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