Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: richardred who wrote (771)	6/24/2005 3:51:06 AM
From: richardred	Respond to of 7243

Callaway Golf Confirms It's Weighing Bids Thursday June 23, 7:57 pm ET By Elliot Spagat, AP Business Writer Callaway Golf Confirms It's Weighing Takeover Bids; Thomas H. Lee Reportedly Offers $1.2B SAN DIEGO (AP) -- Callaway Golf Co., the nation's largest manufacturer of golf clubs, said Thursday that it has received unsolicited takeover bids. The announcement followed a report in the Los Angeles Times that Callaway was weighing an all-cash, $1.2 billion offer from Thomas H. Lee Partners and insurance mogul William Foley II that would take the company private. The newspaper, citing unidentified sources close to the situation, said the offer was submitted to Callaway's board May 20. "We feel that this is an opportune time to explore a full range of strategic alternatives that could enhance shareholder value," said Ronald S. Beard, lead independent director. Callaway, which is based in Carlsbad, did not name potential suitors in a brief statement. A representative of Thomas H. Lee Partners declined to comment Thursday. The Boston-based private equity firm has $14 billion of committed capital. The maker of Big Bertha drivers said it "has received unsolicited indications of interest from various parties from time to time." It added that "no firm offers have been made, no substantive discussions are currently under way, and neither the board nor the senior management team has reached any decisions regarding the preferred strategic direction for the company." Shares of Callaway surged 14.5 percent Thursday, closing at $15.55, up $1.97, on the New York Stock Exchange. The company said it has hired New York investment bank Lazard Ltd. as an adviser. The news didn't surprise analysts who have watched Callaway shares climb steadily since April without any signs that the company was turning itself around. Callaway flooded retailers early last year with new clubs and balls that were largely unsuccessful, leaving stores with big inventories that forced the company to slash prices. In August, it installed its chairman and long-serving board member, William Baker, as chief executive. Callaway said Thursday that it continues to search for a new CEO. It was unclear if a rival suitor will emerge considering that industry growth is basically flat and Callaway has struggled to find hit products, said Dennis McAlpine, manager director of McAlpine Associates, a securities research firm in Scarsdale, N.Y. Nike Inc. has been rumored to be a potential Callaway buyer but isn't known for acquisitions, McAlpine said. Beaverton, Ore.-based Nike has its own brand of clubs, balls, golf shoes and other golf equipment. "You may have a golf addict who has a lot of money," he said. The Times reported that during a meeting Monday of a board committee formed to review the offer, Callaway's top executive team unanimously endorsed the bid. The newspaper reported that the board is said to be divided over the offer and that some members were campaigning to oust Baker as chief executive in favor of Anthony Thornley, who joined the board last year and is due to step down July 1 from his post as president of Qualcomm Inc., the San Diego-based wireless equipment company. biz.yahoo.com

To: richardred who wrote (771)	6/24/2005 12:16:57 PM
From: richardred	Respond to of 7243

Motley Fool Buying Big Bertha Friday June 24, 8:35 am ET By Rick Aristotle Munarriz Is a used set of golf clubs worth $1.2 billion? What if it came with Callaway Golf (NYSE: ELY - News) in its entirety? That's what Callaway management has to ponder. But with that buyout bid on the table, the company has decided to make things interesting. It is opening up the bidding process. Yesterday, Callaway announced that it was exploring "strategic alternatives" at this "opportune time" to "increase shareholder value." In plain speak, Callaway is merely asking if anybody is interested in topping the $1.2 billion offer. This could get interesting. Yes, the golf club, ball and apparel specialist has had it pretty rough lately. The company and its stock were trailblazers through the early 1990s when its oversized Big Bertha clubs were all the rage, but that kind of heady growth proved unsustainable. Then again, this is a great brand and a respectable business. Who will dive into the fray? Nike (NYSE: NKE - News) may be the sexy name on the suitor shortlist, but it's also the least likely. However, the killer brand could do some pretty sweet things with Callaway if it set its mind to it. It's not mere coincidence that Nike has counted on star golfer Tiger Woods to help it gain a foothold in the older golf aficionado market. Scoring Callaway would take it just that much closer to the green. Tune in to Nike's quarterly earnings conference call on Monday -- someone is bound to ask about Callaway. A more logical buyer would be a company like Fortune Brands (NYSE: FO - News), the company behind the popular Titleist golf balls and FootJoy golf shoes. It may not even a public company at all. Rival TaylorMade, or another enterprising private equity firm that feels that Callaway could be turned around and sold later at a profit, may be ready to jump into the game. But while a bidding war may sound exciting, Callaway investors need to be realistic. Even if other parties submit competitive bids, Callaway's recent shortcomings will keep the prices in check. Some other links to tee off from: * We caught up with the company's former CEO two years ago. * It's never too late to go putting for profits. * Callaway's last quarter was more shank than steak. biz.yahoo.com

