Mattel Inc.s board of directors voted to allow its poison pill rights plan to expire early next year, an important victory for shareholder activists, which include the $500 million employee pension fund of the American Federation of State, County and Municipal Employees, Washington. AFSCMEs plan withdrew a binding resolution it had submitted to abolish the anti-takeover device in the wake of the Mattel boards action. The vote follows a 65% shareholder vote at last years annual meeting on a resolution, also sponsored by the AFSCME plan, in favor of abolishing the provision.
In addition, the board voted to add two director positions, another action the plan had demanded.
"We believe the performance of the company will be enhanced by ending the poison pill rights plan and by the addition of new directors, said Gerald W. McEntee, president of AFSCME and chairman of the pension plan.