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Mattel declines on report that it rebuffed approach from Hasbro
[NEW YORK] Mattel Inc slipped in late trading on a report that it rebuffed a takeover approach from rival Hasbro Inc, spurning a deal that could have created the largest US toymaker.
Mattel informed Hasbro that the proposal undervalues the company, according to Reuters, which cited people familiar with the situation. Mattel also had concerns about the transaction being challenged on antitrust grounds, the news service said.
The shares dropped as much as 7.3 per cent to US$16.99 in the wake of the report. They had climbed about 30 per cent since the start of the month.
Takeover speculation began surging in October after an analyst suggested that the company may be better off as an acquisition target. The Wall Street Journal then reported last week that Mattel and Hasbro had discussed a deal.
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.