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Icahn Offers $17/share for Mentor Graphic

Gary Dare just brought this to my attention: 

Investor offers to buy Mentor Graphic at $17/share

BUT WAIT! I’d suggest reading the last part of this article first, namely:

“The disclosure of the Icahn bid for Mentor comes only four days after his $665 million offer for the Texas power company Dynegy Inc. failed to get sufficient support from Dynegy shareholders and was terminated.”

I’m sure Icahn has more tricks – and turmoil – up his sleve for Mentor. All in the name of sharehold value.

5 Responses to “Icahn Offers $17/share for Mentor Graphic”

  1. Gary Dare Says:

    By waiving the breakup fee, Carl Icahn may be hoping for someone to buy HIM out … :)

  2. Gary Dare Says:

    P.S.: By the way, Icahn didn’t get very far with Motorola, Inc., either. He may have hastened its split (Mobility – MMI, Solutions – MSI), though, which dilutes his impact further upon either new entity.

    And then there’s Blockbuster, which has turned out to be a bit of a black hole for him.

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  4. Gary Dare Says:

    JB – in the past, I mentioned my feelings that Carl Icahn might have wanted to ‘scare up’ the value of Mentor’s stock and then cash out. Gee, I should have published that idea formally … because someone at Harvard Business Review just did!

    Is Carl Icahn Good for Long-Term Shareholders?

    “In terms of Icahn’s effect on other shareholders, we find a significant positive stock price reaction – on the order of 10% – to the announcement of Icahn’s taking a position in the target firm. When examining the subsequent performance of the target firms, we find a very large difference between those firms that were either taken private or acquired (within 18 months) – over a third of the target companies – and those that remained independent. We report that although the acquired group achieved significant positive stock market returns, the firms that remained independent suffered very negative (-60%) returns. Although Icahn’s proposed changes could be responsible, as critics charge, for the performance of the latter group, we suggest that the success of many of these companies in fending off Icahn without enacting most of his proposed reforms is a more plausible explanation. At the same time, Icahn was successful in achieving at least one of his stated objectives in well over half of the cases in which the target companies remained independent. ”

  5. Gary Dare Says:

    JB – This was reported by Dan Primack of Fortune Magazine on his Term Sheet blog/news letter …

    Golden Gate Capital and portfolio company Infor Global Solutions, has offered to acquire business software maker Lawson Software (Nasdaq: LWSN) for approximately $1.84 billion. The $11.25 per share offer would include a nearly 11% stake in Lawson currently held by Carl Icahn.

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