Oaktree Capital Management Funds sent a letter to Jakks Pacific (JAKK.O) on Tuesday, outlining its intention to buy the toymaker and take it private in a $670 million deal, after repeated rebuffs from the company since the offer was made in March.

Los Angeles-based Oaktree said it was willing to raise its offer if Jakks could demonstrate to us further value over the course of our due diligence process.

The current $20-a-share in cash offer by the fund, which holds a near 5 percent stake in the company, is at a 25 percent premium to Jakks' $16 close on Tuesday on Nasdaq.

Since the time of our initial discussions in March, macro-economic conditions have deteriorated significantly, and the company's prospects have not improved, the letter said.

Malibu, California-based Jakks, which makes products under brands like Pokemon, Hello Kitty and The Smurfs, posted a profit that topped market expectations in July, as sales rose 7 percent for the first time in two years.

The company, which competes with larger rivals Mattel Inc (MAT.O) and Hasbro Inc (HAS.O), has repeatedly rebuffed Oaktree's offer since March, the fund said in the letter.

The fund said it was prepared to take its offer directly to Jakks shareholders should the need arise.

We are left with no acceptable alternative but to make it known publicly that we are prepared to acquire, through the Oaktree Funds, all of the company's outstanding common shares, Oaktree wrote in the letter.

Jakks could not immediately be reached for comment.