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Crane Group raises stakes in CEVA's bid for EGL with offer of $46.25 per share
By Lisa Kerner
Charlotte, N.C., May 18 - An investor group led by EGL, Inc.'s chairman and chief executive officer James R. Crane increased its bid for the company to $46.25 per share, from $38.00 per share, which is more than the $46.00-per-share offer made by CEVA Group plc on May 12.
The Crane Group's offer also increased the termination fee to $40 million, from $30 million, according to a schedule 13D filing with the Securities and Exchange Commission. As part of the revised offer, Crane entered into agreements with Centerbridge Partners, LP, the Woodbridge Co., Ltd. and Talon Management Holdings LLC to revise the allocation of any termination fee. Crane also entered into a similar agreement with Sterling Group Partners II, LP.
While EGL's board previously determined CEVA's May 12 proposal to be superior, the company's agreement with Crane Group remained in effect, a news release stated.
The Crane group, which includes Crane, Centerbridge and Woodbridge, amended its merger agreement on May 11 to $45.00 per share, from $38.00 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 planned 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.
CEVA Logistics (formally known as TNT Logistics) is a Hoofddorp, Netherlands-based logistics and supply chain management company. CEVA is owned by affiliates of Apollo Management, a New York private equity firm.
EGL is a global transportation, supply chain management and information services company.
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