Mattel named an executive from one of its largest shareholders to its board as the toy company faces mounting criticism from activist investors.
The maker of Barbie and Hot Wheels said Wednesday it entered a cooperation agreement with EdgePoint Investment Group, adding partner Lee Matheson to its board of directors. EdgePoint owns about 18% of Mattel's stock, and is one of the biggest and most longstanding shareholders, Mattel Chief Executive Roger Lynch said.
The cooperation agreement with EdgePoint includes customary voting, standstill and confidentiality provisions, Mattel said.
Lee joins Mattel's board as the toy company faces increasing pressure from activist investors, who have taken issue with the company's falling stock, and say executives should explore a sale.
Earlier this month, activist investor Ariel Investments called for Mattel to explore strategic alternatives. Ariel, which has a 5.4% stake in Mattel, said the stock was undervalued and that Mattel should consider a divestiture, merger or outright sale.
Southeastern Asset Management in May called for a sale of the company, arguing it would be better off owned by a private equity firm, competitor or large media company.
Mattel also garnered takeover interest from Authentic Brands, which was discussing a deal that could value Mattel at more than $20 a share, The Wall Street Journal reported earlier this month.
Mattel announced a surprise succession in late September, naming Condé Nast Chief Executive Roger Lynch as its next CEO. Lynch told The Journal he planned to implement new strategies to continue strengthening the company's brands.
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