Activist Investor Takes Stake In Mentor Graphics

(RTTNews) - Hedge fund Elliott Management, controlled by activist investor Paul Singer, has boosted its stake in Mentor Graphics to 8.1 percent.

The hedge fund said Mentor is "deeply undervalued" and asked the company's board to increase shareholder value and explore strategic alternatives.

Elliott said it believes "there are numerous operational opportunities, including enhancing operational efficiency and revenue quality, as well as strategic opportunities" for Mentor Graphics to improve shareholder value. The hedge fund said it has initiated a dialogue with Mentor's Board of Directors regarding those opportunities.

Elliott Management has earlier invested in technology companies like Qlik Technologies, Riverbed, Informatica and Compuware, which all sold to private equity firms after Elliott invested.

In 2011, Mentor had a proxy fight with activist investors Carl Icahn, that resulted in Icahn getting three of his nominees on to the board.

MENT is currently trading at $26.33, up $1.64 or 6.66%, on the Nasdaq.