WILSONVILLE, Ore. -- Mentor Graphics Corp. today (Dec. 26) extended its unsolicited cash takeover offer for IKOS Systems Inc. until midnight Jan. 25, New York time, because it wants to give the Federal Trade Commission (FTC) more time to review the proposed purchase and merger.
Earlier this month, Mentor made an $11-per-share cash offer for IKOS stock in a $102 million bid to stop Synopsys Inc. from acquiring the San Jose-based supplier of emulation products (see Dec. 7 story). IKOS claims to be the second largest supplier of emulation systems in the design automation industry.
Last summer, Synopsys had struck an agreement to acquire IKOS for stock, but that deal is not expected to be completed until August 2002 (see July 2 story).
Mentor's original tender offer was scheduled to expire at midnight on Jan. 8, New York City time, but the Wilsonville-based design automation supplier said it will extend the deadline and refile its notification for the proposed merger under the Hart-Scott-Rodino act on Friday (Dec. 28).
As of the close of business today (Dec. 26), Mentor said 2,001 shares of IKOS common stock had been validly tendered into the offer. The company had 841,600 shares prior to its tender offer, and Mentor said it now has about 9% of IKOS's outstanding common stock. The shares tendered represent less than 1% of the outstanding common stock, according to the company.
Last week, IKOS's board of directors announced it was recommending that shareholders reject the Mentor cash offer, and it unanimously reaffirmed support of the planned merger with Synopsys.
Mentor argues that its $11-per-share offer is better than the agreement with Synopsys because the proposed purchase is with cash instead of stock and there are fewer conditions. Due to the long time period in Synopsys' stock-swap purchase offer, the price in that transaction could vary anywhere from $6 to $20 per share -- a total of roughly $70 million to $200 million -- depending on IKOS' financial performance through the middle of next year.