Mattel Inc (MAT)

[mick]

THE DANCE/ Mattel Surges on Report That Hasbro Discussed Acquisition
By Nick Turner and Matthew Townsend
https://www.bloomberg.com//news/articles/2017-11-10/mattel-surges-on-report-that-hasbro-has-discussed-acquisition

November 10, 2017, 3:30 PM MST Updated on November 10, 2017, 3:59 PM MST
Takeover speculation surged last month after dismal results
Bloomberg reported last year that companies had held talks

Mattel Inc. gained as much as 24 percent on a report that Hasbro Inc. has discussed an acquisition, a deal that would unite the two largest U.S. toymakers.

The Wall Street Journal reported on Friday that Hasbro made a recent takeover approach, but the terms of a potential deal weren’t clear. The report sent Mattel’s shares as high as $18.10 in late trading. Mattel had been down 47 percent this year through Friday’s close.

Mattel takeover speculation surged last month after an analyst suggested that the company may be better off as an acquisition target. The merger talk followed a surprisingly sharp sales decline at Mattel last quarter. The toy company, which makes Barbie and Fisher-Price, suspended its dividend and escalated a cost-cutting push to cope with the slump.

Mattel, based in El Segundo, California, also blamed the bankruptcy of Toys “R” Us Inc. for hurting sales, especially in North America.

Mattel and Hasbro declined to comment on the possible merger talks.

Bloomberg reported last year that Mattel and Hasbro have held merger discussions. The companies have held on-and-off-again talks about a deal, people familiar with the situation said at the time.

Since then, Mattel’s condition has worsened, making it a cheaper possible target. Mattel had a market valuation of about $5 billion at Friday’s close, compared with more than $11 billion for Pawtucket, Rhode Island-based Hasbro.