Mentor hires bankers to review Cadence offer

BOSTON (Reuters) - Microchip-design software maker Mentor Graphics Corp (MENT.O: Quote, Profile, Research) has hired investment bankers to advise it on a $1.5 billion takeover bid from Cadence Design Systems Inc (CDNS.O: Quote, Profile, Research), two weeks after initially rejecting the offer.

Mentor said on Monday that it had hired Goldman Sachs (GS.N: Quote, Profile, Research) and Merrill Lynch (MER.N: Quote, Profile, Research) as financial advisers.

Cadence issued a statement saying its representatives were eager to meet with Mentor officials and their advisors.

"This initiative is a high priority for us, and we remain committed to making this combination a reality," the statement said.

Mentor said on June 17 that its board had unanimously rejected the $16-per-share offer as too low. It also said it was concerned that a deal might not clear an antitrust review.

At the time, some analysts speculated that Cadence might raise its bid or that rival Synopsys Inc (SNPS.O: Quote, Profile, Research) might also be interested in buying Mentor.

A spokeswoman for Synopsys declined comment.

Cadence and Synopsys are the two major players in the market for highly specialized software that chipmakers use to design semiconductors.

Mentor said Latham & Watkins LLP is acting as its legal adviser.