Quickturn Design Systems Inc has rejected the $216m unsolicited acquisition bid it received earlier this month from Mentor Graphics Corp (CI No 3,473). San Jose, California-based Quickturn’s board of directors described the Mentor offer as inadequate, coming, in the words of chief executive officer and president Keith Lobo at a moment of weakness for Quickturn’s stock price and a moment of desperation for Mentor’s design verification strategy. He blamed the stock’s weakness on the Asia/Pacific economic downturn, which has slowed down new electronic products design. Assuming even a minimal recovery, we are comfortable with industry research projections of 22% annual growth in total emulation revenue through 2001, and 42% annual growth in total high performance simulation revenues, also through 2001 he said. Mentor understands the scarcity value of Quickturn’s position in the industry, said Lobo, we have the patents, the installed base and the people. Mentor said that it would continue to pursue the deal, saying that Quickturn’s moment of weakness had lasted some six months. Quickturn’s stock has languished since February of this year as Quickturn’s management has failed to develop and execute a value-enhancing plan said Dr Walden Rhines, president and CEO of Mentor.
