EGL chairman syndicates $51 million, converts acquisition company to limited liability company

By Lisa Kerner

Charlotte, N.C., March 28 - EGL, Inc. chairman and chief executive officer James R. Crane syndicated $51 million of the cash investment represented by his rollover equity commitment letter to Sterling Group Partners II, LP and Sterling Group Partners II (Parallel), LP under a letter agreement between the parties, according to a schedule 13D filing with the Securities and Exchange Commission.

In addition, Crane, Centerbridge Partners, LP and the Woodbridge Co. Ltd. converted Talon Holdings Corp. - the parent company of Talon Acquisition Co. - into a limited liability company on March 23.

On March 1, Crane, Centerbridge and Woodbridge proposed purchasing EGL for $38.00 per share. The company's board is also considering a March 19 alternative offer from Apollo Management LP to acquire the company for $40.00 per share, conditioned on expedited confirmatory due diligence.

EGL shareholders Admiral Advisors, LLC, an affiliate of Ramius Capital Group, LLC, responded to the news of Apollo's offer, saying it had "significant reservations" in connection with the company's purported sale process.

Ramius owns 1.18 million shares, or 2.9%, of EGL's outstanding shares.

Prior to receipt of the Apollo offer, EGL's board has approved Crane's proposed $1.7 billion transaction, which was expected to close in the second or third quarter of 2007.

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

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