Another one bites the dust

It’s more than a year into the credit crisis, and the death toll is still rising.

Cadence Design Systems’ bid for rival chip design software maker Mentor Graphics has become the latest casualty, with Cadence ending its bid because financing terms were no longer attractive.

Cadence would have had to raise more than $1.1 billion in debt to pay for its $1.5 billion unsolicited offer made in June.

Mentor rejected the initial $16 per share bid as being too low. But it seems the credit crisis did not leave much room for negotiations. And the fatal blow was probably struck just a month into the offer, when Cadence lowered its financial outlook, leading analysts to question whether it could even raise the necessary funds.

The deal, of course, is only the latest to fail amid the credit crisis.

Other notable implosions include such aborted LBOs as those for racetrack operator Penn National Gaming, equipment renter United Rentals and student lender Sallie Mae.

For those hoping for a pickup in deal activity this fall, it’s the latest reminder that the crisis is not yet over.

(Graphic credit: Reuters)