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CEVA Logistics increases offer for EGL to $47.50, lowers break-up fee; Crane agreement still in effect
By Lisa Kerner
Charlotte, N.C., May 21 - CEVA Logistics, an Apollo Management VI, LP portfolio company, upped its bid for EGL, Inc. to $47.50 per share, from $46.00 per share.
The new offer is valued at about $2 billion and includes a reduced break-up fee payable by EGL of $20 million, compared with the current $30 million break-up fee.
The fully financed deal could close in the third quarter of 2007, CEVA said.
EGL's special committee determined that CEVA's revised definitive proposal is a superior proposal as defined in EGL's agreement with its largest shareholder, chief executive officer and chairman, James R. Crane, and affiliates including Centerbridge Partners, LP and the Woodbridge Co. Ltd.
The Crane Group's May 17 proposal offered $46.25 per share with an increased termination fee payable by EGL or the Crane Group under certain circumstances to $40 million, from $30 million.
The Crane group has sought a higher break-up fee with each increase in its offer price, according to a company news release.
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.
The current merger agreement with the Crane Group remains in effect, however, the group has until the close of business on May 23 to present a revised agreement.
CEVA Logistics (formally known as TNT Logistics) is a Hoofddorp, Netherlands-based logistics and supply chain management company.
EGL is a global transportation, supply chain management and information services company.
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