Activist investor Southeastern Asset Management, which holds a 4.3% stake in Mattel, is reportedly preparing a proxy fight to pressure the toymaker to sell. The firm is considering nominating new directors, citing declining sales in key segments and pressure on profit margins.
Southeastern is not alone in calling for change. Another major shareholder, Ariel Investments, has publicly said Mattel needs to change and should consider selling itself. The activist pressure follows recent reports of takeover interest in Mattel from other companies, including Authentic Brands Group.
Mattel has reportedly signed a cooperation agreement with another large investor, EdgePoint Investment Group, giving it a board seat. The move is seen as an effort to build support and counter a potential proxy fight. Mattel has said it engages with all shareholders but has not commented further on the specifics.