Monday, August 18, 2008

Cadence Drops $1.5B Offer To Mentor Graphics

San Jose-based Cadence Design Systems Inc., a developer of semiconductor design software, has withdrawn its $1.5 billion offer to purchase Oregon-based competitor Mentor Graphics Corp. According to Cadence in a press release Friday, the firm blamed Mentor's board and management for the collapse of the merger. Mentor had rejected Cadence's initial offer to buy the firm in June, claiming that the offering price was insufficient, and that it did not believe the firms could get antitrust approval for the merger. Mentor Graphics responded Friday, saying that Cadence's withdrawal was "inconsistent with both Cadence's recent public statements and recent communications" between the two companies.