(Reuters) - Jakks Pacific Inc’s (JAKK.O) shareholder Clinton Group Inc has asked the toy maker’s board to run an auction to sell the company, a week after Jakks took steps to resist takeover attempts.
In September, Oaktree Capital Management, which owns 5 percent of Jakks stock, made public an unsolicited $20-a-share cash bid for the company.
Jakks had rejected Oaktree’s proposal, calling the $670 million bid “inadequate.” Earlier this month, the company adopted a poison pill, which would trigger a rights agreement if any party bought 10 percent of its stock.
Clinton Group, which along with its affiliates owns about 2.4 percent of Jakks’ common stock, said in a letter to Jakks that it should review its options and consider the interest from Oaktree or any other party.
Clinton Group also said it expects Jakks’ board to allow any interested buyer to bring proposals directly to shareholders.
The shareholder group said it was “dismayed” at the board’s decision to adopt a poison pill, and added that the company’s stock was trading at a large discount to Oaktree’s initial proposal.
Shares of Jakks, which makes products under brands such as Pokemon, Hello Kitty and The Smurfs, were trading at $16.69 on Wednesday on the Nasdaq, about 17 percent below Oaktree’s offer price.
Clinton Group also said one of its affiliates intends to seek support from other stockholders for its proposals to protect shareholder interests and ensure a board “focused on creating value for the company’s shareholders.”
Reporting by Chris Jonathan Peters in Bangalore; Editing by Roshni Menon