Bloomberg News

Jakks Pacific Gets Renewed Takeover Interest From Oaktree

August 23, 2012

Jakks Pacific Inc. (JAKK:US) received renewed takeover interest from Oaktree Capital Management LP, the private-equity firm that bid for the toymaker last year.

Oaktree, based in Los Angeles, submitted a revised confidentiality and standstill agreement, according to documents filed today with the U.S. Securities and Exchange Commission.

Oaktree first approached Jakks, based in Malibu, California, about acquiring the company in March 2011, according to public filings. The companies met and Jakks’s board rejected selling the company in July 2011, saying that pursuing management’s plans to improve results would be better for shareholders.

In September, Oaktree went public with its interest and offer of $20 a share. In March of this year, Jakks adopted an anti-takeover defense plan, a so-called poison pill, that discourages amassing more than 10 percent of the stock. After pressure from investor Clinton Group Inc., Jakks agreed to meet with Oaktree in April. Those talks ended on June 15.

Lucy Neugart, a spokeswoman for Oaktree, declined to comment on the filing.

Joel Bennett, chief financial officer of Jakks, didn’t immediately respond to requests for comment.

Jakks was unchanged at $16.10 in extended trading at 4:31 p.m. New York time. The shares have gained 14 percent this year.

The toymaker posted three straight years of sales declines as U.S. consumers cut back on spending and more children favored video games over the stuffed animals and action figures it offers. Revenue sank 25 percent to $677.8 million last year from $903.4 million three years earlier.

To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW

Companies Mentioned

  • JAKK
    (JAKKS Pacific Inc)
    • $6.82 USD
    • 0.01
    • 0.15%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus