Mattel, Inc. (NASDAQ:MAT) wants a better deal from a chief rival in a takeover proposal that would combine to two largest U.S. toymaker.
Mattel’s rebuttal indicates that Margaret Georgiadis, who took over as the company’s chief executive in February, is seeking to drive a hard bargain in negotiations with Hasbro, even though Mattel’s stock has significantly underperformed that of Hasbro in the last year.
Mattel has informed Hasbro its proposal undervalues the company and does not take sufficiently into account the potential for regulators to reject the deal based on antitrust concerns, the sources said.
No one quite knows what Hasbro’s offer amounts to. It’s also unknown whether the deal is dead at this point, or whether discussions are still ongoing. The two companies have gone back and forth on a potential merger for the past twenty years or more, so investors shouldn’t be surprised if the deal stalls out once again.
Mattel, Inc. shares fell $0.66 (-3.60%) in premarket trading Thursday. Year-to-date, MAT has declined -30.74%, versus a 16.36% rise in the benchmark S&P 500 index during the same period.
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