Icahn turns to Mentor Graphics shareholders


Carl Icahn resumed his campaign against Mentor Graphics by filing an open letter to the Wilsonville company’s shareholders.

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Carl Icahn resumed his campaign against Mentor Graphics by filing an open letter to the Wilsonville company’s shareholders.

Icahn wants Mentor sold, and has offered to buy it himself for $1.9 million, but the company doesn’t want to be sold.

“Our plan is not limited to a sale of the Company,” he wrote. “We have a clear plan to improve earnings per share through improved oversight in two key areas where over the past 17 years this Board has allowed for a bloated expense structure and massive share dilution.”

In particular, Icahn notes that Mentor’s selling, general & administrative expenses — SG&A — are higher than its rivals’.

“Plan A is to explore a sale of the Company to a strategic buyer,” Icahn wrote. “Plan B is to hold management accountable to lower the ratio of SG&A as a percentage of Total Revenues (to be more in line with its peers) and to use its cash flow to buy back its stock. Our Plan B could have a meaningful benefit to earnings per share growth.”

Read more at OregonLive.com.

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