Hasbro has issued an official statement confirming what we previously reported, that there is no buyout deal in the works. Here is the official statement.
Hasbro (NYSE:HAS) stated today that it is not having any discussions regarding the sale of the company. Hasbro confirmed that it had been approached by a private equity firm regarding a transaction, and said that its Board of Directors determined that there was no interest in pursuing such transaction.
CNBC just announced that trading for Hasbro stock has been halted on the floor of the Stock Market for news pending. According to CNBC's David Faber, the news will be an official statement stating there is no buyout deal in the works which we reported to you earlier this morning. As we learn more we will be sure to pass it on to you.
According to CNBC, sources have confirmed for them that there is zero chance a deal will occur between Hasbro and the firm Providence Equity Partners. The firm did approach Hasbro approximately 6 weeks ago about a possible deal, which in turn was declined by Hasbro's board. According to some sources, a deal will NEVER be considered and that there is nothing to yesterday's story from the WSJ about talks going on for a possible leverage buyout.
Hasbro, Inc. is in early talks with private-equity firm Providence Equity Partners on the possibility of a leveraged buyout and taking the company public, reports The Wall Street Journal
According to people familiar with the matter, it is still in the early stages and the deal is not definite yet.
Hasbro declined to comment and Providence Equity did not respond to requests for comment. A pricetag was not disclosed. Hasbro has a market cap of approximately $6 billion, significantly above the typical buyouts between $1 to $4 billion this year.
A leveraged buyout is when a third party purchases a controlling stake in a company, paid mainly through borrowed money.