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Here we go again. The investor says “There are numerous operational opportunities, including enhancing operational efficiency and revenue quality, as well as strategic opportunities”. I feel for the Mentor management. They just got over Icahn and now this. I am fully confident once they realize they didn't understand the EDA biz, they too will be off for greener pastures. Or perhaps they've figured out the magic formula that has eluded everyone else has in 35 years since the industry started - but I doubt it.
Reminds me of the Joe Costello saying "Three big dogs, one bowl of food, not a pretty sight!" As the semiconductor industry consolidates, as the EDA industry consolidates, as chips get more complex, the top semiconductor companies want one EDA throat to choke and that is exactly what will happen. EDA point tool companies should be on notice to innovate or die, which is probably a good thing since we can always use more innovation.
Six years ago Carl Icahn purchased some 15% of MENT stock and managed to get 3 board members replaced, finally losing interest and selling his shares back to MENT for double the investment, not bad for a few days of work. Today it's a hedge fund called Elliott Management Corp, run by Paul Singer and they've bought up 8% of the company with vague talk of restructuring the company.
Hold on folks, this looks like another bumpy ride, but I do remember that MENT added a poison pill to ward off this kind of hostile take-over attempt.
Notice that they are heading up into the high 20's? They have had a long slow climb since that hard drop they had many months ago. Maybe this time the new investors won't start planing to rearrange the furniture right away.