To: richardred who wrote (771)	1/6/2006 1:51:16 AM
From: richardred	Read Replies (1) \| Respond to of 7243

When's Nike bringing out the Michell Wie line? Will Northbridge shop themselves to NIKE? Summit Golf Brands 'Partnering with America's Golf Professionals' Thursday January 5, 3:56 pm ET SHELTON, Ct., Jan. 5 /PRNewswire/ -- Northbridge Equity Partners ("Northbridge") has recently formed Summit Golf Brands ("Summit") as the golf industry's leading golf-focused apparel group. Summit, which owns Fairway & Greene Ltd., is also announcing the recent acquisition of EP Pro. This initial brand portfolio represents two of the golf industry's leading apparel companies and management teams. "Assembling the #1 ranked men's and the #1 ranked ladies' golf brands clearly establishes Summit as the leader in the golf apparel industry" stated Gill Broome, the President of Northbridge. In its last three annual surveys, the Association of Golf Merchandisers voted Fairway & Greene as the #1 men's apparel company and EP Pro as the #1 ladies' apparel company in the industry. This type of honor from the industry's most important buying group is a testament to the consistent efforts and contributions that both companies have made over time to the green grass golf channel. Recent sales growth at both companies underscores how these two brands are meeting the needs and expectations of the golf industry and consumers alike. By joining Summit, both Fairway & Greene and EP Pro have acquired the ability and financial strength to expand their businesses and develop new offerings and programs which will continue to respond to the changing demands of the market and the specific needs of their customers. "We are very excited to welcome Larry Mathe, CEO, and his entire EP Pro team to Summit Brands. EP has long been admired and recognized for its leadership in ladies golf apparel. With F&G's and EP PRO's singular focus on the green grass market, we are both positioned to be an even more significant partner with our golf professionals and buyers. Outstanding product quality, tremendous sell through and unmatched sales and customer service have always been hallmarks of both of these brands. The future is indeed very bright with both under Summit Brands' leadership and vision", said Todd Martin, Executive Vice-President of Fairway & Greene. "This combination allows us to maintain our individuality while gaining the strength that comes with a company comprised of the best brands in the industry, it's a win-win situation for EP Pro. Working with Todd Martin and the rest of the team at Fairway & Greene as well as the management of Summit has already proven to be extremely productive and a natural fit", according to Mathe. "Summit Golf Brands is designed to help people celebrate the great game of golf. We want our brands to play an important role in the lives of all golfers and enhance and enrich the quality of their lifestyles both on and off the course. The power and range of our brands will not only allow us to serve the industry in a unique and innovative way but it will also allow us to continue to attract some of the most talented people in the industry", stated Broome. "We have two of the best management teams in the business and their combined experience and dedication represent the foundation of our group". Broome also emphasized that, "We are very proud to be an important vendor and partner with the country's PGA golf professionals who represent the stewards, ambassadors and innovators of the golf industry. By building brands and programs that are specifically designed for golf professionals, we can play a key supporting role in their efforts to continually elevate the sport and serve their customer base." "Our commitment is that our employees at all levels, senior management team and shareholders alike who are all golf enthusiasts will continue to build the portfolio companies with respect for the game and the high standards and etiquette that the great game of golf has represented for more than 200 years. As a group and individually, we have consistently given back to the game with product support, event sponsorships and professional development. This will always be a core discipline that we feel is a small token of thanks to the game we all enjoy." Northbridge Equity Partners is a private equity firm which specializes in buyouts of brand-based consumer products businesses. Source: Northbridge Equity Partners biz.yahoo.com