EGL's CEO, investors propose buyout |
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Wed, 28 Feb 2007 15:32
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HOUSTON (AP) - Freight forwarder and logistics provider EGL Inc.'s Chief Executive Jim Crane on Wednesday said he and two investment companies have proposed buying the company at $36 per share in cash.With about 40.9 million shares outstanding, according to the company's latest filing with the Securities and Exchange Commission, that implies a purchase price of about $1.47 billion.In January, Crane made the same offer for the company, and EGL retained Deutsche Bank Securities Inc. to help evaluate it. At that time, investment company General Atlantic LLC made the bid with Crane, but they pulled out in February.Crane is now repeating the bid with investment companies Centerbridge Partners L.P. and The Woodbridge Company Ltd., as well as members of senior management.Crane currently owns about 18 percent of shares outstanding.Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Woodbridge Company Ltd. will provide the $1.175 billion of debt financing, according to Crane.Merrill Lynch also is serving as financial advisor in connection with the offer.Company shares rose $2.13, or 6.4 percent, to $35.60 during premarket electronic trading. The stock closed at $33.47 on Tuesday on the Nasdaq.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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