Ariel Investments Urges Mattel (MAT) to Explore Sale, Merger or Asset Divestiture

Ariel Investments, holding a 5.4% stake in Mattel, has sent a letter urging the toy maker to explore strategic alternatives, including asset divestitures, a merger or a sale. The asset manager called on Mattel to retain an independent financial advisory firm to pursue options aimed at "maximizing shareholder value," according to co-CEO John Rogers. Mattel said it "will consider the views expressed in Ariel Investments' letter, as well as the views of Mattel's other shareholders." The push marks the second investor demand this year after Southeastern Asset Management's spring letter urging a sale to private equity, another toy company or a media business. Authentic Brands Group has reportedly expressed interest in a takeover valuing Mattel at around $6 billion. Mattel declined to comment on market rumors; Authentic declined to comment. In its latest quarter, Mattel's net sales rose 10% year over year to $1.1 billion, with a net loss of $18 million versus $53 million net income a year earlier. The company maintained full-year guidance of 3% to 6% sales growth and recently named Roger Lynch as its next CEO, succeeding Ynon Kreiz.