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Clinton Group, Inc. Asks Board Of JAKKS Pacific, Inc. To Run An Auction To Sell The Company

Stocks in this article: JAKK

NEW YORK, March 14, 2012 /PRNewswire/ --  Clinton Group, Inc. ("Clinton") announced today that it has sent a letter to the board of directors of JAKKS Pacific, Inc. (Nasdaq: JAKK) requesting that the directors embark on a sale process of the company, including "openly considering the indication of interest from Oaktree Capital Management, L.P. ("Oaktree")."  As noted in the letter, Oaktree expressed an interest in acquiring JAKKS Pacific at a price of $20 per share on September 13, 2011.

The letter also noted:

  • JAKKS is well positioned to grow market share and increase the mix of proprietary products, but that the equity markets appear to be more focused on recent under-performance;
  • JAKKS' stock trades at a substantial discount to the prices that strategic and financial buyers could pay for the business, given the potential synergies and long-term perspectives of these buyers; and
  • Clinton is dismayed at the Board's decision to adopt a poison pill and expects the Board to permit any interested buyer to bring their proposal directly to shareholders.

The text of the letter sent by Clinton to the board of directors of JAKKS Pacific is attached.

Yesterday, Clinton's affiliate, Clinton Spotlight Master Fund, L.P. ("SPOT"), sent a letter to JAKKS Pacific requesting that its board of directors fix a record date to determine the stockholders entitled to authorize or take corporate actions by written consent.  SPOT intends to solicit JAKKS Pacific stockholders to consent to several proposals to protect shareholder interests and ensure that JAKKS Pacific has a board of directors that is focused on creating value for the company's shareholders. The proposals will be described in a preliminary consent solicitation statement to be filed by SPOT with the Securities and Exchange Commission.

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