April 17 Oaktree Capital Management Funds said
it will make a firm offer for Jakks Pacific, after
being repeatedly spurned by the toymaker, and may seek to
replace the company's board.
The private equity firm said in a letter to the company's
board that Jakks missed its revenue and profit projections made
after its initial offer by a wide margin and the management has
adopted a poison pill to thwart any takeover attempt.
"Oaktree has no confidence in the capability and credibility
of the current Board and management team. Immediate change is
required to preserve and protect the interest of public
shareholders," the investment firm said in its letter.
Oaktree, which had made an unsolicited bid of $20 per share
in September, said the share price had dipped to $13.39 since
Oaktree, which owns about 5 percent of Jakks, said it will
fund the deal with a combination of equity and debt. Guggenheim
Partners will provide the debt required, it said.
Shareholder Clinton Group Inc, which owns about 2.4 percent
of Jakks' common stock, too had asked the company's board in
March to put itself up for sale.
Jakks Pacific shares have lost about 8 percent of their
value since September. They closed at $17.95 on Tuesday on the