According to Sallie Hofmeister and Greg Johnson of the L.A. Times (registration required), Bain Capital Inc., a Boston-based investment firm, and MacGregor Golf last week put a joint, all-cash offer on the table to purchase Callaway Golf, though spokespersons for Bain and MacGregor declined to comment. Callaway spokesman Larry Dorman said that “no substantive discussions currently are underway.”
The offer, at about $16.25/share, is slightly higher than the unsolicited, all-cash offer made in late May. Partners in that offer confirmed to Callaway last week that the funding was in place for an offer at $16/share.
Foley, a principal in the May offer, said “We’ve tried to be very patient.” He added that his team might be willing to beat $16.25/share if Callaway’s books were lacking in financial surprises. Callaway’s stock price has been hovering at $15/share since the offers became public, and were under $11/share prior to that.
The possible MacGregor buyout comes quickly on the heels of Callaway’s hiring of George Fellows as its new CEO, a hire they hope will plug the hole left by Ely Callaway’s death in 2001. Many see Fellows’ hiring as an affirmation that Callaway wishes to remain a publicly traded company. Both buyout offers would likely take Callaway private. However, according to the L.A. Times, sources say that Fellows will get a multimillion-dollar payout if Callaway’s ownership changes.
Intrigue. Mystery! Drama! Was Fellows hired to act as a pitch man and sell the company? Is MacGregor’s offer simply a publicity stunt to get their name in the papers? What does the future hold for Callaway Golf?
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