Mattel shares soar on Hasbro takeover rumours
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Shares in Barbie toymaker Mattel have jumped almost 20% on reports rival toy giant Hasbro is considering a takeover.
Shares in Hasbro, whose brands include Play Doh and My Little Pony, are also 7% higher in New York.
Last month shares in both companies fell after a warning that the bankruptcy of retailer Toys R Us could limit sales.
The two companies are among the world’s biggest toy makers. Mattel tried to take over Hasbro in 1996.
But over the past year the fortunes of the two have diverged markedly. Mattel, which is valued at $6bn, is now very much the smaller firm.
Its shares have lost almost half their value over the past year and were trading at $17.68 on Monday.
Hasbro’s shares were $97 – $10 higher than a year ago and giving it a market value double that of Mattel.
Mattel, whose brands include Matchbox and Hot Wheels as well as Barbie, sells its products in 150 countries and employs 32,000 people globally.
In its third quarter results released last month, sales fell 13%, it suspended its dividend payout to shareholders and accelerated a cost-cutting drive.
