Toy executive Isaac Larian ends pursuit of merger with Mattel

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California toy mogul Isaac Larian said he's no longer interested in merging his MGA Entertainment Inc. with Mattel Inc. after Mattel rebuffed his proposal.

“There is simply too much mess to clean up at Mattel,” Larian said.

Mattel did not immediately respond to a request for comment. But earlier this month its chief legal officer, Bob Normile, wrote to Larian that Mattel’s board had unanimously concluded that Larian’s latest merger proposal was “not in the best interests of Mattel and its shareholders.” Larian’s offer did not include a specific price for Mattel’s publicly traded stock; he said that would be determined later. But the deal was conditioned on Larian — who has a net worth of $1.1 billion, according to Forbes — becoming Mattel’s chief executive and the resignation of its current directors.

Mattel last year lost $531 million on sales of $4.5 billion. But the company has said its rebound plans — which include aMattel’s stock rose 31 cents, or 2.6%, to $12.06 a share Tuesday, giving the company a market value of $4.2 billion.

 

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