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EGL: Increased offer from CEVA superior to new offer from Crane and affiliates
By Lisa Kerner
Charlotte, N.C., May 14 - EGL, Inc.'s special committee determined that a revised proposal received from the CEVA Group plc on May 12 is a superior proposal; however, the current merger agreement with the Crane group remains in effect.
On May 12, CEVA increased its proposal to $46 per share cash, or approximately $1.95 billion, up from $43 per share, according to a company news release.
The current agreement with the Crane group, which includes a $30 million termination fee, gives EGL shareholders $38 per share in a cash transaction valued at $1.7 billion.
The Crane group, which includes company chief executive officer and chairman of the board James R. Crane, Centerbridge Partners, LP and the Woodbridge Co., Ltd., amended its merger agreement on May 11 to $45 per share, from $38 per share.
CEVA said its bid is fully financed through commitments from financial institutions and that it expects to close the transaction this summer.
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 plans to finance its deal using a combination of investor equity and debt financing provided by Woodbridge and by affiliates of Merrill Lynch, Pierce, Fenner & Smith Inc. and Wachovia Corp.
On May 7, EGL announced that CEVA's prior offer was superior to the prior offer by Crane's group and gave Crane and his affiliate until May 11 to submit a new proposal.
EGL is a global transportation, supply chain management and information services company.
CEVA Logistics (formally known as TNT Logistics) is a Hoofddorp, Netherlands-based logistics and supply chain management company.
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