U.S. News

Apollo Offers $40 a Share for EGL, Topping Management Bid

Freight forwarder and logistics provider EGL has received a $40-per-share acquisition offer from Apollo Management, topping a bid by EGL Chief Executive Jim Crane and two investment firms.

The Crane-led group originally offered $36 per share in cash for the company, but sweetened the purchase price to $38 per share, or $1.7 billion, late Monday. That represented a premium of about 9% over the stock's closing price Friday of $34.96.

Apollo's offer represents a 14.4% premium to EGL's closing stock price Friday, and a 4% 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 and Woodbridge, as well as members of senior management. Crane currently owns about 18% of the company's outstanding shares.