Mattel news for Wednesday includes MAT stock rising after it reportedly rejected a takeover offer.
The offer for Mattel (NASDAQ:MAT) was from MGA Entertainment. This is a privately-held rival toy maker. Isaac Larian, the founder and CEO of the company, says that he made an offer to acquire MAT stock.
Larian doesn’t say how much his company would offer to merge with Mattel. However, he does claim that any offer from it would be a premium over the current price of MAT stock.
Mattel reportedly rejected the offer from Larian. The company has been focusing on turning its business around. It also likely wasn’t happy with some of the other terms of a takeover.
Larian wants to acquire Mattel, but he doesn’t have an interest in its leadership. His takeover offer reportedly included becoming the next Chairman and CEO of the company. It also includes all current Directors at MAT resigning without any additional pay, reports Los Angeles Times.
Here’s Wells Fargo analyst Timothy Conder’s thoughts on the Mattel news, as reported by Barron’s.
“We believe the likelihood of a merger between MGA and MAT is REMOTE given (1) the long litigious history between the companies (Barbie vs. Bratz), (2) Larian’s condition of becoming MAT’s Chairman/CEO and all MAT director’s resigning ‘without further compensation’, (3) lack of a firm/formal bid from MGA other than statements that an offer would be at a premium to MAT’s current valuation.”
MAT stock was up 5% as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.