Jana Partners this morning disclosed a 9.5% stake in Callaway Golf, which represents over 8.9M shares. The filing allows for activism. Shares of Callaway Golf are up 14%, or $2.26, to $18.15 in early trading. Jana said it acquired the shares because they believe the stock is “undervalued and represent an attractive investment opportunity.” Jana believes that, despite the success of Callaway in “driving innovation and durable market share gains in its core golf business,” other factors have caused the company to “underperform and remain undervalued.” Jana intends to have discussions with Callaway’s board and management regarding portfolio composition, strategic alternatives, including exploring a sale of the company or asset divestitures, capital allocation and acquisition strategy, as well as cost management and governance. Jana said that it may also, potentially with the assistance of other shareholders, “take other steps to increase shareholder value.”
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