Blackstone, Callaway May Bid For Fortune Golf Unit

Private equity firm Blackstone

and Callaway Golf

, the maker of the Big Bertha driver, are reportedly mulling a partnership to bid for Fortune Brands'

golf business. A deal could be worth up to $1 billion, Reuters reported, citing sources close to the matter. Fortune, the maker of Titeleist golf balls and clubs, has been under pressure to spin-off its golf and home products businesses to unlock shareholder value after hedge fund manager William Ackman invested in the company. Fortune's golf business had revenue of $1.24 billion and operating income of about $80.2 million last year, Reuters reported. The business also makes Footjoy golf gloves and shoes. Nike

, Addidas and other private equity firms have also been rumored to be interested in Fortune's golf unit. Fortune, which also makes Jim Beam bourbon, hired Morgan Stanley

to help it explore strategic options and could decide to spin-off the golf unit if it does not receive offers that it deems sufficient. Fortune will remain a spirits company after it divests the golf and home products businesses. Last month, Fortune said it thinks it can generate more shareholder value by spinning off the business into another public company, due to the current state of the U.S. housing market, according to Reuters. Fortune announced plans to spin-off the home products and do the same with or sell the golf unit soon after Ackman invested in the company, prompting some analysts to speculate the company was already considering those transactions. At the end of 2010, Pershing Square also held stakes in Citigroup

, Kraft

and Target

among others.