’s offer is for 100% of Quickturn’s shares, requires no financing, and provides its shareholders with “significant value.” Mentor’s offer expires at midnight Jan. 21. Quickturn shares fell 31 cents to close at $14.94 on Nasdaq, and shares of Wilsonville, Ore.-based Mentor fell 38 cents to close at $10, also on Nasdaq. Stock in San Jose-based Cadence fell 50 cents to close at $30 on the NYSE.