American Brands completed its tender offer for all of Cobra
Golf's outstanding common stock yesterday in a deal worth $659M.
Cobra shares were acquired by American Brands' subsidiary, HCAC,
for $36 a share. Last month, American Brands Chair Thomas Hays
said the buyout of Cobra Golf will help "further enhance the
value" of the company's products. American Brands manufactures
Titleist and FootJoy products. American Brands closed unchanged
at $44.375/share. Cobra was down 1/8 at $35.75 (San Diego DAILY
TRANSCRIPT, 1/25).
CALLAWAY EARNINGS: Callaway Golf announced '95 earnings
yesterday, posting net income of $97.7M on $553.3M in net sales.
In '94, Callaway earned $78M in net income from $448.7M in net
sales (Thor Biberman, San Diego DAILY TRANSCRIPT, 1/25). "NBR's"
Paul Kangas reported that Callaway Golf closed down 2 1/2 (-
11.6%) to 19 1/8 after "the stock was downgraded from buy to
neutral" (PBS, 1/24).
NEWS FROM THE PGA MERCHANDISE SHOW: The PGA kicks off its
Merchandise Show tomorrow in Orlando, with 1,130 exhibitors
expected. Everything from equipment and apparel to booths on
travel and sports management will be exhibited. 40,000 are
expected to attend. New items: Wilson will make available a
limited edition of its 8802 putter. Masters Champ Ben Crenshaw,
U.S. Open Champ Corey Pavin and British Open Champ John Daly all
used descendants of the 8802 in their victories in '95 (Jerry
Potter, USA TODAY, 1/25).
