Mattel shares surge on renewed Hasbro takeover talk
New York — Mattel shares gained as much as 23% on a report that Hasbro had discussed an acquisition, a deal that would unite the two largest US toy makers. Hasbro made a recent takeover approach but the terms of a potential deal were not clear, the Wall Street Journal reported after the close on Friday. That sent Mattel’s shares as high as $17.95 on Monday — the biggest intraday rally since at least 1980. Hasbro stock also rose. Mattel takeover speculation surged last month after an analyst suggested 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 toys, suspended its dividend and escalated a cost-cutting push to cope with the slump. An acquisition "makes great sense and could be highly accretive for Hasbro", BMO Capital Markets analyst Gerrick Johnson said in a note. Mattel’s "power brands" — Barbie, Fisher-Price, Thomas, Hot Wheels and Ame...
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