Icahn puzzles analysts

Billionaire Carl Icahn’s interest in Mentor Graphics is still puzzling analysts, as the company’s stock is rising.

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Notorious for turning around many different flailing businesses, billionaire Carl Icahn has bought 12% of Mentor Graphics in recent weeks.

The move comes at a time puzzling to market analysts, as Mentor Graphic’s stock is rising.

Last year, perhaps, Mentor might have seemed a likely candidate for Icahn’s style of activism. Its stock was coming off a record low. Revenue was down and Mentor was running in the red amid a historic decline in the technology industry.

Since then, however, Mentor stock has more than doubled to $9.12,  buoyed by its core market, the computer chip industry.

With its market share climbing, Mentor forecasts it will return to profitability this year and revenue near an all-time high. Shareholders just re-elected Mentor’s board of directors, so it’s an especially hard time to force a change.

Read more at OregonLive.com.


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