EGL Surges on Buyout Offer
Freight forwarding and logistics company EGL (EAGL) received a $36-a-share buyout offer from Chairman and CEO James Crane and private equity firm General Atlantic.
The price represents a 21% premium over EGL's closing price of $29.78 Friday. Shares of the Houston-based company recently were trading at $37.26, suggesting that investors are looking for a higher bid.
EGL said its board has formed a special committee to review the proposal, and said no decisions have been made about its response to the offer.
Crane, who currently owns 18% of EGL, said he would continue as chairman and CEO should the deal transpire. In his letter to EGL's board, Crane said he has received "highly confident" letters from funding sources regarding the ability to raise $1.125 billion of financing necessary for the deal.Crane would be the majority owner of EGL, with about a 51% stake in the company.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV