JAKKS rejects Oaktree buying offer | Key4Communications | News

JAKKS has turned down Oaktree Capital Management's buying offer, and considers the bid "inadequate" and below JAKKS real value. Oaktree offered $20 per share -this could amount to a total $670 millions. The toy maker stock closed on October 6th at $17.96.

Chief Executive Stephen Berman answered Oaktree's proposal in an open letter, explaining that the board "unanimously believes that this is not the right time to sell the company, and that execution of the company's strategic plan" will provide more value to stockholders. He also adds that Oaktree wants to take advantage "of current adverse macro-economic conditions in order to buy JAKKS below its intrinsic value."

Berman said that "given its cash position, strong balance sheet and market conditions, the company believes it is well positioned for continued growth", a growth that could also be boosted by "several lines of new proprietary products and valuable intellectual property."