Callaway Going Private?

Sallie Hoffmeister in the L.A. Times (reg required) has the story on Callaway and the possible sale that would make it a privately held company again. Two parts of the story stood out:

Although the company has not disclosed the offer to shareholders, there were indications that Wall Street had gotten wind of the bid. After hitting a 2005 low in April of $10.78 a share, Callaway's stock has been drifting upward, closing Wednesday at $13.58, up 18 cents. Analysts said that rally could not be attributed to any changes in the company's performance or outlook. "Even the ratings for the U.S. Open were lackluster," said Dennis McAlpine of McAlpine Associates, referring to the number of TV viewers who watched the Open, won Sunday by Michael Campbell, using Callaway clubs.

Foley and Thomas Lee would take Callaway private, cut costs and try to revitalize its brands, sources say. Top Callaway executives back the idea because they believe that product quality and innovation have suffered because of the quarter-to-quarter growth demanded by Wall Street, insiders say. In their view, removing such pressures would revive the spirit of innovation that distinguished the company under its late founder.

Without clueless Wall Street analysts breathing down their back, might a privately held Callaway be more likely to take a chance on introducing a competition or classic course ball?