Japan's Tomy Co Ltd (7867.T) said it will buy U.S.-based toymaker RC2 Corp (RCRC.O) for $640 million in cash to boost its presence in North America and Europe. Tomy said it will pay $27.90 a share for the maker of toy lines such as Bob The Builder and Johnny Lightning. Shares of RC2 rose nearly 26 percent to a more than 3-year high of $27.59 on Thursday, shortly after the Nikkei business daily first reported that the companies were in merger talks, citing sources. They closed up 16 percent at $25.51 on Nasdaq, and were up another 9 percent to $27.84 in after-hours activity.
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