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UPDATE 1-Hasbro makes takeover offer for Mattel - WSJ

(Adds details from WSJ report, Hasbro response, background)

Nov 10 (Reuters) - U.S. toymaker Hasbro Inc has made a takeover approach for rival Mattel Inc, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Hasbro's approach was made recently, the WSJ said, citing one person. The terms of a potential deal could not be learned, the newspaper said. (http://on.wsj.com/2yPm6PV)

Hasbro, the maker of Disney Princess dolls and Star Wars action figures, declined to comment on the report. Mattel was not immediately available for comment.

Mattel, the maker of Barbie and Hot Wheels, has been struggling to boost sales. Last month the company suspended its dividend and warned it would miss forecasts for revenue this year.

Both toymakers have been struggling with waning demand and the recent bankruptcy of Toys'R'Us, a major outlet for toy sales.

Mattel's shares jumped 20 percent in after hours trading, while Hasbro rose 2.2 percent.

The two companies had a combined market capitalization of about $16 billion as of Friday's close. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)