ShareCast reports that Flomerics doesn't like the unwanted, undervalued offer from Mentor Graphics, and is hoping Autodesk will pay a lot more more.
The company confirmed this morning that it is involved in discussions with Autodesk regarding a possible merger.
Flometrics specializes in software fluid dynamics and thermodynamics; Mentor Graphics does electronic design software. Interactive Investor reports that Mentor already owns nearly 30% of Flomerics.
Mentor is offering only 102 pence (100 pence to the British pound), while Flomerics current share price is 112 pence.
Financial Times reports that Mentor's market capitalization is
just $1.1 billion, while Flomerics is $9.3 billion on annual sales of $2.2 billion -- numbers very similar to that of Autodesk. It is not clear to me how Autodesk could afford Flomerics, perhaps only through a merger -- one that would double the size of ADSK instantly, a tantilizing thought, to be sure is much smaller, as commenters note.