Callaway's Dreary Sales News Offset By Rumor Of Joint Acushnet Push As Final Bids Are Due
/Miracles do happen! And on a Friday of a dreadful earnings report to boot. Thank God Wall Street is above the Friday news dump shenanigans we see from politicians.
Blackstone Group LP (BX.N) is teaming up with Callaway Golf Co (ELY.N) for a possible bid for Fortune Brands Inc's (FO.N) golf business, two sources familiar with the matter said.
A deal could be worth up to $1 billion, one of those sources said. Final bids for the auction, which has attracted interest from Asian bidders, are due on May 9, that source added.
Meanwhile, they freed up some cash by selling three Carlsbad buildings to help pay the fees of two Blackstone junior associates working on the purported bid, reports Pat Maio.
The buildings were sold in March but leased back as part of the company's global plan to reduce more than $84 million in expenses since it launched a cost savings program five years ago.
George Fellows, president and chief executive officer of Callaway, and Brad Holiday, chief financial officer, said in an interview that the golf equipment maker still has $35 million to $40 million left to shave in expenses by 2013.
"It doesn't stop there," Fellows said. "You always look to further improve the value of the company."
Thought I'd get through this without a v-word dropping. Oh well.
Now, I don't know a lot about business, but why would a successful private equity firm team with a fledgling golf company want to buy a successful golf company? Please, help me here?
