2023-03-27 10:59:25 ET
Mattel ( NASDAQ: MAT ) is back in the center of M&A speculation on Monday after amending some severance plans for executives on Friday.
According to an 8-K filed late on Friday , the toymaker amended its severance plans for top executives including the CEO, COO, CFO, and Chief Commercial Officer. Under the restated terms, any termination without cause will enable the named executives to receive a number of benefits, including bonus and salary considerations. The updated terms also provide for certain protections in the case of “an involuntary termination that occurs on or within two years following a change of control.”
The updated terms sparked some speculation about a potential takeover which appeared in financial news outlets, including Dealreporter and Bloomberg. Equity research firm Gordon Haskett also told clients that the new terms could certainly portend private equity interest. At the very least, the research indicated "you don’t have to be some looney conspiracy theorist to believe the company has added some frosting to its executive protection program just in case its PE friends come calling again."
Mattel ( MAT ) reportedly held talks with a number of buyout firms in early 2022, with Apollo Global ( APO ) headlining firms in the discussions. Mattel ( MAT ) rejected an unsolicited offer from competitor MGA Entertainment in 2019 and has reportedly eschewed overtures from chief rival Hasbro ( HAS ) since 2017 .
Shares of Mattel ( MAT ) rose 3.07% on Monday.
Read more on why Seeking Alpha contributor Creative Capital Ideas is bullish on the stock .
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Mattel stock rises amid resurgent takeover rumors