Mattel has publicly recjected the rumoured takeover bid by its rival toy maker Hasbro.
According to a report by the news agency Reuters, Mattel is trying to drive a harder bargain.
Mattel believes Hasbro’s proposal undervalues the company. The firm also believes it does not take sufficiently into account the potential for regulators to reject the deal based on antitrust concerns.
A previous takeover bid by Hasbro was rejected on antitrust grounds. In 1996 the Play Boot was on the other foot when Mattel was the bigger company and Hasbro found itself fighting off a potential takeover.
On news of the recent takeover bid, The Toy Detectives had suggested that Mattel’s investors would only sell on an offer that sufficiently exceeds the company’s current market value. Over the last year Mattel’s share price has decreased by 47%, leaving many shareholder’s hoping for a turn around in the company’s fortunes in order to see a return in investment.
In after hours trading Mattel’s share price declined 1.2%.