Case | HBS Case Collection | 2001 (Revised from original 1999 version)

Quickturn Design Systems, Inc. (A)

by Jay W. Lorsch and Katharina Pick

Abstract

Quickturn Design Systems, Inc. faces a hostile takeover bid from its competitor, Mentor Graphics. Mentor makes the bid at a moment when Quickturn's stock price is depressed and the company is defending against a patent suit filed by Mentor. The two companies have a history of patent disputes, all of which Quickturn has won. Teaching Purpose: Examines the Quickturn board's fiduciary duties in the context of a hostile takeover as well as the effectiveness and legality of various defensive measures.

Citation:

Lorsch, Jay W., and Katharina Pick. "Quickturn Design Systems, Inc. (A)." Harvard Business School Case 400-001, April 2001. (Revised from original July 1999 version.)