Shares of toymaker Mattel (MAT) - Get Report rose in premarket trading Wednesday following the company's rejection of a second merger overture from MGA Entertainment, claiming the offer wasn't in the best interests of Mattel stockholders.
MGA, whose products include the Bratz fashion doll line and Little Tikes, made the second offer in a note to Mattel CEO Ynon Kreiz on May 21. In response, the company's board on June 7 said the proposal was "not in the best interests of Mattel and its shareholders."
MGA CEO Issac Larian didn't propose a specific price for the bid, though he told The Los Angeles Times that it would "absolutely" be at a premium to Mattel's current market price.
Mattel rose more than 8% to $11.72 in morning trading Wedneday. The stock closed Tuesday at $10.81.
MGA's latest offer was also conditioned on Larian becoming Mattel's chairman and CEO, and on all of Mattel's current directors resigning "without any further compensation."
El Segundo, Calif.-based Mattel owns several iconic toy brands, including Barbie, Hot Wheels, American Girl and Fisher-Price. The company last week said it signed a licensing agreement with Hello Kitty franchise owner Sanrio.