EGL: CEVA offer superior to Crane proposal

By Lisa Kerner

Charlotte, N.C., May 7 - EGL, Inc.'s special committee determined deemed CEVA Group plc's definitive proposal superior and gave James R. Crane, EGL's largest shareholder, chief executive officer and chairman of the board, along with affiliates of Centerbridge Partners, LP and The Woodbridge Co. Ltd, until May 11 to amend their agreement, which currently remains in effect.

CEVA, owned by affiliates of Apollo Management, LP, proposes acquiring EGL in a merger valued at $1.8 billion, or $43.00 per share in cash, a company news release stated.

The current agreement with the Crane group, which includes a $30 million termination fee, gives EGL shareholders $38.00 per share in a cash transaction valued at $1.7 billion.

CEVA said its bid is a fully financed bid and expects to close the transaction this summer, according to a company news release. In addition, CEVA plans to keep EGL's headquarters in Houston and to use EGL's operations as a complementary base to expand CEVA's scale and product offerings globally.

Crane's group planned to finance its deal using a combination of investor equity and debt financing of $1.175 billion provided by Woodbridge and by affiliates of Merrill Lynch, Pierce, Fenner & Smith Inc. and Wachovia Corp.

CEVA Logistics (formally known as TNT Logistics) is a Hoofddorp, Netherlands-based logistics and supply chain management company.

Apollo Management is a private equity firm based in New York.

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

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