Quickturn Design Systems announced Friday that it had rejected an unsolicited bid by Mentor Graphics to purchase all the outstanding shares of Quickturn for $12.13 per share in cash.
Keith R. Lobo, president and CEO of San Jose, Calif.-based Quickturn, called Mentor's offer "opportunistic" and "inadequate" and "comes at a moment of weakness for Quickturn's stock price and a moment of desperation for Mentor's design verification strategy."
He added, "Mentor's bid implicitly acknowledges the inferiority of their product position. We are beating them in the marketplace, and we are beating them in the courts." Quickturn has been waging a patent infringement battle with Mentor MENT and won two favorable rulings last year.
"We are rejecting Mentor's bid because we see, as they do, the potential for renewed growth in our key technologies," Lobo continued. "As the industry transitions to deep submicron design, increasing chip complexity demands Quickturn's technology and expertise. Assuming even a minimal recovery in the Asia-Pacific region, we are comfortable with industry research projections of 22 percent annual growth in total emulation revenue through 2001, and 42 percent annual growth in total high-performance simulation revenue, also through 2001."
Quickturn QKTN said Friday that it is filing with the Securities and Exchange Commission, and is formally notifying stockholders of its rejection of the Mentor offer.