SAN JOSE, Calif. -- Is this the beginning of the end for Mentor Graphics Corp.?
Mentor said that its board has retained Goldman Sachs and Merrill Lynch as financial advisors with respect to Cadence Design Systems Inc.'s unsolicited bid for the EDA house. In addition, Latham & Watkins LLP is acting as legal advisor to Mentor Graphics.
Cadence recently announced it has submitted a proposal to the board of directors of Mentor to acquire Mentor Graphics for $16.00 per share in cash. The transaction is valued at $1.6 billion.
Mentor has resisted the takeover bid, saying the price is too low. Some say the merger is a bad idea, while others believe the deal will happen.
With its new advisors, Mentor could be trying to clear the air. Reports surfaced that Frank Quattrone attended the Mentor's recent stockholders meeting. This prompted speculation that Quattrone could be an advisor to Mentor.
Quattrone is the well known investment banker who fought off obstruction-of-justice charges for hindering a government investigation into initial public offerings at Credit Suisse. Quattrone returned to the financial stage in March when he formed the Qatalyst Group, a technology-focused merchant banking group based in San Francisco.