Rumors are racing about that Hasbro (HAS) might attempt to purchase Mattel (MAT). There are absolutely no details to discuss at this time. Considering that these are the two largest U.S. toy companies, I would anticipate a serious amount of antitrust drama surrounding a potential merger. My suggestions are therefore:
1. Don’t get your hopes up.
2. If Hasbro makes a play for Mattel, the stock market’s antitrust concerns could prevent MAT from rising quickly to the full value of the takeover offer.
3. It often takes many months for the U.S. government to make antitrust decisions, adding six to 12 months to what might be considered a normal time period between the day of the takeover offer and the close of the M&A transaction.
If any other investor group makes a play for Mattel, I would expect the deal to smoothly run its normal course without government interference.