Mattel Raises Takeover Bid for Bluebird Toys

Mattel Inc. said it has increased its offer to $78.5 million for Bluebird Toys, trumping the latest bid by Guinness Peat Group, in a move that is likely to give it control of the British toy maker. Mattel, the El Segundo-based maker of Fisher-Price toys, valued Bluebird at $79 million. The final offer is just slightly higher than investment company Guinness Peat’s offer of $1.88 a share and is 37% higher than Bluebird’s share price Jan. 16, the day before the first bid for the company was made. The four-month bidding war for Bluebird, which designs and sells miniature toys based on Walt Disney Co. and other characters, follows a 36% slump in net income last year that the company blamed on falling sales and a series of unspecified distribution problems in the U.S. Guinness Peat, which owns 23% of Bluebird, could not immediately be reached for comment. Mattel shares fell 25 cents to close at $40.19 on the New York Stock Exchange.