The Associated Press reports that Japan’s Nintendo Co. has purchased a 2.6% stake in toy maker and rival video game developer Bandai Co. Both companies reportedly deny speculation that 1.28 million shares are part of a planned takeover by Nintendo.
Nintendo and Bandai say the move is aimed at strengthening an existing business deal under which Nintendo markets games produced by Bandai.
Nintendo ranks among Bandai’s top 10 shareholders now that Mattel Inc. has sold off part of its 4%. Sources say Bandai plans to let its toy contract with Mattel run out on Dec. 31.