Callaway Golf's announcement last week that it would form a
subsidiary to make golf balls was "more than an announcement, it
was a potentially major event" for the lucrative golf industry,
according to the N.Y TIMES. Callaway's stock last week jumped
from $25.125 to $28.75 Friday, and some analysts think the stock
could continue to rise. James Sterngold writes Callaway's moves
underscored the fact that few large companies are emerging as
clear leaders in the golf equipment industry, and that a "Coke-
Pepsi type rivalry" is emerging between Callaway and American
Brands -- makers of Titleist balls and Cobra clubs (N.Y. TIMES,
5/19). Taylor Made CEO Chuck Yash has been hired as president
and CEO of the new Callaway Golf Ball Co., and will report
directly to Chair Ely Callaway. GOLF WORLD notes the big four
ball companies -- Titleist, Maxfli, Spalding and Wilson -- now
have formidable competition from a company with financial
resources and management to become a "major player" (GOLF WORLD,
5/17 issue). Candidates to replace Yash at Taylor Made include
Taylor Made VP/Marketing George Montgomery, Taylor Made VP of Ops
and Finance Philippe Barret, or Gilles Descamp, Chair of Taylor
Made's owner, Groupe Solomon (GOLFWEEK, 5/18 issue).
GOLF NEWS AND NOTES: Wall Street analysts speculate a LBO
firm, such as Kohlberg Kravis & Roberts, may make a play for
Spalding Sports Worldwide. KKR was a rumored bidder for Amer
Group, parent of Wilson and MacGregor, before it was taken off
the market (GOLF WORLD, 5/17 issue)....Industry sources say Nick
Price may be parting ways with Atrigon Golf and could have a new
club deal soon. The move could stem from Price's unwillingness
to commit the time necessary for club design (GOLFWEEK, 5/18
issue). GOLF WORLD also examines Price's 10-year, $25M deal amid
reports Atrigon has "closed its doors" (GOLF WORLD, 5/17
issue)....Reebok Golf VP John Korgan is profiled as being
"charged with reenergizing a division that is coming off one of
its worst years financially and still is recovering from its
split with the Greg Norman Collection" (GOLF WORLD, 5/17 issue).
