Investing.com - Toymaker Mattel (NASDAQ:MAT) rose in midday trade on Wednesday after it rejected another merger offer from MGA Entertainment.
Bratz doll maker and rival MGA Entertainment proposed the deal on May 21, Reuters reported. The amount of the offer was not disclosed.
Mattel jumped 9.5% after the news.
The Barbie maker’s board unanimously concluded that the proposal was “not in the best interests of Mattel and its shareholders,” Bob Normile, Mattel’s chief legal officer wrote to MGA Entertainment.
The deal would have been on the condition that MGA CEO Isaac Larian would become chairman and CEO and all of Mattel’s current board members would resign. It’s the second offer that Larian has made for the company in the past year.
Mattel has struggled to boost its sales and has lost 30% of its stock value in the past 12 months.