Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Hasbro clears way to higher Spear bid: US toy group extends pounds 47m offer and considers appeal against court decision

John Shepherd
Monday 20 June 1994 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

HASBRO has left the way clear to increasing its pounds 47m bid for JW Spear, maker of the Scrabble board game.

The US toy group yesterday extended its 900p-a-share offer until 11 July, which gives it time to consider topping the rival pounds 10-a-share bid from Mattel.

'We wanted to keep all our options open. And one of them is an increased bid,' said a spokesman for Hasbro, maker of Sindy and Action Man dolls.

The first closing deadline for Hasbro's offer was on Saturday. No shareholders have accepted.

Hasbro may also appeal against the recent High Court decision that released trustee owners of 24.9 per cent of Spear from an obligation to accept Hasbro's offer. The trustees' original irrevocable undertakings would have given control to Hasbro, which already had a 26.7 per cent stake.

However, if Hasbro increases its offer it still faces a possible referral of its takeover to the Monopolies and Mergers Commission. Hasbro controls 56.9 per cent of the British boardgame market with products including Trivial Pursuit, Twister and Mousetrap.

Spear has a 16.4 per cent market share.

Mattel, which owns Barbie Dolls and recently bought Fisher- Price toys, yesterday started the 60-day clock ticking on its pounds 52m bid by publishing its offer document for Spear.

The document contains details of a loan notes alternative that offers holders of less than 5 per cent of Spear the chance to defer capital gains tax that might arise from accepting the cash bid.

Spear holders may elect to receive pounds 1 of Mattel loan notes for every pounds 1 of cash that has been offered. The value of each last Friday was estimated at 96p by Robert Fleming, merchant bank adviser to Mattel.

Mattel's first closing date co- incides with Hasbro's extended deadline of 11 July.

Family trustees have irrevocably pledged their 24.9 per cent of Spear's shares to Mattel.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in