Reuters reports that shares of Callaway Golf Co. (NYSE: ELY) rose 4.4 percent on Thursday after a report that the company had received a second buyout offer.
Private equity firm Bain Capital and MacGregor Golf, offered an all-cash bid of around $1.24 billion for the maker of Big Bertha golf clubs, the Los Angeles Times reported on Thursday, citing people familiar with the matter.
Shares of Callaway were up as high as 6 percent before slipping back. In late morning trade, the stock was up 66 cents, or 4.4 percent to $15.56.
In late June, the LA Times reported that the company was considering an unsolicited, all-cash $1.2 billion takeover bid from private equity firm Thomas H. Lee Partners and insurance mogul William Foley.
That reported cash offer represents $15.73 a share, or slightly less than the alleged Bain and MacGregor offer.
Callaway confirmed in late June that it received unsolicited takeover interest from outside parties.
Investment bank Lazard is helping the company explore its options. The maker of Big Bertha golf clubs struggles to regain market share from rivals adidas-Salomon’s TaylorMade Golf, whose lower-priced models have cut into Callaway’s profits.
Reuters http://today.reuters.com
Now MacGregor joins bid for Callaway
