EGL shareholder and chairman loses General Atlantic as equity sponsor in acquisition bid

By Lisa Kerner

Charlotte, N.C., Feb. 7 - General Atlantic LLC withdrew as an equity sponsor for James R. Crane's offer to acquire all of the outstanding equity interests in EGL, Inc. for $36 per share due to an expected shortfall in EGL's fourth-quarter 2006 results.

EGL said it expects to report ending 2006 with approximately $142 million in cash, restricted cash and short-term investments and total debt of about $170 million. The company ended 2005 with $123 million in cash, restricted cash and short-term investments and $231 million of total debt.

Crane, EGL's largest shareholder, chief executive officer and chairman of the board, notified EGL's board that he intends to seek alternative equity sources and plans to present a revised offer, according to a company news release.

Houston-based EGL is a global transportation, supply chain management and information services company.

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