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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (760)	6/23/2005 1:43:35 PM
From: richardred	Read Replies (3) \| Respond to of 7243

Would NKE be interested in bidding? Solid brand name maybe just needing a Tiger endorsing. Callaway gains on takeover bid report By Dan Burrows, MarketWatch Last Update: 12:19 PM ET June 23, 2005 NEW YORK (MarketWatch) -- Shares of Callaway Golf Co. rallied Thursday after a published report said the golf-club manufacturer is mulling a $1.2 billion cash buyout offer. The Los Angeles Times reported private equity firm Thomas H. Lee Partners and insurance mogul William Foley II are pursuing a $15.73-a-share deal for the manufacturer of golf clubs and balls (ELY: news, chart, profile) . Callaway, of Carlsbad, Calif., at one point saw its shares hit a 52-week high of $15.55. They traded lately at $15.37, up $1.79, or 13.2%. At a meeting held Monday, Callaway's board formed a committee to review the unsolicited offer, the Los Angeles Times report said, citing people close to the situation. A Callaway spokeswoman said the company doesn't comment on rumors. Chairman William Baker, who has been serving as chief executive since a management shakeup in August, is said to be a key supporter of the deal. But the board is divided over the offer, with some directors campaigning to depose Baker and install board member Anthony Thornley in his place, the newspaper reported. J.P. Morgan analyst Michael Fox said that it's difficult to determine the validity of the reports but that he wouldn't be surprised at management support for a deal if the offer is legitimate. At the same time, he cautioned clients on not getting carried away. "We would not chase the stock higher today as we do not anticipate a competitive bid," the analyst said in a note to clients. Thomas H. Lee Partners, of Boston, has about $12 billion in capital under management. Foley is chairman and CEO of Jacksonville, Fla.-based Fidelity National Financial Inc. (FNF: news, chart, profile) , the largest U.S. title insurance company by revenue. marketwatch.com