STALLED TOYMAKER TALKS KEEP ANALYSTS GUESSING.

Byline: Chris Reidy The Boston Globe

With a barrage of letters from everyone from the Rhode Island attorney general to moviemaker Steven Spielberg, Hasbro Inc. and Mattel Inc. continued their toy land war of words over Mattel's proposal to buy Hasbro for $5.2 billion.

The chairmen of the two companies exchanged snippy letters Tuesday, basically reiterating their positions.

And the attorneys general of Rhode Island and Connecticut said they planned to review antitrust concerns about the proposed acquisition of Pawtucket, R.I.-based Hasbro.

The actions left industry analysts uncertain about the deal.

It seemed, some hinted, that Mattel might be nearing a point where it might either have to adopt more aggressive tactics or walk away from the proposed friendly acquisition.

Meanwhile, Mattel's John Amerman on Tuesday called on Hasbro's Alan Hassenfeld to resume takeover talks.

And again Hassenfeld rebuffed the Mattel offer, citing antitrust concerns that Amerman pooh-poohed.

"It appears Hasbro is trying to build a political fortress," said Smith Barney analyst Jill Krutick, noting the letters from two state attorneys general as well as letters that Rhode Island's congressional delegation sent to federal antitrust regulators last week.

"By poisoning the antitrust well, Hasbro is making it increasingly difficult to move back to a friendly negotiated deal," she added.

Not to be outdone in the cards and letters department, the executives of DreamWorks SKG - Steven Spielberg, Jeffrey Katzenberg and David Geffen - fired off a missive to Hasbro, encouraging it to remain "independent." The executives of the new studio, which intends to market Hasbro toys and games based on characters in its films, said they support Hasbro's attempts to fend off Mattel.