Oaktree Capital Management Funds has sent a letter to the board of Jakks Pacific, saying that the toy company has missed its revenue and profit projections made after its initial offer.
"Oaktree has no confidence in the capability and credibility of the current Board and management team. Immediate change is required to preserve and protect the interest of public shareholders," the firm said in its letter.
Jakks responded to the communication this morning, with the following letter:
I am writing to acknowledge receipt earlier today of your letter in which you once again express an interest in acquiring JAKKS Pacific, Inc.
After 13 months, there is nothing new in your letter. You have not now and never have made a "cash offer" to acquire JAKKS. The only thing the JAKKS Board of Directors and its independent financial and legal advisors have been presented with are non-binding indications of interest and invitations to negotiate. Furthermore, your indication of interest remains--as it has been for over a year-- subject to both due diligence and financing. Lastly, we note that your letter today does not even contain a price.
Your letter is replete with mischaracterizations and misstatements, which we will address and correct at the appropriate time.
STEPHEN G. BERMAN
Stephen G. Berman Chief Executive Officer, President, Secretary and Director
Oaktree, made its initial bid for Jakks last year and shareholder Clinton Group also asked the firm's board to put itself up for sale last month.
Jakks is due to release its first quarter results later today.