Callaway Golf Company confirmed that it is continuing its previously announced search for a new chief executive officer. As part of that process, the Board of Directors is also conducting a full review of the strategic alternatives for the company, and is working with investment banking firm Lazard to assist in these efforts.
The company also confirmed that it has received unsolicited indications of interest from various parties from time to time. However, no firm offers have been made, no substantive discussions are currently under way, and neither the Board nor the senior management team has reached any decisions regarding the preferred strategic direction for the company. There can be no assurance that the consideration of various strategic alternatives by the Company will lead to any transaction or other action by the Company.
The L.A. Times ran a story claiming that Callaway had received a $1.2 billion buy-out offer from Thomas H. Lee Partners and insurance executive William Foley II. The paper further reported that the Callaway board had formed a special commitee to consider the offer.
Callaway's Lead Independent Director Ronald S. Beard commented, “We feel that this is an opportune time to explore a full range of strategic alternatives that could enhance shareholder value. The Board and management continue to work closely to identify our next CEO, who will be taking the reins at a time when the Company is seeing improving results reflecting the strong market acceptance of its products… We believe these terrific new products will further enhance the competitive position of Callaway Golf in the market.”
