Saturday, June 25, 2005

Another hit in the making - Callaway Golf

Callaway Golf (ELY) announced that it has gotten unsolicited bids from certain groups, most likely private equity firms. The offers, at around $15.5/share, amount to a 30% premium over my average buy price.

I expect more bids to emerge, given the strong brand and potentially easy turnaround ahead. Nike should go after Callaway, since if they pass this one, they will be forced to pay a much higer price if they were to buy it at a later date from the hands of a private equity group.


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