Chatsworth toy manufacturer MGA Entertainment Inc. has rescinded last month’s offer to merge with rival toy company Mattel Inc., in El Segundo, citing the company’s struggling financial position. “It is my opinion that Mattel cannot be salvaged at this point and most certainly not under the current, hostile board and management, said MGA Chief Executive Isaac Larian in a statement. “After considering the disastrous financial details of Mattel, … it is in the best interest of MGAE not to continue forward with a Mattel offer.” In a letter sent to Mattel Chief Executive Ynon Kreiz on May 12, Larian illustrated how beneficial a merger could be for Mattel by pointing out the company’s three consecutive years of declining sales, 37 percent drop in stock price over the last 12 months, and $2.2 billion in net debt. Mattel’s Chief Legal Officer Bob Normile wrote in response that the company’s board “unanimously concluded that (MGA’s) proposal is not in the best interests of Mattel and its shareholders,” and that the company was not interested in further negotiations. MGA subsequently withdrew its offer.