DOW JONES NEWSWIRES
Billionaire investor Carl Icahn has increased his stake in
Mentor Graphics Corp. (MENT) to just shy of 15%.
The chip-design software company in June adopted a shareholder
rights plan, or poison pill, that would be triggered if an investor
built more than a 15% stake or announced a tender offer for 15% or
more of the shares.
According to a filing Tuesday with the Securities and Exchange
Commission, Icahn said he exercised 8.2 million call options to
acquire that many shares at $3.58 each, bringing his total to 16
million.
Last month, he reported beneficially owning 14 million shares of
the company, with a portion being call options.
When Icahn first bought shares in Mentor, he called its stock
undervalued and said he wanted to meet with management, which he
did last month.
Last week, the company reported its fiscal second-quarter loss
narrowed on higher sales and margins as bookings nearly tripled.
For the fiscal year, it raised its earnings view to the high end of
its prior view and raised its revenue forecast by $10 million.
Mentor--which provides software and hardware design-automation
tools for the development and testing of advanced electronic
systems--has said it plans to return to profitability this fiscal
year as chip makers post soaring sales on a rebound in demand for
electronic devices.
Shares closed at $9.12 and were inactive after hours. The stock
was up 3% this year as of the close.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com