Mattel (NASDAQ:MAT) rose 4.3% in after-hours trading after activist Barington Capital reported a stake in the toymaker and said it was pushing for the company to explore strategic alternatives for its Fisher-Price and American Girl brands.
Barington also wants the toy company to pursue a $2 billion share repurchase program and cease “excessive” stock-based compensation, according to a statement late Thursday. Barington didn’t disclose the size of its stake.
“The long decline at both Fisher Price and American suggests that Mattel may not be the right owner of these brands,” James Mitarotonda, Chairman of Barington, wrote in a letter to Mattel CEO Ynon Kreiz. “We believe that these brands are now detracting from the success at Mattel’s other segments and hurting shareholder value.”
Barington also wants Mattel (MAT) to separate the roles of the CEO and Chairman, elevating the position of the Lead Director to the Chairman role.
The news was earlier reported by the Wall Street Journal.
Mattel (MAT) is scheduled to report Q4 results on Wednesday.
