Mattel’s share price down in wake of whistleblower letter
Toymaker Mattel Inc. said it would pull a bond sale because of “an anonymous whistleblower letter.” The announcement drove Mattel’s share price down as much as 11 per cent, to $11.90, in after-hours trading, according to a report from Bloomberg.
The company “was made aware of an anonymous whistleblower letter” on Aug. 6, according to a filing. The company said it is terminating the sale of senior notes due in 2027 “to provide the company with an opportunity to investigate the matters set forth in the letter.”
The sale had been scheduled to close on Thursday. Mattel said it plans to refinance bonds that are due in October 2020 before maturity. It didn’t offer any further details about the letter. Spokeswoman Dena Cook said the company had no comment to add beyond what’s in the filing.
Mattel’s stock price had gained 34 per cent this year through Thursday’s close, boosted last month as the company signaled it is making progress in revamping operations and reported quarterly revenue that outpaced expectations.