Reuters – Jakks Says Oaktree Makes Fresh Bid for Talks

Jakks Pacific Inc. said private equity firm Oaktree Capital Management LP made a revised proposal for a confidentiality and standstill merger agreement on Aug. 13, two months after talks collapsed, Reuters wrote Friday. Jakks also said it was notified that Oaktree sold its entire stake in the toy company, but that the firm was making a final attempt to resolve the impasse in negotiations. Oaktree, which had made a $20 per share bid for the company in 2011, ended talks over the standstill agreement in June after the two parties failed to agree on terms.

(Reuters) – Jakks Pacific Inc said private equity firm Oaktree Capital Management LP made a revised proposal for a confidentiality and standstill merger agreement on Aug. 13, two months after talks collapsed.

 

Jakks also said it was notified that Oaktree sold its entire stake in the toy company, but that the firm was making a final attempt to resolve the impasse in negotiations.

 

It seems contradictory that Oaktree has divested its stake and then sent a revised proposal, Ascendiant Capital Markets’ analyst Edward Woo said.

 

“My guess is Oaktree is probably not interested in Jakks anymore,” Woo said, while conceding it was unclear why a revised proposal was made.

 

Oaktree spokeswoman Lucy Neugart declined to comment on the story and Jakks declined to comment further.

 

Arvind Bhatia of Sterne, Agee & Leach said the developments are puzzling and he doesn’t see the talks going anywhere, as Oaktree had rejected Jakks’s earlier terms and has now lost its leverage by divesting the stock.

 

Oaktree, which had made a $20 per share bid for the company in 2011, ended talks over the standstill agreement in June after the two parties failed to agree on terms.

 

Oaktree held about 6 percent of Jakks as of May 15.

 

Jakks’ shares closed at $16.09 on the Nasdaq on Thursday, about 20 percent below Oaktree’s 2011 bid.