WILSONVILLE, OR -- Mentor Graphics has agreed to buy back 8.06 million shares owned by Carl Icahn and his affiliates for $146 million.

Prior to the deal Icahn owned 16.1 million shares, roughly 14% of the outstanding common stock. After the buyback Icahn will remain the company's largest shareholder, just ahead of BlackRock Fund Advisors.

Starting in 2010, the famed activist investor began buying up shares of Mentor and launched a revolt that culminated in the election of three of his nominees to the Mentor board the following year. He even went so far as to offer a $1.9 billion stalking horse bid, which Mentor dismissed as too low. Mentor's current market capitalization is $2.17 billion.

The buyback values the shares at $18.12 each and will be financed via cash on hand, Mentor said. The stock hit a 52-week high of $28.09 last November but hasn't topped $19 in the past two months.


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