EGL gets higher takeover offer |
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Wed, 21 Mar 2007 22:23
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HOUSTON (AP) - Freight forwarder and logistics provider EGL Inc. has received a $40-per-share acquisition offer from Apollo Management LP, topping a $38-a-share bid by a group that includes EGL Chief Executive Jim Crane and two investment firms.Based on the company's 40.7 million shares outstanding, the deal being offered by Apollo is valued at $1.63 billion in cash.The Crane-led group originally offered $36 per share in cash for the company, but sweetened the purchase price to $38 per share, or $1.55 billion, late Monday. That represented a premium of about 9 percent over the stock's closing price Friday of $34.96.The buyers would also assume about $157 million in debt held by EGL, which is based in Houston.Apollo's offer represents a 14.4 percent premium to EGL's closing stock price Friday, and a 4 percent premium to its closing price Tuesday of $38.61 on the Nasdaq Stock Market.The company said Tuesday evening it has informed a Crane affiliate of Apollo's going-private proposal. The new offer is subject to certain conditions, including expedited due diligence.Crane's offer was made with investment companies Centerbridge Partners LP and Woodbridge Co., as well as members of senior management. Crane currently owns about 18 percent of the company's outstanding shares.EGL shares rose 60 cents, or 1.6 percent, to close at $39.21 on the Nasdaq Stock Market.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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